9911796707
TMI BlogCircular on Infrastructure Debt FundX X X X Extracts X X X X X X X X Extracts X X X X ..... f the SEBI (Mutual Funds) Regulations, 1996, the Placement Memorandum shall be filed with SEBI as per the format prescribed at Annexure. 4. The Asset Management Companies shall ensure that the Placement Memorandum is uploaded on their respective websites after allotment of units, and on the website of such recognized Stock Exchange, where it is proposed to be listed, at the time of listing of the scheme. FIIs which are long term investors 5. The universe of strategic investors in the IDF has been expanded to include, inter alia, FIIs registered with SEBI which are long term investors subject to their existing investment limits. With reference to regulation 49L of the SEBI (Mutual Funds) Regulations, 1996 the following categories of FIIs are designated as long term investors only for the purpose of IDF: a. Foreign Central Banks b. Governmental Agencies c. Sovereign Wealth Funds d. International/Multilateral Organizations/ Agencies e. Insurance Funds f. Pension Funds Investments by the IDF scheme 6. With reference to regulation 49P (1) of the SEBI (Mutual Funds) Regulations, 1996, it may be noted that the investments in bank loans shall be made only through the secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tle which may be deceptive or misleading. The Scheme's name should be consistent with its statement of investment policy. TABLE OF CONTENTS HIGHLIGHTS/SUMMARY OF THE SCHEME - This section shall include the following: Investment objective Liquidity Benchmark Transparency/NAV Disclosure Minimum Application Amount I. INTRODUCTION A. RISK FACTORS Standard Risk Factors as per Scheme Information Document Format: Scheme Specific Risk Factors: * Risk associated with investment in the Infrastructure Sector * Risk associated with investment in Infrastructure Debt Instruments * Risk associated with investment in Infrastructure Projects * Risk associated with investing in Equities * Risk associated with investing in Bonds * Risks associated with Investing in Bank Deposits * Risks associated with Investing in Convertibles including mezzanine financing instruments * Risks associated with investing in Securitized Debt * Risks associated with investing in unrated/below investment grade securities * Any other risk factors B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME (Applicability for a Close ended scheme / Interval scheme) The Scheme(s) and individual Plan(s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to enable the investors to make a well informed decision regarding investment in the proposed scheme. (iv) The intermediaries named in the Placement Memorandum and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME - (close ended /interval) B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? The asset allocation will be as follows: Instrument Indicative Allocation Risk profile Minimum Maximum Debt securities or securitized debt instruments of infrastructure companies or projects or special purpose vehicles which are created for the purpose of facilitating or promoting investment in infrastructure or bank loans in respect of completed and revenue generating projects of infrastructure companies or special purpose vehicle. 90% 100% - Equity shares, convertibles including mezzanine financing instruments of companies engaged in infrastructure, infrastructure development projects; or money market instruments and bank deposits 0% 10% - D.WHERE WILL THE SCHEME INVEST? This includes a brief narration on the types of ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebt Fund Schemes) to SEBI (Mutual Funds) Regulations, 1996 and applicable restrictions of the Seventh Schedule should be incorporated. Further in case the fund follows any internal norms vis-à-vis limiting exposure to a particular security or sector, etc. apart from the aforementioned investment restrictions the same needs to be disclosed. J. HOW HAS THE SCHEME PERFORMED? K. Indicative Portfolio based on type of assets Indicative % of investment to be made in various securities to be mentioned below with the ratings mentioned against each type of instrument. All investments shall be based on the rating prevalent at the time of investment. However, in case of an instrument having dual ratings, the most conservative publicly available rating would be considered. L. Valuation Policy for the assets of the scheme A detailed valuation policy for the assets of the scheme based on the overarching principle of fair valuation and valuation done 'in good faith' shall be given. M. Extension in the tenure of the scheme: As stipulated in Regulations III. PLACEMENT DETAILS A. Placement Period Offer Price: This is the price per unit that the investors have to pay to inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) Regulations, 1996. Rounding off policy for NAV as per the applicable guidelines shall be disclosed. D. FEES AND EXPENSES This section outlines the expenses that will be charged to the scheme. a. PLACEMENT EXPENSES These expenses are incurred for the purpose of various activities related to the Placement process. The same may be borne by the AMC/trustee/sponsor. b. 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 net assets of the scheme will be charged to the scheme as expenses (Give slab wise break up depending on the assets under management.) For the actual current expenses being charged, the investor should refer to the website of the mutual fund. Particulars % of daily Net Assets Regular Plan (the name of the plan as applicable) Direct Plan (the name of the plan as applicable) Investment Management & Advisory Fee Marketing and selling expenses including agent's commission if any Brokera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trustee or sponsors. Any expenditure in excess of the limits specified in Regulation 52(6) and 52(6A) (a) shall be borne by the asset management company or trustees or sponsors. Service Tax: 1. Mutual funds /AMCs may charge service tax on investment and advisory fees to the scheme in addition to the maximum limit of TER as prescribed in regulation 52 of the Regulations. 2. Service tax on other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER as per regulation 52 of the Regulations. 3. Service tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under regulation 52 of the Regulations. The mutual fund would update the current expense ratios on the website within two working days mentioning the effective date of the change. c. TRANSACTION CHARGES as per SEBI Circulars IV. RIGHTS OF UNITHOLDERS Please refer to SAI for details. V. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY Disclosure of such penalties, pending litigati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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