Future Retail asks SEBI to approve Reliance Retail deal

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By Ashish Mitra --
Tuesday, 29 Dec, 2020

Facing lot many hurdles in the approval of a deal with Reliance Industries Ltd, Future Retail Ltd has asked Securities and Exchange Board of India (SEBI) to approve it citing a Delhi High Court ruling.

Incidentally, the Delhi HC recently said that the Kishore-Biyani-led Future Group's deal to merge listed companies with Reliance Industries was valid. In view of this, Future wrote a letter to SEBI saying delay in approval of the proposed deal will lead to financial loss to stakeholders of Future Retail.

"Any further delay on this count would cause irreparable loss not only to FRL and its stakeholders including lakhs of small investors but also to other entities and their respective stakeholders & investors, who are involved in the scheme," the Future Retail's letter has said.

In October last, Amazon had written to SEBI, Stock Exchanges and Competition Commission requesting them to take into consideration the Singapore arbitrator's interim judgement on October 25 which barred FRL from taking any step to dispose of or encumber its assets, or issue securities, to secure any funding from a restricted party.

Future Retail then filed an urgent caveat petition before the Delhi High Court. In its plea, the Kishore Biyani-led company requested to be heard in anticipation that Amazon may move Indian courts to enforce the interim arbitration award in its favour.

This month, the Delhi HC rejected the plea of Future Retail for an interim injunction restricting Amazon from approaching statutory authorities, SEBI, Competition Commission and other regulators about the arbitral order against its asset sale to RIL.

Future Retail asks SEBI to approve Reliance Retail deal. Facing lot many hurdles in the approval of a deal with Reliance Industries Ltd, Future Retail Ltd has asked Securities and Exchange Board of India (SEBI) to approve it citing a Delhi High Court ruling.

Incidentally, the Delhi HC recently said that the Kishore-Biyani-led Future Group's deal to merge listed companies with Reliance Industries was valid. In view of this, Future wrote a letter to SEBI saying delay in approval of the proposed deal will lead to financial loss to stakeholders of Future Retail.

"Any further delay on this count would cause irreparable loss not only to FRL and its stakeholders including lakhs of small investors but also to other entities and their respective stakeholders & investors, who are involved in the scheme," the Future Retail's letter has said.

In October last, Amazon had written to SEBI, Stock Exchanges and Competition Commission requesting them to take into consideration the Singapore arbitrator's interim judgement on October 25 which barred FRL from taking any step to dispose of or encumber its assets, or issue securities, to secure any funding from a restricted party.

Future Retail then filed an urgent caveat petition before the Delhi High Court. In its plea, the Kishore Biyani-led company requested to be heard in anticipation that Amazon may move Indian courts to enforce the interim arbitration award in its favour.

This month, the Delhi HC rejected the plea of Future Retail for an interim injunction restricting Amazon from approaching statutory authorities, SEBI, Competition Commission and other regulators about the arbitral order against its asset sale to RIL.