Our law does not allow shell companies to operate: Mauritius denies Hindenburg’s allegations

Our law does not allow shell companies to operate: Mauritius denies Hindenburg's allegations


New Delhi/Port Louis:

The report of American short sheller Hindenburg is in the news again. Hindenburg has made big claims about the Indian market and market regulator Securities and Exchange Board of India (SEBI) in its recent report. Hindenburg has also mentioned Mauritius in its report. Now Mauritius has responded to these allegations. The Financial Services Commission (FSC) of Mauritius said on Tuesday that the fund mentioned in the allegations of conflict of interest against Hindenburg Research’s SEBI chief Madhabi Puri Buch has nothing to do with their country. It also said to Mauritius that it does not allow shell companies to operate in the country at all.

The Financial Services Commission of Mauritius said that it has taken cognizance of a report dated August 10, 2024 by US research and investment company Hindenburg Research. It mentions Mauritius as a ‘tax haven’ for Mauritius-based shell companies and tax evaders. This is absolutely wrong.

Hindenburg is an irresponsible company, it only looks after its own benefits- Former Attorney General Mukul Rohatgi

FSC said, “The Hindenburg report states that IPE Plus Fund is a small offshore Mauritian fund. IPE Plus Fund-1 is registered in Mauritius. We want to make it clear that IPE Plus Fund and IPE Plus Fund-1 are not linked to Mauritius. It has not been given any license. In fact, it has nothing to do with Mauritius.”

In fact, Hindenburg on Saturday alleged that SEBI Chairperson Madhabi Puri Buch and her husband opened an account with a fund management company in Singapore in 2015 to invest an undisclosed amount in a Mauritius-registered unit of a Bermuda-based fund.

The FSC, the integrated regulator for the non-banking financial services sector and global trade, has denied that the fund was registered in Mauritius. The FSC said that the legislative framework in Mauritius does not allow shell companies. The FSC said, “Mauritius has a strong framework for global business companies. All global business companies licensed by the FSC have to meet key requirements on an ongoing basis as per Section 71 of the Financial Services Act, which are strictly monitored by the regulator.”

Why it is not right to get the Hindenburg Report investigated by JPC: Know what the experts said

The FSC said Mauritius strictly complies with international best practice. This is in line with the standards of the Organisation for Economic Co-operation and Development (OECD).



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