US e-commerce giant Amazon has lost a crucial round in its fight with Kishore Biyani-led Future Group and Reliance Industries with the stock exchanges allowing the two Indian companies to go ahead with the $3.4 billion sale of Future’s retail assets to the Mukesh Ambani-led company.

Both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) said late on Wednesday that they had no objection or adverse observation on the deal. The decision has the consent of the Securities and Exchange Board of India (SEBI).

Future and Amazon are fighting a legal battle on the issue. Amazon alleges that an earlier deal which it signed with Future Group does not permit the latter to sell these assets to Reliance Industries as it has a claim on them.

SEBI has advised that Future should share various details of its ongoing litigation with Amazon when it approaches India’s National Company Law Tribunal, which also needs to sign off on the deal, the Bombay Stock Exchange notification said.

The notifications will be a setback for Amazon, which has in recent weeks sent several letters to SEBI and stock exchanges to suspend review of the deal.

Amazon has also filed a plea against Future before a Singapore arbitrator, which passed an interim order in October saying the Reliance deal should be halted. However, Future says that order is not binding on it.

Following the nod from the exchanges, Amazon in a statement said it would continue to pursue legal remedies to enforce its rights, noting that the approvals were subject to the outcome of the ongoing arbitration process and other lawsuits.