Advertisement

Updated August 31st, 2021 at 11:36 IST

Amazon urges SEBI to withdraw conditional nod to Future-RRVL deal; cites SC ruling

The Indian Stock Exchange in its observation letter issued on January 20, 2021, stated that it has no adverse observation, to which Amazon seeks withdrawal.

Reported by: Nikita Bishay
Amazon
Credits: Shutterstock/Unsplash | Image:self
Advertisement

American e-commerce company Amazon in its recent letter to SEBI has requested for the withdrawal of the "observation letter" related to the proposed Future-Reliance deal worth Rs 24,713 crore. The company has also urged for necessary actions to comply with the recent decision of the Supreme Court in the matter.

Amazon writes a letter to SEBI

In its letter dated August 17, Amazon.com NV Investment Holdings LLC stated that the Supreme Court in its August 6, 2021 decision, ruled that the Singapore Emergency Arbitrator (EA) order, in this case, is an "order" and carried out in accordance with Article 17 (1) of the Arbitration and Conciliation Law (A&C). 

This means the arbitration order can be executed in accordance with the provisions of Article 17 (2) of the law. 

As stated by PTI, the letter reads, "In accordance with the instructions contained in the enforcement judgment and EA's order upheld by the Supreme Court, Amazon requires that you take all necessary actions to comply with the Supreme Court's judgment and further ensure that no communication that is inconsistent with the Supreme Court ruling exists or is sent."

Further, the letter requested for instructing the Indian stock exchange for withdrawing the observation letter. 

Earlier in January 2021, SEBI, together with some riders, approved the Future Group’s scheme of arrangement and sale of assets to Reliance. On this basis, BSE granted it a “Non-Adverse Observation” report of Rs 24,713 crore. 

Indian Stock Exchange's observation letter

The Indian Stock Exchange in its observation letter issued on January 20, 2021, stated that it has no adverse observation with limited reference to those matters having a bearing on the requirements within the provisions of the Listing Agreement. 

Meanwhile, in August 2020, Reliance Retail Ventures Ltd had said about acquiring the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713. On the other hand, the deal was contested by Amazon, an investor in Future Coupons that in turn is a shareholder in Future Retail Ltd. In August 2019, Amazon had agreed to purchase 49 per cent of one of Future's unlisted firms, Future Coupons Ltd. 

(With PTI inputs)

(Image: Shutterstock/Unsplash)

Advertisement

Published August 31st, 2021 at 11:36 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Whatsapp logo