Financial commission of Mauritius debunks Hindenburg's offshore allegations

There was outrage over the Hindenburg Research report that made new allegations relating to offshore funds against the Securities and Exchange Board of India chairman, Madhabi Puri Buch. The charges are, however, being denied by the Financial Services Commission of Mauritius, saying that the funds are "not domiciled" in the island nation.

'The report of Hindenburg has further cited 'IPE Plus Fund' is 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,' the regulator stated in a statement as it took cognisance of the contents of the new Hindenburg Research report.

The American firm accused the SEBI in its report of having a "surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities" because of Buch's hidden financial interest in the conglomerate. According to Hindenburg, Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius—the very entities allegedly used by one Vinod Adani, brother of Gautam Adani, to manipulate the financial markets.

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'Mauritius has a robust framework for global business companies. All global business companies licensed by the FSC have to meet substance requirements on an ongoing basis as per section 71 of the Financial Services Act, which is strictly monitored by the FSC,'stated the Mauritius regulator in clarification that they do not permit the creation of shell companies.

According to FSC, Mauritius adheres to international best practices and has been assessed as compliant with the standards of the Organisation for Economic Co-operation and Development (OECD).

'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,' it said.