Bollywood Calling? ; a New Fund Seeks to Invest in Films, and Will Benchmark Returns Against Equities.
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Summary
Finally, investors may soon get a new sector to invest in: films. Recently, Vistaar Religare Capital Advisors filed for a film venture fund with the regulator, the Securities and Exchange Board of India (SEBI), to fund new films. As there are no comparable funds, it will measure its performance against the stock market and try to beat the major indices. We currently have no benchmarks to measure the fund's performance. We will equate the fund with the best of equity funds, says Sheetal Talwar, Chairman and Managing Director of this asset management company.
The fund will target high net worth individuals and institutions and aim for a corpus of Rs 200 crore. Talwar is looking at investors who have an inkling of the risks of funding films. The fund will aim for a high degree of transparency and will monitor the earnings from films as the final realisations could take time to trickle in as it depends on a film's success. Quite often, producers are in a hurry to sell all the rights before the release because they have financiers breathing down their necks and sometimes they lose money, as a result. Our fund will ensure a better price discovery mechanism and revenues will be made transparent, he says.See the full content of this document
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Bollywood Calling? ; a New Fund Seeks to Invest in Films, and Will Benchmark Returns Against Equities.
The fund will invest in special purpose vehicles created separately for each film it selects. The involvement w...
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