The latest twist to the Hindenburg Research-Sebi-Adani controversy has come from the Financial Services Commission of Mauritius on August 13 with the regulator saying that the offshore fund central to the allegation of the US-based short seller against SEBI chairperson Madhabi Puri Buch is not domiciled in Mauritius and it could not be used to create shell companies.
Statement from Mauritius
The FSC has issued a statement following the publication of the latest round of charges by Hindenburg Research on August 10. In that report Hindenburg authorities mentioned ‘Mauritius-based shell entities’ and described Mauritius as a ‘tax haven’.
The FSC statement said, “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.”
SEBI counter
The latest allegations made by Hindenburg have been strongly countered by SEBI and Madhabi Puri Much and her husband Dhaval Buch, who have described it as baseless and an attempt to assassinate the couple’s character. Netizens have flayed the Hindenburg report as concealing an ulterior motive of destabilise the Indian securities market.
Buch also said that she has already made all disclosures related to her investments and that of her husband to the SEBI down the years and they had nothing to hide. Some of the investments were made years before she had become a part of SEBI.
What Hindenburg alleged
Hindenburg had said that in 2015 the Buch couple opened an account with a wealth management firm based in Singapore to invest in a Mauritius-registered offshoot of a Bermuda-based fund. The fund in Mauritius was operated by a director of the Adani group and its parent company was the firm used by two Adani associates to put funds in a circuitous route to artificially raise prices of group company stocks.
‘Mauritius does not permit shell companies’
FSC asserted that the laws of Mauritius does not permit the creation of shell companies. “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,” the FSC said.
One of the allegations that Hindenburg raised against SEBI chief Madhabi Puri Buch was on the point of conflict of interest. The financial services regulator of Mauritius has denied it flatly by issuing a statement. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
