Amazon has asked India’s market regulator SEBI to investigate Future Retail Ltd. for insider trading, as it seeks to prevent its business partner from becoming part of rival Reliance’s empire.
The US giant has been pressing 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 Future group’s retail assets from being sold to certain parties including Reliance Industries Ltd.
The November 8 letter to SEBI alleges Future Retail disclosed to Reliance price sensitive details of an injunction granted by a Singapore arbitrator to block the deal.
The spat is being closely watched as a key test of whether Indian firms, courts and regulators will respect arbitration decisions made as per overseas arbitration rules, and adds to headaches for Amazon in India which is also dealing with antitrust challenges.
It remains to be seen whether Indian courts and regulators will side with Amazon or Future Retail. Future Retail has asked a New Delhi court for an order to restrain Amazon from approaching Indian regulators to block its deal with Reliance. Hearings on the case began on Tuesday.
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