The Financial Services Commission (FSC) of Mauritius has strongly refuted allegations made in the recent report by US short seller Hindenburg Research, which labeled Mauritius as a tax haven and cited the existence of Mauritius-based shell entities. In a firm response, the FSC emphasized that Mauritius does not allow the creation of shell companies and cannot be categorized as a tax haven.The FSC, which regulates the non-banking financial services sector and global business in Mauritius, issued a statement to clarify its stance. The FSC has taken cognizance of the contents of the report published by Hindenburg Research on 10 August 2024, wherein mention has been made of Mauritius-based shell entities and Mauritius as a tax haven. The FSC wishes to highlight that the legislative framework in Mauritius does not permit the creation of shell companies. Mauritius has a robust framework for global business companies, the FSCs press release read.Furthermore, the regulator underscored the compliance of Mauritius with international standards, stating, All global business companies licensed by the FSC must meet substance requirements on an ongoing basis as per section 71 of the Financial Services Act, which is strictly monitored by the FSC. 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).The FSC also clarified that the fund IPE Plus, referenced in the Hindenburg report, is not a licensee of the FSC and is not domiciled 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 statement asserted.Hindenburgs report alleged that a Vinod Adani-controlled company had invested in the Global Dynamic Opportunities Fund in Bermuda, which subsequently invested in the IPE Plus Fund 1 in Mauritius. However, the Mauritian regulator denied any connection with these entities.In related news, Morgan Stanley Capital International (MSCI) announced the removal of the freeze on Adani Group stocks, with changes to be implemented starting with the August 2024 Index Review.
