Shares of Reliance Communications Wednesday plunged up to 10 per cent after media reports suggested that department of telecom rejected the deal to trade airwaves between the Anil Ambani-led company and Reliance Jio.
Shares of Reliance Communications (RCom) dropped 9.63 per cent to close at Rs 14.26 on the BSE. During the intra-day trade, it tumbled 12.73 per cent and touched a low of Rs 13.77.
On NSE, the scrip fell 9.52 per cent to settle at Rs 14.25 before touching a low of Rs 13.65 during the trading session.
As per media reports, department of telecom (DoT) said that it cannot approve the deal involving Reliance Jio and RCom to trade airwaves as it does not conform to its guidelines.
Last week, Mukesh Ambani-led Jio had sought assurance from DoT to not be held liable for RCom's past dues related to airwaves.
DoT said that it cannot accept the deal as it is not in accordance with the government's spectrum trading provisions.
Under the spectrum trading rules, the buyer is liable for dues that have not been recovered from the seller.
Last year, debt-laden RCom signed a deal with Reliance Jio for sale of wireless spectrum, tower, fibre and media convergence nodes assets as part of strategic debt restructure to pay back lenders.
(With inputs from agencies.)