Shares of Future Retail, the flagship company of Future Group, have slipped 6 per cent to Rs 484 per share, extending their decline in the past two days in an otherwise firm market.
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.