MAURITIUS Law and Practice Contributed by: Sameer Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
Equity Financing IPOs on the SEM
In other circumstances, the individuals exercising con - trol or the identity of the relevant natural person who holds the position of senior managing official would have to be disclosed. In essence, the same princi - ples and standards set out in the Financial Action Task Force’s guidance notes on transparency and benefi - cial ownership have been enshrined in domestic laws and regulations. In the event of a disposal of the FDI, there is an obli - gation on banks, financial institutions, cash dealers or other professionals dealing with the transaction to scrutinise the transactions undertaken – including, where necessary, the source of funds – to ensure that the transactions are consistent with the customer’s business. However, no disclosure is required at the governmental authorities’ level. There is no threshold of ownership percentage for FDI. In Mauritius, businesses often consider a mix of capi - tal market instruments, bank financing, and other sources based on their specific needs, risk profiles, and growth plans. Capital markets can be defined as markets where individuals and institutions buy/sell financial securi - ties, such as shares or stocks, bonds, debentures and other financial instruments. The Stock Exchange of Mauritius (SEM) is the princi - pal stock exchange in Mauritius. It provides a platform for the listing and trading of equities and other finan - cial instruments. Listing on the SEM Companies can access capital by listing their shares on the SEM through initial public offerings (IPOs), allowing them to raise public investors’ funds. 5. Capital Markets 5.1 Capital Markets Overview
Companies seeking equity financing can go public by listing on the SEM, thereby attracting investment from a broader range of investors. Debt Financing Corporate bonds Businesses can issue corporate bonds on the SEM to raise funds through debt financing. Investors, includ - ing institutional investors, may purchase these bonds. Regulatory Body The Financial Services Commission (FSC) The FSC regulates the financial services sector in Mauritius, including capital markets. It licenses, regulates, monitors, and supervises activities in the financial services sector other than banking, including capital markets. 5.2 Securities Regulation The Securities Act 2005 (the “Securities Act”) man - dates licensing and registration requirements for enti - ties involved in securities activities, including stock - brokers, dealers, and investment advisers. Listing requirements The SEM sets out listing requirements for compa - nies seeking to go public. These requirements ensure transparency and protect the interests of investors. Continuous disclosure Issuers listed on the SEM are typically required to dis - close material information to the public in a timely and Key Regulatory Aspects Licensing and registration Securities laws in Mauritius govern market manipula - tion, insider trading and other forms of market abuse to maintain the integrity of the capital markets. Investor protection Regulations are in place to safeguard investors’ inter - ests and ensure fair and equitable treatment. accurate manner. Market conduct
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