Bharti Airtel shares came off early highs after National Securities Depository (NSDL) which increased telecom operators’ foreign ownership limits (FOL) to 100% from 49% on Wednesday morning later clarified that Bharti’s foreign investment limit for the time being will be monitored at 49%.

Shares of telecom operator Bharti Airtel rallied as much as 12% to Rs 487 on Wednesday after NSDL increased FOL limit to 100%. Bharti stock is currently trading at Rs 454, up 5%.

“Bharti Airtel Limited has received approval for an increase in foreign investment up to 100%. The said approval is subject to certain conditions which are in the process complied with and the overall foreign investment limit for the time being, shall be monitored at 49%”, NSDL said.

The increase in FOL limits would double Bharti’s weight in MSCI India index from the current 1.92%.

The current Foreign Inclusion Factor (FIF) is 0.23 which will increase to 0.43 if NSDL increase FOL limits to 100%. Assuming that the MSCI benchmarked index makes around $35 billion, it would imply a buying of 64.9 million shares worth over Rs 3,000 crore, said analysts.

MSCI in August has reduced Bharti Airtel weight from 3.68% to 1.92% citing no clarity on the effective date of change in its foreign investment limit, a move which has led to massive sell-off in Bharti shares. As per analysts estimates, foreign investors have cut exposure to the stock by nearly Rs 3,800 crore in September.

Shares of Bharti fell almost 24% from a high of Rs 550 to Rs 419 within a month of MSCI announcement in August.

“As per National Securities Depository (NSDL), the FOL applicable to Bharti Airtel is 49% under the automatic route. Considering the current FOL of 49% , the foreign room, reflecting all foreign shareholdings, falls in the range of 7.5% to 15%. Hence, Bharti Airtel’s weight will be reduced from 3.68% to 1.92% in MSCI India Index”, MSCI said in a note in August.

MSCI said it is aware of the government approval to increase the FOL of Bharti Airtel to 100% announced at the beginning of 2020. However, MSCI is not aware of any public information on the potential effective date of this change, it stated.

Bharti Airtel on Tuesday said its consolidated net loss for the quarter ended September narrowed to Rs 763 crore, from Rs 23,405 crore a year ago. The telecom major’s revenue from operations rose 22 per cent to Rs 25,785 crore from 21,131 crore a year ago. The better revenue growth was driven by higher tariffs and a rise in data usage from a coronavirus-fuelled shift to remote working.