SEBI, vide its order dated 14th March, 2022 imposed penalty of Rupees 5 Lakh on Future Enterprises for non-disclosure of material information to Stock exchanges regarding arbitration proceedings against Amazon before Singapore International Arbitration Centre (SIAC) and also for non-disclosure of order dated 25th October, 2020, in favour of Amazon.
The arbitration proceedings before Singapore International Arbitration Centre (SIAC) were related to the composite scheme of arrangement between Future Group and Reliance Industries.
SEBI in the order stated that, Every listed entity mandatorily needs to make disclosure of event or information which, in the opinion of the board of directors is material in nature. Consequently, Future Enterprises have violated provisions of Listing Obligations and Disclosure Requirements Regulations and Prohibition of Insider Trading norms.
SEBI further stated that, Future Group had only disclosed the initiation of Arbitration proceedings and information with respect to interim relief granted to Amazon on 01st November, 2020 with a delay of 26 days with respect to initiation of the arbitration proceedings and a delay of 6 days with respect to passing of order by Singapore arbitration council.
Consequently, SEBI imposed penalty of ₹5 lakh on Future Enterprises, which needs to be paid within 45 days.
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