India’s stock exchanges gave their approval to the $3.4 billion agreement between major retail companies Reliance Retail and Future Group on Wednesday, representing another challenge for Amazon. Amazon has invested over $6.5 billion in India, the world’s second-largest internet market, and has been attempting to prevent this particular transaction.

The Bombay Stock Exchange announced in a statement that it had consulted with the Securities and Exchange Board of India (SEBI), the country’s markets regulator, and found no reason to object to the deal.

This notification from Wednesday marks the latest difficulty for Amazon, which had previously submitted letters to SEBI and India’s competition authority requesting they block the multi-billion dollar agreement between Future Group and Reliance Retail, the two leading retail chains in India. India’s competition authority had previously approved the deal for the Indian companies last year.

“We would like to inform you that we have no unfavorable comments with specific reference to matters impacting listing/de-listing/ongoing listing obligations as outlined in the Listing Agreement, allowing the company to submit the scheme to the Honorable NCLT [National Company Law Tribunal],” the statement explained. SEBI has requested that Future share details of its current legal disputes with Amazon with the NCLT, as its approval is still needed for the deal to proceed.

Amazon acquired a 49% ownership stake in one of Future’s non-public companies in 2019 in a transaction valued at more than $100 million. According to Amazon’s court submissions, this agreement stipulated that Future was prohibited from selling assets to competitors.

However, circumstances shifted last year when the coronavirus pandemic caused financial difficulties for the Indian company, as stated by Future Group’s chief executive and founder, Kishore Biyani, during a recent online event. In August, Future Group announced it had reached an agreement with Reliance Industries, which operates India’s largest retail chain, to sell its retail, wholesale, logistics, and warehousing operations for $3.4 billion.

Amazon responded to the deal by initiating arbitration proceedings in Singapore and requesting a court order to halt the agreement between the Indian retail giants. In late October, Amazon obtained emergency relief from the arbitration court in Singapore, temporarily preventing Future Group from continuing with the sale.

The two companies also engaged in legal battles at the Delhi High Court last year. In a rare positive development for the American company, the court rejected Future’s request for a temporary injunction to prevent Amazon from contacting regulators and other authorities to express concerns about – and potentially stop – the deal between the two Indian companies.

A representative for Amazon informed TechCrunch that the company will continue to pursue available legal options. “The statements released by BSE & NSE clearly indicate that SEBI’s comments on the ‘draft scheme of arrangement’ (the proposed transaction) are contingent upon the outcome of the ongoing Arbitration and any other legal actions. We will continue to utilize legal avenues to protect our rights,” the spokesperson stated.

The potential impact centers on India’s retail market, which is projected to grow to $1.3 trillion by 2025, an increase from $700 billion in 2019, as per consultancy firm BCG and the Retailers’ Association India. Currently, online shopping represents approximately 3% of all retail sales in India.