Home / Market / Stock-market-news /  Art funds fall under CIS regulations, rules SAT

Mumbai: The Securities Appellate Tribunal (SAT) has ruled that the art fund scheme launched by Osian’s Connoisseurs of Art Pvt. Ltd falls under the definition of collective investment scheme (CIS) and therefore comes under the regulatory purview of the Securities and Exchange Board of India (Sebi).

The tribunal has, however, set aside an April 2013 order by Sebi that directed Osian’s Connoisseurs to refund 102.4 crore in funds collected from 656 investors, along with the profits earned or with 10% annual interest, whichever is higher. The tribunal had admitted the appeal filed by Osian’s Connoisseurs on 30 April 2013.

On Tuesday, the tribunal directed Sebi to initiate a fresh investigation in the matter. The Osian scheme is run under an art fund promoted by art collector and dealer Neville Tuli. The fund was launched in 2006.

In an order passed on 17 April 2013, Sebi said the scheme was launched in violation of its norms as the fund house did not have a licence for the CIS business.

The capital market regulator had barred Osian’s Connoisseurs from accessing the capital market till its collective investment schemes were wound up and money mobilized through them was refunded to investors.

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