There is almost a consensus among brokerages that there will be a relief rally post the deal has been called off. This is basically because telecom sector and Bharti itself – the stock has underperformed in the market in last four-five months when the talks of deal were going on.

In a latest development, learnt from sources that the South African treasury insisted on a parallel listing via the trust route. Such parallel listing would see two trusts being listed, one in India and one in South Africa. Both trusts would mirror a share swap deal. Sources indicated that such parallel listing would have been compliant with existing Indian laws and that capital account convertibility would not arise.

Sources further said that Sebi’s recent decision on ADR/GDR did not impact the dea and the deal needed the South African Court approval. The deal fell through because of South Africa’s political compulsions, the sources added.

The fate of the unsuccessful Bharti-MTN deal was sealed by the South African government’s treasury as much as three weeks back, according to sources. CNBC-TV18 now learns that the treasury wrote to MTN Phuthuma Nhleko on September 11 insisting that for the deal to go through, the potential merged company should remain domiciled in South Africa and should be listed in both companies, something that was not a possibility under existing Indian laws.