This Note explains that:

1. Security Tokens are “securities” as defined in the Securities Act 2005, in digital format;

2. When STOs are conducted in or from Mauritius, this offering will be subject to the Securities Act 2005 and to any Regulations made thereunder by the FSC, as may be applicable;

3. No Offerings of Security Tokens may be made without the FSC’s prior approval save and except in respect of offerings to the following categories of investors:

(i) Sophisticated Investors;

(ii) Expert Investors;

(iii) Expert Funds;

(iv) Professional Collective Investment Schemes;

(v) Specialised Collective Investment Schemes.

The above-mentioned terms are defined in the Securities Act or in the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008.

4. Any person soliciting another person to enter into transactions involving Securities Tokens must hold the appropriate license under the Securities Act 2005 and must ensure compliance with the following non-exhaustive requirements:

(i) Undertaking adequate due diligence regarding the STO;

(ii) Disclosure obligations to clients regarding the STO and risks associated thereto.

5. Investors must ascertain all risks associated to Securities Tokens prior to committing to the same. Any investment in Securities Tokens is at the investor’s own risk and no compensation arrangement exists in Mauritius in relation thereto.

For further information please reach out to Malcolm, Melissa or your usual Appleby contact.

Share
Twitter LinkedIn Email Save as PDF
More Publications
18 Nov 2022

APPLEBY MAURITIUS NEWSLETTER, NOVEMBER 2022

There have been interesting developments in our legal landscape since our last issue with the Govern...

17 Nov 2022

Mauritius Case-Law Summary November 2022

This is a summary of recent cases likely to influence the practice of global business in Mauritius.

17 Nov 2022

The Statutory Requirement for a Debenture Holders’ Representative in Mauritius

A debenture is essentially a debt instrument which is traditionally not supported by any collateral ...

Contributors: Abdal Aumeer
17 Nov 2022

Banker's duty of confidentiality

A bank’s duty of confidentiality to its customers, as well as the obligation on banking institutio...

Contributors: Zahrah Juman
27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...

9 Sep 2022

Attachment Orders – A useful debt enforcement tool for creditors

One of the unsettling questions that lingers in the minds of creditors is how to secure or recover t...

25 Jul 2022

APPLEBY MAURITIUS NEWSLETTER, JULY 2022

There have been interesting developments in our legal landscape since our last issue with the Govern...

22 Jul 2022

Digital Banking - Being future ready

One of the positive aspects of digitalisation is the opportunity which it has offered for financial ...

21 Jul 2022

Concurrence Déloyale

This article reviews the approach which the Mauritian Supreme Court adopts on the concept of “Conc...

21 Jul 2022

Case Summaries

The Supreme Court had to address a preliminary objection raised by co-respondents Nos. 1, 2 and 3 on...