Amazon.com Inc. has requested the Securities and Exchange Board of India (SEBI) to investigate insider trading by business partner Future Retail Ltd, according to Reuters. Amazon is accusing Future Retail of August’s deal seeking to become part of rival’s Reliance Empire by selling its retail, logistics, and other assets for $3.4 billion.

  • Amazon alleges it had a 2019 agreement with Future Retail preventing the company from being sold to certain third parties, including Reliance Industries Ltd.  
  • Future Retail disclosed to Reliance price sensitive information of an injunction issued on October 25 by a Singapore arbitrator to block the deal-Amazon.
  • Future said it entered into a deal to sell retail assets to Reliance since the COVID-19 pandemic severely hit its business and that the injunction’s news was made public from Sunday.
  • Future Retail has requested a New Delhi court to restrain Amazon from approaching Indian regulators to block the deal with Reliance as the case hearing started on Tuesday.
  • Through a stock exchange filing, Reliance acknowledged the arbitration order and said it will enforce its rights to complete the deal with Future without delay.
  • Amazon’s spat with Future Retail is closely monitored by Indian firms, courts, and regulators even as the giant retailer faces antitrust challenges in the Asian country. 

Amazon stock is currently gaining. AMZN: NASDAQ is slightly up 0.99%