TaxTMI 
TaxTMI 
Contents of the offer document
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....ent in units involve a degree of risk and investors should not invest any funds in this offer unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this offering. For taking an investment decision, investors must rely on their own examination of the ^3[collective investment scheme] and the offer including the risks involved. The units have not been recommended or approved by Securities and Exchange Board of India (SEBI) nor does SEBI guarantee the accuracy or adequacy of this document." Specific attention of investors shall be invited to the summarized and detailed statement of Risk Factors by indicating their page number(s) in the 'General Risks'. (iv) Collective Investment Management Company's Absolute Responsibility clause to be incorporated as under: "The Collective Investment Management Company, having made all reasonable inquiries, accepts responsibility for and confirms that this offer document contains all information with regard to the ^4[collective investment scheme] and that the information contained in the offer document is true and c....
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.... It is to be distinctly understood that submission of offer document to SEBI should not in any way be deemed or construed that the same has been cleared or approved by SEBI. SEBI does not take any responsibility either for the financial soundness of any ^7[collective investment scheme] for which the issue is proposed to be made or for the correctness of the statements made or opinions expressed in the offer document. Collective Investment Management Company, ............................ has certified that the disclosures made in the offer document are generally adequate and are in conformity with SEBI (Collective Investment Scheme) Regulations, 1999 in force for the time being. This requirement is to facilitate unit holders to take an informed decision for making investment in the proposed issue. It should also be clearly understood that the Collective Investment Management Company is primarily responsible for the correctness, adequacy and disclosure of all relevant information in the offer document. WE THE COLLECTIVE INVESTMENT MANAGEMENT COMPANY CONFIRM that: the offer document forwarded to SEBI is in conformity with the documents, materials and paper relevant to the is....
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....rthwith." 7. Maximum Subscription Clause The Collective Investment Management Company shall state the maximum number of units that shall be offered through the offer document. Minimum and Maximum - by Appraising Agency compared. 8. Terms of the present issue 8.1 Terms of payments 8.2 Rights of the investors 8.3 How to apply - availability of forms, offer document and mode of payment 8.4 Any special tax benefits for investing in the ^14[collective investment scheme]. 9. Appraisal of the Project Project to be appraised by appraising agency for carrying out appraisal and salient features of the appraisal report to be detailed. The scope and purpose of the appraisal along with the date of appraisal may be disclosed. The cost of the project and means of finance as per the appraisal report should also be disclosed. The weakness and threats, if any, given in the appraisal report should also be disclosed by way of risk factors. 10. Project relating to the ^15[collective investment scheme] The Collective Investment Management Company shall disclose- (i) detail particulars as are sufficient to disclose the true nature of the ^16[collective investm....
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....hich that remuneration/compensation is provided for, and the changes (if any) that will be made by way of that remuneration/compensation upon the sale of or subscription for any units of the ^21[collective investment scheme] and upon the distribution of income and capital or otherwise in connection with the ^22[collective investment scheme]. 11.2 The identity of any other person who provides significant administrative or business management services and a brief description of the services provided and the compensation to be paid therefore. 11.3 The name and principal business address of the Registrars and Transfer Agents. A statement to the effect that the trustee and the Collective Investment Management Company have ensured that the Registrar has adequate capacity to discharge responsibilities with regard to processing of applications and despatching unit certificates to unit holders within the time limit prescribed in the regulations and also has sufficient capacity to handle investor complaints. 11.4 Identification and name and address of the statutory auditor for the ^23[collective investment scheme]. 12. Constitution of the Collective Investment Scheme Under thi....
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....ed to be paid or given, to persons having control or controlling interest in or director of the Collective Investment Management Company out of the proceeds of an issue of units, and the consideration for the payment or giving of the amount or benefit. (xii) The policy regarding the valuation of any investment made or property held in relation to the ^28[collective investment scheme]. (xiii) The policy regarding distribution of income to the unit holders derived from the ^29[collective investment scheme]. 14. Outstanding Litigations, Defaults, Dues, etc. (i) All pending litigations in which the Collective Investment Management Company is involved, defaults to the financial institutions/banks and nonpayment of statutory dues by the Collective Investment Management Company shall be listed in the offer document together with the amounts involved and the present status of such litigations/defaults. (ii) The above information is required to be furnished in addition to the litigations against the Collective Investment Management Company or against any other entity whose outcome could have a materially adverse effect on the position of the ^30[collec....
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....ctive investment scheme. 16. Disclosures about stock invests The disclosures regarding manner of obtaining Stockinvests, and disposal of applications accompanied by Stockinvest, Mode of drawing stockinvests, utilisation of stockinvests by third party, time period for utilisation of stockinvests by the purchasers should be incorporated at the appropriate places in the offer document in line with the prevailing instructions of RBI in this regard. Further, name of the bank through which the stockinvests shall be realised, shall be given in the offer document. Also the following paragraph shall appear at the appropriate places : "Registrars to the Issue have been authorised by the trustee to sign on behalf of the trustee to realise the proceeds of the Stockinvest from the issuing bank or to affix non-allotment advice on the instrument or cancel the stockinvest of the non-allottees or partially successful allottees who have enclosed more than one stockinvest. Such cancelled Stock invest shall be sent back by the Registrars directly to the Investors." Stockinvests should be marked account payee and inscribed with the words - Collective Investment Scheme - A/c ^36[collective i....
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....purpose. The last day for use of the SI for submitting application to the bank is indicated on the face of the SI with a notation "To be used before ..........". 23. Due Diligence Certificate (i) The Collective Investment Management Company, while filing the draft offer document with the Board, shall furnish a due diligence certificate. (ii) The Collective Investment Management Company shall also:- a) certify that all amendments suggested/observations made by Board have been given effect to in the offer document; b) furnish a fresh certificate immediately before the opening of the issue that no corrective action on its part is needed; c) furnish a fresh certificate after the issue has opened but before it closes for subscription. 24. The Collective Investment Management Company shall submit with the offer document the following certificates: i. all refund orders of the previous issues were despatched within the prescribed time and in the prescribed manner; ii. all unit certificates were despatched to the allottees within the prescribed time and in the prescribed manner; and 25. Appointment of other intermediari....
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....Investment Management Company's, it should be ensured that the agents so selected are properly equipped for the purpose, both in terms of infrastructure and manpower requirements. (ii) The collection agents should be permitted to collect such applications as are accompanied by payment of application moneys paid by cheques, drafts and stockinvests. Under no circumstances they should be permitted to collect application moneys in cash. (iii)The applications so collected shall be deposited in the special unit application account with designated scheduled bank either on the same date or latest by the next working day. The application forms along with duly reconciled schedules should be forwarded to the Registrars to the Issue after realisation of cheques and after weeding out the applications in respect of cheques return cases, within a period of 2 weeks from the date of closure of the issue. (iv) The applications accompanied by stockinvests should be sent directly to the Registrars to the Issue along with the schedules within one week from the date of closure of the issue. Further, the offer documents and application forms should specifically indicate that th....
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....blic. 33.3 Advertisement stating that the subscription list has been closed may beissued after the actual closure of the issue. 34. Other responsibilities 34.1 In case of delay in refund of subscription moneys/excess subscription, the Collective Investment Management Company shall ensure that the interest for the delayed period as mentioned in the offer document, is paid to the applicants. 34.2 The Collective Investment Management Company shall ensure that the despatch of refund orders/allotment letters/share certificates is done by way of ^50[Speed Post with Registration]/certificate of posting as may be applicable. 35. Certificate Regarding Realisation of Stockinvests (i) The Collective Investment Management Company shall submit within two weeks from the date of allotment, a Certificate to the trustee certifying that the stockinvests on the basis of which allotment was finalised, have been realised. (ii) Subscription list for the ^39[collective investment scheme] shall be kept open for not more than 90 working days and this fact should be disclosed in the offer document. Retention of Oversubscription 36. The quantum of issue shall not exceed....
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....e allotment shall be made as follows: *Each successful applicant shall be allotted a minimum of 100 units; and (iv) *The successful applicants out of the total applicants for that category shall be determined by drawal of lots in such a manner that the total number of units allotted in that category is equal to the number of units worked out as per (ii) above. (v) If the proportionate allotment to an applicant works out to a number that is more than 100 but is not a multiple of 100 (which is the marketable lot), the number in excess of the multiple of 100 would be rounded off to the higher multiple of 100 if that number is 50 or higher. If that number is lower than 50, it would be rounded off to the lower multiple of 100. (As an illustration, if the proportionate allotment works out to 250, the applicant would be allotted 300 units. If however the proportionate allotment works out to 240, the applicant would be allotted 200 units). All applicants in such categories would be allotted units arrived at after such rounding off. (vi) If the units allocated on a proportionate basis to any category is more than the units allotted to the applicants in th....
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....ch of the components of the distribution. d) A report by the auditors of the ^46[collective investment scheme], setting out the profits or losses of the Collective Investment Management Company in respect of each of the 5 financial years immediately preceding the date of the offer document during which the Collective Investment Management Company was carrying on business, and the rates of dividends (if any) paid by the company in respect of each of those years, and the assets and liabilities of the Collective Investment Management Company as at the last date on which its accounts were made up being a date no more than 12 months before the date of issue of the offer document. ************* NOTES:- 1 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 2 ibid. 3 ibid. 4 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 5 ibid. 6 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 7 ibid. 8 ibid. 9 ibid. 10 Substituted by the SEBI (Colle....