on Mon, 02/07/2011 - 08:26

http://topnews.ae/content/26044-india-take-tough-stance-over-black-money

Indian’s security market regulator- the Security and Exchange Board of India and Reserve Bank has decided to put extra security in place for curbing money laundering through Mauritius and other safe investment havens.

The regulator found a flood of complaints regarding venture capital funds coming from Mauritius in sectors like telecom and real estate. It has been established that five foreign venture capital investors infusing money in India hails from Mauritius.

SEBI has permitted a total of 154 foreign capital investors to invest in India out of which 149 hails from Mauritius, an island nation in Indian Ocean. Rest of the allowed companies belong to Singapore and Cyprus. Most of these entities are injecting money in country’s real estate sector and the inflow rose more than 2.5 per cent in the telecom sector.

Last week, Mauritius' Vice Prime Minister and Minister for Finance and Economic Development Pravind Kumar Jugnauth said that his country will not allow money laundering and full cooperation will be done with the Organization for Economic Cooperation and Development (OECD), the global agency working on implementation of international standards on taxation and other matters.