TO PROVIDE CLARITY TO THE FOLLOWING LOCAL MAURITIAN REGULATORY AUTHORITIES, OUR AUDITORS AND ALL OUR
STAKE HOLDERS

We, the local directors are under obligation by the rules, regulations, norms and the local Mauritian Law, to disclose all material facts / changes that take place in any company registered under the registrar of companies in Mauritius.

As their being an involvement of one of the most prestigious Mauritian local Bank – “The State Bank of Mauritius” in their irregularities / involvement in the alleged fraud The REGULATORY AUTHORITIES, in Mauritius have been receiving enormous enquiries in relation to “The State Bank of Mauritius- Mauritius” involvement

Due to this enormous pressure that we are in from the following regulatory authorities in Mauritius. We are under obligation by the local Mauritian law, to disclose any and all facts / matters that have effect on the legal standing of any company in Mauritius.

Our disclosures can be viewed at Vmoksha’s Latest Update.

Mr. Milan J. N. Meetarbhan
CHIEF EXECUTIVE
The Financial Services Commission,
4th Floor, Harbour Front Building,
President John Kennedy Street,
Port Louis, Mauritius

Mr Rameswurlall Basant Roi,
Governor,
BANK OF MAURITIUS,
Sir William Newton Street,
Port Louis,
Mauritius

Registrar of Companies
Companies Division
One Cathedral Square,
Jules Koenig Street,
Port Louis
Mauritius

Dr. Ashok Kumar Aubeeluck
Director (Economic Affairs)
Ministry of Finance and Economic Development
Ground FloorGovernment House
Port-Louis,
Republic of Mauritius

Mr. Mahmood CHEEROO
SECRETARY GENERAL
The Mauritius Chamber of Commerce and Industry
3, Royal Street,
Port-Louis,
Mauritius.

Mr. Sunil Benimadhu
Chief Executive
Stock Exchange of Mauritius Limited
4th Floor, One Cathedral Square Building
Jules Koenig Street
Port Louis

Dr The Honourable Navinchandra Ramgoolam,
Prime Minister of the Republic of Mauritius,
Prime Minister's Office,
New Treasury Building,
Intendance Street`
Port Louis
Republic of Mauritius

The Financial Services Commission
The Financial Services Commission (FSC), established under the Financial Services Development Act 2001, is the regulatory authority which licenses, regulates and supervises non-bank financial institutions (NBFI) in Mauritius. The NBFI sector encompasses Insurers & Intermediaries, Occupational Pension Schemes, Capital Market Operators, Specialized Finance Institutions, Financial Service Providers & Market Professionals, as well as Global Business Operators.

In carrying its mission, the FSC aims to:

• Promote the development, fairness, efficiency and transparency of financial institutions and capital markets in Mauritius
• Suppress crime and malpractices so as to provide protection to members of the public investing in non-bank financial products
• Ensure the soundness and stability of the financial system in Mauritius for the benefit of the economy.

The FSC is also committed to the sustained development of Mauritius as a sound and competitive international financial services center.

Registrar of Companies
Companies Division
(A Division of the Ministry of Finance and Economic Development)
The companies Division is a government office, which falls under the aegis of the Ministry Finance and Economic Development. It administers the Companies Act 2001, and it is also a centre where one may obtain information about these entities.

The Companies Division has four main functions:

• The incorporation, registration and striking-off of companies
• The registration of documents that must be filed under the Companies Act 2001
• The provision of company information to the public
• The enforcement of compliance with the legal requirements.

Ministry Of Finance and Economic Development
The Ministry of Finance and Economic Development is the principal instrument policy is the responsible for the financial soundness of the Government’s Economic Development and for the proper control of revenue and expenditure.

The Bank of Mauritius
The Role And Functions Of The Bank Of Mauritius (Central Bank)
Establishment
The Bank of Mauritius was established in September 1967 as the Central Bank of the country. It was modelled on the Bank of England and was, in effect, set up with the assistance of senior officers of the Bank of England. The then Premier and Minister of Finance, in his inaugural speech, stated that 'the time, however, had come for a rather more modern and sophisticated organisation to look after the broader technical aspects of our monetary affairs. It was logical, therefore, that a central bank should be established’.The Bank of Mauritius was conceived along the line of the well-known Radcliffe Report as 'a separate organisation with a life of its own, capable of generating advice, views and proposals that are something more than a mere implementation of its superior's instructions.'

Board of Commissioners of Currency
Before the establishment of the Bank, the currency issue was managed by a Board of Commissioners of Currency - the first of its kind to be set up in the World. The duties of the Board were restricted to those of an issuing authority.
The setting up of the Bank of Mauritius marked the beginning of a new phase in the monetary history of Mauritius, with the monetary system moving forward from the stage of 'Sterling Exchange Standard', under which currency was issued in exchange for sterling at a fixed rate of exchange, to that of a 'managed currency' in which the discretionary role of the monetary authority becomes important.

Objectives of the Bank
The Bank of Mauritius Act 1966 (as amended) lays down the purposes of the Bank which are to 'safeguard the internal and external value of the currency of Mauritius and its internal convertibility' and to 'direct its policy towards achieving monetary conditions conducive to strengthening the economic activity and prosperity of Mauritius.'
The Bank has been set up as the authority which is responsible for the formulation and execution of monetary policy consistent with stable price conditions. It also has responsibility for safeguarding the stability and strengthening of the financial system of Mauritius.

Functions
The text-book description of central banking functions holds valid in a general way for all countries. The main functions of the Bank include:-

1. Formulation and implementation of monetary policy
2. Issuer of currency
3. Banker to the Government and to banks
4. Provider of an efficient payment, settlement and clearing system
5. Management of the public debt
6. Management of foreign exchange reserves
7. Regulator and supervisor of banks
8. Adviser to the Government on financial matters.

The effectiveness of the role and functions of Central Banks in achieving the desired results depends greatly on the extent to which monetary policy and fiscal policy are co-ordinated.

In a free enterprise economy with a liberalised financial system, central bank supervision of commercial banking institutions is indispensable. Commercial banks in Mauritius are regulated and supervised by the Bank of Mauritius under the Banking Act 1988 which replaced the 1971 Act in January 1989 with a view to strengthening and modernising the regulatory and supervisory system as well as to providing for the legal framework for the establishment and operations of offshore banks domiciled in Mauritius.

The basic objectives of the Banking Act are to maintain a sound banking system in Mauritius and to protect the interests of depositors. It incorporates the following principles of prudential regulation and supervision of banks:-

1. Licensing of Banks
2. Capital Adequacy
3. Quality of Management
4. Liquidity Control
5. Concentration of Risk
6. Role of External Auditors
7. On-site Examinations
8. Off-site Surveillance
9. Control of Advertisements
10. Confidentiality of Information
11. Identity of Customers

The Bank of Mauritius is thus required to ensure

1. The promotion of adequate and reasonable services to the public
2. a high standard of conduct and management throughout the banking and credit system
3. a sound financial structure, and
4. the furtherance of such policies as may be in the national interest.

Commercial banks, like any other private enterprise, are profit maximisers. In the pursuit of profit-making, they may become less cautious and take greater risk in their lending operations. This may endanger the safety of depositors' money. From the supervisory angle, one of the most important concerns of the Bank of Mauritius is therefore to ensure the maintenance of a sound commercial banking system.

Since the establishment of the Bank of Mauritius, the Mauritian economy and the financial landscape of Mauritius have undergone considerable changes. Exchange control was completely abolished in July 1994. The exchange rate of the Rupee is determined by market forces. Interest rates are freely determined on the market. Direct credit control which served its purpose in the old days is no longer an instrument of monetary control.

In short, the Bank of Mauritius has moved away from a system of direct monetary control to an indirect method of monetary control. The functions of monetary management and the regulatory as well as the supervisory role of the Bank of Mauritius are intertwined, more so as the country has been increasingly integrated with the world economy.

Against this backdrop of changes within the Mauritian financial system as well as those in the world financial system, the conduct of monetary policy and the regulatory and supervisory role of the Bank of Mauritius have become increasingly complex. The Bank of Mauritius is strongly committed to enhancing competition and efficiency in the financial system and ensuring its total integrity.

• Represent its members and submit views and proposals to the authorities on their behalf
• Maintain structured forms of dialogue with the public authorities
• Participate in the elaboration of strategies and policies meant to enhance the economic and social development processes of the country
• Encourage and facilitate interaction of its members with the public authorities in Mauritius and business organizations abroad
• Collect, analyse and disseminate information to its members
• Encourage investment, productivity and improvements in technology in the country
• Promote trade in goods and services
• Organise training activities in the fields of information technology and international trade
• Initiate cooperation and affiliation programmes and other links with international organisations meant to further the interests of its members and the business community as a whole.

Press
The press in Mauritius enjoys full freedom of expression. It is independent and free to cover and comment on all events, be they political, economic, or social. The main local newspapers and magazines are:

News on Sunday
Business Magazine : www.businessmag.mu
Le Dimanche
Star : www.mauriweb.com/star/index.asp
Week-End : www.lemauricien.com/weekend
Week-End Scope : www.lemauricien.com
Le Mauricien : www.lemauricien.com
L'Express : www.lexpress.mu

Following the recent liberalisation of airwaves, new radio stations have set up, namely:
Radio One
Radio Plus
Top FM
Mauritius Broadcasting Corporation Radio

Representatives
A few important foreign press agencies are represented locally, namely,
Agence France Presse
Reuters
International News Service
The Indian
News of the World
African Business
The Associated Press

THE STOCK EXCHANGE OF MAURITIUS
(MEMBER OF THE WORLD FEDERATION OF EXCHANGES)

Rules & Regulations
Introduction to the Regulatory Framework
The Stock Exchange Act 1988 provides for the establishment of a Stock Exchange that shall be operated and maintained by a Stock Exchange Company to be known as the Stock Exchange of Mauritius Limited.

In 1989, the Stock Exchange of Mauritius Limited (SEM) was incorporated as a private limited company whose mission is to operate and promote an efficient, liquid, fair and transparent securities market.

Under the provisions of the Stock Exchange Act, the SEM has the exclusive right to operate, manage and maintain the Stock Exchange. The SEM operates under the control and supervision of the Financial Services Commission (FSC), the stock market’s regulatory body and is managed by its Board of Directors. Its main objects as provided by the Act are:

1. to operate and maintain the Stock Exchange;
2. to provide facilities for buying, selling and otherwise dealing in securities on the Stock Exchange;
3. to establish a clearing service under the Securities (Central Depository, Clearing and Settlement) Act 1996; and
4. to provide and maintain, to the satisfaction of the Commission adequate and properly equipped premises for the conduct of its business.

The law also confers the authority on SEM to adopt rules governing the conduct of its members and listed companies and to enforce these rules. All the rules of the SEM are subject to the prior approval of the FSC.