The Osian Art Fund’s three-year period ended last year. Despite the major delays, investors still await final payments, while a few are in anticipation of the very first payment itself. To add to the woes of investors, the Fund’s NAV (net asset value) is just Rs111.72.
The latest that investors have heard from Osian officially, is a letter dated 24 March 2010. It states, “We sincerely regret and apologise for the delay caused to yourself in not being able to meet the previous deadlines for repayment. However, let me reassure you that we will shortly complete the process of redeeming your investment in the ‘Osian’s Art Fund-Contemporary 1 Scheme’ latest by the 3rd week of April 2010.”
The letter further states, “The final NAV is Rs111.72 (cum-income). A detailed statement of your account will also be sent to you shortly.” However, neither the statement of account nor the final payment has reached the investors with whom Moneylife has been in touch.
Further, not all investors have received the first payment. As Moneylife had earlier reported, some of the investors who had invested through ABN AMRO still await first payments.
Moneylife has spoken to two ABN AMRO customers who have not received their first payments. “ABN AMRO officials state that the payments have been first made to the small investors from the smaller cities,” stated an investor who has invested a large amount in the Fund through the Bank.
“There are a few final investors who are being paid in this coming week. It has nothing to do with them being investors with ABN AMRO or any other bank,” said Neville Tuli, chief advisor, Osian Art Fund, on being questioned whether a few investors who invested through ABN AMRO still await first payments.
The Osian Art Fund was a 36-month close-ended scheme launched in July 2006. At the time of exit company officials claimed that the returns would be around 5% per annum. As of July 2006, the fund’s total corpus was Rs102.40 crore and it had 656 unit-holders across 39 cities. — Amritha Pillay
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