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Shares of Bharti Airtel and Vodafone Idea Friday surged up to 10 per cent a day after TDSAT has struck down TRAI’s new rules on predatory pricing saying they lacked required transparency.
Intraday, shares of Bharti Airtel increased 9.97 per cent to Rs 332.9, while Vodafone Idea gained 8.02 per cent to Rs 37.7 on the BSE. Similar movement was seen on the NSE, wherein Bharti Airtel climbed 9.99 per cent to Rs 333.4, and Vodafone Idea advanced 8.02 per cent to Rs 37.7.
On Thursday, the Telecom Disputes Settlement Appellate Tribunal had set aside the Telecom Regulatory Authority of India's new norms on predatory pricing for lack of transparency in the guidelines over determining market share and rates of services.
The order provides the much-needed relief to operators such as Bharti Airtel and Vodafone Idea who had alleged that the rules were tailored for a new entrant.
TDSAT judgment comes as a major relief to Bharti Airtel and Vodafone Idea which had in March challenged the amendment made by TRAI to the telecommunication tariff order. TDSAT has ordered TRAI to rework the predatory pricing rule within six months.
It has also set aside a rule in TRAI predatory pricing regulation that required top telcos to report all tariffs in the interests of transparency and non-discrimination.
Bharti Airtel and Vodafone Idea posted biggest intraday percentage gains since November 16. S&P BSE Telecom index was up 5 per cent.
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