InvestorQ : What is status of FIIs based in Mauritius as there have been talks that they may be barred from participating in Indian markets?
Priyanka N made post

What is status of FIIs based in Mauritius as there have been talks that they may be barred from participating in Indian markets?

Answer
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NISHA Nayak answered.
7 months ago


I think you are referring to the recent announcement by the FATF on Mauritius registered FIIs. In fact, the government has already given a clarification. A week after the Financial Action Task Force (FATF) had put Mauritius on the Grey List, the Indian government has moved in to assuage the fears of the FIIs. The foreign investors have been assured that Mauritius registrations will not be affected in any manner. The grey list classification means that Mauritius as a tax-haven will be under observation and any delay or laxity in compliance could lead to a ban on further registrations. Since a large chunk of Indian FPIs are registered in Mauritius, it could prove to be a major impediment to their continuance in India. For now, that concern has been allayed but most FIIs may not take chances and may still prefer to move to better regulated jurisdictions like Singapore over time.