Even after the end of the deadline for redemption, investors of the Osian Art Fund continue to await full redemption. Unit-holders have received another note from Osian officials stating that the remaining amount would be paid to them in two instalments.
Investors in the art fund had recently received a part-payment of the redemption amount. While investors claimed that they had received only 75% of the total amount, company officials stated that the payment amounted to 90% of the capital invested in the Fund.
Today, a day later than the deadline for redemption (as per Osian officials), notes were sent across to unit-holders stating that the payment would be made in two instalments. The note said that all unit-holders would have received 85% of their investment (in addition to the earlier 5% dividend). This payment will be made in eight to 10 days, said the note.
The remaining capital and income will be distributed in 10 to 12 days thereafter, according to the company.
Neville Tuli, chief advisor, Osian Art fund, in one of his earlier mails to Moneylife had stated, “As per redemption guidelines, this process has up to 10 December 2009 to complete its obligations. However, we expect to complete all these formalities much quicker.”
Osian's-Connoisseurs of Art Private Ltd, a leading archive and auction house, had announced the art fund in July 2006. The art fund was a close-ended scheme for a period of thirty-six months. Investors in the Fund have been disappointed earlier with low returns, with a net assert value (NAV) of Rs112 and now they have to put up with delayed and part-payments.