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Future Retail Dives 10 %; Group Cos Stocks Tumble Up To 16 %

Future Supply Chain Solutions, Future Lifestyle Fashions and Future Enterprises also touched their lower circuit limit.

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Shares of Future Retail Ltd on Friday tumbled almost 10 per cent after the Supreme Court ruled in favour of the US-based e-commerce giant Amazon by holding that the Singapore's Emergency Arbitrator (EA) award, restraining the Rs 24,731 crore merger deal of FRL with Reliance Retail, was valid and enforceable under Indian laws.

Following this, the stock went into a tailspin and tumbled 9.94 per cent to its lower circuit of Rs 52.55 on the BSE.

Other group stocks also dropped, with shares of Future Consumer diving 16.12 per cent, Future Supply Chain Solutions tumbling 9.99 per cent, Future Enterprises nosediving 9.98 per cent, and Future Lifestyle Fashions 9.94 per cent.

Future Supply Chain Solutions, Future Lifestyle Fashions and Future Enterprises also touched their lower circuit limit.

Shares of Reliance Industries Limited also dipped 2.53 per cent to Rs 2,079.20.

A bench of Justices R F Nariman also dealt with the larger question and as a proposition of law, held that an award of an EA of a foreign country is enforceable under the Indian Arbitration and Conciliation Act.

FRL had argued that an EA is not an arbitrator under the Indian law as the term does not find any mention in the statute here.

Amazon.com NV Investment Holdings LLC and FRL are embroiled in a bitter legal fight over the deal and the US-based firm has sought in the apex court that the EA award was valid and enforceable. 

(PTI)


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future retail shares e-commerce amazon supreme court