The Securities and Exchange Board of India (SEBI) has slapped a fine of ₹5 lakh on Future Enterprises for disclosure lapses related to Amazon arbitration.
In its 21-page order, SEBI said Future Group failed to disclose to the stock exchanges the various proceedings and orders that went in favour of Amazon and therefore, has violated the regulations.
According to SEBI, Future Enterprises should have informed the exchanges about the arbitration proceedings initiated by Amazon in October 2020. The regulator further added that the passing of order dated October 25, 2020, in favour of Amazon, too, should have been disclosed to the exchanges as a material event as soon as reasonably possible and not later than 24 hours.
Thus, according to the SEBI, Future Enterprises violated norms under at least seven sections and sub-sections of the LODR Regulations, the relevant provisions of SEBI Circular and the provisions of the PIT Regulations.
SEBI further added that the noticee (Future Group) made a disclosure only on November 1 that year, with a delay of 26 days with respect to the initiation of the arbitration proceedings, only after active intervention of the stock exchanges.