- Kishore Biyani has been banned from accessing the securities market for a year by India’s market regulator Securities and Exchange Board of India.
- However, the company in a statement to the bourses has said the ban will not impact its ₹25,000 crore deal with Reliance.
- The statement also said that Future Retail would be exercising its statutory right to challenge SEBI’s decision.
Once called the king of Indian retail, Kishore Biyani has fallen and how. Before he could find his way through the over four month long legal battle with Amazon, Biyani has now been banned from accessing the securities market for a year by India’s market regulator Securities and Exchange Board of India (SEBI).
On Wednesday evening (February 3), Biyani, CEO of Future Group, and his brother Anil Biyani were banned from buying or selling of Future Retail shares, or accessing the share market, for a year by the regulator for insider trading.
However, the company in a statement to the bourses has said the ban will not impact its ₹25,000 crore deal with Reliance.
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“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,” said the company.
The statement also said that Future Retail would be exercising its statutory right to challenge SEBI’s decision.
SEBI’s ban is based on a 2017 case where Biyani allegedly used undisclosed price sensitive information to trade in Future Retail’s shares.
The recent ban only comes as another blow to the Biyanis, who only a few days before had to deal with a Delhi High Court ruling which put their deal with Reliance on hold after a plea from Amazon. The High Court upheld the emergency arbitrator award from Singapore that was in Amazon’s favour and ordered a status quo. The case is once again under legal scrutiny as Future Retail has moved the High Court to challenge the status quo.
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