Amazon - Future Group row! Future Retail freezes on the lower circuit on update over SIAC arbitration

Future Retail was trading at the lower price band of Rs82.35 per piece down 4.96% on Sensex.

Nov 27, 2020 03:11 IST India Infoline News Service

Future Group's retail arm, Future Retail (FRL) stock tumbled by nearly 5% for the second straight day amid arbitration matter at Singapore against Amazon. On Friday, Future Retail was trading at the lower price band of Rs82.35 per piece down 4.96% on Sensex at around 3.16 pm.

In the latest development, FRL informed regulators that as you are aware, Amazon has initiated arbitration proceedings in Singapore, which the Company believes is without merit and jurisdiction. You are already aware of the “Emergency Order” and the subsequent events.

Accordingly, FRL has raised jurisdictional objection to its inclusion as a party to the arbitration, said the company.

FRL points out that on November 25, 2020, the SIAC Court is prima facie satisfied that under Rule 28.1 of the SIAC Rules 2016, the arbitration shall proceed.

"Accordingly, an arbitrary tribunal would be constituted in the matter. Every stage of the proceedings would not lend itself to being a material event for disclosure under Regulation 30 of the LODR Regulations and this disclosure is being made out of abundant caution to avoid any speculation given Amazon’s media strategy of having every development reported and converted into a line of communication with stock exchanges," said FRL.

Related Story