Amazon tells Sebi to suspend Future-RIL deal

After receiving a validation for Singapore tribunal’s interim award from Delhi High Court, Amazon has once again asked markets regulator Sebi to suspend the Future-Reliance deal. It has also asked the Sebi to instruct stock exchanges not to issue any approval letter to Future Retail.

In the letter dated January 5, Amazon informed the regulator about the constitution of the arbitral tribunal by Singapore International Arbitration Centre (SIAC) in the arbitration proceedings initiated by Amazon against inter alia FRL, Kishore Biyani and Rakesh Biyani. A three-member tribunal consisting of Singa-porean barrister Michael Hwang Albert van den Berg and Jan Paulsson have been formed at the SIAC.

“We wish to highlight that in view of the constitution of the Arbitral Tribunal, the interim award passed by the Emergency Arbitrator stands automatically extended for the duration of the Arbitration Proceedings unless it is reconsidered/ modified/ vacated by the Arbitral Tribunal,” Amazon said in the letter seen by Financial Chronicle.

Hence, Future Retail continues to be expressly injuncted and restrained by the interim award from taking in any steps in furtherance...In October, Amazon had received an interim order from SIAC barring Future Retail from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.

Amazon wants the Sebi to take action by suspending review of the impugned transaction (Future’s transaction with Reliance), and not granting any no-objection in relation to the same. It also wants the regulator to direct Indian stock exchanges not to issue any no-objection/ approval letter to FRL.

Amazon has been writing letters to regulators and stock exchanges from October 3 on this matter.