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TMI BlogSpecialized Investment Funds ('SIF') - Application and Investment Strategy Information Document (ISID) formatsX X X X Extracts X X X X X X X X Extracts X X X X ..... ch, inter- alia, provides the eligibility criteria for a registered Mutual Fund to establish Specialized Investment Fund, including disclosures in Investment Strategy Information Document ('ISID'). 3. Pursuant to the above and to ensure uniformity and efficient processing of applications, it has been decided that registered Mutual Funds intending to establish Specialized Investment Funds are required to submit their applications as per the format provided at Annexure I to this Circular. 4. In terms of Clause 11 of Annexure A of the SIF Circular, the format of ISID is provided at Annexure II to this Circular. 5. This Circular shall come into force with effect from the date of this Circular. 6. This Circular is issued in exercise of the powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Chapter VI-C of the SEBI (Mutual Funds) Regulations 1996 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 7. This Circular is available at www.sebi.gov.in under the link "Legal →Circulars". Yours faithfully, Anupma Chadha General Manager Investment Manage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be submitted in the prescribed format. Please mention the value of assets managed by fund manager on behalf of clients in India/ abroad, provided the said assets are regulated by a financial regulator and/or such assets are located in a country that is a member of Financial Action Task Force (FATF) and a country that is a signatory to International Organization of Securities Commission's (IOSCO) Multilateral Memorandum of Understanding (MMOU). Appendix: 1. Rationale for compliance with the eligibility requirements 2. List of documents to be enclosed Name Designation - Authorised Signatory - .... ....... Appendix 1 Rationale for compliance with the eligibility requirements .....(name of the mutual fund) meets the requirements of the eligibility criteria stipulated in Route 1 (Sound Track Record)/ Route 2 (Alternate Route) for grant of approval to establish Specialized Investment Fund (SIF), in accordance with SEBI Circular SEBI/HO/IMD/IMD PoD1/P/CIR/2025/26 dated February 27, 2025 as mentioned below: [ Route 1- Sound Track Record] Regulatory Reference to SEBI Circular SEBI/HO/IMD/IMD PoD1/P/CIR/2025/26 dated February 27, 2025 Justification on how the Mutual Fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnate Route Annexure xx Bio data of Chief Investment Officer (CIO) in the format prescribed for 'Bio data of Key Personnel' in SEBI Master Circular for Mutual Funds dated June 27, 2024 along with identity proof. Annexure xx Undertaking from the AMC that the CIO appointed for SIF has managed an average AUM of not less than INR 5,000 crores. Annexure xx Self-certified undertaking from the CIO that he/she has managed an average AUM of not less than INR 5,000 crores. Annexure xx Self-certified fit and proper person declaration by the CIO as per Schedule II of the SEBI (Intermediaries) Regulations, 2008. Annexure xx Bio data of additional fund manager of SIF in the format prescribed for 'Bio data of Key Personnel' in SEBI Master Circular for Mutual Funds dated June 27, 2024 along with identity proof Annexure xx Undertaking from the AMC that the Fund manager appointed for SIF has managed an average AUM of not less than INR 500 crores. Annexure xx Self-certified undertaking from the Fund manager appointed for SIF that he/she has managed an average AUM of not less than INR 500 crores. Annexure xx Self-certified fit and proper person declaration by the fund m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ____ Investment strategy re-opens on:________ Name of SIF : Name of the mutual fund: Name of Asset Management Company : Name of Trustee Company . . Addresses, Website of the entities (including SIF) The particulars of the investment strategy have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Investment Strategy Information Document. The Investment Strategy Information Document sets forth concisely the information about the investment strategy that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Investment Strategy Information Document after the date of this Document from the SIF/Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular on Regulatory framework for Specialised Investment Funds (SIF). v. Investment Strategy Information Document has two sections- Section I and Section II. While Section I contains investment strategy 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 INVESTMENT STRATEGY Sr. No. Title Description I. Name of the Investment Strategy * (As per SEBI Circular on Regulatory Framework for Specialised Investment Funds (SIF) II. Category of the Investment Strategy As per SEBI circular on Regulatory Framework for Specialised Investment Funds) III. Type of Investment Strategy * Open ended/ close/interval investment strategy * All Debt oriented investment strategies to include PRC description in the investment strategy type in terms of Clause 17.5 of SEBI Master Circular for Mutual Funds dated June 27, 2024. IV. Investment strategy code (To be disclosed after obtaining investment strategy code) V. Investment objective * Clear and concise Investment objective to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lished through notice on AMC SIF website i.e. .............. XIX. New Fund Offer Price: This is the price per unit that the investors have to pay to invest during the NFO. price per unit XX. Segregated portfolio/side pocketing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XXI. Swing pricing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XXII. Stock lending/short selling Confirmation/disclosure statement only. For Details, kindly refer SAI XXIII. How to Apply Summary of process only. Details in section II XXIV. Investor services * Contact details for general service requests: * Contact details for complaint resolution: XXV. Specific attribute of the investment strategy (such as lock-in, duration in case of close ended schemes as applicable) XXVI. Special product/facility available during the NFO and on ongoing basis Briefly describe the facilities/products Available Facilities like: * Systematic Investment Plan * Systematic Transfer Plan * Systematic Withdrawal Plan * For further details of above special products / facilities, For Details, ki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * 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 Investment Strategy does not intend to invest in these securities, negative confirmation in a table format should be provided for securities / instruments in which the Investment Strategy will not invest. * Cumulative gross exposure limits to be adhered in terms of SEBI Circular on Regulatory framework for Specialised Investment Funds (SIF) * 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. Derivatives for non- hedging and other than for portfolio rebalancing p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt strategy, if such effects are significant and also other consequences which will result from the higher portfolio turnover rate e.g. higher brokerage and transaction cost. D. HOW WILL THE INVESTMENT STRATEGY BENCHMARK ITS PERFORMANCE? Benchmark (Total Returns Index): The AMC shall appropriately select any of broad market indices available, as a benchmark index depending on the investment objective and portfolio of the investment strategy. * Equity oriented investment strategies shall be compared against a suitable broad market index such as BSE Sensex or NSE Nifty or BSE 100 or CIRISL 500 etc * Debt oriented investment strategies shall be compared with a suitable broad market index that is a representative of the fund's portfolio. * Hybrid investment strategies shall be compared with suitable broad market benchmark wherever available The name and the justification (specific to the investment strategy objective) for the use of benchmark index with which the performance of the investment strategy can be compared with. E. WHO MANAGES THE INVESTMENT STRATEGY? Name, age, educational qualification and experience of the fund manager to the Investment strategy to be disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng regulatory provisions in this regard kindly refer SAI. V. Investments of AMC in the Investment Strategy - Details to be provided vide functional website link. The AMC shall not invest in any of the Investment Strategies unless full disclosure of its intention to invest has been made in the ISID and that the AMC shall not be entitled to charge any fees on such investment PART III- OTHER DETAILS A. COMPUTATION OF NAV Disclosure pertaining to illustration on computation of NAV and Methodology for calculation of sale and re-purchase price of the units of Investment Strategy. Disclosure to the effect that the repurchase price shall not be lower than 95% of the NAV. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of NAV etc. refer to SAI B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n II I. Introduction A. Definitions/interpretation Functional website link that contains detailed description B. Risk factors - Investment Strategy specific risk factors Include risk factors associated with investment in various instruments in which the investment strategy intends to invest as indicated in asset allocation section. C. Risk mitigation strategies II. Information about the investment strategy: A. Where will the investment strategy invest - In terms of Regulation 49Z of SEBI MF Regulations, detailed description of the instruments as permitted under Regulation 43(1) for mutual fund schemes (including overview of debt markets in India, if applicable) mentioned in Section I B. What are the investment restrictions? All the investment restrictions as contained in Regulation 49AA and Seventh Schedule to SEBI (Mutual Funds) Regulations, 1996 and circulars issued thereunder, applicable to the investment strategy should be incorporated. Further in case the fund follows any internal norms vis-à-vis limiting exposure to a particular scrip or sector, etc. apart from the aforementioned investment restrictions the same needs to be disclosed. C. Fundamental Attrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notice period of the investment strategy Maximum Amount to be raised (if any) Dividend Policy (IDCW) Allotment (Detailed procedure) Mention, the procedure for allotment and dispatch of account statements/unit certificates. Indicate the time period. Mention the number of days within which the statement shall be dispatched to the unitholders who subscribe to the units when the investment strategy is open for continuous subscription after NFO as per the applicable guidelines. Refund If application is rejected, full amount will be refunded within 5 working days of closure of NFO. If refunded later than 5 working days @ 15% p.a. for delay period will be paid and charged to the AMC. Who can invest This is an indicative list and investors shall consult their financial advisor to ascertain whether the investment strategy is suitable to their risk profile. Who cannot invest How 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 (Provide website link) should be specified. Please re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable For further details, refer SAI. Dividend/ IDCW The payment of dividend/IDCW to the unitholders shall be made within seven working days from the record date. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. For list of exceptional circumstances refer Clause 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024 For investment strategies investing atleast 80% of total assets in permissible overseas investments (as per Clause 12.19 of SEBI Master Circular for Mutual Funds), the transfer of redemption or repurchase proceeds to the unitholders shall be made within five working days from the date of redemption or repurchase. Bank Mandate Delay in payment of redemption / repurchase proceeds/dividend The Asset Management Company shall be liable to pay interest to the unitholders at rate as specified vide clause 14.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024 for the period of such delay Unclaimed Redemption and Income Distribution cum Capital Withdrawal Amount Disclosure w.r.t investment by minors Any other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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