NE BUSINESS BUREAU
NEW DELHI, DEC 3
Markets regulator Sebi has sought some “clarification” from leading stock exchange BSE before giving its go-ahead to the Rs 24,713 crore deal between Future group and Mukesh Ambani’s Reliance Industries Ltd.
In an update on November 27, the regulator said it is awaiting a reply to the “clarification” sought from the stock exchange on the draft composite scheme of arrangement between Future Group companies and Reliance Group companies.
When contacted, a BSE spokesperson on Thursday said, “in the draft composite scheme of arrangement between Future Group and Reliance Group till date Sebi has not sought any clarification from BSE with regard to the NOC”.
The bourse gave its NOC (No Objection Certificate) for the scheme on November 6.
The scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors.
According to sources, there are certain complaints registered on Sebi’s SCORES platform which are yet to be resolved and the awaited clarification may be related to those pending complaints rather than specifically about the deal.
The markets watchdog has sought clarification from the exchange on the unresolved investors’ complaints registered on SCORES, they added.
Resolution of pending investor complaints is required before regulatory approvals.
In August, Reliance Industries announced the acquisition of Future Group for Rs 24,713 crore to bolster its fast-growing retail business.
E-commerce major Amazon has opposed the deal.
Earlier, Amazon had written to Sebi and stock exchanges, urging them to take into consideration the Singapore arbitrator”s interim judgment that put on hold the deal between Future group and Reliance Industries while reviewing the proposed transaction.
Under the proposed deal, Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries, will acquire the retail and wholesale business and the logistics and warehousing business of Future Group.
In November, the Competition Commission of India (CCI) approved the proposed deal.
Last year, Amazon bought 49 percent stake in one of Future Group”s unlisted firms, with the right to buy into the listed flagship Future Retail Ltd.
Amazon has claimed that its contract with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Reliance.
