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The Adani group’s Mauritian migraine
With at least six Mauritius-based funds that invested in Adani Enterprises’s scrapped share sale having links to the group, a potential conflict of interest problem looms.
27 February, 2023•11 min
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27 February, 2023•11 min
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Editor's note: As Indian parliamentarians call for an investigation into the Adani group, regulators are once again looking into the infrastructure conglomerate's Mauritius connection. Earlier this month, the Securities and Exchange Board of India asked banks to share details on the beneficial owners of offshore funds and foreign portfolio investors by September this year. It is reportedly also looking at potential conflicts of interest in Adani Enterprises Ltd’s share sale process. In particular, the regulator is investigating the relationship between two Mauritius-based funds—The Great International Tusker Fund and Ayushmat Ltd—which participated in Adani Enterprises’s $2.4 billion, or Rs 20,000 crore, follow-on public offer. The share sale was called off after US-based short seller Hindenburg Research published a report last month alleging stock manipulation, accounting irregularities and fraud at the group. Mauritius has long been favoured by overseas investors looking to invest in Indian capital markets or directly in businesses. Easy regulations and taxation policies make it attractive, while also allowing for tax evasion and round-tripping of funds. As of January 2023, foreign portfolio investors in Mauritius had invested Rs 3.78 lakh crore …
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