India’s Future Retail communicated with Reliance on an arbitration order related to its dispute with Amazon for a “legitimate purpose”, the company said on Wednesday.
The comments come after Reuters earlier in the day reported Amazon had asked the Securities and Exchange Board of India (SEBI) to investigate Future for insider trading, alleging the Indian firm disclosed to Reliance price sensitive details of an injunction granted by a Singapore arbitrator to block its $3.4 billion (roughly Rs. 25,300 crores) deal with Reliance.
“Proprietary and legality demands that in such an event, the counterparty is informed about the development … SEBI Regulations too are quite clear on this,” the company said in a statement.
Amazon needs a “tutorial on the law on insider trading,” the company added.
The US e-commerce giant has been urging SEBI to review Reliance’s August deal to buy retail, logistics and other assets from Future Group for $3.4 billion (roughly Rs. 25,300 crores) including debt.
Amazon argues it had a 2019 agreement with Future which prevented the Indian group’s retail assets from being sold to certain parties including Reliance, which is led by Asia’s richest man, Mukesh Ambani.
© Thomson Reuters 2020
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