The potential transaction between the two companies is proposed to create a leading telecom service provider group, aligning Bharti's market-leading Indian business with MTN's growing African and Middle Eastern operations.

MTN's biggest shareholder, with 21 percent, is the Public Investment Corp, a pension fund owned by the South African government.

The country's treasury and banking officials are supposed to meet Indian government officials Tuesday to discuss foreign exchange control implications of the planned tie-up between MTN and Bharti Airtel.

One of the major contentions in the talks is the dual listing demand made by the South African government to India's finance ministry.