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Money News

Future says it communicated with Reliance on arbitration order for "legitimate purpose"

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NEW DELHI (Reuters) - India’s Future Retail Ltd communicated with Reliance Industries on an arbitration order related to its dispute with Amazon.com Inc 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 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 U.S. 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 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 Industries, which is led by Asia’s richest man, Mukesh Ambani.

Reporting by Aditya Kalra in New Delhi; Editing by Euan Rocha

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