Arbitration proceedings had been initiated against Future Group by Amazon on October 5, 2020, before Singapore International Arbitration Centre (SIAC) wherein the promoters of Future Enterprises, among others, were respondents.
The proceedings pertained to the composite scheme of arrangement between Future Group and Mukesh Dhirubhai Ambani Group. Amazon had sought for emergency relief and SIAC had passed an interim order dated October 25, 2020 in favour of Amazon, wherein the respondents therein were injuncted from taking any further steps with respect to the scheme.
“It is noted that the Noticee was obliged to make adequate disclosure when arbitration proceedings were initiated before SIAC on October 5, 2020 and also when SIAC passed an interim order on October 25, 2020. The Noticee failed to make adequate and timely disclosures both the times and therefore, default committed by the Noticee is considered as repetitive in nature,” Sebi said.
The proceedings and its outcome would definitely have an impact on the scheme and Future Enterprises ought to have disclosed the same as required under market norms, Sebi said.
Certain disclosures were made after a delay of 26 days, that too with active intervention of the stock exchanges in this regard.
The conduct of Future Enterprises is in violation of provisions of Listing Obligations and Disclosure Requirements Regulations, Sebi’s circular and Prohibition of Insider Trading norms.
Consequently, the markets regulator has levied fine of Rs 5 lakh on Future Enterprises, which needs to be paid within 45 days.
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