Industrialist Anil Ambani-led Reliance Communications on Monday said it has entered into exclusive talks with the Russia-based Sistema for a potential merger of its Indian arm through a stock swap.

"The discussions are indicative and non-binding in nature, and remain subject to due diligence, definitive documentation and approvals, as may be necessary. There is no certainty that any transaction will result," the company said in a filing with stock exchanges.

While Reliance Communications claims a subscriber base of more than 118 million in voice and data market with a pan-India presence, Sistema Shyam TeleServices, the Indian arm of the Russian group, claims 10 million across nine circles under the MTS brand. 

Both are major players in the CDMA segment.