In the past three trading days, the stock slipped has 14 per cent after the government on Wednesday tightened rules for e-commerce companies. In comparison, the S&P BSE Sensex was up 2 per cent during the same period.
Future Retail is engaged in the business of retailing a range of household and consumer products through departmental store facilities under various formats.
The Department of Industrial Policy and Promotion (DIPP) on Wednesday issued a set of additional guidelines for foreign direct investment (FDI) in the e-commerce sector. The new regulations will take effect from February 1 next year, said the DIPP regulation.
The government barred e-commerce players from forcing vendors to have exclusive deals on its portals. The government also aimed at enforcing a cap of 25 per cent on the inventory that a marketplace entity or its group companies purchases from a vendor.
“The FDI-funded discounting was making it difficult for offline retailers and other players to sell effectively. These (new changes) will bring a level playing field in many categories,” said Rakesh Biyani, joint managing director, Future Retail, the Business Standard reported. CLICK HERE TO READ FULL REPORT.
At 10:47 am; Future Retail was trading 4 per cent lower at Rs 492 on the BSE, as compared to 0.88 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.04 million equity shares changed hands on the BSE and NSE so far.