Amazon accuses Future of insider trading in RIL deal
New Delhi, November 11
Amazon.com Inc has asked India’s market regulator to investigate Future Retail Ltd for insider trading, as it seeks to prevent its business partner from becoming part of rival Reliance’s empire.
The US giant has been pressing the SEBI to review Reliance’s deal to buy retail, logistics and other assets from Future Group for $3.4 billion.
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 Industries.
‘Disclosed price-sensitive details’
- The US giant has been pressing the SEBI to review Reliance’s August deal to buy retail, logistics and other assets from Future Group for $3.4 billion, 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 Industries
- The November 8 letter to SEBI alleges Future Retail disclosed to Reliance price-sensitive details of an injunction granted by a Singapore arbitrator to block the deal
The November 8 letter to SEBI alleges Future Retail disclosed to Reliance price-sensitive details of an injunction granted by a Singapore arbitrator to block the deal.
The spat is being closely watched as a key test of whether Indian firms, courts and regulators will respect arbitration decisions made in accordance with overseas arbitration rules. — Reuters
