SEBI bans Future CEO from securities market in insider trading case

SEBI bans Future CEO from securities market in insider trading case

The Securities and Exchange Board of India (SEBI) said the two brothers traded in shares of Future Retail through a group company on the basis of unpublished price sensitive information before a demerger of certain businesses of Future Retail that pushed its share price higher.

These five entities have also been barred from dealing in the shares of the same company for two years.

Future Retail has said that the SEBI order on February 3 barring Kishore Biyani and 7 others from the securities market will not impact its ongoing deal with Reliance Industries. Another senior lawyer, speaking on condition of anonymity, said that the order won't impact the NCLT process. "We understand that the relevant parties propose to challenge this Order in exercise of their statutory right to appeal", Future Retail Ltd (FRL) said in a late-night regulatory filing on Wednesday.

Apart from the Biyanis and FCRL, individuals barred from the securities market include Rajesh Pathak, who was then company secretary of FCRL, Rajkumar Pande, CFO of FCRL, Virendra Samani, legal counsel for Future Group and Arpit Maheshwari, who was Deputy Manager at Future Retail at the time. These lawyers added that Biyani could challenge the Sebi order at the Securities Appellate Tribunal (SAT) and eventually it might land in the Supreme Court. Amazon is trying to block the deal.

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In August past year, Future group had entered into a deal with billionaire Mukesh Ambani's RIL to sell its retail, wholesale, logistics and warehousing units.

Amazon had dragged Future Group to arbitration at Singapore International Arbitration Centre (SIAC) in October previous year, arguing that Future violated the contract by entering into the deal with rival Reliance.

After this, Future Group filed a plea with the Delhi High Court. Through an earlier deal signed August 2019, Amazon had invested Rs 1,431 crore in Future Coupons, which held about 10% stake in the group flagship, Future Retail.

Future Retail had, during market hours, announced on April 20, 2017 a composite scheme of arrangement between FRL and Bluerock eServices Private Ltd (BSPL) and Praxis Home Retail Private Ltd (PHRPL) and their respective shareholders.

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