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TMI BlogSimplification and streamlining of Offer Documents of Mutual Fund SchemesX X X X Extracts X X X X X X X X Extracts X X X X ..... of Master Circular dated May 19, 2023, stands modified. 4. Applicability: The revised format for SID, KIM and SAI shall be adopted as under: a. Updated format for SID/KIM/SAI to be implemented w.e.f. April 01, 2024. b. Draft SIDs to be filed with SEBI on or before March 31, 2024 or SIDs already filed with SEBI (final observations yet to be issued) or SIDs for which the final observations have already been received from SEBI (if launched on or before March 31, 2024), can use the old format of SID, provided that the SIDs are updated as per timeline mentioned at (c) below. c. For Existing SIDs - by April 30, 2024 with data as on March 31, 2024. All updated/revised SIDs shall be made available on the website of SEBI/AMFI/AMCs within the timelines specified above. 5. Further, in order to give effect to the revisions in the SID, the following clauses of SEBI Master circular dated May 19, 2023 stand modified, as detailed below: Sl. No. Clauses of Master Circular Modified clause 1. Format 5A - SID Format (referred to in clause 1.1.2) The format of SID specified under Formats as mentioned at clause 1.1.2 (Format 5A), stands revised as attached to this circular. 2. Clause 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude PRC description and table 3. For Index Funds / Index ETF - Name of scheme shall include complete name of underlying Index. 4. In case of FOF's where single fund is underlying (Feeder Funds): To include the complete name of the underlying fund in the name of the scheme 5. Product Labelling and Risk-o-meter of the Scheme and Benchmark should be disclosed 6. In case the scheme is listed/proposed to be listed (ETFs/close ended etc.), the Scrip Code issued by the stock exchange after listing to be mentioned below the Scheme Name. This product is suitable for investors who are seeking*: Scheme Riskometer Benchmark Riskometer (as applicable) As per AMFI Tier I Benchmark i.e. ……………… (as applicable) * The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made Offer for Units of Rs. -- each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices New Fund Offer Opens on: _______ New Fund Offer Closes on: _______ Scheme re-opens on: __________ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent the information in the Scheme Information Document in simple language and in a clear, concise and easily understandable manner. iii. The scheme shall not have a name or title which may be deceptive or misleading. Scheme's name should be consistent with its statement of investment policy and the scheme name should be in line with SEBI circulars on categorization. iv. The type of the scheme would mean whether the scheme is a growth scheme, income scheme, balanced scheme etc. and whether the scheme is open-ended, close-ended, an interval fund etc. and the scheme type should be in line with SEBI circular on categorization. v. Scheme Information Document has two sections- Section I and Section II. While Section I contains scheme specific information that is dynamic, Section II contains elaborated provisions (including references to applicable Regulations/circulars/guidelines) with reference to information/disclosures provided in Section I. Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the scheme * (As per SEBI circular on categorization and rationalization of mutual fund schemes) * Maturity/duration of scheme for close ended/Target mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be governed by guidelines issued by Government of India. XVI. New Fund Offer Price: This is the price per unit that the investors have to pay to invest during the NFO. price per unit XVII. Segregated portfolio/side pocketing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XVIII Swing pricing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XIX. Stock lending/short selling Confirmation/disclosure statement only. For Details, kindly refer SAI XX. How to Apply Summary of process only. Details in section II XXI. Where can applications for subscription/redemption/ switches be submitted Summary of process only. Details in section II XXII. Investor services * Contact details for general service requests: * Contact details for complaint resolution XXIII Specific attribute of the scheme (such as lock in, duration in case of target maturity scheme/close ended schemes) (as applicable) XXIV Special product/facility available during the NFO and on ongoing basis Briefly describe the facilities/products Available Facilities like: * Systematic Investment Plan * Systematic Transfer Pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orization and Rationalization of Mutual Fund Schemes Instruments Indicative allocations (% of total assets) Maximum Minimum * Percentage of investment in overseas securities, derivatives for non-hedging purposes, stock lending, securitized debt, Debt instruments with special features (AT 1 and AT 2 Bonds), Debt Instruments with SO / CE, ReITs and InVITs, Tri-party repos, other mutual funds, repo/ reverse repo transactions in corporate debt securities, Credit Default Swaps, covered call option etc). to be indicated. * In case the Scheme does not intend to invest in these securities, negative confirmation in a table format should be provided for securities / instruments in which the scheme will not invest. * Cumulative gross exposure limits to be adhered in terms of Master Circular dated May 19, 2023 * Any other information/disclosure to be added as per applicable Consolidated checklist of standard observations. Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sl. No Type of Instrument Percentage of exposure Circular references* 1. Securities Lending 2. Equity Derivatives for nonhedging Purposes 3. Securitized Deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds and FOFs with single underlying Fund. The name and the justification (specific to the scheme objective) for the use of benchmark index with which the performance of the scheme can be compared with. E. WHO MANAGES THE SCHEME? Name, age, educational qualification and experience of the fund manager to the scheme to be disclosed. The experience of the fund manager should include last 10 years' experience and also the name of other schemes under his /her management. Dedicated fund manager is mandatory for commodity based funds and overseas investments as per applicable SEBI circulars F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? Provide a reference list of existing schemes and a functional website link that contains detailed comparative table. G. HOW HAS THE SCHEME PERFORMED (if applicable) [In case of a new scheme, this is not applicable hence give the statement-"This scheme is a new scheme and does not have any performance track record"] Or [In case of a scheme in existence, the return figures shall be given for that scheme only. For a scheme which is in existence for more than 1 year, the returns given will be Compounded Annualised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fees paid marketing and advertising, registrar expenses, printing and stationary, bank charges etc. Details of source for meeting these expenses may be disclosed. AMC to ensure that no NFO expenses will be / were charged to the Scheme. C. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents' fee, marketing and selling costs etc. as given in the table below: The AMC has estimated that upto _____ % of the daily average net assets of the scheme will be charged to the scheme as expenses (Give slab wise break up depending on the assets under management. Give plan/option wise break up if the expense structures are different). For the actual current expenses being charged, the investor should refer to the website of the mutual fund. Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fee Audit fees/fees and expenses of trustees Custodial Fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to a particular scrip or sector, etc. apart from the aforementioned investment restrictions the same needs to be disclosed. C. Fundamental Attributes Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master Circular for Mutual Funds dated May 19, 2023: (i) Type of a scheme * Open ended/Close ended/Interval scheme * Sectoral Fund/Equity Fund/Balance Fund/Income Fund/Index Fund/Any other type of Fund (ii) Investment Objective * Main Objective - Growth/Income/Both. * Investment pattern - The Tentative Equity/Debt/Money Market portfolio break-up with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations. (iii) Terms of Issue * Liquidity provisions such as listing, repurchase, redemption. * Aggregate fees and expenses charged to the scheme. * Any safety net or guarantee provided. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master Circular for Mutual Funds dated May 19, 2023 the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Apply (details) Details regarding availability of application form from either the Investor Service Centers (ISCs)/Official Points of Acceptance(OPAs) of AMC or may be downloaded from the website of AMC should be specified Please refer to the SAI and Application form for the instructions. Where can you submit the filled up applications. Provide name, address and contact no. of Registrar and Transfer Agent (R&T), email id of R&T, website address of R&T, official points of acceptance, collecting banker details etc. on back cover page. The policy regarding reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the right to freely retain or dispose of units being offered. Cut off timing for subscriptions/ redemptions/ switches This is the time before which your application (complete in all respects) should reach the official points of acceptance. Where can the applications for purchase/redemption switches be submitted? Please refer the AMC website (Provide website link) at the following link for the list of official points of acceptance, collecting banker details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Income Distribution cum Capital Withdrawal Amount Disclosure w.r.t investment by minors Any other disclosure in terms of Consolidated Checklist on Standard Observations III. Other Details A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be provided B. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report * * Specify timelines of these disclosures and details of where they are disclosed. (such as "Refer to AMC website, SAI, AMFI website for further details etc. Provide a functional link for each respective field") * Any disclosure in terms of Consolidated Checklist on Standard Observations C. Transparency/NAV Disclosure (Details with reference to information given in Section I) D. Transaction charges and stamp duty- Indicate only the amount of transaction charges and stamp duty applicable. Details to be provided in SAI. E. Associate Transactions- Please refer to Statement of Additional Information (SAI) F. Taxation- For details on taxation please refer to the clause ..... 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