India's Future Retail Ltd communicated with Reliance Industries on an arbitration order related to its dispute with Amazon.com Inc for a "legitimate purpose", the company said on Wednesday.
The comments come after Reuters earlier in the day reported Amazon had asked the Securities and Exchange Board of India (Sebi) to investigate Future for insider trading, alleging the Indian firm disclosed to Reliance price sensitive details of an injunction granted by a Singapore arbitrator to block its $3.4 billion deal with Reliance.
"Proprietary and legality demands that in such an event, the counterparty is informed about the development ... Sebi Regulations too are quite clear on this," the company said in a statement.
ALSO READ: Amazon accuses Future Retail of insider trading, asks Sebi to investigate
Amazon needs a "tutorial on the law on insider trading," the company added.
The U.S. e-commerce giant has been urging Sebi to review Reliance's August deal to buy retail, logistics and other assets from Future Group for $3.4 billion including debt.
Amazon argues it had a 2019 agreement with Future which prevented the Indian group's retail assets from being sold to certain parties including Reliance Industries, which is led by Asia's richest man, Mukesh Ambani.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.