Sebi Demands Response from BSE on Future Deal's Approval

Sebi questions BSE in clearing the share capital reorganization of Future Group firms, as a part of a $3.5 billion acquisition by Reliance Industries Ltd (RIL), in spite of four unresolved complaints against the deal, that includes the one filed by Amazon as well.
Sources close to the company say, “There are four complaints against Future Group companies and the (RIL) deal, which are registered under Sebi’s Scores mechanism. The regulator has sought clarification from the designated exchanges on these unresolved complaints."

However, the investors have complaints against publicly traded firms and intermediaries are registered through the Scores online platform.

Amazon has said that Future Group has misled public investors through false information and breached corporate governance norms, allegations that have been denied by the Indian firm. Amazon has told Sebi that if the regulator approves the RIL-Future deal, it will not only mean disrespect for the SIAC but will also be detrimental to the interest of public shareholders and discourage foreign companies from forging alliances with local firms.

eCommerce giant Amazon has written two letters to Sebi and the stock exchanges, pushing the regulators not to clear the deal since it would disregard the Singapore International Arbitration Centre’s (SIAC) interim award, which has blocked Future Group from selling any assets or taking any step in this direction until a final verdict is pronounced by the arbitration court.

Six Future Group firms—Future Consumer Ltd, Future Enterprises Ltd, Future Market Networks Ltd, Future Lifestyle Fashions Ltd, Future Supply Chain Solutions Ltd and Future Retail—submitted their draft schemes of arrangement on 7 October to BSE, as the Kishore Biyani-led Future Group moved to consummate the ₹24,713 crore asset sale agreement with Reliance Industries.

But the pandemic-induced lockdown triggered a crisis at the Future Group, forcing it to enter into an agreement with Reliance Industries to sell its retail, wholesale and logistics assets. The deal was announced on 29 August.

Future Group and Amazon have been since blaming each other on various counts with regard to the legitimacy of the sale.Future’s contention is that Future Retail and Future Coupons are separate companies and that Amazon should not interfere in the deal with Reliance Industries.