Mauritius' regulator red-flags removal of investment status by Sebi

Mauritius funds may now look to shift their fund management activities to FATF member countries if Sebi does not relax its existing norms, said experts

Mauritius’ financial services regulator Financial Services Commission (FSC) has asked the Securities and Exchange Board of India (Sebi) to reconsider its stance of allowing only Financial Action Task Force (FATF) members to be eligible for category I status as foreign portfolio investors (FPIs).

In a meeting held a few days ago, FSC officials told Sebi to tweak its existing guidelines to allow funds from FATF-‘compliant’ regions to register as category I FPIs, sources in the know said.

According to norms notified last month, only those FPIs domiciled in regions that are FATF members can get a category I status and issue offshore