The convention, also referred to as the 'Hague Convention on the Law Applicable to Certain Rights in Respect of Securities held with an Intermediary', provides for certainty as to the law applicable to clearance, settlement, and secured credit transactions that cross national borders.

The convention also aims to increase transactional efficiencies in the global securities markets, reduce systemic risk in cross-border transactions and intermediary holdings, and facilitate cross-border capital flows.

"With a view to giving more impetus to the effort to become one of the major financial services centre, Mauritius has agreed to adhere to the Hague Securities Convention," the government confirmed in a statement on April 1st.

"The Convention reflects a pragmatic approach, based on real world needs, aimed at achieving certainty and predictability as to the law governing issues that are of crucial practical importance for holding and the transfer of securities held with an intermediary," the government statement concluded.