MAURITIUS Law and Practice Contributed by: Bhavna Ramsurun, Pinki Mahata, Lorna Senivassen and Shreya Mungur, BLC Robert & Associates
3.2.3 Restrictions on Investors CISs and CEFs that are retail funds have no limi - tation on the type of investor or minimum invest - ment by investors. However, the prospectus can set out specific eligibility criteria for investors or any minimum investment. 3.3 Regulatory Environment 3.3.1 Regulatory Regime There are two main categories of funds: CISs and CEFs. A CIS has a number of restrictions on its invest - ment and practices, which may be lifted with the approval of the FSC if it is satisfied that the fund has justification, and provided that the fund makes adequate disclosure in its prospectus as to investment rules and risks. For instance, with - out the FSC’s approval, a CIS cannot: • invest more than 5% of its net assets in the security of the issuer, unless it is a debt secu - rity issued by the government of Mauritius or the government of any other country; • purchase and hold more than 10% of a class of securities of that issuer; • purchase a security for the purpose of exer - cising control or management over the issuer of that security; • have more than 10% of its net assets in illiq - uid assets; • purchase or sell derivatives or physical com - modities, except within limits established by the FSC; • subscribe to securities offered by a company in formation; • lend money, securities or other assets; • invest in aggregate more than 10% of its NAV in shares of another CIS; • purchase real estate; • purchase a mortgage;
The quarterly reports and annual reports of closed-end retail funds (other than those funds that hold a GBL) must also be made public. In the case of a public offering, the retail fund must register itself as a reporting issuer and is subject to an additional disclosure requirement (to the FSC). Reporting issuers must notify the FSC of any material changes to their affairs. REITs A REIT must file with the regulator and distribute to participants the following: • a half-yearly report (including financial state - ments prepared in accordance with the IFRS), no later than 45 days from its interim period; and • an annual report, including audited compara - tive financial statements prepared in accord - ance with the IFRS and audited in accord - ance with the International Standards on Auditing (or such other permitted standards), no later than six months from its balance sheet date. 3.2 Fund Investment 3.2.1 Types of Investors in Retail Funds There is a diverse range of investors for retail funds – from individuals and corporates to insti - tutional investors, development finance institu - tions, family offices and financial institutions. 3.2.2 Legal Structures Used by Fund Managers Fund managers are typically set up as com - panies incorporated under the Companies Act 2001. Please see 2.2.2 Legal Structures Used by Fund Managers .
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