Date:02/06/2006 URL: http://www.thehindubusinessline.com/2006/06/02/stories/2006060204361400.htm

Back Osian's launches art fund worth Rs 100 cr

Our Bureau

Mumbai , June 1

Osian's-Connoisseurs of Art Private Ltd, a leading archive and auction house, today announced the launch of a private fund called Osian's Art Fund, worth over Rs 100 crore.

The project will create a base in the mutual fund industry for Indian cultural artefacts in 3-4 years, said Mr Neville Tuli, Chairman, Osian's, and Chief Advisor to the fund.

The issues of black economy, legal ambiguity, and authenticity, along with commission structure in the art industry, indicate a clear need for a mutual fund structure in the long run.

"The objective is to generate medium to long-term income and capital growth from a cohesive, historically driven portfolio of investment in contemporary fine arts from India," he told newspersons.

Currently, the SEBI does not securitise art but regulations for the sector are expected in 18-24 months, he said.

The close-ended fund, with a lock-in period of 36 months, has an initial offer period of one month.

The purchase price per unit is Rs 100 and the minimum investment would be Rs 10 lakh.

The fund opens on June 7 and would be launched as part of Osian's Wealth Management Services for Art.

The art fund would be funded only through private placement and invitation.

It would present a new transparent option to high net worth individuals in the country, especially connoisseurs of art wishing to enter this new asset class, Mr Tuli said. The fund will institutionalise the domestic art sector, he added.

The art industry in India is growing at 35 per cent per year.

Osian's would act as sponsor and asset management company for the fund. Oseta Investments Trustee Company Pvt Ltd (trustee) would act as the trustee, a related statement said.