New Delhi, April 3 -- The Securities and Exchange Board of India (Sebi) has exempted the government from making an open offer following its acquisition of a significant stake in indebted telecom operator Vodafone Idea Ltd (Vi).

This decision by the market regulator, taken in the "larger public interest", comes after the government approved the conversion of Rs.36,950 crore in outstanding spectrum auction dues into equity in the company.

The conversion will result in the government acquiring 36.95 billion new equity shares in Vi, increasing its holding from the existing 22.60% to 48.99%.

The promoter and promoter group (excluding the government) will see their holding dilute to 25.57%, while other public shareholders will hold the remai...