Mauritius puts India-focussed funds, others under its regulatory lens

The increased scrutiny is pushing back timelines and jacking up costs of setting up India-focussed funds in Mauritius

Mauritius has stepped up scrutiny of offshore fund structures as the country tries to shed its image as a quasi-tax haven and showcase its compliance with all major international tax norms.

The move has put several global and India-focussed funds wanting to set up structures in Mauritus under the country’s regulatory glare.

The country’s financial services regulator Financial Services Commission (FSC) is combing through KYC information of new fund applications as well as undertaking extensive background checks on fund sponsors and fund managers, said sources. FSC is also reaching out to regulators of countries in which these sponsors or managers are based