Mauritius, Cayman Islands funds under watch for ownership info gaps

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