Future Retail Says It Communicated With Reliance on Arbitration Order for ‘Legitimate Purpose’

Amazon had asked the Securities and Exchange Board of India (SEBI) to investigate Future Retail for insider trading.

By Reuters | Updated: 12 November 2020 11:29 IST

Future Retail Says It Communicated With Reliance on Arbitration Order for ‘Legitimate Purpose’

Amazon has been urging SEBI to review Reliance's August deal to buy assets from Future Group

Highlights

Amazon argues it had a 2019 agreement with Future Group
The agreement prevented Future's retail asset from being sold to Reliance
Amazon needs a "tutorial on the law on insider trading," Future said

India's Future Retail communicated with Reliance on an arbitration order related to its dispute with Amazon for a "legitimate purpose", the company said on Wednesday.

The comments come after Reuters earlier in the day reported Amazon had asked the Securities and Exchange Board of India (SEBI) to investigate Future for insider trading, alleging the Indian firm disclosed to Reliance price sensitive details of an injunction granted by a Singapore arbitrator to block its $3.4 billion (roughly Rs. 25,300 crores) deal with Reliance.

"Proprietary and legality demands that in such an event, the counterparty is informed about the development ... SEBI Regulations too are quite clear on this," the company said in a statement.

Amazon Accuses Future of Insider Trading in Bid to Block Reliance Deal

Amazon needs a "tutorial on the law on insider trading," the company added.

The US e-commerce giant has been urging SEBI to review Reliance's August deal to buy retail, logistics and other assets from Future Group for $3.4 billion (roughly Rs. 25,300 crores) including debt.

Amazon argues it had a 2019 agreement with Future which prevented the Indian group's retail assets from being sold to certain parties including Reliance, which is led by Asia's richest man, Mukesh Ambani.

Amazon to Reply on Future Retail’s Reliance Deal Plea: Delhi High Court

© Thomson Reuters 2020

Which is the best TV under Rs. 25,000? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.