PRESS RELEASE - SEBI

April 18, 2013
PR No. 040/2013


Order in the matter of Art Fund sponsored by M/s. Osianís Connoisseurs of Art Private Limited

Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI has passed an order dated April 15, 2013 in the matter of Art Fund sponsored by M/s. Osianís Connoisseurs of Art Private Limited (the company) in the nature of Collective Investment Scheme (CIS) and directing it to wind up its existing 'collective investment scheme' and refund the monies, collected by it under its scheme but remaining unpaid, to all the investors within a period of three months from the date of the order. In addition, the company shall also pay the amount of profits/income earned, if any, that is due to the investors as per the terms of its offer or pay interest at the rate of 10% per annum from the date of investment till the date of refund, whichever is higher. Further, the company is also directed not to access the capital market and is further restrained and prohibited from buying, selling or otherwise dealing in the securities market till its collective investment scheme/s is/are wound up and all the monies mobilised through them are refunded to the investors.
 
The company had sponsored an Art Fund namely Osian Art Fund which in turn floated a closed ended scheme Contemporary-1 which involves pooling of investments from investors with the objective to generate income and capital growth from a portfolio of investment and management in the art works. The company also acted as Assets Management Company and Oseta Investments Trustee Company Private Limited was appointed as Trustee for the Osian Art Fund. A total of 656 investors had invested an amount of Rs. 102.4 crores in the scheme. The company was found to be engaged in the fund mobilising activity from investors by sponsoring/ launching or cause to be sponsored/ launched ĎCollective Investment Schemesí as defined in Section 11AA of the SEBI Act.
 
Since the company has launched Collective Investment Schemes without obtaining certificate of registration from SEBI, it has contravened provision of section 12 (1B) of the SEBI Act and regulation 3 of the SEBI (CIS) Regulations, 1999.
 
 
  
Mumbai
 
April 18, 2013


For full copy of order against OSIANíS- CONNOISSEURS OF ART PVT.LTD., click here.