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Mauritius declines to comply with SEBI request

Mauritius Offshore Business Activites Authority has bluntly told the market watchdog Securities and Exchange Board of India that it would not be able to share information sought by it in connection with the stock market scam.

MOBAA informed SEBI that since the information sought by it (SEBI) fell outside the ambit of offences which qualify under MOBA Act for disclosure order, and in view of the confidentiality provisions, MOBAA was not in a position to comply with SEBI's request, the market regulator said in its third interim report on stock scam, submitted to the joint parliamentary committee.

The regulator, however, has now approached the director of Economic Crimes Office of Mauritius to look into the issue.

SEBI had requested MOBAA to provide information on names of actual beneficiaries of these overseas corporate bodies; sources of funds that had been used for carrying out the transactions; how the funds remitted to Mauritius had been used, and whether the networth of directors/stakeholders of these companies carry out the transactions.

Although SEBI does not have regulatory jurisidication over inflow and outflow of foreign exchange in the country and since OCBs were neither registered nor regulated by it, SEBI wrote to MBOAA with the idea of ascertaining the actual beneficiaries behind these OCBs to find out the real culprits, the report said.

"It is suspected that Ketan Parekh entities shift money into India and outside India by getting into structured deals with OCBs and foreign institutional investors' sub accounts", the report said.

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