SEBI looks for clarity on BSE nod to Future, Reliance agreement

    The BSE’s alacrity has been questioned by the Regulator of Market for clearing the share capital reorganization of Future Group firms, as part of 3.5 billion accessions by Reliance Industries Ltd, even though four unresolved complaints against the deal comprising one by Amazon.com Inc.

    Notification of 27 November:
    • This notification was issued by the Securities and Exchange Board of India.
    • This notification sought the explanation from BSE which is the oldest exchange of
    country’s which gave no objection certificate.
    • There was no objection certificate to the Future Group Companies on 6 November.
    • The Future’s Group scheme has not been cleared by the Rival National Stock Exchange.

    The four complaints have been registered against the Future Group Companies and RIL deal also. These complaints have been registered under the SEBI’s Scores mechanism. The clarification has been sought by the regulator from the designated exchanges on these unresolved complaints. The individual who was aware of the case said that on condition of anonymity. There was a complaint against the publicly traded firms and the intermediaries were registered through the online scores platform.

    Decline to comments on Matter:
    • The spokespersons for BSE and NSE declined to comment on the matter.
    • There was the citing of the sensitivity of the issue.
    • The written letter has been passed by Amazon to the SEBI’s and the Stock’s exchanges.
    • There was an urge for regulators not clearing the deal since the Singapore International Arbitration Centre’s interim Award would disregard.
    • It has blocked the Future Group from selling any of the benefits or it may take any step against it until the Final Judgement is announced by the Court of Arbitration.

    Amazon asserted:
    According to Amazon, the Future Group has deceived the public investors with false information and breached corporate governance norms. There have been allegations that have been denied by the Indian Firm. The SEBI has been told by Amazon that if the RIL Future deal gets approved by the regulator then, only SIAC will get disrespect but also detrimental to the interest of public shareholders and no motivation will be there for foreign companies from the alliances of forging with the local firms. A counter lawsuit has been filed against Amazon in Delhi High Court to stop the blocking of the deal.

    List of Six Future Group Firms:
    • Future Consumer Ltd
    • Future Enterprises Ltd
    • Future Market Networks Ltd
    • Future Lifestyle Fashions Ltd
    • Future Supply Chain Solutions Ltd
    • Future retail
    Amazon claimed that the year 2019 stake agreement of purchase with an unlisted Group of Future company bars the latter from selling a stake in Future Retail without its assent.
    But Lockdown caused a crisis at Future Group and forcing it to enter into the agreement with RIL for selling its retail. This deal was announced on 29 August.