Art Funds now under SEBI's control

Securities and Exchange Board of India (SEBI) stated that its certificate of registration is mandatory for setting up art funds. Art funds are collective investment schemes and as per Section 11AA (2) of the Sebi Act, 1992: A company having the certificate of registration by Sebi can initiate a collective investment scheme. Moreover according to Section 12 (1B) of the Sebi Act, no person shall sponsor or cause to be sponsored or cause to be carried on a collective investment scheme unless he obtains a certificate of registration from Sebi. This initiative has been taken in line with the growing wealth in India and surging demands for Indian art in several international markets. It has been witnessed that innumerable art funds are cropping up in these markets and huge money is being accumulated and brought back to the country. It has been estimated that the industry size is within Rs. 300 crore to over Rs. 1000 crore.