Indian tribunal blocks regulator’s order on Future chief, company says
An Indian tribunal has blocked a regulatory order that this month barred Future Group Chief Executive Kishore Biyani from the securities markets for a year, over accusations of insider trading in 2017, a group company said on Tuesday.
Biyani is also embroiled in a legal battle with Amazon.com Inc over the sale of Future’s retail assets to Reliance Industries.
“Future Group promoters have been asked to deposit a sum of 110 million rupees as an interim measure,” Future Corporate Resources said in a statement, adding that the tribunal had stayed the Securities and Exchange Board of India (SEBI) order.
SEBI did not immediately respond to a request for comment.
The regulator had said Biyani and his brother Anil had traded in shares of their Future Retail firm through a group company on the basis of unpublished price-sensitive information.
SEBI said its investigation showed the two opened a trading account for a company called Future Corporate Resources Pvt Ltd, which traded in shares of Future Retail before a demerger of some businesses of the latter boosted its share price.
Challenging the order on Monday before the Securities Appellate Tribunal, Future said the information was already in the public domain and that while the shares were bought in March 2017, the actual terms of the restructuring began in April.
The case will next be heard on April 12, Future Corporate Resources said.
Amazon has appealed in India’s Supreme Court to block the Future-Reliance deal, saying it violates some pre-existing contracts with Future.