AAMIL Asset Management Ltd : The AACP acts as a springboard for Indian investors

AAMIL Asset Management Ltd, investment arm of AAMIL group, is well positioned as a non-investing Category 1 FPI. AAMIL Asset Management Ltd is fully licensed as FPI Category 1 and facilitates investment into the Indian market. Furthermore, AAMIL Africa Capital Partners PCC (AACP), AAMIL’s flagship investment vehicle for Africa, was created and tasked with providing investors with different interests to invest in, through the establishment of their own distinct investment strategy.

AACP is a versatile regulated vehicle, attractive to Indian investors and emerging managers willing to tap the huge African opportunities. This investment vehicle provides flexibility, is highly tax efficient and has relatively low expenses. The African continent is following Asia’s development path and the coming years will see a strong rise in incomes, continued reduction in poverty, and substantial economic gains for investors who get in early. AACP is well positioned to provide the springboard for Indian investors.

“Our global services in Mauritius and Geneva, Switzerland support the investment community globally. The AAMIL group has operated for 25 years. Our clients rely on our global strength, local expertise and strong leadership across our lines of business. The AAMIL group is a unique contact point and a one-stop shop for investors. It offers a bouquet of financial services. At AAMIL, we believe in customer centricity. We welcome all interested parties to get in touch with us for information sharing as well as possible solutions which could be tailor-made to fit their investment requirement,” underlines Devendra Seebaluck, Executive Director/Fund Manager at AAMIL Asset Management Ltd.

Regarding how to boost Indian investment in Mauritius, Devendra Seebaluck adds that Mauritius can inch up its value proposition to India in several ways. The enhancement of policies and regulations in Mauritius is paramount to attract FDI from India. The establishment of the ‘Financial Crime Commission’, announced in the last Budget, for the effective management in the fight against financial crime ensures transparency and credibility. In this competitive environment, Indian entrepreneurs shall be reassured to trust the institutions and the rule of law without worrying about their property rights.

“In addition, Mauritius has incentivised business facilitation through the introduction of a number of incentives for new companies. Upon registration with the Economic Development Board (EDB), companies may avail of any one of the three certificates, namely, Investment Certificate, Export Development Certificate and Premium Investor Certificate to promote business activities. India is among the world’s elite in the Information Technology (IT) field. Mauritius could leverage on this unequivocal expertise to further improve the infrastructure with regards to Information and Communication Technology (ICT) in Mauritius. Renewable energy (viz solar, wind and ocean wave) is another sector in which Mauritius could capitalise on the expertise of India.”

Devendra Seebaluck adds that unfortunately, the recent downgrade by Moody’s due to the deterioration of quality and effectiveness of institutions in Mauritius does not bode well for the country. It sent a negative signal to global investors. At this juncture, the ball now squarely lies in the Mauritius’s court to ensure it puts its house in order to get itself upgraded as soon as possible.

Furthermore, Devendra Seebaluck explains that the revised India-Mauritius DTA is a valuable instrument that has served both countries well over the years and it will continue to do so, as long as it meets the requirements of a fast-changing business environment. The classification of Mauritius as an eligible jurisdiction for seeking registration as Category 1 Foreign Portfolio Investors (FPI) in April 2020 confirms the long-standing socio-economic partnership that India shares with Mauritius.

“This landmark decision by the Indian Government sent a positive signal to the investment community. It strengthens Mauritius in its role to assist investors willing to invest in India. Mauritius-based FPI structures boast many advantages. Only under this classification, FPIs are eligible to deal in, issue or subscribe to offshore derivative instruments or participatory notes (p-notes). Further, FPIs from low-risk jurisdictions are subject to slightly relaxed KYC norms. Most importantly, Investment Funds which do not qualify to operate as FPI may avail the services of a regulated investment manager who is eligible to register as a non-investing FPI. As at 30th June 2021, there was more than 800 Global Business Companies in Mauritius involved in portfolio investment in India.”