Mauritius, Cayman Islands funds under watch for ownership info gaps

There are concerns that a number of such funds could have a high non-resident Indian (NRI) holding and be used by Indian promoters for round-tripping and manipulating share prices

FPI, foreign investments, investors, FDI, funding, growth, market
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There are 600 FPIs based in Mauritius investing into India, of which 408 are category I, according to the NSDL website. There 336 funds from Cayman, of which 277 belong to category II

Ashley Coutinho Mumbai
The Securities and Exchange Board of India (Sebi) is keeping an eye on funds based in Mauritius and the Cayman Islands that may not have provided adequate information about their ultimate beneficial owners, said two people familiar with the matter.

There are concerns that a number of such funds could have a high non-resident Indian (NRI) holding and be used by Indian promoters for round-tripping and manipulating share prices. This could also give a false sense of confidence to investors by virtue of a higher foreign portfolio investor (FPI) holding.

According to the current norms, no single NRI can be the beneficial

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First Published: Jun 15 2021 | 6:10 AM IST

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