Kishore Biyani says SEBI ban won't stop Future Group's deal with Reliance

Daniel Fowler
February 4, 2021

The statement also said that Future Retail would be exercising its statutory right to challenge SEBI's decision.

Market regulator SEBI on Wednesday barred Future Group CEO Kishore Biyani from accessing the securities market for one year.

After this, Future Group filed a plea with the Delhi High Court.

The Sebi order relates to trading in the shares of Future Retail using unpublished price-sensitive information by Biyani and his associates when the group was undergoing a restructuring in March-April 2017.

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.

The Securities and Exchange Board of India (SEBI) also restrained Biyani from buying, selling or dealing in the securities of Future Retail Limited (FRL), directly or indirectly, in any manner whatsoever, for a period of 2 years. SEBI also said the announcement had a positive impact on the price of FRL shares.

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The SEBI order said Biyanis and Future Corporate Resources "disputed that they have indulged in insider trading" but added that they did not make "any specific submissions regarding wrongful gains made by them".

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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. Amazon is trying to block the deal.

"Debarment/restraint/freeze imposed under this order shall not apply to those existing holding of securities of such debarred entities, in respect of which any scheme of arrangement under Section 230-232 of the Companies Act, 2013, is approved by NCLT, requiring extinguishment of such securities and/or receipt of other securities in lieu of such securities", Sebi said.

Future Retail is embroiled in a battle with Amazon.com Inc. over that deal, which the US online retail giant is trying to block.

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