The next time on your visit to the Jehangir Art Gallery, you will most probably see a famous industrialist admiring a painting.

But he may not just be thinking of just adding another item to his already extensive art collection; for all you know he may be viewing a prospective investment opportunity.

The movers and shakers of the corporate world are just realising that art need not just adorn their homes but could also look good on their balance sheets, too.

Trading in art, a common practice in the west is only now evolving in India. The works of top artists command a premium in the market and now the country's elite has begun to encash it.

Shalini Sawhney, director of The Guild art Gallery says, "Art appreciation and investment now go hand in hand."

Generally, art collectors sells their paintings through galleries, dealers and at auctions. The galleries charge around a 10-15 per cent commission on the sale price.

Mostly, India Inc prefers local artists compared to International ones. Why not? well-known artist Tyeb Mehta's work fetched Rs 1.40 crore (Rs 14 million) at Christie's in New York.

"The paintings would fetch a premium depending upon the work and the artist," says Nikhil Khattau, chief executive officer of Sun F&C Mutual Fund.

Khattau, an art connoisseur himself, may look at selling some of his famed collection in future. The price tag varies from Rs 10,000 for budding artists to Rs 25 lakh (Rs 2.5 million) for big names based on the size of the canvas and the medium employed. Recently, an M F Hussain fetched Rs 25 lakh.

The sale of a valuable painting may be prompted by  the need to reshuffle one's art collection. There are others who did it for a cause.

Harsh Goenka, chairman of the Rs 6,600 crore RPG group, whose art collection is a part of industry folklore says, "For the first time, I sold a part of my collection for charity. In future, I  may look at selling some of the collections in the market."

Sawhney feels that banks may lend using art as collateral for future loans. Bankers are more circumspect.

A senior executive at a bank said, "Valuation is an issue besides establishing the authenticity of the work which adds to bank's problems as they lack the expertise in this matter. The business is yet to reach critical mass for the banking sector to seriously look at."