PROSPECTUS Dated March 29, 1995                   Pricing Supplement No. 68 to
PROSPECTUS SUPPLEMENT                      Registration Statement No. 33-57833
Dated March 29, 1995                                            April 18, 1996
                                                                Rule 424(b)(3)


                           Morgan Stanley Group Inc.
                          MEDIUM-TERM NOTES, SERIES C
                            Senior Fixed Rate Notes


     The Fixed Rate Notes, as further described below and in the Prospectus
Supplement under "Description of Notes --  Fixed Rate Notes," will bear
interest from the date of issuance until the principal amount thereof is paid
or made available for payment at the rate set forth below.

     The Fixed Rate Notes will be redeemable in whole, but not in part, at the
option of Morgan Stanley Group Inc. with 30 to 35 calendar days notice on any
May 1 or November 1, commencing May 1, 1998.

                                                                             
Principal Amount:              $10,000,000                  Redemption
                                                              Percentage:             100%
Maturity Date:                 May 1, 2011
                                                            Annual Redemption
Interest Rate:                 7.70%                          Percentage
                                                              Reduction:              N/A

Interest Accrual               May 1, 1996                  Interest Payment
  Date:                                                       Period:                 Semiannually

Interest Payment               May 1 and November           Specified Currency:       U.S. Dollars
  Dates:                       1, commencing
                               November 1, 1996             Issue Price:              100%

                                                            Settlement Date
                                                              (Original Issue
Redemption Dates:              Redeemable in whole,           Date):                  May 1, 1996
                               but not in part, at the
                               option of Morgan             Book Entry Note or
                               Stanley Group Inc.             Certificated Note:      Book Entry Note
                               with 30 to 35 calendar
                               days notice on any           Senior Note or
                               May 1 or November 1,           Subordinated Note:      Senior Note
                               commencing May 1,
                               1998                         Total Amount of OID:      N/A

Minimum                                                     Original Yield to
  Denomination:                $1,000                         Maturity:               N/A

                                                            Initial Accrual
                                                              Period OID:             N/A

                                                            Trustee:                  Chemical Bank





Capitalized terms not defined above have the meanings given to such terms in
the accompanying Prospectus Supplement.

                             MORGAN STANLEY & CO.
                                 Incorporated