This Statement of Additional Information (SAI) contains details of ——— Mutual Fund, its constitution, and certain tax, legal and general information. It is incorporated by reference (is legally a part of the Scheme Information Document). This SAI is dated
  1. INFORMATION ABOUT SPONSOR, AMC AND TRUSTEE COMPANIES

A. Constitution of the Mutual Fund

ABC (the “Mutual Fund”) has been constituted as a trust on ________ in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) with XYZ, as the Sponsor and DEF as the Trustee. The Trust Deed has been registered under the Indian Registration Act, 1908.

The Mutual Fund was registered with SEBI on _____________________________ under Registration Code MF-

B. Sponsor

ABC Mutual Fund is sponsored by XYZ. The Sponsor is the settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of RS. ________ to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

Financial Performance of the Sponsor (past three Years):

ParticularsYear 1Year 2Year 3
Net Worth
Total Income
Profit after tax
Assets Under Management (if applicable)

C. The Trustee

DEF (the “Trustee”), through its Board of Directors, shall discharge its obligations as trustee of the ABC Mutual Fund. The Trustee ensures that the transactions entered into the AMC are in accordance with the SEBI Regulations and will also review the activities carried on by the AMC.

Details of Trustee Directors:

NameAge/QualificationBrief Experience
PQR45/CAPQR is a fellow member of the Institute of Chartered Accountant and is in practise from 1978. He is a Senior Partener with a firm of Chartered Accountants in India. He is also a director on the Board of various companies and trustee of charitable institutions
State the responsibilities and duties of the Trustee as well as the specific and general due diligence.

D. Asset Management Company

STP Ltd. is aprivate limited company incorporated under the Companies Act, 1956 on, having its Registered office at __________________.

STP Ltd. has been appointed as the Asset Management Company of the ——— Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated, and executed between DEF and STP.

Details of AMC Directors:

NameAge/QualificationBrief Experience
UVT45/CAUVT is a fellow member of the Institute of Chartered Accountant and is in practise from 1978. He is a Senior Partner with a firm of Chartered Accountants in India. He is also a director on the Board of various companies and trustee of charitable institutions
State the Duties and obligation of the AMC as specified in the SEBI Mutual Fund Regulations onwww.sebi.gov.in.

Information on Key Personnel:

Name/DesignationAge/QualificationBrief Experience
CEO
CIO
Operations Head
Compliance Officer
Sales Head
Risk Manager
Investor Relations Officer
(The AMC may decide on the key personnel it wants to mention in the SAI in addition to the persons mentioned above.)

E. Service providers

Custodian

Name, Address and SEBI Registration Number of the Custodian for the scheme Transfer agent

Name and principal business address of the Registrars, Transfer Agents and the dividend paying agent. A statement to the effect that the Board of the Trustees and the AMC have ensured that the Registrar has adequate capacity to discharge responsibilities with regard to processing of applications and dispatching unit certificates to unitholders within the time limit prescribed in the Regulations and also has sufficient capacity to handle investor complaints. Also state the SEBI Registration Number of Registrars, Transfer Agents.

Statutory auditor

Name and Address of the Statutory auditor for Mutual Fund

Legal counsel

Name and Address of the Legel Counsel

Fund Accountant

Name and Address of fund accountant

Collecting Bankers

Name, Address and SEBI Registration Number

F. Condensed financial information (CFI) for all the schemes launched by MF during the last three fiscal years (excluding redeemed schemes) in the format given below:

HISTORICAL PER UNIT STATISTICSSCHEME NAME
YR. 1YR. 2YR. 2YR. 3YR
NAV at the begining of the year (as on April 1)
Dividends*
Annualised return **
Net assets end of period (rs. Crs)
Ratio of recurring expenses to net asstes
*Excluding dividend details of liquid scheme.
** Only for growth option. Explanation to be given for not providing annualised return for options other than growth option. Absolute returns to be provided for schemes less than one year.

II. HOW TO APPLY?

Describe briefly the manner in which the units of the scheme being offered under the scheme information document may be purchased by the prospective investor. The descriptions should emphasise the procedures to be followed. Also provide the details of KYC requirement for unitholders.

III. RIGHTS OF UNITHOLDERS OF THE SCHEME

    1. Unitholders of the Scheme have a proportionate right in the beneficial ownership of the assets of the Scheme.
    2. When the Mutual Fund declares a dividend under the Scheme, the dividend warrants shall be despathched within 30 days of the declaration of the dividend. Account Statement reflecting the new or additional subscription as well as Redemption/Switch of Units shall be despatched to the Unitholder within 10 business days of the Specified Redemption Date. Provided if a Unitholder so desires, the Mutual Fund shall issue a Unit certificate (non- Tansferable) within 30 days of the receipt of request for the certificate.
    3. The Mutual Fund shall dispatch Redemption proceeds within 10 Business Days of receiving the Redemption request.
    4. The Trustee is bound to make such disclosures to the Unitholders as are essential in order to keep the unitholders informed about any information known to the Trustee which may have a material adverse bearing on their investments.
    5. The appointment of the AMC for the Mutual Fundcan be terminated by majority of the Directors of the Trustee Board or by 75 percent of the Unitholders of the Scheme.
    6. 75 percent of the Unitholders of a Scheme can pass a resolution to wind-up a Scheme.
    7. The Trustee shall obtain the consent of the Unitholders:
      • whenever required to do so by SEBI, in the interest of the Unitholders.
      • whenever required to do so if a requisition is made by three-fourths of the unitholders of the Scheme.
      • When the Trustee decides to wind-up the Scheme or prematurely redeem the Units.
    1. The Trustee shall ensure that no change in the fundamental attributes of any Scheme or the trust or fees and expenses payable or any other change which would modify the Scheme and affects the interest of Unitholders, Shall be carried out unless:

(i) A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

(ii) The Unitholders are given an option to exit at the prevailing Net Asset Value without any Exit Load.

    1. In specific circumstances, where the approval of Unitholders is sought on any matter, the same shall be obtained by way of a postal ballot or such other means as may be approved by SEBI.

IV. INVESTMENTS VALUATION NORMS FOR SECURITIES AND OTHER ASSETS

This section shalldisclose the Valuation of Assets and properties of the scheme accordance with Eighth Schedule of Regulation 47 of SEBI (Mutual Funds) Regulations, 1996 and applicable guidelines.

Real Estate Mutual Fund Schemes shall disclose Valuation of Assets and properties of the scheme in accordance with Schedule IXB of Regulation 49(F) (1) of SEBI (Mutual Funds) Regulations, 1996 and applicable guidelines.

V. TAX & LEGAL & GENERAL INFORMATION

A. Taxation on investing in Mutual Funds

This section shall disclose the applicable tax provisions for Mutual Fund and for investments in Mutual Fund scheme.

B. Legal Information

This section may include information on Nomination Facility, KYC Requirements, Requirements of Prevention of Money Laundering Act, Transfer and transmission of units, Duration of the scheme/winding up, Procedure and manner of winding up etc.

C. General Information

In addition to the following, this section may include information on Underwriting, Securities

Lending and Borrowing by the Mutual Funds etc:

Inter-Scheme Transfer of Investments:

Transfer of investments from one scheme to an other scheme in the same mutual fund shall be allowed only if-

(a) such transfers are done at the prevailing market price for quoted instruments on spot basis.

Explanation: “spot basis” shall have same meaning as specified by stock exchange for spot transaction.

(b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.

Associate Transactions
The following disclosures, summarizing historical information pertaining to the last three fiscal years of the schemes of the Mutual Fund under the management of the Asset Management Company reflecting associate transactions and the manner in which such transactions affected the performance of schemes of the Mutual Fund should be made. The disclosures shall include any underwriting obligations undertaken by the schemes of the Mutual Fund with respect to issues of associate companies, development if any, of such commitments, subscription by the schemes in issues lead managed by associate companies, total business given to associate brokers and the percentage of brokerage commission paid to them and any distribution of units performed by associate companies. This section shall also disclose:

(a) The policy for investing in group companies of the sponsor of a Mutual Fund that is followed/ to be followed by the Mutual Fund, including the aggregate market value of investments in group companies of the Sponsors and Asset Management Company by all the schemes of the Mutual Fund and its percentage of the aggregate net asset value of the Mutual Fund,

(b) In case any scheme of the Mutual Fund has invested more than 25 percentage of its net asset in group companies, this shall be disclosed.

(c) Names of associates of the Sponsor or the Asset Management Company with which the Mutual Fund proposes to have dealings, transactions and those whose services may be used for marketing and distributing the scheme and the commissions that may be paid to them.

Documents Available for Inspection
The following documents will be available for inspection at the office of the Mutual Fund at ______________________________ during business hours on day (excluding Saturdays, Sundays and public holidays):
  • Memorandum and Articles of Association of the AMC
  • Investment Management Agreement
  • Trust Deed and amendments thereto, if any
  • Mutual Fund Registration Certificate
  • Agreement between the Mutual Fund and the Custodian
  • Agreement with Registrar and Share Transfer Agents
  • Consent of Auditors to act in the said capacity
  • Consent of Legal Advisor to act in the said capacity
  • Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments from time to time thereto.
  • Indian Trust Act, 1882.
Investor Grievances Redressal Mechanism Describe briefly the investor’s complaints history for the last three fiscal years of existing schemes and the redressal mechanism thereof. The SAI should include data updated every two months on the number of complaints received, redressed and pending with the Mutual Fund. Notwithstanding anything contained in this Statement of Additional Information, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder shall be applicable.
*****
Instructions:
A Mutual Fund is free to add any other disclosure, which in the opinion of the Trustees of the Mutual Fund (Trustees) or the Asset Management Company (AMC) is material, provided that such information is not presented in an incomplete, inaccurate or misleading manner. Care should be taken to ensure that inclusion of such information does not, by virtue of its nature, or manner of presentation, obscure or impede understanding of any informationthat is required to be included under the Scheme Information Document and Statement of Additional Information.

Copyright 2019 by MF World

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods.

Categories: Education