In Short:
The Financial Services Commission (FSC) of Mauritius clarified that the IPE Plus Fund mentioned in a Hindenburg Research report is not based in Mauritius. The report claimed ties between SEBI Chairperson Madhabi Puri Buch and offshore funds linked to the Adani Group. Buch stated her investments predated her SEBI role and became dormant after. The FSC emphasized Mauritius does not allow shell companies and meets OECD tax standards.
Clarification from the Financial Services Commission of Mauritius
In an important update, the **Financial Services Commission (FSC)** of **Mauritius** has stepped in to clear the air regarding the offshore fund that has recently come under scrutiny due to a report by **Hindenburg Research**. The commission specifically stated that the fund at the center of this controversy is not based in Mauritius.
Setting the Record Straight
In Hindenburg’s report, they referred to the **”IPE Plus Fund”** as “a small offshore Mauritius fund”, alongside mentioning **IPE Plus Fund 1** as a fund registered in Mauritius. The FSC responded by saying, “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,” reinforcing their position with a statement released on Wednesday.
Details from the Hindenburg Report
The controversy took a turn last Saturday when the U.S.-based short-seller **Hindenburg Research** published a revealing report. They claimed that the **Chairperson of SEBI**, **Madhabi Puri Buch**, had stakes in offshore funds based in **Bermuda** and **Mauritius**. These funds were allegedly utilized by **Vinod Adani**—the brother of prominent business figure **Gautam Adani**—to accumulate and trade significant shares in the **Adani Group**.
Buch’s Response
In response to these allegations, Buch and her husband, **Dhaval Buch**, released a statement on Sunday. They clarified that the investments in question were made back in 2015, well before Madhabi’s appointment as a whole-time member of SEBI in 2017 and her subsequent elevation to chairperson in March 2022. They emphasized that these investments were made as “private citizens living in Singapore,” highlighting that the funds became “dormant” upon her appointment at SEBI.
FSC’s Position on Shell Companies and Taxation
The Financial Services Commission of Mauritius addressed the allegations made in Hindenburg’s report, which suggested the existence of “Mauritius-based shell entities” and labeled Mauritius as a “tax haven.” The FSC firmly stated that the legislative framework in Mauritius does not allow for the creation of shell companies. Their regulations ensure that all global business companies licensed by the FSC must consistently meet substance requirements, which are rigorously monitored.
OECD Review Results
In addition, the FSC referenced a peer review conducted by the **OECD Forum on Harmful Tax Practices**, which concluded that Mauritius does not possess any harmful elements in its tax regimes. Therefore, the FSC asserted that it is inaccurate to categorize Mauritius as a tax haven.
