Foreign investment in a listed Mauritian Sugar Company is limited to 15%, unless the foreign investor applies and obtain an exmpetion by the FSC. Such an exemption can be granted to investors whose investment policy is to act as a passive investor and does not exercise or seek to exercise control over any entity in which it invests. For the purpose of the FDI RR Index, the exemption is assumed to mostly apply to financial (funds etc.) investors; not FDI-type of investors who would normally seek control over the invested company.
2. Interpretation
In these Rules –
“Commission” has the same meaning as in the Financial Services Act [i.e. the Financial Services Commission established under section 3 of the FSC Act];
"exempt foreign investor" means a foreign investor which is a body corporate (whether open-ended or closed-ended), a unit trust or any other collective investment vehicle incorporated or otherwise established with the objective of spreading investment risk and managing assets for the benefit of shareholders and participants and which has been designated as exempt by the Commission under rule 5:
"foreign investor" means a non-citizen or an entity which is not resident in Mauritius;
"Mauritian Sugar Company" means a Mauritian company whose principal activity involves either the cultivation of sugar cane in Mauritius or the production or marketing of sugar and related products produced from sugar cane grown in Mauritius or a combination of any of those activities and which is listed on a securities exchange licensed under the Securities Act;
“non-citizen" has the same meaning as in the Non-Citizens (Property Restriction) Act;
“resident in Mauritius" has the same meaning as in the Non-Citizens (Property Restriction) Act;
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3. Prior written consent of the Commission
(1) No foreign investor shall, without the prior written consent of the Commission, make an investment in securities where, as a result of that investment, 15 per cent or more of the voting capital (including any capital having an element of equity) of a Mauritian Sugar Company would be held by foreign investors.
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5. Exempt Foreign Investors
(1) The Commission may designate certain foreign investors as exempt foreign investors in accordance with the provisions of this rule.
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(3) No foreign investor shall be designated by the Commission as an exempt foreign investor unless the Commission is satisfied that -
(a) the applicant is an entity of the nature outlined in the definition of exempt foreign investor in these rules;
(b) the applicant's investment policy and restrictions are such that it is a passive investor and does not exercise or seek to exercise control over any entity in which it invests;[...]" (Securities (Investment by Foreign Investors) Rules 2013)
Securities (Investment by Foreign Investors) Rules 2013
[<a href="https://www.fscmauritius.org/media/3421/securities-investment-by-foreign-investors-rules-2013.pdf">Rule</a>]