Monetary Companies Fee mentioned it had taken cognisance of the contents of the report revealed by Hindenburg Analysis which talked about Mauritius as a ‘tax haven’. Picture: YouTube/@financialservicescommissio64
Monetary Companies Fee (FSC) of Mauritius on Tuesday (August 13, 2024) mentioned the offshore fund on the coronary heart of the conflict of interest allegation Hindenburg Research levelled against SEBI chiefMadhabi Puri Buch will not be domiciled within the island nation, and that it doesn’t allow creation of shell corporations.
In a statement, the FSC mentioned it had taken cognisance of the contents of the report revealed by Hindenburg Analysis on August 10, 2024 whereby point out has been product of ‘Mauritius-based shell entities’ and Mauritius as a ‘tax haven’.
“The report of Hindenburg has additional cited ‘IPE Plus Fund’ is a small offshore Mauritius Fund and ‘IPE Plus Fund 1, a fund registered in Mauritius’. We want to make clear that IPE Plus Fund and IPE Plus Fund 1 are usually not licensees of the FSC and are usually not domiciled in Mauritius,” it mentioned.
Hindenburg on Saturday (August 3, 2024) alleged that SEBI chairperson Madhabi Puri Buch and her husband opened an account in 2015 with a wealth administration agency in Singapore to take a position an undisclosed sum of cash in a Mauritius-registered offshoot of a Bermuda-based fund.
The Mauritian fund was run by an Adani director and its final dad or mum was the car utilized by two Adani associates to round-trip funds and inflate inventory costs.
FSC, the built-in regulator for the non-bank monetary companies sector and international enterprise, denied the fund being registered in Mauritius.
FSC mentioned the legislative framework in Mauritius doesn’t allow the creation of shell corporations.
Strict monitoring
“Mauritius has a strong framework for international enterprise corporations. All international enterprise corporations licensed by the FSC have to satisfy substance necessities on an ongoing foundation as per Part 71 of the Monetary Companies Act, which is strictly monitored by the FSC,” the FSC mentioned.
FSC acknowledged that Mauritius strictly complies with worldwide finest practices and has been rated as compliant with the requirements of the Organisation for Financial Co-operation and Growth (OECD).
“As per the peer evaluate carried out by the OECD Discussion board on Dangerous Tax Practices, the OECD is happy that Mauritius doesn’t have any dangerous options in its tax regimes, thus recognising Mauritius as a well-regulated, clear and compliant jurisdiction. Subsequently, Mauritius can’t be termed a tax haven,” it added.
