Mauritius FPIs continue to be eligible for registration, says Sebi

Mauritius has been doing its bit to showcase its compliance with international tax norms in the past year. It includes measures, such as stepping up scrutiny of offshore fund structures.

The Securities and Exchange Board of India (Sebi) on Tuesday said foreign portfolio investors (FPIs) from Mauritius will remain eligible for registration, but with increased monitoring.

Sebi’s clarification came after the Financial Action Task Force (FATF) — an inter-governmental body that sets anti-money laundering standards — placed Mauritius on the “grey list”, creating uncertainty among market players. One of the large foreign custodians had put a halt on trades from Mauritius on Monday, raising concerns that others would follow suit and all fresh registrations and purchases routed through Mauritius would be stopped.

Another custodian put out a note saying FPIs currently registered