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The aggregate shareholding of Bharti Airtel and Nettle Infra Investments in Bharti Infratel has increased to 41.66%reuters (MINT_PRINT)
The aggregate shareholding of Bharti Airtel and Nettle Infra Investments in Bharti Infratel has increased to 41.66%reuters (MINT_PRINT)

MSCI to raise weight of Bharti Airtel in Feb quarterly index review

NSDL had on 12 Jan updated the foreign investment limit for Bharti Airtel from 49% to 100%

Mumbai: MSCI Global Standard Indexes will increase the weight of telecom operator Bharti Airtel stock in its February 2021quarterly review.

National Securities Depository Ltd (NSDL) had on 12 January updated the foreign investment limit for Bharti Airtel from 49% to 100%.

After this development, the proforma foreign ownership limit (FOL) and upward movement of the adjustment factor due to foreign room will be implemented as part of the upcoming February 2021 Quarterly Index Review (QIR), according to a statement by MSCI on Thursday.

"The proforma Foreign Inclusion factor (FIF) will be announced along with the scheduled February 2021 QIR announcement, on 9 February, 2021. All changes will be implemented as of the close of 26 February, 2021 (effective 1 March, 2021)," the index provider added.

MSCI reviews FOL and foreign room until the price cutoff date on a quarterly basis.

In January 2020, Bharti Airtel Ltd received approval from the department of telecommunications (DoT) to increase foreign direct investment (FDI) limit to 100% in its downstream companies with immediate effect.

In August 2020, MSCI Emerging Market Index reduced the weightage of Bharti Airtel’s stock by 15 basis points, which sparked speculation in the market that the world’s biggest index compiler may have made a mistake.

MSCI’s weightage review in August was based on available public data that states foreign ownership through automatic route is 49% for Bharti Airtel, and it will remain at this level until the company complies with the conditions.

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