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Mumbai, NFAPost: The Securities and Exchange Board of India (SEBI) granted approval to the Future Group and Reliance Retail deal. According to the analyst, the decision will be a setback to Amazon’s grand plan in India.

In a path-breaking decision, Kishore Biyani led-Future Group entered into a ₹24,713 crore agreement with Mukesh Ambani’s Reliance Retail in August 2020. As part of the deal, Future Group was to sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Ventures (RRVL).

Future Group promoter received a legal notice from Amazon Inc over the retailer’s deal with Reliance Industries. In August, Mukesh Ambani-led Reliance Industries said it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion, including debt.

Amazon, in its legal notice, cited a contract arrangement that included “a restricted list” of companies Future was not supposed to enter deals with, according to the report

Last year Amazon had acquired a 49% stake in Future Coupons, which owns a 7.3% interest in the retail group that operates more than 1,500 stores in India, including grocery chain Big Bazaar.

In its letter of approval, Sebi listed a number of conditions in accordance to the Composite Scheme of Arrangement, also making a reference to apprehensions raised by Amazon.

“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,” Sebi stated.

“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),” it further added.

On December 21, Amazon Inc had also filed a plea before the Delhi High Court, seeking a stay on the Future-Reliance deal.

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