The Financial Services Commission (FSC) on Tuesday, of Mauritius clarified that the offshore fund central to the conflict of interest allegations made by Hindenburg Research against the SEBI chief is not registered in Mauritius and that Mauritius does not allow the formation of shell companies.
In a statement, the FSC addressed the report by Hindenburg Research published on August 10, 2024, which mentioned “Mauritius-based shell entities” and referred to Mauritius as a “tax haven.” The FSC stated, “The report of Hindenburg has further cited ‘IPE Plus Fund’ as a small offshore Mauritius Fund and ‘IPE Plus Fund 1, a fund registered in Mauritius’. We wish to clarify that IPE Plus Fund and IPE Plus Fund 1 are not licensees of the FSC and are not domiciled in Mauritius.”
Hindenburg Research alleged on Saturday that SEBI Chairperson Madhabi Puri Buch and her husband opened an account in 2015 with a wealth management firm in Singapore to invest an undisclosed sum in a Mauritius-registered offshoot of a Bermuda-based fund. The Mauritian fund was purportedly managed by an Adani director, and its ultimate parent was used by two Adani associates to round-trip funds and inflate stock prices.
The FSC, which regulates the non-bank financial services sector and global business, refuted the claim that the fund is registered in Mauritius. It emphasized, “The legislative framework in Mauritius does not permit the creation of shell companies.”
The FSC further highlighted that Mauritius has a stringent regulatory framework for global business companies, which must meet substance requirements as per section 71 of the Financial Services Act, closely monitored by the FSC. The FSC added, “Mauritius strictly complies with international best practices and has been rated as compliant with the standards of the Organisation for Economic Co-operation and Development (OECD).” It concluded, “As per the peer review conducted by the OECD Forum on Harmful Tax Practices, the OECD is satisfied that Mauritius does not have any harmful features in its tax regimes, thus recognising Mauritius as a well-regulated, transparent and compliant jurisdiction. Therefore, Mauritius cannot be termed as a tax haven.”
Also Read: Unicommerce eSolutions: Shares Soar Over 100% On Stock Market Debut Amid Strong IPO Demand
