Hindenburg Report: The Financial Services Commission (FSC) of Mauritius on Tuesday refuted allegations in a recent Hindenburg Research report claiming that Securities and Exchange Board of India (SEBI) Chief Madhabi Puri Buch was involved with offshore funds linked to the Adani Group. The regulator stated that the funds mentioned in the report are "not domiciled" in Mauritius.
The report by the US-based firm Hindenburg Research alleged that Buch and her husband held undisclosed investments in obscure offshore funds in Mauritius and Bermuda, similar to those allegedly used by Vinod Adani, brother of Gautam Adani, to manipulate financial markets. According to Hindenburg, SEBI's lack of action against Adani was due to Buch's secret financial interests in the conglomerate.
In response, the FSC clarified that the funds named in the report, "IPE Plus Fund" and "IPE Plus Fund 1," are not licensed or domiciled in Mauritius. "Mauritius has a robust framework for global business companies, and all entities must meet substance requirements on an ongoing basis, as per the Financial Services Act," the regulator stated.
The FSC said that Mauritius adheres to international best practices and has been rated compliant with Organisation for Economic Co-operation and Development (OECD) standards. The regulator reiterated that Mauritius is not a tax haven, as confirmed by a peer review conducted by the OECD Forum on Harmful Tax Practices.
The Hindenburg report also claimed that just weeks before Buch's appointment as SEBI chief, her husband transferred their investments into his sole control to avoid scrutiny. The report questioned SEBI's impartiality in investigating the Adani Group due to these alleged conflicts of interest.
Madhabi Puri Buch and her husband have denied the allegations. The FSC's statement seeks to distance Mauritius from any association with the offshore funds mentioned in the report, reinforcing the nation's commitment to maintaining its reputation as a well-regulated financial jurisdiction.