Future Retail Fined for Disclosure Lapses in Amazon Arbitration Ruling
The Securities and Exchange Board of India (Sebi) has fined Future Retail Ltd Rs 10 lakh for late and insufficient disclosure regarding an interim order passed by the Singapore International Arbitration Centre (SIAC) favoring Amazon in a dispute over the company's merger with Mukesh Ambani's group.
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The Securities and Exchange Board of India (Sebi) has imposed a Rs 10 lakh fine on Future Retail Ltd due to lapses in disclosure related to an interim order by the Singapore International Arbitration Centre (SIAC). The interim order involved a legal dispute with Amazon concerning Future's merger talks with Mukesh Ambani's conglomerate.
The regulatory scrutiny was initiated following Amazon's concerns over an agreement between Future Group and Ambani's enterprise. Future Retail reportedly delayed the announcement regarding arbitration proceedings, violating the Listing Obligations and Disclosure Requirements (LODR) norms requiring information disclosure within 24 hours.
Amazon's arbitration at SIAC resulted in an order halting any progress in Future's merger until further details were released. Future Retail's lack of timely and adequate disclosure led Sebi to levy the fine. The legal tussle is rooted in Future's proposed Rs 24,713 crore asset sale to Reliance Industries Ltd, opposed by Amazon.
(With inputs from agencies.)
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