Leisure, Lifestyle & Wellness
Life Exclusive
Osian Art Fund delays payout
After the disappointment on low returns, unit holders are now facing a delay in getting their money back from the fancied Osian Art Fund. Unit holders are unlikely to get the money anywhere before December 2009 due to Osian's inability to sell its art inventories.
 
As per the Osian Art Fund prospectus, the fund distribution had to commence from 10 July 2009. The company invoked a specific clause that allows payment of the returns within a period of 120 days (four months). Backed by the clause, letters were sent to the unit holders that the money would be paid by 10 November 2009.

While the deadline for the payment of returns nears, the art fund unit holders have received indications stating a new date of payment, according to one of the investors. It now appears that payments would be made somewhere in the month of December 2009. As per market sources, the delay in distribution of investor money is due to inability to sell the inventories of art that Osian holds.
However, officials from Osian deny there is any problem with the redemption. "The Art Fund will be redeemed on 9 November 2009 as per the redemption guidelines as shared with the unit holders in June 2009. The inventory has been sold and everything is progressing as per schedule," according to Neville Tuli, chief advisor— Osian Art Fund and founder of Osian.
 
Osian's list of inventories includes artworks by famous artists like M F Hussian, Bikash Bhattarchjee, V S Gaitonde, Akbar Padamsee, Jogen Chaudhary, Somnath Hore and Tyeb Mehta. All these artists were the top contributors to the total value of the inventory as of January 2009.
 
The thirty-six month close-ended scheme announced in July 2006 made a quiet exit with returns of 5% per annum. As of 9 July 2006, the total corpus held by the fund was Rs102.40 crore and it had 656 unit holders representing 39 cities in India.

 Will such poor returns deter Osian from launching art funds in the future? Not quite. "The next Art Fund will be launched once there are clear guidelines from SEBI on various key operational matters. It is now important that the system matures to a new level of financial due diligence and transparency but at the same time recognising the unique structure and logic of the art asset," says Tulli. But the fact remains that the Osian Art Fund has badly underperformed stocks, real estate and gold over the past three years.
- Debashis Basu and Amrita Pillay 

User

Sticky Wicket

IDBI Bank’s loan restructuring is highest among peers

Tough times call for desperate...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Gammon Infra lowest bidder for NHAI project

If things fall in place, Gammon Infrastructure Projects Ltd (GIPL) will soon have a new project and thus a new wholly-owned subsidiary too. GIPL has claimed to be the lowest bidder for National Highways Authority of India (NHAI) project connecting Patna to Muzaffarpur.

“We are the lowest bidders for the project and are awaiting a notification of intent (NOI) from NHAI,” said Parvez Umrigar, managing director, GIPL.

The project is on an annuity model connecting Patna to Muzaffarpur, to be built on a BOT basis. GIPL has a total committed capital expenditure of Rs10,000 crore across various sectors and Rs2,000 crore in the road sector alone.
 
GIPL creates a new subsidiary or special purpose vehicle for every new project it wins. At present, the company has some 16 projects, out of which it holds majority stake in 13 projects.
- Amritha Pillay [email protected]

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)