New Delhi: Despite complaints by Amazon, markets regulator SEBI has approved the deal between Future Group and Reliance Industries. SEBI, in a letter issued on Wednesday, approved the deal subject to a number of conditions in the Composite Scheme of Arrangement.
The BSE on its part said that it has no adverse observations on the transaction.
In August 2020, Kishore Biyani and Future Group had entered into a Rs 25,000 crore agreement with Reliance Retail. As part of the pact, Future Group was to sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Retail Ventures (RRVL).
SEBI vide its letter dated January 20 has inter alia made the following comment(s) on the Composite Scheme of Arrangement for Future Consumer and Future Retail.
“Company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities is subjected to lock-in for the remaining period post scheme,” it said.
“Company shall ensure that proceedings pending before SEBI against the entities part of the promoter/promoter group or are directors of the companies involved in the scheme, should be highlighted in the scheme document filed before National Company Law Tribunal (NCLT),” SEBI said.
It added that “company shall ensure that any future disputes, complaints, regulatory actions or proceedings, or orders issued therein involving the draft scheme if any, shall be brought to the notice of shareholders prior to the approval by NCLT”.
On January 11, Amazon had written to SEBI Chairman Ajay Tyagi informing that the regulator should not give no-objection to the Future Retail transaction with Reliance as the Singapore International Arbitration Centre (SIAC) has constituted an arbitral tribunal.