Mauritius FSC reacts to Hindenburg Research's offshore funds allegations against SEBI chief Madhabi Puri Buch
FSC Mauritius said fund at the heart of Hindenburg allegations against SEBI chief is not domiciled in Mauritius.
The Financial Services Commission of Mauritius on Tuesday denied the offshore fund allegations against Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch in the new Hindenburg Research report, 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 said in a statement as it took cognizance of the contents of the new Hindenburg Research report.
The US-based firm, in its report, accused the SEBI of showing a “surprising lack of interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities” because of Buch's secret financial interest in the conglomerate. According to Hindenburg, Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani, brother of Gautam Adani, to manipulate the financial markets.
Clarifying that they do not permit the creation of shell companies, the Mauritius regulator said, “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.”
According to 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).
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“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.
Hindenburg allegations against SEBI
The report, released last week, has also claimed that just weeks before Buch’s appointment to the SEBI, her husband requested the transfer of their investments into his sole control, potentially to avoid any scrutiny related to her new regulatory role.
"In the letter, Dhaval Buch requested to "be the sole person authorised to operate the Accounts", seemingly moving the assets out of his wife's name ahead of the politically sensitive appointment," it alleged, adding that the couple’s investments were reportedly funnelled through a complex, multi-layered offshore structure, raising questions about their legitimacy and purpose.
It also mentioned that SEBI's “impartiality” in conducting a probe against Adani Group is ‘questionable’ due to the “potential conflicts of interest”.
However, the Buchs have denied the allegations.
(With inputs from PTI)