Sebi considers investment funds focussed on art works, antiques, coins and stamps as 'collective investment schemes', which come under the ambit of the capital market regulator.
Fearing flow of illicit wealth into these funds and also a high level of risk posed by them to the general investors, Sebi is now considering framing a specific set of regulations for these funds, a senior official said.
Globally, art funds are very famous as an alternative class of investments for rich investors and have started gaining some ground in India over the past few years.
However, there are no specific regulations in India for art and other such funds, which collect money from numerous investors, most of whom are high-net worth individuals to invest them into art works, antique pieces as also old and rare coins and stamps.
Sebi will soon begin a consultation process with various stakeholders, including the central government and Reserve Bank of India, with an aim to frame the specific regulations for these alternative investment vehicles this fiscal, the official added.
Earlier in 2008, a time when the art funds first became visible in India, the regulator had issued a public notice to warn the investors against putting their money into art funds or schemes of entities
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