FSC Mauritius Denies Links to Offshore Funds Cited in Hindenburg Report

The Financial Services Commission (FSC) of Mauritius refuted allegations from the new Hindenburg Research report concerning offshore funds linked to Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. The FSC clarified that the funds mentioned—IPE Plus Fund and IPE Plus Fund 1—are not registered in Mauritius and do not fall under its jurisdiction.

The Hindenburg report accused SEBI of neglecting potential undisclosed offshore connections related to the Adani Group, suggesting this oversight might be influenced by Buch’s alleged financial interests. Specifically, it claimed that Buch and her husband had investments in obscure offshore funds in Bermuda and Mauritius, which Vinod Adani, Gautam Adani’s brother, could potentially use to manipulate financial markets.

In response, the FSC emphasised that Mauritius upholds stringent regulations to prevent the creation of shell companies. The regulator stated that Mauritius adheres to robust global business company standards, with ongoing substance requirements enforced by the FSC as per the Financial Services Act.

Mauritius is recognised for its compliance with international best practices and has been rated positively by the Organisation for Economic Co-operation and Development (OECD). The OECD’s peer review confirmed that Mauritius does not possess harmful features in its tax regimes and thus cannot be labelled a tax haven.

The Hindenburg report also alleged that shortly before Buch’s SEBI appointment, her husband moved their investments into his sole control, ostensibly to avoid scrutiny related to her new role. This move raised questions about potential conflicts of interest and SEBI’s impartiality in investigating the Adani Group.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.