Former HF portfolio manager. I actually set up a Mauritius entity to invest into India about a decade ago for a large multi-strategy HF. The suggestion that Ma

Former HF portfolio manager. I actually set up a Mauritius entity to invest into India about a decade ago for a large multi-strategy HF. The suggestion that Mauritius is a stable and well-understood platform for investing into India has the causality completely backwards. Mauritius is stable and prosperous because of the investments that are siphoned through it and the local economy it creates! Compare Mauritius to Maldives for an abject lesson on the effects of the offshore economy on an Island nation. The fact that the funds are invested in India through Mauritius does not exempt them from Indian laws! The only thing it does is that disputes among the passthru firm's shareholders are resolved in Mauritius court. Similar to using Delaware in the US, it does not exempt the company from US taxes or laws but just makes intra-company disputes the domain of Delaware Chancellery court where laws are well-nderstood. The only reason for any institution to use Mauritius as a conduit is to avoid taxes under the DTAA and to anonymize the source of funds to Indian authorities. Any large institution will find domiciles to minimize their tax burden. They engage law firms and accountants who bill hundreds of dollars an hour to do this. Every single institutional investor across the spectrum from hedge funds, private equity, venture capital funds to corporations does this. Any other suggestion to the contrary is just fantastic. [edits for clarity]