What could be the implications if FIIs cannot bring funds into India from Mauritius? Will it impact the flow of funds into India?

As of now there is no bar on FPIs bringing in funds from Mauritius. The only thing that hash happened is that the Financial Action Task Force (FATF) has included Mauritius in the grey list. Being included in the FATF grey list can be negative for FPIs registered in Mauritius as it would be an impediment to get registration from Indian authorities. That is why FPIs have already approached SEBI for greater clarity on this issue. What exactly is this grey list? Grey list includes jurisdictions that have agreed to rectify identified structural deficiencies within an agreed time frame. However, if the FATF finds the country non-cooperative, then FPIs registered in Mauritius may not be allowed to buy fresh securities in India. While Mauritius has agreed to cooperate, FIIs still want to play it safe and get an assurance from the government that they do not have anything to worry.