Mauritius changes rules to target funds growth

* Listing regulations expanded

* Mauritius aiming to boost financial sector

By Jean Paul Arouff

PORT LOUIS, Feb 18 (Reuters) - Mauritius has changed its listing regulations with a view to attracting global funds and collective investment schemes looking for investment opportunities in Africa, the head of the stock exchange said.

The palm-fringed island's growing offshore financial sector launched in 1989 pitches itself as a financial platform bridging Africa, the Indian sub-continent and Asia.

The Stock Exchange of Mauritius (SEM) previously catered only for investment companies, unit trusts and open-ended funds.

On Jan. 28, the listing regulations were amended to include global schemes, professional collective investment schemes, expert funds, closed-end funds and specialised collective investment schemes.

"The SEM is going through a strategic reorientation of its activities and gradually moving away from an equity-based domestic exchange to a multi-product internationally oriented exchange," SEM Chief Executive Officer Sunil Benimadhu told Reuters this week.

Benimadhu said the changes have now positioned the SEM as an attractive venue for the listing of global funds.

While competition for dwindling business at the start of 2009 led to a drop in new activity for Mauritius' offshore sector, it still countered the global downturn last year by posting a 25 percent gain in annual pre-tax profits.

The development of the financial sector is part of the Indian Ocean island's diversification away from traditional sugar, textile and tourism, into ICT, business outsourcing and offshore banking.

Mauritius' finance industry expanded by an annual average rate of 7.6 percent over the last four years, making it the most resistant sector to the global financial crisis.

Milan Meetarbhan, chief executive of the Mauritius' Financial Services Commission said the future of the global business industry was in funds.

"Mauritius should position itself to be recognised by the fund industry as the hub in Africa," Meetarbhan said.

The FSC says there are more than 1,000 funds under management in Mauritius, although they are not listed on the stock exchange.

"Having more international funds listed on the SEM will boost Mauritius' image as a financial centre," Finance Minister Ramakrishna Sithanen said at the launch of an information campaign on new listing rules. (Editing by David Clarke and Jon Boyle)