SEBI cautions investors against unregistered “Art Funds”
Securities and Exchange Board of India (SEBI) on 13th February 2008, cautioned investors with regard to their investments in “Art Funds”. “Art Funds” are “Collective Investment Schemes” as defined under the SEBI Act.
Only a company which has been granted certificate of registration by the
Board in accordance with the Regulations can launch or sponsor a collective investment
scheme. In other words, for a collective investment scheme to raise money from the
public it is prerequisite that the entity must (a) be a company and (b) registered with
SEBI as a Collective Investment Management Company.
At present, no entity has registered with SEBI, under the SEBI (Collective Investment Schemes) Regulations. The schemes/funds have been launched / floated by these entities without obtaining a
certificate of registration in accordance with the SEBI (Collective Investment Schemes)
Regulations, 1999 (the Regulations).
Launching / floating of “Art Funds” or Schemes without obtaining registration from SEBI amounts to violation of SEBI Act and Regulations. Appropriate actions, civil and criminal, under the SEBI Act may be taken by SEBI against such funds / companies.
SEBI simplifies guidelines on corporate bonds
Guidelines on Offshore Derivative Instruments (Participatory Notes)
SEBI Board approves New Derivative Products
CLICK FOR MORE ON SEBI NOTIFICATIONS
CLICK FOR MORE FEATURES & STORIES