Emails reviewed by Reuters showed that the National Stock Exchange of India (NSE) privately warned Future Retail that it might fail to disclose in a timely manner Amazon.com’s efforts to prevent the sale of disputed assets due to actions taken by regulators. market information.
As one of the country’s largest retailers, Future Retail has been arguing with Amazon over the US$3.4 billion (approximately 25,300 crore) retail assets reached with Reliance. Amazon is a business partner of the future company and believes that the sale of the Indian company’s assets violates some of their previous agreements.
Amazon once filed a complaint with the stock exchange, accusing Mirae Group of misleading the public by erroneously disclosing market information, but the group denied this accusation.
The complaint came after Amazon won the arbitrator’s injunction on October 25 and suspended the future trust agreement.
The previously unexchanged emails between NSE and Future indicate that the stock exchange has repeatedly asked the company to submit more detailed information about the arbitration order in order to seek detailed information that may have an impact on finances, lenders and Reliance transactions.
On October 27, NSE asked Future why it did not disclose the start time of the arbitration proceedings and did not share the impact of the order. A future response stated that it believed that disclosure was not required.
NSE’s listing compliance department rejected this statement. The email indicated that it required a series of disclosures within a few hours, “if appropriate action is not taken.”
The communication shows that Virendra Samani, the secretary of the Future Retail Company, answered most of the NSE’s questions in an email late on October 30th, saying that this is “in the best interests of all stakeholders.” “.
Two days later, Future published a six-page exchange document, many of which were made public under the direction of the NSE.
Prior to this, Future had only submitted a disclosure on October 26, which was accompanied by a media statement stating that it would ensure that transactions with Reliance were not hindered and that it was reviewing the arbitration order.
NSE and Future Retail did not respond to requests for comment.
The legal dispute has now reached the Delhi High Court. In the future, the retail industry has urged the court to block Amazon from writing to regulators to block its Reliance transaction, which is awaiting approval from market regulators and stock exchanges. The judge is expected to make a ruling in the next few days.
Amazon had separately requested the Indian market regulator to conduct an insider trading investigation on Future, saying that it disclosed the price-sensitive details of the arbitration order to Reliance before submitting it to the exchange in late October.
Future has stated that the correspondence with Reliance, led by Mukesh Ambani, the richest man in Asia, was for “legal purposes.”
NSE asked Future Retail to provide a copy of the arbitration order at least twice in the email between October 27 and October 30 to review the disclosure and why it should not be disclosed as price-sensitive Important information.
Future’s Samani initially rejected the request, stating in an e-mail that the order was “confidential” and that sharing more information could “pose a threat” to the company. NSE provided a copy after warning.
© Thomson Reuters 2020
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