Capital market regulator SEBI has approved plans to sell its assets to Reliance by Future Group. After the approval of SEBI, Bombay Stock Exchange (BSE) has also approved the deal worth Rs 24,173 crore of Future Group and Reliance. Amazon wrote several letters to SEBI and other regulatory agencies regarding this deal. Amazon had appealed to SEBI and other regulatory agencies on the basis of the matter being in the Delhi High Court to suspend their review of the deal and not issue a No Objection Certificate (NOC).
The deal between Future Group and Reliance has been approved by the Securities and Exchange Board of India (SEBI) after five months with some conditions. The deal was announced in August 2020 last year.
SEBI’s approval depends on the decision of the legal case
BSE has said that the approval of SEBI on this deal will depend on the decision of Delhi High Court and Arbitration Proceedings. SEBI has said that legal cases are going on against the business deal between Future Group and Reliance. In such a situation, BSE has told Future Group that the approval of SEBI will depend on the decision of the case going against it.
This is the whole case
In August 2019, Amazon agreed to buy a 49 percent stake in Future’s unlisted firm Future Coupons Limited. Under this agreement, Amazon had the purchase rights of the flagship Future Retail within three to 10 years. Future Coupons holds a 7.3 per cent stake in BSE-listed Future Retail which operates supermarkets and hypermarkets such as Bij Bazaar through convertible warrants. On the deal with Reliance, Amazon has filed a petition against Future Group against the Singapore International Arbitration Center (SIAC) alleging that Future Group has violated the contract with its rival Reliance by entering into a business deal with it. Last year in October 2020, SIAC ruled in favor of Amazon. After this, the Future Group moved the Delhi High Court.