Case Law Details
Osians Connoisseurs of Art Pvt. Ltd. Vs SEBI (Supreme Court of India)
BRIEF FACTS:
1. Two trusts named Yatra Art Fund Trust (Fund I) and Yatra Art Fund II (Fund II) were created under the Indian Trusts Act, 1882, through execution of Indentures of Trust dated 15.06.2005 and 01.12.2006.
2. A perusal of the trust deed shows that both these trust Funds were created for an initial period of 4-4 years, the first Fund ending, after extension of one year, on 15.09.2011. Insofar as the second Trust Fund is concerned, this Trust Fund was also extended and ended on 31.01.2012. It may also be mentioned that these Trusts Funds were established so that investors could invest in works of art. In the Confidential Information Memorandum, it was made clear to the investors that these were investments which were fraught with grave risks and that the investors invest in these Trusts Funds with open eyes knowing of the aforesaid risks.
3. So far as the first Fund was concerned, a total corpus amounting to Rs. 10.95 crores was collected from the investors. We are informed that 50 such investors invested in this Fund. So far as the second Fund is concerned, the total corpus was Rs. 21.92 crores, with 132 persons having so invested.
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