Indian Ministry of Finance Restores Mauritius’ Eligibility to Category 1 Foreign Portfolio Investors
16/04/2020
By an Order of India’s Ministry of Finance of 13 April 2020, the Central Government specifies Mauritius as an eligible country for the SEBI (Foreign Portfolio Investors) Regulations 2019.
It entitles a Mauritius foreign portfolio investor to apply for a Category 1 FPI Licence and gives implicit recognition to Mauritius entities as being appropriately regulated.
This Order dispels much of the grave concern arising from the February 2020 decision of the Financial Action Task Force (the “FATF”) placing Mauritius on the list of “jurisdictions under increased monitoring.”
Of the most significant concerns was the alarm raised among fund managers and investors interested in the Indian market to the implication of the FATF designation on the eligibility of Mauritius entities to apply for an FPI Licence under the SEBI (Foreign Portfolio Investors) Regulations adopted in September 2019.
An amendment made by SEBI to the 2019 FPI Regulations on 7 April 2020 paved the way for the Ministerial Order
This Order emanating from the Department of Economic Affairs, Ministry of Finance, comes to the rescue of existing Mauritius-based FPI’s a and paves the way for future investment funds established in Mauritius to hold portfolio investment in Indian securities. Mauritius entities which were under the 2014 SEBI FPI regulations licensed as category I or category II can apply to keep their licence category with the accrued privileges and advantages.
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.