News > How Amazon tried to exercise the rights of a controlling shareholder in Future Retail without owning a stake

How Amazon tried to exercise the rights of a controlling shareholder in Future Retail without owning a stake

E-News | 18/11/2020 11:01 AM | Click to read full article

By skirting government approvals, which are mandatory, the US-based online retail giant has laid itself open to action by the Enforcement Directorate and the Securities and Exchange Board of India.

Furthermore, by not disclosing that it had attempted to obtain control over Future Retail through the back door, Amazon has fallen afoul of Foreign Direct Investment rules as well as securities regulations which would have required it to make an open offer.