SCHEME INFORMATION DOCUMENT UTI - Bluechip Flexicap Fund (An open-ended equity scheme) THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*: • Long term capital growth • Investment in equity instruments of companies that are “Leaders” in their respective industries/sectors/sub-sectors. RISKOMETER * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. UTI Mutual Fund UTI Asset Management Company Limited UTI Trustee Company Private Limited Address of the Mutual Fund, AMC and Trustee Company: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. The particulars of the Scheme have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MFs) Regulations) as amended till date, and 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 Scheme Information Document. This Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centres (UFCs) / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest UTI Financial Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated July 20, 2017.
Transcript
SCHEME INFORMATION DOCUMENT
UTI - Bluechip Flexicap Fund(An open-ended equity scheme)
THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*:• Longtermcapitalgrowth• Investmentinequityinstrumentsofcompaniesthatare“Leaders”intheirrespectiveindustries/sectors/sub-sectors.
UTI Mutual FundUTI Asset Management Company Limited
UTI Trustee Company Private Limited
Address of the Mutual Fund, AMC and Trustee Company:UTITower,GnBlock,BandraKurlaComplex,Bandra(East),Mumbai–400051.
Theparticularsof theSchemehavebeenprepared inaccordancewithSecuritiesandExchangeBoardof India(Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MFs) Regulations) as amended till date,and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for publicsubscriptionhavenotbeenapprovedorrecommendedbySEBI,norhasSEBIcertifiedtheaccuracyoradequacyoftheSchemeInformationDocument.
This Scheme Information Document sets forth concisely the information about the scheme that a prospectiveinvestor ought to know before investing. Before investing, investors should also ascertain about any furtherchanges to this Scheme Information Document after the date of this Document from the Mutual Fund / UTIFinancialCentres(UFCs)/Website/DistributorsorBrokers.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest UTI Financial Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
ThisSchemeInformationDocumentisdatedJuly20,2017.
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TABLE OF CONTENTS
Item No. Contents Page No.
HIGHLIGHTS 3
I INTRODUCTION
A. RiskFactors 4
B. RequirementofminimuminvestorsintheScheme 6
C. Definitions 6
D. DueDiligencebytheAssetManagementCompany 9
II. INFORMATION ABOUT THE SCHEME
A. TypeoftheScheme 10
B. WhataretheinvestmentobjectivesoftheScheme? 10
C. HowwilltheSchemeallocateitsassets? 10
D. WherewilltheSchemeinvest? 11
E. WhataretheInvestmentStrategies? 14
F. FundamentalAttributes 14
G. HowwilltheSchemeBenchmarkitsperformance? 14
H. WhomanagestheScheme? 15
I. WhataretheInvestmentRestrictions? 15
J. HowhastheSchemeperformed? 17
K. AdditionalSchemerelateddisclosures 17
III. UNITS AND OFFER
A. OngoingOfferDetails 18
B. PeriodicDisclosures 32
C. ComputationofNAV 34
IV. FEES AND EXPENSES
A. AnnualSchemeRecurringExpenses 34
B. LoadStructure 36
V. RIGHTS OF UNITHOLDERS 38
VI. 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
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HIGHLIGHTS
Investment Objective The investment objective of the scheme is to achieve long term capital appreciation and /or dividend distribution by investing in stocks that are “Leaders” in their respective industries/sectors/sub-sectors.
^ Direct Plan:DirectPlan isonly for investorswhopurchase/subscribeunitsdirectlywith theFundand isnotavailableforinvestorswhoroutetheirinvestmentsthroughaDistributor.
All categories of Investors (whether existing or new Unitholders) as permitted under this SIDare eligible to subscribe under Direct Plan. Investments under the Direct Plan can be madethrough variousmodes (except all Platform(s)where investor’s applications for subscription ofunitsareroutedthroughDistributors).
The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lowerexpense ratio excluding distribution expenses, commission etc andwill have a separate NAV.Nocommissionshallbepaid/chargedfromDirectPlan.
How to apply:InvestorssubscribingunderDirectPlanofUTI-BluechipFlexicapFundwillhaveto indicate “Direct Plan” against the Scheme name in the application form, as for example.“UTI-BluechipFlexicapFund-DirectPlan”.
Treatment of applications under “Direct” / “Regular / Existing” Plans:
Scenario Broker Code mentioned by the investor
Plan mentioned by the investor
Default Plan to be captured
1 Notmentioned Notmentioned DirectPlan2 Notmentioned Direct DirectPlan3 Notmentioned Regular/Existing DirectPlan4 Mentioned Direct DirectPlan5 Direct NotMentioned DirectPlan6 Direct Regular/Existing DirectPlan7 Mentioned Regular/Existing Regular/ExistingPlan8 Mentioned NotMentioned Regular/ExistingPlan
In cases of wrong/ invalid/ incomplete ARN codes mentioned in the application form underscenarios7or8above, theapplicationshallbeprocessedunder ‘Regular /ExistingPlan’.TheAMC shall contact and obtain the correctARN codewithin 30 calendar days of the receipt ofthe application form from the investor/ distributor. In e, the correct code is not receivedwithin30calendardays, theAMCshall reprocess the transactionunder ‘DirectPlan’ fromthedateofapplicationwithoutanyexitload.ForfurtherdetailsonDirectPlan,pleaserefertoSAI.
Minimum Application Amount
Minimum amount of investment under all plans and optionsMinimuminitialinvestmentis` 5,000/-.Subsequentminimum investment under a folio is` 1,000/- and inmultiples of` 1/- thereafterwithnoupperlimit.
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I. INTRODUCTION
A. RISK FACTORS
Standard Risk Factors1. Investment in Mutual Fund Units involves investment
2. As theprice /value / interest ratesof thesecurities inwhichtheschemeinvestsfluctuates, thevalueofyourinvestmentintheschememaygoupordown
3. Past performance of the Sponsors/AMC/Mutual Funddoesnotguaranteefutureperformanceofthescheme.
4. The name of the scheme does not in any mannerindicate either the quality of the scheme or its futureprospectsand returns.Theremaybe instanceswherenodividenddistributioncouldbemade.
8. Growth, appreciation, dividend and income, if any,referred to in this Scheme Information Document aresubject to the tax lawsandotherfiscalenactmentsastheyexistfromtimetotime.
9. TheNAVof theSchememaybeaffectedbychangesin the general market conditions, factors and forcesaffecting capital market, in particular, level of interestrates, various market related factors and tradingvolumes,settlementperiodsandtransferprocedures.
10. Credit Risk: Bonds / debentures as well as othermoney market instruments issued by corporatesrun the risk of down grading by the rating agenciesand even default as the worst case. Securitiesissued by Central/State governments have lesser tozero probability of credit / default risk in view of thesovereignstatusoftheissuer.
11. Interest - Rate Risk: Bonds / Government securitieswhich are fixed income securities, run price-risk likeany other fixed income security. Generally, wheninterest rates rise, prices of fixed income securitiesfall andwhen interest rates drop, the prices increase.The level of interest rates is determined by the ratesat which government raises newmoney through RBI,theprice levelsatwhich themarket isalreadydealinginexistingsecurities,rateofinflationetc.Theextentoffall or rise in the prices is a function of the prevailingcoupon rate, number of days tomaturity of a securityand the increase or decrease in the level of interestrates.ThepricesofBonds/Governmentsecuritiesarealso influenced by the liquidity in the financial systemand/ortheopenmarketoperations(OMO)byRBI.
Pressure on exchange rate of the rupee may alsoaffect security prices. Such rise and fall in price ofbonds / government securities in the portfolio of theschememayinfluencetheNAVsundertheschemeasandwhensuchchangesoccur.
12. Liquidity Risk: The Indian debt market is such
that a large percentage of the total traded volumeson particular days might be concentrated in a fewsecurities. Traded volumes for particular securitiesdiffer significantly on a daily basis. Consequently, theschememighthave to incurasignificant “impactcost”whiletransactinglargevolumesinaparticularsecurity.
13. Securities Lending: It isoneof themeansofearningadditional incomefor theschemewitha lesserdegreeofrisk.Theriskcouldbeintheformofnonavailabilityof ready securities for sale during the period thesecurities remain lent. The scheme could also beexposedtoriskthroughthepossibilityofdefaultbytheborrower/intermediaryinreturningthesecurities.
However, the risk would be adequately covered bytaking in of suitable collateral from the borrower bythe intermediary involved in the process.The schemewillhavea lienonsuchcollateral.Theywillalsohaveothersuitablechecksandcontrolstominimiseanyriskinvolvedinthesecuritieslendingprocess.
14. Reinvestment Risk: This risk refers to the interestrate levels at which cash flows received fromthe securities in the Scheme are reinvested. Theadditional incomefromreinvestment is the“interestoninterest” component.The risk is that the rateatwhichinterim cash flows can be reinvested may be lowerthanthatoriginallyassumed.
15. Money Market Securities are subject to the risk ofan issuer’s inability to meet interest and principalpayments on its obligations andmarket perception ofthecreditworthinessoftheissuer.
16. Investment in overseas markets: The success ofinvestment in overseas markets depends upon theability of the fund manager to understand conditionsof those markets and analyse the information whichcould be different from Indian markets. Operations inforeign markets would be subject to exchange ratefluctuationriskbesidesmarketrisksofthosemarkets.
17. Trading in debt and equity derivatives involves certain specific risks like:a. Credit Risk: This is the risk on default by the
counter party. This is usually to the extentof difference between actual position andcontracted position. This risk is substantiallymitigated where derivative transactions happenthroughclearingcorporation.
b. Market Risk: Market movement may alsoadversely affect the pricing and settlement ofderivativetradeslikecashtrades.
c. IlliquidityRisk:The risk thataderivativeproductmaynotbesoldorpurchasedatafairpriceduetolackofliquidityinthemarket.
d. An exposure to derivatives can lead to losses.Success of dealing in derivatives depends onthe ability of the Fund Manager to correctlyassess the future market movement and inthe event of incorrect assessment, if any,performanceoftheschemecouldbelower.
e. Interest Rate Swaps (IRSs) and Forward RateAgreements(FRAs)doalsohave inherentcreditand settlement risks. However, these risks aresubstantially less as they are limited to theinterest stream and not the notional principalamount.
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f. Participating in derivatives is a highlyspecialized activity and entails greater thanordinary investment risks. Notwithstanding suchderivatives being used for limited purpose ofhedging and portfolio balancing, the overallmarket in these segments could be highlyspeculativedue toactionofotherparticipants inthemarket.
g. Derivative products are leveraged instrumentsand can provide disproportionate gains aswell as disproportionate losses to the investor.Execution of such strategies depends uponthe ability of the fund manager to identify suchopportunities. Identification and executionof the strategies to be pursued by the fundmanager involve uncertainty and decision offund manager may not always be profitable.No assurance can be given that the fundmanagerwillbeable to identifyorexecutesuchstrategies.
h. The risks associatedwith the use of derivativesare different from or possibly greater than,the risks associated with investing directly insecuritiesandothertraditionalinvestments.
18. The aggregate value of “illiquid securities” of ascheme, which are defined by SEBI as non traded,thinly traded and unlisted equity shares, shall notexceed 15%of the total assets of a schemeand anyilliquid securities held above 15% of the total assetsshallbeassignedzerovalue.Theproposedaggregateholding of assets considered “illiquid”, could be morethan10%of thevalueof thenetassetsofascheme.In normal course of business, the scheme would beable tomake payment of redemption proceeds within10 business days, as they would have sufficientexposure to liquid assets. In case of the need forexiting from such illiquid instruments in a short periodof time, the NAVs of the scheme could be impactedadversely.
19. In theevent of receipt of inordinately largenumber ofredemption requests or a restructuring of a Schemes’portfolio, there may be delays in the redemption ofunits.
20. Different types of securities in which the schemewould invest as given in the Scheme InformationDocument carry different levels and types of risk.Accordinglyascheme’sriskmayincreaseordecreasedepending upon its investment pattern. For e.g.Corporate bonds carry a higher amount of risk thanGovernmentsecurities.Furtherevenamongcorporatebonds, bonds which areAAA rated are comparativelylessriskythanbondswhichareAArated.
21. Scheme specific risks factorsa) Investors may note that AMC/Fund Manager’s
investment decisions may not always beprofitable,eventhoughit is intendedtogeneratecapital appreciation and maximize the returnsby actively investing in equity/ equity relatedsecurities.
b) The value of the investments in the scheme,may be affected generally by factors affectingsecurities markets, such as price and volumevolatility in the capital markets, interest rates,currency exchange rates, changes in policies
of the Government, taxation laws or policies ofany appropriate authority and other political andeconomic developments and closure of stockexchangeswhichmay have an adverse bearingon individual securities, a specific sector or allsectors including equity and debt markets.Consequently, the NAV of the Units of theSchememayfluctuateandcangoupordown.
c) Tradingvolumes,settlementperiodsandtransferprocedures may restrict the liquidity of theequity and equity related investments made bythe Scheme which could cause the scheme tomiss certain investment opportunities. Differentsegments of the Indian financial markets havedifferent settlement periods and such periodsmay be extended significantly by unforeseencircumstances leading to delays in receipt ofproceeds from sale of securities. The inabilityof the Scheme to make intended securitiespurchases due to settlement problems couldalso cause the Scheme to miss certaininvestmentopportunities.By thesame rationale,the inability tosellsecuritiesheld inaScheme’sportfoliodue to theabsenceofawelldevelopedand liquid secondary market for debt securitieswould result, at times, in potential losses to theScheme, in caseofa subsequentdecline in thevalueofsecuritiesheldinaScheme’sportfolio.
d) Securities, which are not quoted on the stockexchanges, are inherently illiquid in natureand carry a larger amount of liquidity risk, incomparison to securities that are listed onthe exchanges or offer other exit options tothe investor, including a put option. Within theregulatory limits, theAMCmaychoose to investin unlisted securities that offer attractive yields.This may however increase the risk of theportfolio.
e) The Scheme may use various derivativeproducts as permitted by the Regulations. Useof derivatives requires an understanding of notonly the underlying instrument but also of thederivative itself. Other risks include, the riskof mispricing or improper valuation and theinability of derivatives to correlate perfectly withunderlying assets, rates and indices. Usage ofderivatives will expose the Scheme to certainrisksinherenttosuchderivatives.
f) The Scheme may also invest in ADRs / GDRsas permitted by Reserve Bank of India andSecurities and Exchange Board of India. Tothe extent that some part of the assets ofthe scheme may be invested in securitiesdenominated in foreign currencies, the IndianRupeeequivalentof thenetassets,distributionsand income may be adversely affected bythe changes in the value of certain foreigncurrenciesrelativetotheIndianRupee.
The repatriation of capital also may behamperedby changes in regulations concerningexchange controls or political circumstances aswell as the application to it of other restrictionsoninvestment
g) The scheme intends to deploy funds in moneymarket instruments to maintain liquidity. To the
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extent that some assets/funds are deployed inmoney market instruments, the scheme will besubject to credit risk as well as settlement risk,whichmightaffecttheliquidityofthescheme.
22. Risk Factors specific to investments in Securitised Papers:
Types of Securitised Debt vary and carry differentlevels and types of risks. Credit Risk on SecuritisedBonds depends upon the Originator and variesdepending onwhether they are issuedwithRecourseto Originator or otherwise. A structure with Recoursewill have a lower Credit Risk than a structure withoutRecourse. Underlying assets in Securitised Debtmay assume different forms and the general typesof receivables include Auto Finance, Credit Cards,HomeLoansoranysuchreceipts.Creditrisksrelatingto these types of receivables depend upon variousfactors including macro economic factors of theseindustries and economies. Specific factors like natureand adequacy of property mortgaged against theseborrowings,natureof loanagreement/mortgagedeedin case of Home Loan, adequacy of documentationin case of Auto Finance and Home Loans, capacityof borrower to meet its obligation on borrowings incase of Credit Cards and intentions of the borrowerinfluence the risks relating to the asset borrowingsunderlyingthesecuritiseddebt.
Holdersof the securitisedassetsmayhave lowcreditrisk with diversified retail base on underlying assetsespecially when securitised assets are created byhigh credit rated tranches, risk profiles of PlannedAmortisation Class tranches (PAC), Principal OnlyClassTranches (PO)and InterestOnlyclass tranches(IO) will differ depending upon the interest ratemovement and speed of prepayment. Various typesofmajor risks pertaining toSecuritisedPapers are asbelow:
Liquidity & Price risk Presently, secondary market for securitised papers
is not very liquid. This could limit the ability of theinvestor to resell them. Even if a secondary marketdevelops and sales were to take place, thesesecondary transactions may be at a discount to theinitial issue price due to changes in the interest ratestructure.
Delinquency and Credit Risk Securitised transactions are normally backed by pool
of receivables and credit enhancement as stipulatedby the ratingagency,whichdiffer from issue to issue.The Credit Enhancement stipulated represents alimited loss cover to the Investors. These Certificatesrepresent an undivided beneficial interest in theunderlying receivables and there is no obligation ofeither the Issuer or the Seller or the originator,or the parent or any affiliate of the Seller, Issuerand Originator. No financial recourse is availableto the Certificate Holders against the Investors’Representative. Delinquencies and credit losses maycause depletion of the amount available under theCreditEnhancementandtherebytheInvestorPayoutsmay get affected if the amount available in theCreditEnhancement facility is not enough to cover theshortfall. On persistent default of a Obligor to repay
hisobligation,theServicermayrepossessandselltheunderlying Asset. However many factors may affect,delayorpreventtherepossessionofsuchAssetorthelengthof timerequiredtorealizethesaleproceedsonsuch sales. In addition, the price atwhich suchAssetmaybesoldmaybe lower than theamountdue fromthatObligor.
Prepayment Risk Asset securitisation is a processwhereby commercial
or consumer credits are packaged and sold in theform of financial instruments. Full prepayment ofunderlying loan contract may take place during thetenure of the paper. In the event of prepayments,investors may be exposed to changes in tenor andreinvestmentrisk.
Risks Associated with scheme The investment focus is on select companies/
industries/ sectors of the market and hence theportfolio may be concentrated in these companies/sectors/industries. This may make the portfoliovulnerable to factors thatmayaffect thesecompanies/sectors/industries in general thereby leading toincreased volatility in the movement of the scheme’sNAV.
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME
The Scheme shall have a minimum of 20 investorsand no single investor shall account for more than25% of the corpus of a Scheme. The two conditionsshall also be complied within each calendar quarter,on an average basis, as specified by SEBI. If thereis a breach of the 25% limit by any investor over thequarter, a rebalancing period of one month would beallowed and thereafter the investor who is in breachof the rule shall be given 15 days notice to redeemhis exposure over the 25% limit. Failure on the partof the said investor to redeem his exposure overthe 25% limit within the aforesaid 15 days wouldlead to automatic redemption by the Mutual Fundon the applicable Net Asset Value on the 15th dayof the notice period. The Fund shall adhere to therequirements prescribed bySEBI from time to time inthisregard.
C. DEFINITIONS Intheschemeunlessthecontextotherwiserequires:
1. “Acceptance date” or “date of acceptance” withreferencetoanapplicationmadebyanapplicantto the UTI Asset Management CompanyLtd. (UTI AMC) for purchase or redemption/changeover/switchover of units means the dayon which the UTI Financial Centres (UFCs)/ Registrar or the official point of acceptanceas per the list attached with this SchemeInformation Document after being satisfied thatsuch application is complete in all respects,acceptsthesame.
2. “Accounting Year” of UTI Mutual Fund is fromApriltoMarch.
3. “Act”means theSecuritiesandExchangeBoardof India Act, 1992, (15 of 1992) as amendedfromtimetotime.
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4. “Applicant” means an investor who is eligibleto participate in the scheme and who is not aminor and shall include the alternate applicantmentionedintheapplicationform.
5. Alternate applicant” in case of a minor meansthe parent/step-parent/court guardian who hasmadetheapplicationonbehalfoftheminor
6. “AMFI” means Association of Mutual Funds inIndia.
7. “Asset Management Company/UTI AMC/AMC/Investment Manager” means the UTI AssetManagement Company Limited incorporatedunder theCompaniesAct,1956 (1of1956)andapproved as such by Securities and ExchangeBoardofIndia(SEBI)undersub-regulation(2)ofRegulation21toactas the InvestmentManagertotheschemesofUTIMutualFund.
8. “Body Corporate” or “Corporation” includes acompanyincorporatedoutsideIndiabutdoesnotinclude(a)acorporationsole, (b)aco-operativesociety registered under any law relating toco-operative societies and (c) any other bodycorporate (not being a company as definedunder Companies Act, 1956[replaced by TheCompaniesAct,2013(No.18of2013)]whichtheCentral Government may, by notification in theOfficialGazette,specifyinthisbehalf.
9. “Book Closure” is a period when the registerof unit holders is closed for all transactions viz.Purchases,redemptions,changeover,switchoveretc. Such Book Closure period will not exceed15daysinayear.
10. “Business Day” means a day other than (i)SaturdayandSundayor (ii) adayonwhich theprincipalstockexchangewithreferencetowhichthe valuation of securities under a scheme isdone is closed, or theReserveBankof Indiaorbanks inMumbaiareclosed forbusiness,or (iii)a dayonwhich theUTIAMCoffices inMumbairemain closed or (iv) a day on which purchaseand redemption/changeover/switching of unit issuspendedby theTrusteeor (v)adayonwhichnormal business could not be transacted dueto storm, floods, bandhs, strikes or such otherevents as the AMC may specify from time totime.
TheAMC reserves the right to declare any dayas a Business day or otherwise at any or allOfficialPointsofAcceptance.
11. “Custodian” means a person who has beengranted a certificate of registration to carry onthe business of custodian under the Securitiesand Exchange Board of India (Custodian ofSecurities) Regulations, 1996, and whomay beappointed for rendering custodian services fortheSchemeinaccordancewiththeRegulations.
12. “Cut-off timing”, in relation toan investormakingan application to amutual fund for purchase orredemption of units, shall mean the outer limitsof timings within a particular day which arerelevant for determination of the NAV that is tobeappliedforhistransaction.
13. “Distributablesurplus”meanstheGains thathasbeen realised on amarked tomarket basis and
iscarriedforwardtothebalancesheetatmarketvalue,arisingoutofappreciationon investmentswhich is readily available for distribution to theunitholdersasIncome.
14. “Eligible Trust” means - (i) a trust createdby or in pursuance of the provisions of anylaw which is for the time being in force in anyState, or (ii) a trust, the properties of whichare vested in a treasurer under the CharitableEndowmentsAct 1890 (Act 6 of 1890), or (iii) areligiousorcharitabletrustwhichisadministeredor controlled or supervised by or under theprovisionsofanylaw,whichisforthetimebeingin force relating to religious or charitable trustsor,(iv)anyothertrust,beinganirrevocabletrust,whichhasbeencreated for thepurposeofor inconnection with the endowment of any propertyor properties for thebenefit or useof thepublicor any section thereof, or (v) a trust created bya will which is valid and has become effective,or (vi) any other trust, being an irrevocabletrust, which has been created by an instrumentin writing and includes ‘depository’ within themeaning of Clause (e) of Subsection (1) ofSection2ofTheDepositoryAct,1996.
15. “Firm”, “partner” and “partnership” have themeanings assigned to them in the IndianPartnership Act, 1932 (9 of 1932), but theexpression “partner” shall also include anyperson who being a minor is admitted to thebenefitsofthepartnership.
16. “Fund Manager” means the managerappointed for the day-to-day management andadministrationofthescheme.
17. “Investment Management Agreement or IMA”means the Investment Management Agreement(IMA) dated December 9, 2002, executedbetween UTI Trustee Company Private LimitedandUTIAssetManagementCompanyLimited.
18. “Investor Service Centre” such offices as aredesignated as ISC by the AMC from time totime.
19. “Load” is a charge that may be levied as apercentage of NAV at the time of exiting fromtheScheme.
20. “Mutual Fund” or “Fund” or “UTIMF”meansUTIMutualFund,aTrustunder the IndianTrustAct,1882 registered with SEBI under registrationnumberMF/048/03/01datedJanuary14,2003.
21. “NAV” means Net Asset Value of the Units ofthe Scheme calculated in the manner providedin this Scheme Information Document andin conformity with the SEBI Regulations asprescribedfromtimetotime.
22. “Non-Resident Indian (NRI)” shall have themeaning as defined under Foreign ExchangeManagement (Deposit) Regulations, 2000(FEMA Regulation 2000) framed by ReserveBank of India under Foreign ExchangeManagement Act, 1999 (42 of 1999). As perFEMA Regulation 2000, “Non-Resident Indian(NRI)” means a person resident outside Indiawho is a citizen of India or is a person ofIndianorigin.Apersonshall bedeemed tobea
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“personof Indianorigin” if he isa citizenofanycountry other than Bangladesh or Pakistan andif (a)heatany timeheld Indianpassport;or (b)he or either of his parents or any of his grand-parents was a citizen of India by virtue of theConstitutionof Indiaor theCitizenshipAct,1955(57 of 1955); or (c) the person is a spouse ofan Indian citizenor a person referred to in sub-clause(a)or(b)herein.
23. “Numberofunitsdeemed tobe in issue”meanstheaggregateof thenumberofunits issuedandstillremainingoutstanding.
24. “Official points of acceptance” UTI FinancialCentres (UFCs),Officesof theRegistrarsof theSchemeandanyotherauthorisedcentreasmaybe notified by UTI AMC from time to time arethe official points of acceptance of purchase/redemption/changeover/switchover applicationsof the scheme. The cut off time as mentionedin this Scheme Information Document will beapplicableat theseofficial points of acceptance.The list of official points of acceptanceis attached with this Scheme InformationDocument.
For purchase / redemption / changeover /switchover of units applications received at anyauthorized collection centre, which is not anofficial point of acceptance, the cut off time atthe official point of acceptance alone, will beapplicablefordeterminationofNAVforpurchase/redemption/changeover/switchoverofunits.
25. “RBI” means the Reserve Bank of India,constitutedundertheReserveBankofIndiaAct,1934.
26. “Record Date” means the date announced bytheFundforanybenefits likedividendsetc.Theperson holding the units as per the records ofUTIAMC/Registrars,on therecorddateshallbeeligibleforsuchbenefits.
27. “Registrar”meansapersonwhoseservicesmaybe retainedbyUTIAMC to act as theRegistrarunderthescheme,fromtimetotime.
28. “Regulations” or “SEBI Regulations” mean theSEBI (Mutual Funds) Regulations, 1996 asamendedorreenactedfromtimetotime.
29. “SEBI” means the Securities and ExchangeBoard of India set up under the Securities andExchangeBoardofIndiaAct,1992(15of1992).
30. S&P BSE 200 means an Index published byAsia Index Private Limited (“AIPL”), which is ajointventureamongaffiliatesofS&PDowJonesIndicesLLC(“SPDJI”)andBSELimited(“BSE”)
31. “Society”meansasocietyestablishedunder theSocieties RegistrationAct of 1860 (21 of 1860)oranyothersocietyestablishedunderanyStateorCentrallawforthetimebeinginforce.
32. “Sponsors” are Bank of Baroda, Life InsuranceCorporationof India,PunjabNationalBank, andStateBankofIndia;
33. “Switchover” means transfer of units of onescheme of UTI MF to another scheme of UTIMFwhereverpermissible.
34. “Time” all time referred to in the SchemeInformation Document stands for IndianStandardTime.
35. “Trustee” means UTI Trustee Company PrivateLimitedacompanysetupunder theCompaniesAct, 1956 defined [replaced by The CompaniesAct, 2013 (No.18 of 2013)] and approved bySEBI to act as the Trustee to the schemes ofUTIMutualFund.
36. “Trust Deed” means the Trust Deed datedDecember9,2002ofUTIMutualFund.
37. “Unit” means the interest of the unitholdersin a scheme, which consists of each unitrepresenting one undivided share in the assetsofascheme.
38. “Unit Capital” means the aggregate of the facevalue of units issued under the scheme andoutstandingforthetimebeing.
39. “Unitholder”meansapersonholdingunits in theschemeoftheMutualFund.
40. In this Scheme Information Document, unlessthe context otherwise requires, (i) the singularincludes the plural and vice versa, (ii) referenceto any gender includes a reference to all othergenders,(iii)headingandboldtypefaceareonlyfor convenience and shall be ignored for thepurposesofinterpretation.
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D. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
Due Diligence Certificate submitted to SEBI for UTI - Bluechip Flexicap Fund
Itisconfirmedthat:
I. the Draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (MutualFunds)Regulations,1996andtheguidelinesanddirectivesissuedbySEBIfromtimetotime.
II. all legal requirements connectedwith the launching of the scheme as also the guidelines, instructions,etc. issued by the Government and any other competent authority in this behalf, have been dulycompliedwith;
III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable theinvestorstomakeawellinformeddecisionregardinginvestmentinthescheme.
IV. all the intermediaries named in the Scheme Information Document and Statement of AdditionalInformationareregisteredwithSEBIandtheirregistrationisvalid,asondate.
A. TYPE OF THE SCHEME UTI-Bluechip Flexicap Fund is an open-ended Equity
OrientedScheme.
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?
The investment objective of the scheme is to achievelong-term capital appreciation and/or dividenddistribution by investing in stocks that are “Leaders”in their respective industries/sectors/sub-sectors.“Leaders” tend to be companies with higher marketshares, better operating efficiencies, better accessto capital and significant/sustainable competitiveadvantages.Normallyat least65%of the investmentswill be restricted to the top five leading companiesof an industry/sector/sub-sector in terms of salesturnover/marketshare/marketcapitalization.
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
1. Asset Allocation pattern of the scheme is as follows:
Equity and EquityRelated Instrumentsof others includinginvestments inpotentialleaders.
0–35% High
Debt* and MoneyMarket Instrumentsincluding Securitiseddebt.
0-10% LowtoMedium
* For Debt investments, the fund will invest incompanies where the paper is rated AA+ andabove.
While no fixed allocation will normally be made forinvestment in money market instruments like CallDeposits, Commercial Papers, Treasury Bills, ShortTerm Deposits etc. the same may be kept to theminimum generally to meet the liquidity needs of theScheme.
The above investment pattern is only indicative andmay be changed by the Fund Manager for a shortterm period on defensive considerations, keepingin view the market conditions, market opportunities,applicable SEBI (MF) Regulations 1996, legislativeamendmentsandotherpoliticalandeconomic factors,the intention being at all times to seek to protectthe interests of the Unit Holders. Rebalancing ofthe portfolio will be done when the asset allocationfalls outside the range given above. If the exposurefalls outside the above mentioned asset allocationpattern, it will be restored within 30 days. If the fundmanager for any reason is not able to rebalance theasset allocation within 30 days, the matter would beescalated to the Investment Committee for further
direction. The Investment Committee shall record thereasons in writing for the exposure falling outsidethe asset allocation and the Committee shall review,and as considered necessary, may further direct themanner for rebalancing the same within the range oftheassetallocationasmentionedabove.
2. Debt and Money market in India
(i) Debt Instrument Characteristics: ADebt Instrument is basically anobligationwhich the
borrowerhas toserviceperiodicallyandgenerallyhasthefollowingfeatures:FaceValue : Stated value of the paper /
PrincipalAmount
Coupon : Zero;fixedorfloating
Frequency : Semi-annual; annual, sometimesquarterly
Maturity : Bullet,staggered
Redemption : FV;premiumordiscount
Options : Call/Put
IssuePrice : Par(FV)orpremiumordiscount
A debt instrument comprises of a unique series ofcashflowsforeachpaper, termsofwhicharedecidedat the time of issue. Discounting these cash flows tothe present value at various applicable discount rates(marketrates)providesthemarketprice.
(ii) Debt Market Structure: The Indian Debt market comprises of the Money
MarketandtheLongTermDebtMarket.
Money market instruments haveatenorof lessthanoneyearwhiledebtmarket instruments typically haveatenorofmorethanoneyear.
Money market instruments are Commercial Papers(CPs), Certificates of Deposit (CDs), Treasury bills(T-bills), Repos, Inter-bank Call money deposit,CBLOs etc. They are mostly discounted instrumentsthatareissuedatadiscounttofacevalue.
Long Term Debt market in Indiacomprisesmainlyoftwo segments viz., the Government securities marketandthecorporatesecuritiesmarket.
Government securities includes central, state andlocal issues. Themain instruments in thismarket areDated securities (Fixed or Floating) and Treasurybills (Discounted Papers) The Central Governmentsecurities are generally issued through auctions onthe basis of ‘Uniform price’ method or ‘Multiple price’methodwhileStateGovt.arethroughon-tapsales.
Corporate debt segment on the other hand includesbonds/debentures issued by private corporates,public sector units (PSUs) and development financialinstitutions (DFIs). The debentures are rated by arating agency and based on the feedback from themarket, the issue is priced accordingly. The bondsissued may be fixed or floating. The floating ratedebt market has emerged as an activemarket in therising interest rate scenario. Benchmarks range fromOvernightratesorTreasurybenchmarks.
Debt derivatives market comprises mainly of InterestRate Swaps linked to Overnight benchmarks calledMIBOR (Mumbai Inter Bank Offered Rate) and is
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UTI - Bluechip Flexicap Fund - SID - 2017
an active market. Banks and corporate are major players here and Mutual Funds have also started hedging theirexposuresthroughtheseproducts.
Securitised Debt Instruments -Assetsecuritization isaprocessof transferof riskwherebycommercialor consumerreceivablesarepooledpackagedandsold in the formoffinancial instruments.A typicalprocessofassetsecuritizationinvolves sale of specificReceivables to aSpecial PurposeVehicle (SPV) set up in the formof a trust or a company.The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency.Bank,Corporates,HousingandFinancecompaniesgenerally issuesecuritised instruments.Theunderlyingreceivablesgenerallycompriseof loansofCommercialVehicles,AutoandTwowheelerpools,Mortgagepools (residentialhousingloans),PersonalLoan,creditcardandCorporatereceivables.
(iii) Regulators: TheRBIoperatesbothas themonetaryauthorityand thedebtmanager to thegovernment. In its roleasamonetary authority, the RBI participates in themarket through open-market operations as well as through LiquidityAdjustment facility (LAF) to regulate themoney supply. It also regulates the bank rate and repo rate, and uses theserates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapestpossiblerate.TheSEBIregulatesthedebtinstrumentslistedonthestockexchanges.
Government Securities and Money Market Instruments Currently,G-SectradesarepredominantlyroutedthoughNDS-OMwhichisascreenbasedanonymousordermatching
systems for secondary market trading in Government Securities owned by RBI. Corporate Debt is basically a phonedriven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSEWholesaleDebtMarketsegment.
D. WHERE WILL THE SCHEME INVEST?1. AsperRegulation43(1)ofSEBI(MutualFund)Regulations,themutualfundscaninvestin
i. ADRs/GDRsissuedbyIndianorforeigncompanies.ii. Equityofoverseascompanieslistedonrecognizedstockexchangesoverseas.
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UTI - Bluechip Flexicap Fund - SID - 2017
iii. Initial and followonpublic offerings for listingatrecognizedstockexchangesoverseas.
iv. Foreigndebtsecurities in thecountrieswith fullyconvertible currencies, short term as well aslong termdebt instrumentswith ratingnotbelowinvestment grade by accredited/registered creditratingagencies.
v. Money market instruments rated not belowinvestment grade [as permitted by SEBI and orRBI(includingCPs,CDsandCBLOs)].
vi. Repos in the form of investment, where thecounterparty is rated not below investmentgrade; repos should not however, involve anyborrowing of funds by mutual funds (subjectto the participation in repo in corporate debtsecuritiesasstatedinparagraph2below)
vii. Government securities where the countries areratednotbelowinvestmentgrade.
viii. Derivatives traded on recognized stockexchanges overseas only for hedging andportfoliobalancingwithunderlyingassecurities.
ix. Pending deployment of funds, in short termdepositswithScheduledCommercialbanks.
The aggregate ceiling for overseas investmentsas per para above is US $ 7 bn. Within theoverall limit of US $ 7 bn, mutual funds canmake overseas investments subject to amaximumofUS$300mn.permutualfund.
Investment inoverseassecuritiesshallbemadein accordance with the requirements stipulatedbySEBIandRBIfromtimetotime.
SEBI vide its circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007 andCircular No. SEBI/IMD/CIR No.2/122577/08dated April 08, 2008 has issued guidelinespertaining to investments in overseas financialassets.Accordingly all the investments inADR/GDR and foreign securities shall be made incompliancewith the above referred circular andfuturecirculars issuedbySEBI/RBI from time totime.
xi. Securitised debt instruments, which are eitherassetbackedormortgagebackedsecurities;
2. Participation in repo in corporate debt securities The scheme shall participate in repo transactions in
Corporate Debt Securities within the following overallframework, as per the guidelines of Securities andExchange Board of India and Boards of UTI TrusteeCoPLtd&UTIAMCLtd.
bonds repo transactions’ shall not bemore than10%ofthenetassetsoftheconcernedscheme.
(ii) The cumulative gross exposure through‘corporate bonds repo transactions’ along with
equity, debt and derivatives shall not exceed100% of the net assets of the concernedscheme.
(iii) In addition to investment restrictions specifiedin SEBI (Mutual Funds) Regulations 1996, thecounter-partyexposureinascheme,consideringthe investments held in the debt securitiesand value of collaterals held through repotransactions (as a lender), shall not be morethan 30% in case ofmoneymarket instruments(20%inothercases).
(B) Category of the counter-party to be considered for making investment
All entities eligible for transaction in corporate debtrepos,asdefinedbyReserveBankof India (RBI)andSEBI,shallbeconsideredforrepotransactions
(C) Credit Rating of Counterparty to be considered for making investment
The scheme/s shall carry out repo transactions withonly those counterparties, who have a credit ratingof ‘AA- and above’ (Long term rating) or ‘A1+’ (Shorttermrating).
(D) Tenor of Repo As a repo seller, the scheme/s can borrow for a
period not more than six months as per the existingRegulation 44(2) of the SEBI (Mutual Funds)Regulations,1996.
As a repo buyer, the scheme/s can lend for amaximumperiodofoneyear, subject toprovision/softheSchemeInformationDocument(SID).
(E) Tenor and Credit Rating of the Collateral The scheme/s shall participate in repo transactions
in Corporate Bonds rated ‘AA’ and above (‘A1+’ inrespectofmoneymarketinstruments).
The tenor of the collateral shall not bemore than 10years.
(F) Minimum Haircut In terms of RBI guidelines, repo transactions shall be
subjecttothefollowingminimumhaircuts:-
Rating of the Security AAA AA+ AA
MinimumHaircut 7.50% 8.50% 10%
Theaboveareminimumstipulatedhaircutswhere therepo period is overnight or where the re-marginingfrequency (in case of longer tenor repos) is daily. Inallothercases,FundManagermayadoptappropriatehigherhaircuts.
Depending on the market conditions and riskperceptions, the Fund Manager may seek higherhaircut (while lending) or give a higher haircut (whileborrowing).
(G) Risk factors of repo market ThetransactionsarefurthersubjecttotheRiskfactors
associated with repomarket such as Illiquidity risk ofOver The Counter market (OTC), counter party riskandcollateralriskasarepobuyer
For further details refer to SAI/Addendum No.7/2014-15dated7thJuly2014
whose payoff structure is determined by the value ofan underlying security, index, interest rate etc. Thusa derivative instrument derives its value from someunderlyingvariable.
Derivativesarefurtherclassifiedinto:-
Futures
Options
Swaps
Futures: A futures contract isa standardizedcontractbetweentwopartieswhereoneof thepartiescommitstosell,and theother tobuy,astipulatedquantityofasecurity at an agreed price on or before a given dateinfuture.
Options: An option is a derivative instrument, which gives its
holder (buyer) the right but not the obligation to buyor sell the underlying security at the contracted priceon or before the specified date. The purchase of anoption requires an up-front payment (premium) to theselleroftheoption.
(a) Call option: Acalloptiongives thebuyerof theoption the right but not the obligation to buy agivenquantityoftheunderlyingasset,atagivenprice (strike price), on or before a given futuredate.
(b) Put option: Aput option gives the buyer of theoption the right but not the obligation to sell agivenquantityoftheunderlyingasset,atagivenprice (strike price), on or before a given futuredate.
On expiry of a call option, if the market price of theunderlying asset is lower than the strike price the callwouldexpireunexercised.Likewise,if,ontheexpiryofa put option, themarket price of the underlying assetishigherthanthatofthestrikepricetheputoptionwillexpireunexercised.
The buyer/holder of an option can make loss of notmore than theoptionpremiumpaid to theseller/writerbut the possible gain is unlimited.On the other hand,the option seller/writer’s maximum gain is limited tothe option premium charged by him from the buyer/holderbutcanmakeunlimitedloss.
from two different financial instruments. For example,the party receiving fixed in an ordinary InterestRate Swap receives the excess of the fixed couponpayment over the floating rate payment. Of course,each payment depends on the rate, the relevant daycountconvention,thelengthoftheaccrualperiod,andthenotionalamount.
Debt derivatives are as of now customized over thecounterproductsand there isnoguarantee that theseproducts will be available on tap. There are variouspossible combinations of strategies, which may be
adopted, in a specific situation. The provision fortrading inderivatives isanenablingprovisionand it isnot binding on theScheme to undertake trading on adaytodaybasis.
Someofthederivativetechniques/strategiesthatmaybeusedare:-(i) The scheme will use hedging techniques
including dealing in derivative products – likefutures and options, warrants, interest rateswaps (IRS), forward rate agreement (FRA)as may be permissible under SEBI (MFs)Regulations.
(ii) Theschememaytakederivativespositionbasedon the opportunities available and in line withthe overall investment objective of the scheme.Thesemay be taken to hedge the portfolio andrebalancethesame.
(iii) The Fund manager may use various strategiesfor trading in derivatives with a view toenhancing returns and taking cover againstpossiblefluctuationsinthemarket.
(iv) The Fund Manager may sell the index forwardby taking a short position in index futures tosave on the cost of outflow of funds or in theeventofnegativeviewonthemarket.
Exposure limits: As per SEBI Circular No. Cir/IMD/DF/11/2010 dated 18th August 2010,a. The cumulative gross exposure through equity,
debt and derivative positions should not exceed100%ofthenetassetsofthescheme.
b. MutualFundsshallnotwriteoptionsorpurchaseinstrumentswithembeddedwrittenoptions.
c. The total exposure related to option premiumpaidmust not exceed 20% of the net assets ofthescheme.
d. Cash or cash equivalents with residual maturityof less than 91 days may be treated as notcreatinganyexposure.
e. Exposure due to hedging positions may not beincludedintheabovementionedlimitssubjecttothefollowing:-(i) Hedging positions are the derivative
positions that reduce possible losses onanexistingpositioninsecuritiesandtilltheexistingpositionremains.
(ii) Hedging positions cannot be taken forexistingderivativepositions.Exposuredueto such positions shall have to be addedand treated under limits mentioned inPointa.
(iii) Any derivative instrument used to hedgehas the same underlying security as theexistingpositionbeinghedged.
(iv) Thequantity of underlying associatedwiththe derivative position taken for hedgingpurposes does not exceed the quantity ofthe existing position against which hedgehasbeentaken.
f. Mutual Funds may enter into plain vanillainterest rate swaps for hedging purposes. Thecounter party in such transactions has to be
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UTI - Bluechip Flexicap Fund - SID - 2017
an entity recognized as a market maker byRBI. Further, the value of the notional principalin such cases must not exceed the value ofrespective existing assets being hedged by thescheme. Exposure to a single counterparty insuch transactionsshouldnotexceed10%of thenetassetsofthescheme.
g. Exposure due to derivative positions taken forhedging purposes in excess of the underlyingposition against which the hedging position hasbeen taken, shall be treated under the limitsmentionedinpointa.
Definition of Exposure in case of Derivative Positions
Each position taken in derivatives shall have anassociated exposure as defined under. Exposureis the maximum possible loss that may occur on aposition. However, certain derivative positions maytheoreticallyhaveunlimitedpossibleloss.
ofContractsOptionbought Option PremiumPaid * Lot Size *
NumberofContracts.
The AMC retains the right to enter into suchderivative transactions as may be permitted by theRegulations from time to time. For risks associatedwithinvestmentsinderivativesinvestorsarerequestedto refer to Risk Factors of this Scheme InformationDocument.
E. WHAT ARE THE INVESTMENT STRATEGIES?1. Investment focus and asset allocation
strategy The schemewill primarily invest in a diversified
portfolio of leadership stocks i.e. stocks ofcompanies that are leaders in their industry/sectors/sub-sectors to achieve long term capitalappreciation over time. The scheme will allowthefundmanagertopickstocksthatareleadersin their respective categories. “Leaders” tendto be companies with higher market shares,better operating efficiencies, better access tocapital and significant/sustainable competitiveadvantages. They tend to give good returnsin an economic upswing and are also able towithstand economic downswings better thanother companies.An industry or sector that thefund manager feels will outperform others, willbe selected and then leading companies withinthat industry/sectors will be picked. Normally atleast 65% of the investments will be restrictedto the ‘Leaders’ (top five leading companies ofan industry/sector/ subsector in terms of salesturnover/market share/ market capitalization).The scheme will also invest upto 35% incompanies that are potential leaders in order toprofit from the probable upside potential in thestockofthesecompanies.
Subject to the SEBI Regulations, the assetallocation pattern indicated above in respectof the entire scheme may change from timeto time, keeping in view market conditions,market opportunities, applicable regulations andpoliticalandeconomic factors. Itmustbeclearlyunderstood that the percentages stated aboveare only indicative and not absolute. Theseproportions can vary substantially dependingupon theperceptionof the InvestmentManager;theintentionbeingatall timestoseektoprotectthe interestsof theUnitholders.Assetallocationpattern may be altered for short period ondefensiveconsiderations.
2. Portfolio Turnover policy Theportfolio turnover shall be targetedsoas to
have return maximisation for the unitholders.Atthesametime,expensessuchasbrokerageandtransactioncostshallbekeptatlowlevelsothatitdoesnotaffecttheearningsofthescheme.
F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the
scheme, in terms of Regulation 18 (15A) of the SEBI(MF)Regulations:
(i) Type of a scheme UTI-Bluechip Flexicap Fund is an open-ended Equity
OrientedScheme.
(ii) Investment Objective Main Objective –asgiveninClauseIIB Investment pattern -ThetentativeEquity/Debt/Money
Marketportfoliobreak-upwithminimumandmaximumasset allocation,while retaining the option to alter theasset allocation for a short term period on defensiveconsiderations–asgiveninClauseIIC(1)only.
(iii) Terms of Issue Liquidity provision of redemption: Only provisions
relatingtoredemptionasgivenintheSID.
Aggregate Expense and Fees [as given in clause IV(A)(a)&(b)]chargedtothescheme.
In accordance with Regulation 18(15A) of the SEBI(MF) Regulations, the Trustees shall ensure that nochange in the fundamental attributes of the Schemeand the Options thereunder or the trust or fee andexpenses payable or any other change which wouldmodify the Scheme and the Options thereunder andaffecttheinterestsofUnitholdersiscarriedoutunless:
1) A written communication about the proposedchange is sent to each Unitholder and anadvertisement is given in one English dailynewspaper having nationwide circulation aswellas in anewspaper published in the languageofthe regionwhere theHeadOffice of theMutualFundissituated;and
2) TheUnitholdersaregivenanoption foraperiodof 30 days to exit at the prevailing Net AssetValuewithoutanyexitload.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
S&P BSE 200 is the benchmark for UTI-BluechipFlexicapFund
H. WHO MANAGES THE SCHEME? ShriAjayTyagiisthefundmanagerofUTI-BluechipFlexicapFund(ManagingtheSchemesinceDecember2015)
Age(in yrs) Qualifications Experience Other Schemes Managed
39 BBA,MFC,CFA,DBF
HejoinedUTIAMCintheyear2000andhasbeen working in the Equity Research andFund Management functions since then. Heis presently working as a Fund Manager inthe Equity Fund Management Team Wherehe manages a few domestic mutual fundschemes.HeisalsoanInvestmentAdvisortoa few Indiadedicatedoffshore funds.Prior tobeingdesignatedasaFundManagerhehasworkedasanAssistantFundManager in theOffshoreFundsdivision.
ShriSharwanKumarGoyal is thededicatedFundManager formakingOverseas investments. (Managing theSchemesinceMarch2017)
Age(in yrs) Qualifications Experience Other Schemes Managed if any
36 B.Com,CFA(USA),MMS
He began his career with UTI in June 2006and has 11 years of overall experience inRisk / portfolio management. Presently heis working as Fund Manager for OverseasInvestment.
Dedicated Fund Manager for makingOverseasInvestments.
I. WHAT ARE THE INVESTMENT RESTRICTIONS? SubjecttoSEBI(MFs)Regulations,guidelinesoninvestmentfromtimetotime:
(a) Theschemeshall investnotmore than10%of itsNAV in theequitysharesorequity related instrumentsofanycompany.
(b) The scheme shall invest not more than 5% of their NAVs in the unlisted equity shares or equity relatedinstruments.
(c) Theaggregate valueof “illiquid securities” of a scheme,whicharedefinedbySEBIasnon traded, thinly tradedand unlisted equity shares, shall not exceed 15% of the total assets of a scheme and any illiquid securitiesheld above 15% of the total assets shall be assigned zero value. The proposed aggregate holding of assetsconsidered “illiquid”, could bemore than 10% of the value of the net assets of a scheme. In normal course ofbusiness, theschemewouldbeable tomakepaymentof redemptionproceedswithin10businessdays,as theywouldhavesufficientexposure to liquidassets. Incaseof theneed forexiting fromsuch illiquid instruments inashortperiodoftime,theNAVoftheschemecouldbeimpactedadversely.
(d) TheSchemeshallnotinvestmorethan10%ofitsNAVindebtinstrumentscomprisingmoneymarketinstrumentsand non-moneymarket instruments issued by a single issuerwhich are rated not below investment grade by acreditratingagencyauthorisedtocarryoutsuchactivityundertheAct.Suchinvestmentlimitmaybeextendedto12%of theNAVof theschemewiththepriorapprovalof theBoardofTrusteesandtheBoardofdirectorsof theassetmanagementcompany:
Provided that such limit shall not be applicable for investments in Government Securities, treasury bills andcollateralizedborrowingandlendingobligations.
Provided further that investmentwithin such limit can bemade inmortgaged backed securitised debtwhich areratednotbelowinvestmentgradebyacreditratingagencyregisteredwiththeBoard
(e) Theschemeshallnot investmorethan10%of itsNAVinunrateddebt instrumentsissuedbyasingleissuerandthe total investment in such instruments shall not exceed 25%of theNAV of the scheme.All such investmentsshallbemadewiththepriorapprovaloftheTrusteesandBoardoftheAMC.
UTIMutualFundmayconstitutecommitteeswhocanapproveproposals for investments inunrated instruments.However, the detailed parameters for such investments shall be approved by theAMCBoard and theTrustees.The details of such investments shall be communicated byUTIAMC to theTrustees in their periodical reports.However, in caseanysecuritydoesnot fall under theparameters, thepriorapproval of theBoardsofAMCandTrusteesshallberequired.
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UTI - Bluechip Flexicap Fund - SID - 2017
(f) Debentures, irrespectiveofany residualmaturityperiod (above or below one year), shall attractthe investment restrictions as applicable fordebt instruments. It is further clarified thatthe investment limits are applicable to all debtsecurities, which are issued by public bodies/institutions such as electricity boards, municipalcorporations, state transport corporationsetc. guaranteed by either state or centralgovernment. Government securities issued bycentral/state government or on its behalf bythe RBI are exempt from the above investmentlimits.
(h) Pending deployment of funds of the Scheme insecurities in termsof the investmentobjectiveofthe scheme as stated above, the funds of theSchememaybe invested in short termdepositsof scheduled commercial banks in accordancewith SEBI Circular No. SEBI/IMD/CIR No.1/ 91171 /07 dated April 16, 2007, and suchdepositsshallabidebythefollowingguidelines:
• “Short Term” for parking of funds shall betreatedasaperiodnotexceeding91days.
• Such short-term deposits shall be held inthenameoftheScheme.
• The scheme shall not parkmore than 15%of the net assets in short term deposit(s)of all the scheduled commercial banks puttogether.However,such limitmaybe raisedto20%withpriorapprovaloftheTrustee.
• Parking of funds in short term depositsof associate and sponsor scheduledcommercialbankstogethershallnotexceed20%oftotaldeploymentbytheMutualFundinshorttermdeposits.
• The scheme shall not parkmore than 10%of the net assets in short term deposit(s),with any one scheduled commercial bankincludingitssubsidiaries.
• The scheme shall not park funds in shortterm deposit of a bank,which has investedintheScheme.
(i) UTI Mutual Fund shall buy and sell securitieson the basis of deliveries and shall in allcases of purchases, take delivery of relativesecurities and in all cases of sale, deliver thesecurities and shall in no case put itself in aposition whereby it has to make short sale orcarry forward transaction. Provided that thescheme may enter into derivatives transactionsfor thepurposeof hedgingand re-balancing theportfolioasmaybepermissibleunderguidelinesissuedbySEBI.
(j) The Mutual Fund under all its schemes takentogether will not own more than 10% of anyCompany’spaidupcapitalcarryingvotingrights.
(k) Investmentsoftheschemeareheldinthenameof the scheme. UTIMF shall, get the securitiespurchased by the scheme transferred in the
(l) (i) The scheme may participate in thesecurities lending program, in accordancewith the terms of securities lendingscheme announced by SEBI. The activityshall be carried out through approvedintermediaries.
(ii) The maximum exposure of the schemeto a single approved intermediary in thesecurities lending programme at any pointof timewouldbe10%of themarketvalueof the security class of the scheme orsuchlimitasmaybespecifiedbySEBI.
(iii) If mutual funds are permitted to borrowsecurities, theschememay, inappropriatecircumstances borrow securities inaccordance with SEBI guidelines in thatregard.
(m) The scheme shall not make any investment inany unlisted security of an associate or GroupCompany of the sponsors; or any securityissued by way of private placement by anassociateorgroupcompanyof thesponsors;orthe listed securities of group companies of thesponsors which is in excess of 25% of the netassets.
(n) Investment in non-publicly offered debt:Depending upon the available yields thescheme, which are permitted to invest in Debtinstruments, may invest in non-publicly offereddebtsecurities.
(o) Based upon the liquidity needs, the schememay invest in Government of India/StateGovernment Securities to the extent to whichsuchinvestmentcanbemadebythescheme.
(p) Investmentby thescheme inotherMutualFundschemes will be in accordance with Regulation44(1), Seventh Schedule of the SEBI (MFs)Regulations as under: A scheme may investin another scheme under the same assetmanagement company or any other mutualfund without charging any fees, provided thataggregate inter scheme investment made byall schemes under the same management orin schemes under the management of anyother asset management company shall notexceed5%of thenet asset valueof themutualfund. Such investment will be consistent withthe investment objective of the scheme. Noinvestmentmanagement feeswillbechargedbytheAMConsuchinvestment
(q) The scheme shall not make any investment inanyfundoffundscheme.
(r) Themutualfundshallnotborrowexcepttomeettemporary liquidity needs of the mutual fundfor the purpose of repurchase, redemption ofunits or payment of interest or dividend to theunitholders:
Provided that themutual fund shall not borrowmore than 20 per cent of the net asset of thescheme and the duration of such a borrowingshallnotexceedaperiodofsixmonths.
i) Growth Option Ordinarily no dividend distribution will be made under this option. All income
generated and profits booked will be ploughed back and returns will be reflectedthroughtheNAV.
ii) Dividend Option with Payout and Reinvestment facilities^. In case where neither of the options is exercised by the applicant/unitholder at the
time of making his investment or subsequently he will be deemed to be under theGrowthOptionandhisapplicationwillbeprocessedaccordingly.
* Direct Plan:DirectPlanisonlyfor investorswhopurchase/subscribeunitsdirectlywiththeFundandisnotavailableforinvestorswhoroutetheirinvestmentsthroughaDistributor.
All categories of Investors (whether existing or newUnitholders) are eligible to subscribeunderDirectPlan. InvestmentsundertheDirectPlancanbemadethroughvariousmodes(except all Platform(s) where investor’s applications for subscription of units are routedthroughDistributors).
The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lowerexpense ratio excluding distribution expenses, commission etc and will have a separateNAV.NocommissionshallbepaidfromDirectPlan.
How to apply: InvestorssubscribingunderDirectPlanofUTI-BluechipFlexicapFundwillhave to indicate “Direct Plan” against the Scheme name in the application form, as forexample.“UTI-BluechipFlexicapFund-DirectPlan”.
Treatment of applications under “Direct” / “Regular / Existing” Plans:
Scenario Broker Code mentioned by the investor
Plan mentioned by the investor
Default Plan to be captured
1 Notmentioned Notmentioned DirectPlan2 Notmentioned Direct DirectPlan3 Notmentioned Regular/Existing DirectPlan4 Mentioned Direct DirectPlan5 Direct NotMentioned DirectPlan6 Direct Regular/Existing DirectPlan7 Mentioned Regular/Existing Regular/ExistingPlan8 Mentioned NotMentioned Regular/ExistingPlan
Incasesofwrong/ invalid/ incompleteARNcodesmentioned in theapplication formunderscenarios7or8above, theapplicationshallbeprocessedunder ‘Regular /ExistingPlan’.
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UTI - Bluechip Flexicap Fund - SID - 2017
TheAMC shall contact and obtain the correctARN code within 30 calendar days of thereceiptoftheapplicationformfromtheinvestor/distributor.Incase,thecorrectcodeisnotreceived within 30 calendar days, theAMC shall reprocess the transaction under ‘DirectPlan’fromthedateofapplicationwithoutanyexitload.
ForfurtherdetailsonDirectPlan,pleaserefertoSAI.
Scheme characteristics of Direct Plan: Scheme characteristics such as InvestmentObjective,AssetAllocation Pattern, Investment Strategy, risk factors, facilities offered andtermsandconditionsincludingloadstructurewillbethesamefortheExistingPlanandtheDirectPlanexceptthat:
(a) Switch of investments from Existing Plan through a distributor with ARN Code toDirect Plan shall be subject to applicable exit load, if any. The holding period forapplicabilityofloadwillbeconsideredfromthedateofsuchswitchtoDirectPlan.
(b) However, no exit load shall be levied for switch of investments from Existing Planmadedirectlywithout anARNCode (whether the investmentsweremadebeforeorafter January 1, 2013) toDirect Plan of the scheme (subject to statutory taxes andlevies, ifany).Theholdingperiodforapplicabilityof loadwillbeconsideredfromthedateofinitialinvestmentintheExistingPlan.
(d) Minimum Investment amount under the Direct Plan: Incaseofalreadyexisting investmentsunder theExistingPlan, if the investorwants
to further invest in the Direct Plan he/she will be required to invest the minimuminvestmentamountof thescheme,asapplicable for thatScheme/Plan/Option/facilityetc.However,thisminimuminvestmentamountrequirementisnotapplicableincaseofswitchoverfromExistingPlantoDirectPlanorviceversaunderthesameSchemeandsameOption.
(b) Reinvestment of dividend distributed Unitholders, if theysodesire,willhavefacility toreinvestdividend, ifany,payable to
them,intofurtherunitsofthatscheme.
(c) Rollover facility Rollover facility offers a facility to unitholders to redeem entire or a part of their
outstanding unit holding and simultaneously investing the entire proceeds or uptoface value of units redeemed on the rollover date at the same NAV in the samescheme.Noloadwillberequiredtobepaidonredemptionproceedstotheextentofamountinvestedundertherolloverfacility
Risk Mitigation ProcessagainstThirdPartyCheques
Restriction on Third Party PaymentsThirdpartypaymentsarenotaccepted inanyof theschemesofUTIMutualFundsubjecttocertainexceptions.
“Third Party Payments” means the payment made through instruments issued from anaccount other than that of the beneficiary investor mentioned in the application form.However,incaseofpaymentsfromajointbankaccount,thefirstnamedapplicant/investorhastobeoneofthejointholdersofthebankaccountfromwhichpaymentismade.
Bank Mandate registration as part of the new folio creationInordertoreducetheriskof fraudsandoperationalrisksandtherebyprotecttheinterestsoftheUnitholders/Investorsfromfraudulentencashmentofredemption/dividendproceeds,Investors are required to submit any of the prescribed documents (along with originaldocumentforverification)insupportofthebankmandatementionedintheapplicationformfor subscription under a new folio, in case these details are not the same as the bankaccountfromwhichtheinvestmentismade.
Incase,theapplicationforsubscriptiondoesnotcomplywiththeaboverequirements,UTIAMC,at itssoleandabsolutediscretion,mayreject/notprocesssuchapplicationandmayrefund thesubscriptionamount to thebankaccount fromwhere the investmentwasmadeandshallnotbeliableforanysuchrejection/refund.
For further details on documents to be submitted under theprocess to identify third partypaymentsetc,pleaserefertoSAI/relevantAddenda..
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WhocaninvestThis is an indicative list andyou are requested to consultyour financial advisor toascertainwhether the schemeissuitabletoyourriskprofile.
An application for issue of unitsmay bemade by any resident or non-resident Indian aswellasnon-individualsasindicatedbelow:(a) a resident individual or a NRI or a person of Indian origin residing abroad, either
singlyor jointlywithanotherorupto twoother individualson joint/anyoneorsurvivorbasis. An individual may make an application in his personal capacity or in hiscapacityasanofficerofaGovernmentorofaCourt;
(c) anassociationofpersonsorbodyofindividualswhetherincorporatedornot;(d) aHinduUndividedFamily-bothresidentandnon-resident;(e) a body corporate including a company formed under the Companies Act, 1956 or
establishedunderStateorCentralLawforthetimebeinginforce;(f) abankincludingascheduledbank,aregionalruralbank,aco-operativebanketc.;(g) an eligible trust including Private Trust being irrevocable trust and created by an
instrumentinwriting;(h) asocietyasdefinedunderthescheme;(i) aFinancialInstitution;(j) anArmy/Navy/AirForce/ParamilitaryFund;(k) apartnershipFirm; (Anapplicationbyapartnershipfirmshallbemadebynotmore than threepartners
of the firm and the first named person shall be recognised by UTI AMC for allpractical purposes as the unitholder.The first named person in the application formshouldeitherbeauthorizedbyallremainingpartnerstosignonbehalfofthemorthepartnershipdeedsubmittedbythepartnershipfirmshouldsoprovide.)
SEBIRegulations.(q) Suchother individuals / institutions /bodycorporateetc.,asmaybedecidedby the
AMC from time to time, so long aswherever applicable they are in conformity withSEBIRegulations.
(r) Subject to theRegulations, theSponsors, theMutualFundsmanagedby them, theirassociates and theAMC may acquire units of the scheme. TheAMC shall not beentitledtochargeanyfeesonitsinvestmentsinthescheme.
The fund reserves the right to include/exclude, new/existing categories of investors toinvestintheschemefromtimetotime,subjecttoSEBIRegulations,ifany.
Investment by Individuals – Foreign NationalsFor the purposes of carrying out the transactions byForeignNationals in the units of theSchemesofUTIMutualFund,
1. Foreign Nationals shall be resident in India as per the provisions of the ForeignExchangeManagementAct,1999.
2. Foreign Nationals are required to comply (including taking necessary approvals)with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicablefromtimetotime,includingbutnotlimitedtoandpertainingtoantimoneylaundering,KnowYourCustomer (KYC), income tax, foreignexchangemanagement(theForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereunder)includinginalltheapplicablejurisdictions.
UTIAMC reserves the right to amend/terminate this facility at any time, keeping in viewbusiness/operationalexigencies.
Note: “Neither this Scheme Information Document nor the units have been registered inany jurisdiction including the United States of America. The distribution of this SchemeInformation Document in certain jurisdictions may be restricted or subject to registrationrequirements and, accordingly, persons who come into possession of this SchemeInformationDocument are required to inform themselves about, and to observe any such
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restrictions. No persons receiving a copy of this Scheme Information Document or anyaccompanying application form in such jurisdiction may treat this Scheme InformationDocument or such application form as constituting an invitation to them to subscribe forunits, nor should they in any event use any such application form, unless in the relevantjurisdiction such an invitation could lawfully be made to them and such application formcouldlawfullybeusedwithoutcompliancewithanyregistrationorotherlegalrequirements.Accordingly thisScheme InformationDocument doesnot constitute anoffer or solicitationbyanyoneinany jurisdiction inwhichsuchofferorsolicitation isnot lawfulor inwhichthepersonmakingsuchofferorsolicitationisnotqualifiedtodosoortoanyonetowhomit isunlawfultomakesuchofferorsolicitation.It is the responsibilityofanypersons inpossessionof thisScheme InformationDocumentandanypersonswishingtoapply forunitspursuant to thisSchemeInformationDocumentto inform themselves of and to observe, all applicable laws and Regulations of suchrelevantjurisdiction”.Subscriptions fromOverseasCorporateBodies(OCBs) in theSchemesofUTIMFwillnotbeaccepted.
Investments by Overseas Corporate Bodies (OCBs)Pursuant to the Foreign Exchange Management [Withdrawal of General Permissionto Overseas Corporate Bodies (OCBs)] Regulations, 2003, and the consequentialamendments made in the Foreign Exchange Management (Transfer or issue of SecuritybyaPersonResidentoutside India)Regulations,2000,OCBs,cannot invest, interalia, inMutualFundSchemes.
‘Overseas Corporate Body’ (OCB)As per Regulation 2(xi) of the Foreign Exchange Management (Deposit) Regulations,2000, ‘Overseas Corporate Body’ means a company, partnership firm, society and othercorporatebodyowneddirectlyor indirectly to theextentofat leastsixtypercentbyNon-Resident Indians (hereinafter referred to as ‘NRIs’) and includes overseas trust in whichnot less than sixty percent beneficial interest is held by Non-resident Indians (hereinafterreferredtoas‘OverseasTrust’)directlyorindirectlybutirrevocably.ForfurtherdetailsrefertoSAIHolding Basis: In the event an account has more than one registered holder the first-named Unit holder shall receive the account statements, all notices and correspondencewith respect to the account, as well as the proceeds of any Redemption requests ordividends or other distributions. In addition, such holder shall have the voting rights, aspermitted,associatedwithsuchUnitsaspertheapplicableguidelines.Applicants can specify the ‘modeof holding’ in theprescribedapplication formas ‘Jointly’or ‘AnyoneorSurvivor’. In thecaseofholdingspecifiedas ‘Jointly’,Redemption requestswould have to be signed by all joint holders. However, in cases of holding specified as‘AnyoneorSurvivor’, any oneof theUnit holderswill have the power / authority tomakeRedemption requests,without itbeingnecessary forall theUnitholders tosign.However,inallcases,theproceedsoftheRedemptionwillbepaidtothefirst-namedUnitholder.Incaseofdeath / insolvencyofanyoneormoreof thepersonsnamed in theRegisterofUnit holders as the joint holders of any Units, theAMC shall not be bound to recogniseany person(s) other than the remaining holders. In all such cases, the proceeds of theRedemptionwillbepaidtothefirst-namedofsuchremainingUnitholders.
Uniform Procedure forUpdation /ChangeofAddress&Change / Updation of Bankdetails
A. Updation / Change of address Investors are requested to update their change of addresswithin 30 days from the
the documents to the intermediaries ofKYCRegistrationAgency (KRA), asmaybespecifiedbythem,fromtimetotime.
For further details on list of documents to be submitted/acceptable etc, please refertoSAI.
B. Updation/Change of Bank details Investors are requested to update/change their bank details using the Form
for registration of multiple bank accounts separately and in future, it shall not beaccompanied with redemption request. Such request shall be submitted prior tosubmissionof the redemption request. Investorsare required tosubmit self attestedcopy of the supporting documents, having validity at the time of submission, eachtowards Proof of Identity and proof of old and new bank accounts for updating /changingthebankdetails.
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For further details on documents to be submitted/acceptable in respect of oldinvestments where bank details are not updated, procedural requirements to becompleted in respect of investments made in the name of minor child on attainingmajority, receivingofdividend/redemptionpayment inbankaccountetc,please refertoSAI.
Non-submission of required documents In case of non-submission of required documents as required under A and B
aforesaid, UTI Mutual Fund, at its sole and absolute discretion, may reject thetransactionormaydecidealternatemethodofprocessingsuchrequests.
C. Cooling Period In case the change of address and/or Updation /change of bank details are
submitted together with the redemption request or standalone request withinthe period of 3 (Three) months prior to submission of redemption request, theredemption payment will be made after a cooling period of upto 8 business daysand in any case within SEBI stipulated 10 business days from the date of suchredemptionrequest.
However, in case of redemption requests receivedwith aChange ofAddress and /orChangeofBankdetail,which isnotalready registeredwithUTIMF,orchangeofaddress/bankdetails received lesser than10businessdaysprior todividend recorddate,suchnew/unregisteredaddress/bankdetailsmaynotberegisteredandwillnotbe considered for payment of redemption / dividend proceeds. In such cases, thepaymentwill bemade to the last registeredbankaccount, if anyor sent to the lastregisteredaddress.
For furtherdetails regarding redemption requests in respectof foliosnothaving registeredbankdetailsetc,pleaserefertoSAI.
Ongoing price for subscription(purchase) / switch-in (fromother schemes/plans of themutualfund)byinvestors.
This is the price you need topayforpurchase/switch-in.
The facevalueofaunit is` 10/-andunitswillbe issued in fractionsup to threedecimalplaces.
Purchase on all business days at the applicable NAV. No entry load will be charged forpurchase/additionalpurchase/switch-inacceptedbytheFund.Similarly,noentry loadwillbechargedwithrespecttoapplicationsforregistrationsundersystematicinvestmentPlans/SystematicTransferInvestmentPlansacceptedbytheFund.
Mode of Payment – Cash/ Transfer of funds throughNEFT/RTGS
Cash payment to the extent of ` 50,000/- per investor, per Mutual Fund, per financialyear through designated branches ofAxis Bank will be accepted (even from such smallinvestors who may not be tax payers and may not have Permanent Account Number(PAN)/bankaccounts,subjecttotheprescribedprocedure.Forfurtherdetailsregardingtheprocedureetc,refertoSAI.
Transfer of funds through National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) :Investor shall ensure that the payment is made from one of his/her registered bankaccountsinthefolio.Ifthenameoftheremitter/accountnumberfromwheretheamountisremitted isnotmatchingwith the registered / tobe registeredbankaccountsdetails,suchremittancesshallbetreatedasthirdpartypaymentsandsuchapplicationsare liable toberejected. In such cases,UTIMFwill refund theamount to the remitterwithin 30 calendardaysfromthedateofreceiptof thefunds,asperthedetailsmadeavailabletoUTIMFbytheremittingBank.
However, for transfer of funds through RTGS, the Investment amount shall be of ` 2 lacs and above.Forfurtherdetails,pleaserefertoSAI.
Ongoing price for redemption(sale) /switch outs (to otherschemes/plans of the MutualFund)byinvestors.
This is the price you willreceive for redemptions /switchouts.
Example: If the applicable NAV is ` 10, exit load is 2% then redemption price will be:
Cut off timing forsubscriptions/ redemptions/switches
This is the time before whichyour application (complete inall respects) should reach theofficialpointsofacceptance.
Purchase : For Purchases less than ` 2 lacs
Operation Cut-off Timing Applicable NAV
Valid applications receivedwith local cheques / demanddrafts payable at par at theplace where the application isreceived.
Upto3p.m. ClosingNAV of the day of receiptoftheapplication
Valid applications receivedwith local cheques / demanddrafts payable at par at theplace where the application isreceived.
After3p.m. Closing NAV of the next businessday.
Valid applications received withoutstation cheques / demanddrafts (for the schemes/investors as permitted in theScheme Information Document)not payable at par at theplace where the application isreceived.
WithinBusinessHours
Closing NAV of the day on whichcheque/demanddraftiscreditedtotheScheme/Plan.
Purchase : For Purchases of ` 2 lacs and above
Operation Cut-off Timing Applicable NAV
The funds are available forutilizationbeforecutoffandvalid applications receivedwith cheques /demanddrafts
Upto3p.m.
ClosingNAVof thedayonwhich the fundsareavailable for utilization before cut off time shallbeapplicable irrespectiveof the timeof receiptoftheapplication.
Theabovementioned rulewill be applicable irrespective of the date of debit to investor’saccount. ` 2 lacs shall be considered after considering multiple applications receivedfrom the investor under all the schemes/plans on the day and also under all modes ofinvestment i.e. additional purchase, Systematic Investment Plan (SIP), SystematicTransfer InvestmentPlan (STRIP),Switch,etc.The investorwillbe identified throughPANregisteredwithUTIMutualFund.
Redemption :
Operation Cut-off Timing Applicable NAV
Validapplicationsreceived Upto3p.m.
Closing NAV of the day of receipt of theapplication
Validapplicationsreceived After3p.m.
ClosingNAVofthenextbusinessday.
Redemption requests: Where, under a scheme, units are held under both the ExistingandDirectPlans, the redemption/switch request shall clearlymention the plan. If noPlanismentioned,itwouldbeprocessedonafirst infirstout(FIFO)basisconsideringboththePlans.
Tax consequences: Switch / redemption may entail tax consequences. Investorsshould consult their professional tax advisor before initiating such requests and take anindependentdecisionaccordingly.
BookClosurePeriod /Recorddate
Thepurchaseandredemptionofunitsundertheschemeshallremainopenonallbusinessdays throughout theyearexceptduringbookclosureperiod/snotexceeding15days inayear.Besides,recorddate/sfortheschememaybeannouncedfordistributionofdividend,ifany,duringtheyear.
Where can the applicationsfor purchase/redemption/switchesbesubmitted?
The details of official points of acceptance are given on the back cover page. It ismandatory for investors to mention their bank account particulars in their applications/requestsforredemption.
Minimum amount for purchase:Minimuminitialinvestmentis` 5,000/-.Subsequent minimum investment under a folio is ` 1,000/- and in multiples of ` 1/-thereafterwithnoupperlimit.
Minimum amount of Switchover(i) Unitholders of the scheme may be permitted to switchover their investment partially
or fully, tospecifiedscheme/sofUTIMForviceversaandonsuch termsasmaybeannouncedbyUTIAMCfromtimetotime.
(ii) Incaseofpartialswitchover fromonescheme to theotherscheme/s, theconditionofminimuminvestmentholdingprescribedfromtimetotimeunderboththeschemeshastobesatisfied.
Commercial Transactions(viz. Purchase / Redemption /Switches) through DesignatedE-mail/Fax
The facility of carrying out commercial transactions through Designated E-mail / Fax, inunits of UTIMutual Fund Schemes, is available for the following categories of Investors,subject to certain terms and conditions. UTI AMC declares its Designated E-mail / FaxserverasoneoftheOfficialsPointsofAcceptance.
Following investorsmay transact through designated fax and email, who are KYC (KnowYourClient)Compliant:
For further details on terms and conditions and other particulars, please refer to SAI/AddendumNo27/15-16dated12thAugust2015.
Know Your Customer (KYC)Norms
Investorsdesiring to invest / transact inmutual fundschemesare required tocomplywiththeKYCnormsapplicablefromtimetotime.
A. For Individual InvestorsI Central KYC Norms for Individual Investors new to KYC system with
effect from 1st February 2017 Government of India, videGazettenotificationdatedNovember26, 2015, had
authorized theCentralRegistryofSecuritizationandAssetReconstructionandSecurityInterestofIndia(CERSAI),toactandperformthefunctionsofCentralKYCRecordsRegistry (CKYCR) including receiving,storing,safeguardingandretrievingtheKnowYourClient(KYC)recordsofaninvestorindigitalform.
In terms of the above, the following Norms are applicable with effect from1st February 2017 in case of an Individual investor who is new to the KYCRegistrationsystem:-1. An Individual Investor who is new to KYC Registration system and
2. In case an Individual Investor uses old KRA KYC form, such investorshould either fill the new CKYC form or provide additional / missinginformationintheSupplementaryCKYCform.
3. AnIndividualInvestorwhohasalreadycompletedCKYCandhasaKYCIdentificationNumber (KIN) fromCKYCR, can invest in the Schemes ofUTIMutualFundbyquotingtheirKIN.
5. The KYC requirements shall be governed by SEBI Circulars /notificationsandAMFIGuidelinesissuedfromtimetotime.
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For further details refer to SAI/ Addendum No 26/2016-17 dated6th February 2017 and SEBI Circulars No. CIR/MIRSD/66/2016 datedJuly21,2016andCIR/MIRSD/120/2016datedNovember10,2016.
II Existing investorswhoareKYCcompliantbefore1stJanuary2012willhave tocompletethenewKYCrequirementsandgettheIPVdoneif theywishtodealwithanyotherSEBIregisteredintermediaryotherthanaMutualFund.
III Aadhar based e KYC process InvestorscanalsoavailtheAadhaarbasede-KYCserviceofferedbyUIDAIfor
KYCverification.
For this purpose, Investors/clients, on voluntary basis, can authorize theIntermediariesregisteredasKYCUserAgency(KUA)withUIDAItoaccesstheclientidentificationandauthenticationdetailsfromUIDAI.
For entering into account based relationship, the Investor/client may providethefollowinginformationtotheintermediaryelectronicallyincludingthroughanywebenableddevice.(i) Name(ii) Aadhaarnumber(iii) PermanentAccountNumber(PAN)
The Intermediary shall perform verification of the client with UIDAI throughbiometric authentication (fingerprint or iris scanning). Mutual Funds can alsoperformverificationoftheclientwithUIDAIthroughOneTimepassword(OTP)receivedonclient’smobilenumberorone-mailaddress registeredwithUIDAIprovided, the amount invested by the client does not exceed ` 50,000 perfinancial year per Mutual Fund and payment for the same is made throughelectronic transfer from the client’s bank account registered with that MutualFund.
For further details on e KYC process, refer to SAI/SEBI circular dated 22nd January 2016
IV PAN-Exemption for micro financial products Only individual Investors (including NRIs, Minors & Sole proprietary firms)
whodonothaveaPAN,andwhowish to investupto` 50000/- inafinancialyear under any Scheme including investments, if any, under SIPs shall beexemptedfromtherequirementofPANonsubmissionofdulyfilledinpurchaseapplication forms with payment along with KYC application form with otherprescribed documents towards proof of identity as specified by SEBI. For allothercategoriesofinvestors,thisexemptionisnotapplicable
B. For Non-Individual Investors Investors have to fill up and sign the KYC application form available on the UTI
Mutual Fund’s website, www.utimf.com or the website of the KYC RegistrationAgencies(KRAs)M/sCVL,www.cvlkra.com;M/sNDML,www.ndml.in;M/sDotEx,www.nseindia.com/supra_global/content/dotex/about_dotex.htm; M/s CAMS InvestorServices Private Limited and M/s Karvy Data Management Services Ltd. Furtherdetails on filling up / submission of KYC Application form are available in SEBICircularno.MIRSD/SE/Cir-21/2011datedOctober5,2011.
C. For both Individual and Non-Individual Investors1. Existing investors in mutual funds who have already complied with the KYC
requirement are exempt from following the new KYC procedure effectiveJanuary 01, 2012 but only for the purpose ofmaking additional investment intheScheme(s)/Plan(s)ofanyMutualFundregisteredwithSEBI
2. For ‘KYC-On-Hold’ cases, investor need to submit missing information orupdate pending KYC related information so as to enable AMC to processpurchasetransaction(whetherfreshoradditional)andswitches
(a) tomakeadditionalsubscription(includingswitches),itshallbemandatoryfor all existing investors to provide additional KYC information such asIncome details, Occupation, association with politically exposed person,networthetc.wheresuchinformationwasnotprovidedtoKRAsearlier.
4. Non-Applicablility of KYC guidelines The new KYC guidelines shallnot be applicable to the following categories /
transactions:
- The investors falling under the category of Micro Pension (as per thearrangement between UTI AMC with the respective organization/s), whoareexemptfromtherequirementofPAN.
- Investments received from Government bodies/authorities/Departments infavourofbeneficiariesidentifiedbythem.
- dividendreinvestment
- Existing Systematic Investment Plan (SIP) / Systematic TransferInvestmentPlan(STRIP)/DividendTransferPlan(DTP)registrations(andsimilarfacilities)includingthosereceivedtill31stDecember2015.
For further details on KYC requirements to be complied with by the Investors, please refer to SAI.
DetailsunderForeignAccountTax Compliance provisions(commonly known as FATCA)/ Foreign Tax Laws andCommon Reporting Standard(CRS)
FATCA is United States (US) Federal Law, aimed at prevention of tax evasion by UScitizensandresidents(“USpersons”asdefinedintheapplicableextant lawsof theUnitedStates ofAmerica) through use of offshore accounts. FATCAprovisions are part ofHiringIncentives toRestoreEmployment (HIRE)Act, enactedbyUSLegislature.UnderFATCA,withholding taxmaybe leviedoncertainUSsource income/receiptof theSchemesof theMutualFund,unlesstheyareFATCAcompliant.
FATCA obligates foreign financial institutions (FFIs), including Indian financial institutionsto provide the US Internal Revenue Service (IRS) with information and to report on theaccounts held by specified US Persons as well as passive NFFEs in which controllinginterest is held by specified US person. The term FFI is defined widely to cover a largenumber of non-US based financial service providers, such as mutual funds, depositoryparticipants, brokers, custodians, as well as banks. FATCA requires enhanced duediligenceprocessesbytheFFIsoastoidentifyUSreportableaccounts.
TheidentificationofUSpersonwillbebasedononeormoreoffollowing“USindicia”-• IdentificationoftheAccountHolderasaUScitizenorresident;• UnambiguousindicationofaUSplaceofbirth;• CurrentUSmailingorresidenceaddress(includingaUSpostofficebox);• CurrentUStelephonenumber;• StandinginstructionstotransferfundstoanaccountmaintainedinUSA;• Current effective power of attorney or signing authority granted to a personwith aUS
address;or• An “in-careof”or “holdmail”address that is thesoleaddress that the IndianFinancial
InstitutionhasonthefilefortheAccountHolder.
FATCA due diligence will be applicable to each unit holder (including joint holders)irrespective of the country of residence/citizenship, and on being identified as reportableperson/specified US person, all folios/accounts will be reported. Such information mayinclude (not limited to) their identity, direct or indirect beneficiaries, beneficial owners andcontrolling persons. Unit holders will therefore be required to comply with the request oftheAMC/FundtofurnishsuchinformationasandwhendeemednecessarybytheAMC/FundinaccordancewiththeApplicableLaws.
FATCA provisions are relevant not only at on-boarding stage of unit holders but alsothroughout the lifecycleof investmentwith theMutualFund.Unitholders thereforeshouldimmediately intimate to the Fund/the AMC, any change in their status with respect toFATCArelateddeclarationprovidedbythempreviously.
Incaseunitholder / investor fails to furnish the relevant informationand/ordocumentationin accordance with theApplicable Laws, theAMC / Fund reserves the right to reject theapplicationor redeem theunitshelddirectlyorbeneficiallyandmayalso require reportingof such accounts/levy of withholding tax on payments made to investors. Prospectiveinvestors / Unit holders should consult their own advisors to understand the implicationsof FATCA provisions/requirements. The AMC reserves the right to change/modify theprovisionsmentionedatalaterdate.
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Common Reporting Standard (CRS) – The New Global Standard for Automatic Exchange of InformationOnsimilarlinesasFATCA,theOrganisationofEconomicDevelopment(OECD),alongwiththe G20 countries, of which India is a member, has released a “Standard forAutomaticExchangeofFinancialAccountInformationinTaxMatters”, inordertocombattheproblemof offshore tax evasion and avoidance and stashing of unaccounted money abroad,requiringcooperationamongsttaxauthorities.TheG20andOECDcountrieshavetogetherdeveloped a Common Reporting Standard (CRS) onAutomatic Exchange of Information(AEOI).
AMC reserves right to reject the application in case the applicant / investor fails to submit information /documentation for any of the above.Please refer to Instructions given in the FATCA/CRSForm before filling in the particularsand for further details relating to FATCA/CRS, refer to AMFI India’s Circular No.135/BP/63/2015-16 dated 18th September 2015 and SEBI Circular Nos. CIR/MIRSD/2/2015dated26thAugust2015&CIR/MIRSD/3/2015dated10thSeptember2015.
Minimum balance to bemaintainedandconsequencesofnonmaintenance.
Partial redemption under a folio is permitted subject to the unitholder maintaining theprescribed minimum balance to be reckoned with reference to the redemption priceapplicableason thedateofacceptanceof theredemptionapplication.Where thebalanceamountsocalculated is found tobe less than theprescribedminimumbalance,UTIAMCmaycompulsorilyredeemtheentireoutstandingholdingoftheunitholderwithoutanyfreshapplicationforredemptionofthebalanceholdingandpaytheproceedstotheunitholder
Switching of Units of UTI Mutual Fund (UTI MF) Schemes on BSE Star MF Platform
Inaddition to the facility ofPurchaseandRedemptionavailableonBSEStarMFofBombayStockExchange, the facility ofSwitchingunits is available.The request forswitch can be given in number of units. For further details refer to SAI/AddendumNo.16/15-16dated24thJune2015.
Please refer to Statement of Additional Information (SAI) for SIP, Micro SIP, SWP, DTP, STRIP and switchover details
6) Automatic Trigger Facility is available: ThefollowingarethefourtypesofTriggerOptionsavailable:
i. Value Trigger: As & when the investment reaches a specified value. Forexampleif` 10,000/-isinvestedandtheunitholderwantstoencashwhentheinvestmentbecomes` 15000/-.Thespecifiedvalueis` 15,000/-.
ii. Appreciation Trigger: On appreciation of capital by an indicated percentage(in whole numbers like 10, 11 etc.). For example if an investor invests` 10,000/-andwants toencashwhen thecapital isappreciatedby10% (onlyappreciation amount) his units will be redeemed at the applicable redemptionprice and paid 10% of capital appreciation i.e. ` 1,000/-. He will be paid fullredemption value of his units if he opts for full redemption of units. Fractionsindicatedifanywillbeignored.
iii. Date Trigger: Redemptiononanindicateddate.Forexample31-12-2015.iv. Stop-loss Trigger: On depreciation of capital by an indicated percentage (in
wholenumbers like10,11etc.).Forexample if an investor invests` 10,000/-andwants toencashwhen thecapital isdepreciatedby10%,his fullunitswillberedeemedattheapplicableredemptionpriceandpaid.
For furtherdetails regardingavailing theTriggerFacilityand theprocedures tobefollowedpleaserefertoSAIandtheApplicationFormforTriggerfacility
The AMC reserves the right to amend / terminate this facility at any time,keepinginviewbusiness/operationalexigencies.
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New facilities/options underSIP
In addition to the existing options / facilities available under Systematic Investment Plan(SIP),thefollowingnewfacilities/optionsareintroduced,withimmediateeffect.
1. ‘Step up’ facility: Under this facility, an Investor can opt for stepping up his SIP amount at specified
For example, an Investor gives a SIP Mandate for 5 years in Scheme A for anamountof` 1,000/-which startsonAugust1, 2014andalsoopts for this ‘Stepup’facilitywith the interval frequencyas ‘Yearly’&SIPStepUpamountas` 1,000/-. Inthiscase,theSIPwillrunasunder:
TheMinimumSIPStepUpamountwillbe` 500/-and inmultiplesof` 500/-. If the‘StepUp’amountismentionedandthe‘frequency’isnotmentioned,thenthedefaultfrequency shall be taken as ‘Yearly’. Similarly, if the ‘frequency’ is mentioned and‘StepUp’ amount is notmentioned, then the ‘StepUp’ amount shall be consideredas` 500/-.Thedetailedtermsandconditionsareavailable intherespectiveServiceRequestForm.
2. Facility to switch from one eligible Scheme to another eligible Scheme under SIP facility:
Under this facility, an Investor can opt to change the eligible scheme during thetenureoftheSIP,withouthavingtoterminatetheexistingSIP.
For example, an Investor who had opted for a tenure of 5 years for SIP inScheme-A, after continuing the SIP for a period of say 3 years, can change theScheme to Scheme-B for the rest of the period, instead of the existing process ofcancelling the SIP Mandate of Scheme-A and giving fresh mandate for Scheme-B.TheScheme/scanbechangedmultipletimesduringthetenureofSIP.
Investorsmayavail thisfacilityanytimeduringthetenureoftheSIP.Theapplicationfor such changes should be submitted at least 15 days prior to the next SIPinstalmentamountduedate.
3. Any Day SIP: Investors can choose any date of his/her preference as SIP Debit Date. If in any
month, theSIPDebit Date opted by the Investor is not available (Say, 29th & 30thinFebruaryand31st incaseofalternatemonths), thentheSIPDebitDatefor thosemonthsshallbethelastavailableBusinessDayinthatmonth.
MFUtilityforInvestors UTI AMC Ltd has entered into an agreement with MF Utilities India Private Ltd (MFUI)for usage of MF Utility (MFU), a shared service initiative of various Asset ManagementCompanies, which acts as a transaction aggregation portal for transacting in multipleSchemes of various Mutual Funds with a single form and a single payment instrumentthroughaCommonAccountNumber(CAN).
Accordingly, all financial and non-financial transactions pertaining to the Scheme isavailable through MFU either electronically on www.mfuonline.com as and when sucha facility is made available by MFUI or physically through authorised Points Of Service(“POS”) of MFUI with effect from the respective dates as published on MFUI websiteagainst thePOS locations.However,allsuch transactionsshallbesubject to theeligibilityof investors, any termsand conditions and compliancewith the submission of documentsand procedural requirements as stipulated by UTI MF/UTI AMC from time to time inadditiontotheconditionsspecifiedbyMFU,ifany.
The online portal ofMFUI i.e. www.mfuonline.com and the POS locations aforesaid shallact as Official Points of Acceptance (OPAs) in addition to the existing OPAs of the UTIAMC Ltd and any transaction submitted at such POSwill be routed throughMFUI or as
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may be decided by UTI AMC. Investors not registered with MFUI also can submit theirtransactionsrequestbygivingreferencetotheirexistingfolionumber.Allvalidapplicationsreceived for any other scheme apart from eligible schemes as stated above may beacceptedbyUTIAMCatitsowndiscretion.The uniform cut off time as prescribed by SEBI and as mentioned in the SID/KIM ofthe Scheme shall be applicable for applications received by MFUI. However, in case ofinvestmentof` 2 lacsandabove, theapplicabilityofNAVwill besubject to thedateandtimeofreceiptofcreditofamounttothespecifiedbankaccountofAMC.For further details regarding procedures for obtaining CAN and other particulars aboutMFUetc,pleaserefertoAddendumNo50/2014-15dated5thFebruary2015/SAI.Investorsmay also contact the nearest POS aforesaid for procedures to be complied with in thisregard.
StatementofAccount(SoA) (a) SoAwillbeavalidevidenceofadmissionoftheapplicantintothescheme.However,wheretheunitsareissuedsubjecttorealisationofcheque/draftanyissueofunitstosuchunitholderswillbecancelledand treatedhavingnotbeen issued if thecheque/draftisreturnedunpaid.
(b) Every unitholderwill be given a folio numberwhichwill be appearing inSoA for hisinitial investment. Further investments in the same name(s) would come under thesamefolio, if thefolionumberis indicatedbytheapplicantatthetimeofsubsequentinvestment.The folionumber isprovided forbetter recordkeepingby theunitholderaswellasbyUTIAMC.
(c) TheAMC shall issue to the investorwhose application has been accepted, anSoAspecifyingthenumberofunitsallotted.UTIAMCshall issueaSoAwithin5businessdaysfromthedateofacceptanceofanapplication.
(d) The AMC will issue a Consolidated Account Statement (CAS) for each calendarmonthtothe investor inwhosefoliostransactionshastakenplaceduringthatmonthandsuchstatementwillbeissuedonorbeforethe10thdayofthesucceedingmonthdetailing all the transactions and holding at the end of month including transactionchargespaidtothedistributor,ifany,acrossallschemesofallmutualfunds.
Further, CAS as above, will also be issued to investors (where PAN details of 1stholder are available) every half yearly (September/March), on or before the 10thday of succeedingmonth detailing holding at the end of the sixthmonth, across allschemesofallmutualfunds,toallsuchinvestorsinwhosefoliosnotransactionshastakenplaceduringthatperiod.
Theword“transaction”forthepurposesofCASwouldincludepurchase,redemption,switch, dividend payout, dividend reinvestment, Systematic Investment Plan (SIP),SystematicWithdrawalPlan(SWP),SystematicTransferof InvestmentPlan(STRIP)andmerger,ifany.
However, Folios under Micro pension arrangement shall be exempted from theissuanceofCAS.
CAS for Demat accounts(e) Pursuant to SEBI Circular no. CIR /MRD /DP /31/2014 dated November 12, 2014
requiring Depositories to generate and dispatch a single consolidated accountstatementfor investorshavingmutualfundinvestmentsandholdingdemataccounts,thefollowingmodificationsaremadetotheexistingguidelinesonissuanceofCAS–a. Such Investors shall receive a single ConsolidatedAccount Statement (CAS)
In case of multiple holding, it shall be PAN of the first holder and pattern ofholding.
c. In case an investor has multiple accounts across two depositories, thedepositorywithwhom theDemataccount hasbeenopenedearlierwill be thedefaultdepositorywhichwillconsolidatethedetailsacrossdepositoriesandMFinvestmentsanddispatchtheCAStotheinvestor.
d. TheCASwillbegeneratedonmonthlybasis.e. If there is any transaction in any of the Demat accounts of the investor or in
anyofhismutual fund folios,depositories shall send theCASwithin tendaysfromthemonthend. Incase, there isno transaction inanyof themutual fundfolios anddemat accounts, thenCASwith holding details shall be sent to theinvestoronhalfyearlybasis.
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UTI - Bluechip Flexicap Fund - SID - 2017
f. The dispatch of CAS by the depositories shall constitute compliance by UTIAMC/UTIMutualFundwith the requirementsunderRegulation36(4)ofSEBI(MutualFunds)Regulations,1996.
FollowingFoliosshallbeexemptedforissuanceofCAS:• Unitsheldindematmode.• Unitsheldinminor’sname.• Folioswhereunitsareheldbywayofunitcertificates.• IncaseofUTICCP,where the investment ismadebyGovernmentdepartments like
District HealthDepartment,Women’sDevelopmentCorporation, Bihar etc. in favourofbeneficiarychildren.
• OneUTIMutualFundschemeinvestsinotherUTIMutualFundscheme/s.• FoliosunderMicropensionarrangement. For further details on other Folios exempted from issuance of CAS, PAN related
TheAMC shall continue to allot the units to the unit holderswhose application hasbeenacceptedandalsosendconfirmationspecifying thenumberofunitsallotted tothe unit holders byway of e-mail and/or SMS to the unit holder’s registered e-mailaddress and/ormobile number as soon as possible but not later than five businessdaysfromthedateofreceiptoftherequestfromtheunitholders.
The unit holder will be required to download and print the SoA/othercorrespondences after receiving e-mail from the Mutual Fund. Should the Unitholder experience any difficulty in accessing the electronically delivered SoA/othercorrespondences, the Unit holder shall promptly advise the Mutual Fund to enablethe Mutual Fund to make the delivery through alternate means. Failure to adviseUTI Mutual Fund of such difficulty within 24 hours after receiving the e-mail, willserveasanaffirmationregardingtheacceptancebytheUnitholderoftheSoA/othercorrespondences.
It is deemed that the Unit holder is aware of all securities risks including possiblethird party interception of the SoA/other correspondences and the content thereinbecomingknowntothirdparties.
Under no circumstances, including negligence, shall the Mutual Fund or anyoneinvolved in creating, producing, delivering or managing the SoA of the Unit Holder,be liable for any direct, indirect, incidental, special or consequential damages thatmay result from the use of or inability to use the service or out of the breach ofany warranty. The use and storage of any information including, without limitation,the password, account information, transaction activity, account balances and anyother informationavailableontheUnitholder’spersonalcomputer isatriskandsoleresponsibilityoftheUnitholder.
The unitholder may request for a physical account statement by writing/calling theAMC/R&T.
FriendinNeed “Friend in Need” facility is introduced for the Individual investors (Resident as well asNon-resident) of UTI MF under the scheme, whereby there is an option to furnish thecontact details including name, address, relationship, telephone number and email ID ofanypersonother than theapplicant/s andnominee.Thiswill facilitate obtaining the latestcontactdetailsoftheinvestors,ifUTIMFisunabletoestablishcontactwiththeinvestors.
Forfurtherdetails,pleaserefertoSAI.Dividend Thedividendwarrantsshallbedispatched to theunitholderswithin30daysof thedateof
declarationofthedividend.
In case of funds received through Cash Payment mode, the dividend proceeds shall beremittedonlytothedesignatedbankaccount.
Threshold Limit for ‘Dividend Payout’ Optiona. IncaseofDividendPayoutunderafolioislessthanorequalto` 1,500/-andwhere
complete bank account details are not available or facility of electronic credit is notavailable with Investor’s Bank/Bank Branch, then such amount will be compulsorilyreinvested wherever reinvestment option is available under the scheme and anAccountStatement(SoA)willbesenttotheInvestorsattheirRegisteredAddress.
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b. For folios where dividend warrants are returned undelivered and/or the dividendwarrant remains unencashed / unclaimed on 3 consecutive occasions, futuredividendamountwill be reinvested,wherein reinvestmentoption isavailableandanAccountStatement(SoA)wouldbesenttotheInvestorsattheirRegisteredAddress.
Redemption The redemption proceeds shall be dispatched to the unitholders within 10 business daysfromthedateofredemption.Incaseof fundsreceivedthroughCashPaymentmode, theredemptionproceedsshallberemittedonlytothedesignatedbankaccount.
Restriction on redemption of unitsFurther to the possibility of delays in redemption of units under certain circumstances asstated in theaforesaidparagraphsrelating to“Risk factors”, the followingpointsrelating torestrictionsonredemptionofunitsmaybenoted:-1. Restrictions on redemption of unitsmay be imposedwhen there are circumstances
leading to a systemic crisis or event that severely constricts market liquidity or theefficientfunctioningofmarketssuchas:(i) Liquidity issues - when market at large becomes illiquid affecting almost all
securitiesratherthananyissuerspecificsecurity(ii) Marketfailures,exchangeclosuresetc(iii) Operational issues – when exceptional circumstances are caused by force
Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged forredemptionofunitsby theclaimantundercertaincircumstancesandsubject to fulfillingofprescribedproceduralrequirements.ForfurtherdetailsrefertoSAI
Delay in payment of redemp-tionproceeds
TheAssetManagementCompanyshallbe liable topay interest to theunitholdersatsuchrate as may be specified by SEBI for the period of such delay (presently @ 15% perannum).
Transfer / Pledge / Assign-mentofUnits
A. Units held in Demat form Unitsoftheschemeheldindematerialisedformshallbefreelytransferablefromone
demataccounttoanotherdemataccount. For Pledge/assignment of Units, Unit holders should approach their Depository
Participant(DP). If anUnit holder holding units in dematerialisedmode desires to change the option
from dividend payout to Dividend Reinvestment or Growth, they would have torematerialize the units for the change to be effected. For rematerialisation, UnitholdersshouldapproachtheirDP.
B. Pledge/Assignment of units permitted only in favour of banks/other financial institutions:
Theunitholdersmaypledge/assignunitsinfavourofbanks/otherfinancial institutionsas a security for raising loans. Units can be pledged by completing the requisiteforms/formalities, as may be required, whereupon UTI AMC will record a pledge/charge/lien against units pledged. As long as the units are pledged, the pledgeebank/financial institution will have complete authority to redeem such units. Thepledger will not be allowed to redeem units so pledged until the bank/financial
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institutions to which the units are pledged provides a written authorisation to UTIAMC that the pledge/charge/lien may be removed. However, if pledged units arereceivedforredemption/transfer,fromtheunitholder,UTIAMChasrighttoredeemortransfersuchunits.
This is the value per unit of thescheme on a particular day. Youcan ascertain the value of yourinvestments by multiplying theNAVwithyourunitbalance.
TheMutualFundshalldeclare theNetassetvalueseparately forboth thePlansby9p.m. on every business day on thewebsite ofUTIMutual Fund,www.utimf.com. andonAMFI’swebsitewww.amfiindia.com.
The NAV shall be calculated for all business days and published in atleast two dailynewspapershavingnationwidecirculationoneverybusinessday.
MonthlyPortfolioDisclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of themonth forall itsschemeson itswebsiteonorbefore the tenthdayof thesucceedingmonthinauser-friendlyanddownloadableformat.
The format for monthly portfolio disclosure shall be the same as that of half yearlyportfoliodisclosures.
TheMutualFundshallalsodiscloseadditional information (suchas ratiosetc)subjecttocompliancewiththeSEBIAdvertisementCode.
Disclosure of Assets UnderManagement
The Mutual Fund shall disclose the following on monthly basis, in the prescribedformat, on its website and also share the same withAssociation of Mutual Funds inIndia(AMFI):a. AUM from different categories of schemes such as equity schemes, debt
AMFI)andT-15cities(Top15cities).c. ContributiontoAUMfromsponsoranditsassociates.d. ContributiontoAUMfromentitiesotherthansponsoranditsassociates.e. Contribution to AUM from investors type (retail, corporate, etc.) in different
schemetype(equity,debt,ETF,etc.).
In order to have a holistic picture, Mutual Fund wise and consolidated data on theaboveparametersshallalsobedisclosedonAMFIwebsiteintheprescribedformat.
The Mutual Fund shall within one month from the close of each half year, (i.e. 31stMarch and 30th September), host a soft copy of its unaudited financial results on itswebsite.The Mutual Fund shall publish an advertisement disclosing the hosting of suchfinancial results on the website, in atleast two newspaper one national Englishdaily newspaper having nationwide circulation and one in a newspaper having widecirculationpublishedinthelanguageoftheregionwheretheHeadOfficeofUTIMFissituated.TheMutual Fund shall also, within onemonth from the close of each half year, (i.e.31st March and 30th September), publish by way of an advertisement a completestatement of its schemeportfolio in oneEnglish daily circulating in thewhole of Indiaand inanewspaperpublished in the languageof the regionwhere theheadofficeofUTIMFissituated.
AdditionalDisclosure: The Mutual Fund shall, in addition to the total commission and expenses paid todistributors, make additional disclosures regarding distributor-wise gross inflows, netinflows,AAUMandratioofAUMtogrossinflowsonitswebsiteonanyearlybasis.In case, the data mentioned above suggests that a distributor has an excessiveportfolio turnover ratio, i.e.,more than two times the industry average, theAMC shallconductadditionaldue-diligenceofsuchdistributors.TheMutualFundshallalsosubmit thedata toAMFIand theconsolidateddata in thisregardshallbedisclosedonAMFIwebsite.
AnnualReport AnabridgedannualreportinrespectoftheschemeshallbemailedtotheUnitholdersnotlaterthanfourmonthsfromthedateofclosureoftherelevantaccountingyearandthe full annual report shall bemade available for inspection at UTI Tower, Gn Block,Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.A copy of the full annualreport shall also be made available to the Unit holders on request on payment ofnominalfee,ifany.
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Disclosures of Votes Cast by theMutualFunds
a. TheAMC shall record and disclose, in the prescribed format, specific rationalesupporting its voting decision (for, against or abstain) with respect to eachvote proposal on matters relating to Corporate governance, changes tocapital structure, stock option plans, social & corporate responsibility issues,appointmentofDirectorsand their removaletcasstated inSEBICircularSEBI/IMD/CIRNo18/198647/2010datedMarch15,2010.
b. TheAMCshalladditionallypublishintheprescribedformatsummaryofthevotescastacrossall its investeecompanyanditsbreak-upintermsoftotalnumberofvotescastinfavor,againstorabstainedfrom.
c. TheAMC shall disclose votes cast on theirwebsite on a quarterly basis, in theprescribed format,within10workingdays fromtheendof thequarter.TheAMCshallcontinuetodisclosevotingdetailsinitsannualreport.
d. Further,onanannualbasis,theAMCshallobtaincertificationfroma“scrutinizer”appointed in termsofCompanies (ManagementandAdministration)Rules,2014on the voting reports disclosed. The same shall be submitted to the trusteesand also disclosed in the relevant portion of theMutual Funds’ annual report &website.
e. The Boards of AMC and Trustees shall review and ensure that the AMC hasvoted on important decisions that may affect the interest of investors and therationale recorded for vote decision is prudent and adequate. The confirmationtothesame,alongwithanyadversecommentsmadebythescrutinizer,shallbereportedtoSEBIinthehalfyearlytrusteereports.
For further details, refer to SEBI Circular No SEBI/HO/IMD/DF2/CIR/P/2016/68 dated10thAugust2016andSEBICircularNoCR/IMD/DF/05/2014dated24thMarch2014.
AssociateTransactions PleaserefertoStatementofAdditionalInformation(SAI).TaxationThe information isprovided forgeneral informationonly.However, inviewof the individualnatureof the implications,eachinvestorisadvisedtoconsulthisorherowntaxadvisors/authoriseddealerswithrespecttothespecificamountoftaxandotherimplicationsarisingoutofhisorherparticipationinthescheme.ForfurtherdetailsontaxationpleaserefertotheclauseonTaxationintheSAIMutualFund UTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for
benefits under section 10 (23D) of the Income Tax Act, 1961 (the Act) to have itsentire incomeexempt fromincometax.However,by theFinanceBill2017,bywayofnon-obstanteclause, it isproposedthat thedividend incomeofall residentassesses,except “specified assesses”, having income, in aggregate, ofmore than` 10 lacs ina year by way of dividend from domestic company, such dividend income shall besubject to incometax@10%.In theFinanceBill2017,presently“specifiedassesses”doesnotincludemutualfunds.
Units held formore than twelvemonths preceding the date of their transfer are longtermcapitalasset.Aspersection10(38)of theAct,any incomearising from the transferofa long termcapital asset being a unit of an Equity Oriented Scheme chargeable to securitiestransaction tax (STT) shall not form part of total income, therefore, exempt fromIncome Tax. As per section 10(38) of the Act, equity oriented fund means a fundwheretheinvestiblefundsareinvestedbywayofequityshareindomesticcompaniesto the extent ofmore than sixty five percent of the total proceeds of such fund andwhich has been set up under a scheme of a mutual fund specified under section10(23D)oftheAct.Units held for not more than twelvemonths preceding the date of their transfer areshort term capital asset. Capital gains arising from the transfer of short term capitalassetsbeingunitofanequityorientedschemewhichischargeabletoSTTisliabletoincome tax@15%undersection111Aandsection115ADof theAct.Thesaid taxrateisincreasedbysurcharge,ifapplicable.
Merger/Consolidation of SchemesofMFs:Changesproposed inbriefbytheFinanceBill2017
Merger/Consolidation of Schemes of MFs:Tax neutrality has been provided to unit holders upon consolidation or merger ofmutual fund schemes provided that the consolidation is of two or more schemes ofanequityoriented fundor twoormoreschemesofa fundother thanequityorientedfund. For such purposes section 2(42A), section 47 and section 49 have beenamended.Duetotheamendments:
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UTI - Bluechip Flexicap Fund - SID - 2017
Pursuant to mergers/consolidations of the Schemes, units of consolidating schemesurrenderedbyunitholders in lieuof receiptofunitsof theconsolidatedschemeshallnot be treated as transfer and capital gains tax will not be imposed on unitholdersundertheIncome-taxAct.However, it may be noted that when the unitholders transfers the units of theconsolidatedscheme,suchtransferwillattractapplicablecapitalgainstaxandSTT.Cost of Acquisition: Thecostofacquisitionoftheunitsofconsolidatedschemeshallbethecostofunitsintheconsolidatingscheme.Period of holding: The period of holding of the units of the consolidated schemeshall includetheperiodforwhichtheunits inconsolidatingschemeswereheldbytheunitholder.Consolidating Scheme and Consolidated Scheme: Consolidating Scheme will betheschemeofamutual fundwhichmergesunder theprocessofconsolidationof theschemes of mutual fund in accordance with the SEBI (Mutual Funds) Regulations,1996 and consolidated scheme will be the scheme with which the consolidatingschememergesorwhichisformedasaresultofsuchmerger.As per the Finance Bill 2017, similar tax treatment regarding cost of acquisition andperiodofholding isproposed tobeextended in respectofconsolidationofplansofaschemeofamutualfund.Investors are advised to refer to the Scheme Information Document and theStatementofAdditionalInformation,asamendedfromtimetotime,forthedetailedtaxprovisions.
Investorservices All investors could refer their grievances giving full particulars of investment at thefollowingaddress:
MsNandaMalaiAssociateVicePresident–DepartmentofOperationsUTIAMCLtd.UTITower,GnBlock,Bandra-KurlaComplex,Bandra(East),Mumbai-400051.Tel:66786666Fax:26523031Investors may post their grievances at our website: www.utimf.com or e-mail us [email protected]
C. COMPUTATION OF NAV(a) TheNetAssetValue (NAV) of the scheme shall be calculated by determining the value of the scheme’s assets
andsubtracting therefrom the liabilitiesof thescheme taking intoconsideration theaccrualsandprovisions.NAVshallbedeclaredseparatelyforthedifferentPlansandOptionsofthescheme.
(b) TheNAVperunitofaschemeshallbecalculatedbydividingtheNAVoftheschemebythetotalnumberofunitsissued and outstanding on the date of calculation under the scheme. The NAV shall be rounded off upto fourdecimalplacesforthescheme.
The NAV under the Scheme would be rounded off to 4 decimals and Units will be allotted upto four decimalplacesasfollowsorsuchotherformulaasmaybeprescribedbySEBIfromtimetotime.
(c) Avaluationday isadayother than (i)SaturdayandSunday (ii)adayonwhichboth thestockexchanges (BSEand NSE) and the banks in Mumbai are closed (iii) A day on which the purchase and redemption of units issuspended. If any business day in UTI AMC, Mumbai is not a valuation day as defined above then the NAVwill be calculated on the next valuation day and the same will be applicable for the previous business day’stransactionsincludingallinterveningholidays.
A. ANNUAL SCHEME RECURRING EXPENSES(a) These are the fees and expenses for operating the scheme. These expenses include Investment Management
andAdvisory Fee charged by theAMC,Registrar andTransferAgents’ fee,marketing and selling costs etc. asgiveninthetablebelow:
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UTI - Bluechip Flexicap Fund - SID - 2017
TheAMChasestimated that upto2.50%of thedaily net assetsof a schemewill be charged to the schemeasexpenses. For the actual current expenses being charged, the investor should refer to the website of the UTIMutualFund.
Particulars% of Net Assets
UTI-Bluechip Flexicap Fund – Existing Plan
InvestmentManagementandAdvisoryFees
Upto2.50%
TrusteeFeeAuditFeesCustodianFeesRTAFeesMarketingandSellingexpenseincludingagentcommissionCostrelatedtoinvestorcommunicationsCostoffundtransferfromlocationtolocationCostofprovidingaccountstatementsanddividendredemptionchequesandwarrantsCostsofstatutoryAdvertisementsCosttowardsinvestoreducationandawareness(atleast2bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash andderivativemarkettradesresp.GoodsandServicestaxonexpensesotherthaninvestmentandadvisoryfeesGoodsandServicestaxonbrokerageandtransactioncostOtherExpensesMaximum total expense ratio (TER) permissible under Regulations 52 (6) (c) Upto2.50%Additionalexpensesunderregulation52(6A)(c) Upto0.20%Additional expenses for gross new inflows from specified cities under Regulation52(6A)(b)
The purpose of the table is to assist the investor in understanding the various costs and expenses that aninvestor in the schemewill beardirectly or indirectly.Theseestimateshavebeenmade ingood faithasper theinformation available to the InvestmentManager based on past experience and are subject to change inter-se.TypesofexpenseschargedshallbeaspertheSEBI(MFs)Regulations.
(b) The total annual recurring expenses of a scheme excluding redemption expenses but including the investmentmanagementandadvisoryfeesshallbesubjecttothefollowinglimits:
Total Expense ratio (TER) and Additional Total Expenses:(i) Chargingofadditionalexpensesbasedonnewinflowsfrombeyond15cities
1. Additional TER shall be charged up to 30 bps on daily net assets of the scheme if the new inflows frombeyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross newinflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme,whicheverishigher.TheadditionalTERonaccountofinflowsfrombeyondtop15citiessochargedshallbeclawedbackincasethesameisredeemedwithinaperiodof1yearfromthedateofinvestment.Thesamecanbeusedonlyfordistributionexpenses.
The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back incase thesame is redeemedwithinaperiodof1year from thedateof investment.Thesamecanbeusedonlyfordistributionexpenses.
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3. Additional expenses, not exceeding 0.20 per cent of daily net assets of the scheme, shall be chargedtowards Investment Management andAdvisory fees charged by theAMC (‘AMC fees’) and for recurringexpenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under differentheadsasmentionedunderSEBIRegulations.
4. The ‘AMC fees’ charged to the scheme with no sub-limits will be within the TER as prescribed by SEBIRegulations.
shallalsobecharged to theschemes/plans.Aforesaidbrokerageand transactioncostsare included in thecostofinvestmentwhichareincurredforthepurposeofexecutionoftrade.Anypaymenttowardsbrokerageand transaction cost, over and above the aforesaid brokerage and transaction costs shall be charged tothe schemes/planswithin themaximum limit ofTotal ExpenseRatio (TER) as prescribed under regulation52 of the SEBI (Mutual Funds) Regulations, 1996.Any expenditure in excess of the said prescribed limit(includingbrokerageandtransactioncost,ifany)shallbebornebytheAMCorbytheTrusteeorSponsors.
6. ForfurtherdetailsonTER,pleaserefertoSAI
(ii) Goods and Services Tax (GST)1. UTIAMCshallchargeGSToninvestmentandadvisoryfeestotheschemeinadditiontothemaximumlimit
B. LOAD STRUCTURE – for all classes of investors(1) ExitLoad isanamountwhich ispaidby the investor to redeemtheunits from thescheme.Thisamount isused
bytheAMCtopaycommissionstothedistributorandtotakecareofothermarketingandsellingexpenses.Loadamounts are variable and are subject to change from time to time. For the current applicable structure, pleaserefertothewebsiteoftheAMCwww.utimf.comorcallat1800221230(tollfreenumber)or(022)26546200(nontollfreenumber)oryourdistributor.
Entry Load(As % of NAV)
Exit Load(As % of NAV)
Nil Less than1year–1%Greater thanorequal to1year–Nil
(2) In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No./168230/09 datedJune 30, 2009 no entry loadwill be charged for purchase/additional purchase /switch-in accepted by the Fund.Similarly,noentry loadwillbechargedwith respect toapplications for registrationsunderSystematic InvestmentPlans/SystematicTransferInvestmentPlansacceptedbytheFund.
TheAMC reserves the right tochange/modifyexit/switchover load,dependingupon thecircumstancesprevailingatanygiventime.AloadstructurewhenintroducedbytheAMCmaycompriseofexitloadand/orswitchoverloadasmaybepermissibleunder theSEBIRegulations.The loadmayalsobechanged fromtime to timeand in thecaseofanexit/redemption loadthismaybe linkedto theperiodofholding.Theswitchover loadmaybedifferentfordifferentplans.However,anysuchchange in the loadstructureshallbeapplicableonprospective investmentonly.
The investor is requested to check the prevailing load structure of the scheme before investing.
For any change in load structure, AMC will issue an addendum and display it on the website/UTI Financial Centres.
Transaction charges Pursuant to SEBI circular no. CIR/IMD/DF/13/2011 datedAugust 22, 2011, a transaction charge of ` 100/- for
existing investors and ` 150/- in the case of first time investor in Mutual Funds, per subscription of ` 10,000/-andabove,respectively, istobepaidtothedistributorsofUTIMutualFundproducts.However,thereshallbenotransactionchargesondirectinvestment/snotmadethroughthedistributor/financialadvisoretc..
Thereshallbenotransactionchargeonsubscriptionbelow` 10,000/-. IncaseofSIPs, the transactionchargeshallbeapplicableonly if the totalcommitment throughSIPsamounts to
` 10,000/-andabove.Insuchcases,thetransactionchargeshallberecoveredin3-4instalments The transaction charge, if any, shall be deducted by UTI AMC from the subscription amount and paid to the
distributor and the balance shall be invested. Allocation of Units under the scheme will be net of TransactionCharges.TheStatementofAccount(SoA)wouldalsoreflectthesame.
If the investorhasnot ticked in theApplication formwhetherhe/she isanexisting/new investor, thenbydefault,the investor will be treated as an existing investor and transaction charges of ` 100/- will be deducted forinvestments of` 10,000/- andaboveandpaid to distributor/financial advisor etc.,whose information is providedby the investor in the Application form. However, where the investor has mentioned ‘Direct Plan’ against thescheme name, the Distributor code will be ignored and theApplication will be processed under ‘Direct Plan’ inwhichcasenotransactionchargeswillbepaidtothedistributor.
Opt in / Opt out by Distributors: Distributorsshallbeabletochoosetooptoutofchargingthetransactioncharge.Howeverthe‘optout’shallbeat
Where a distributor does not exercise the option, the default Option will beOpt–out for all above categories ofproduct.TheoptionexercisedforaparticularproductcategorywillbevalidacrossallMutualFunds.
TheARNholders, if theysodesire,canchange theiroptionduring thespecial twohalfyearlywindowsavailableviz.March 1st toMarch 25th and September 1st to September 25th and the new option status change will beapplicablefromtheimmediatelysucceedingmonth
(3) Any imposition or enhancement of load shall be applicable on prospective investments only.TheAMC shall notchargeanyloadonunitsallottedonreinvestmentofdividendforexistingaswellasprospectiveinvestors.
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At the time of changing the load structure, the Mutual Fund shall consider the following measures to avoidcomplaintsfrominvestorsaboutinvestmentintheschemewithoutknowingtheexitload:
(i) The addendum detailing the changes shall be attached to the Scheme Information Documents and KeyInformationMemoranda.Theaddendumshall be circulated to all the distributors/brokers so that the samecanbeattachedtoallSchemeInformationDocumentsandKeyInformationMemorandaalreadyinstock.
(ii) ArrangementsshallbemadetodisplaytheaddendumintheSchemeInformationDocumentintheformofanoticeinalltheofficialpointsofacceptanceanddistributors/brokersoffice.
(iii) The introductionof theexit loadalongwith thedetailsmaybestamped in theacknowledgementslip issuedto the investors on submission of the application form and shall also be disclosed in the statement ofaccountsissuedaftertheintroductionofsuchload.
(iv) ApublicnoticeshallbegiveninrespectofsuchchangesinoneEnglishdailynewspaperhavingnationwidecirculationaswellas inanewspaperpublished in the languageof theregionwhere theHeadOfficeof theMutualFundissituated.
VI. 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
Status of the information in this regard as furnished by the respective sponsors mentioned below is provided as under:1. Incaseof IndianSponsor(s),detailsofallmonetarypenalties imposedand/oraction takenduring the last threeyears
orpendingwithanyfinancialregulatorybodyorgovernmentalauthority,againstSponsor(s)and/ortheAMCand/ortheBoardofTrustees/TrusteeCompany;forirregularitiesorforviolationsinthefinancialservicessector,orfordefaultswithrespect to share holders or debenture holders and depositors, or for economic offences, or for violation of securitieslaw. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also bedisclosed.
(a) Penalties imposed against Life Insurance Corporation of India (Amount in `):- PenaltiesimposedbyIRDA
A. The following penalties were imposed by IRDA against LIC for the year 2014-15 on its Inspection as per the following details:-
Particulars of Inspection observations Penalty levied by IRDA-Amount
Status of payment of penalty
• Instances were noticed wherein filled inproposal forms were altered without necessaryauthenticationfromtheproposers
• Policies issued with terms and conditions otherthanasappliedbytheProposers
• Policies are split and more than one policyissuedunderasingleproposal
Penalty of ` 5 Lacs underS.102(b)oftheActimposed
Paid
Allequity investment inasingle Investeecompany(from all funds of the corporation) cannot bemorethan10%ofoutstandingshares (facevalue)of theInvesteecompany
Penalty of ` 5 lacsimposed on the InsurerunderS.102(b)oftheAct
(b) Penalties and Proceedings against Bank of Baroda:-
Zone: Maharashtra & Goa(i) Sponsor and Branch: Bank of Baroda, Laxmi
Road,PuneCity
Name of Complainant: Pune MunicipalCorporation(PMC)
Court/Tribunal / Case No. & Year: SupremecourtSLP(C)No.23299/2010
Amountinvolved:Octroipenaltyof` 94.22lacs
Nature of Case/Type of offence & section:Bank filed a writ petition before Bombay HCchallenging the arbitrary demand of the PMC&theprovisionsunderPuneMunicipalCorporation(Octroi) Rules 2008 imposing penalty beingcontrary to the provisions of Section 398 ofthe Bombay Provincial Municipal CorporationAct, 1949. The Bombay HC allowed the appealholding corporation does not have power toimposepenaltyequivalent to10timestheOctroiwithout following the due process of law asenvisagedundersection398ofActof1949.
Bank’s reply/defence: Bank paid the amount ofoctroiof` 9,42,200/-but refused topaypenaltyamounting to ` 94,22,000/- (10 times of octroiamount).
Present Status & Remarks: Against the orderof the HC, PMC filed SLP in SC. The Hon’bleSC after hearing the Counsels was of the viewthat there is conflicting judgments on the issueand the same requires some time for hearing.On 13/10/2011 the Hon’ble SC said sincebank has already paid the Octroi and matterinvolvedhereinisonlyaboutpenaltyimposedbycorporation, let the matter come up for hearingin regular course. Matter has not come in theregularboardtilldate.
(ii) SponsorandBranch:BankofBaroda,NasikCity
Name of Complainant: Nasik MunicipalCorporation
Court/Tribunal / Case No. & Year: SupremeCourtSLP(C)No.9706/2010
Amountinvolved:Octroipenaltyof` 5.95lacs
Nature of Case/Type of offence & section:Bank filed a writ petition before Bombay HCchallenging the arbitrary demand of the NMC& the provisions under Nashik MunicipalCorporation (Octroi)Rule2005 imposingpenaltybeing contrary to the provisions of Section 398of the Bombay Provincial Municipal CorporationAct, 1949. The Bombay HC allowed the appealholding corporation does not have power toimposepenaltyequivalent to10timestheOctroiwithout following the due process of law asenvisagedundersection398ofActof1949.
Bank’s reply/defence: Bank paid the amount ofoctroi, but refused to pay penalty amounting to` 59.50lacs(10timesofOctroiamount).
Present Status & Remarks: Against the orderof the HC, NMC filed SLP in SC. The Hon’ble
SC after hearing the Counsels was of the viewthat there is conflicting judgments on the issueand the same requires some time for hearing.On 13/10/2011 the Hon’ble SC said sincebank has already paid the Octroi and matterinvolvedhereinisonlyaboutpenaltyimposedbycorporation, let the matter come up for hearingin regular course. Matter has not come in theregularboardtilldate.
Totalno.ofcases:2
Totalamount involved/claimedamount:` 100.17lacs
Region-DMR-1 (NZ):
(iii) Sponsor and Branch: Bank of Baroda, IBBbranch
Name of the party/complainant: SpecialDirectorateofEnforcement
Name of the Court/Forum & Case no.: CRLAppealNo.256/2009beforeHC,Delhi inComp/u/s8(1),64(2)andalso readwithsections6(4),6(5),49and73(3)ofFERA,1973.
Details/brief nature of the case: Allegations ofviolation of FERA regarding Deposit of ForeignCurrency Notes in NRE A/c of Mr. GurcharanSingh Sethi and Smt. Surinder Kaur. TheDirectorate of Enforcement in order dated11.08.04 held that Bank has failed to ensurethe genuineness of the transactions and hascontravened the provisions of FERA. Penaltyof ` 10 lacs was imposed. Bank has deniedthe allegations on the ground that individualtransactionswereoflessthan` 10lacs.
Bank’s Reply/defence: Bank’s contention is thateach time deposits are made of the amountof less than 10000 USD, hence there is noviolationofprovisionsofFERAAct,1973.
Present Status and remarks: On 03.03.2010interim stay orders have been made absolute.Matter will be listed in due course in regularmatters.
(iv) Sponsor and Branch: Bank of Baroda, IBBbranch
Name of the party/complainant: SpecialDirectorateofEnforcement
Name of the Court/Forum & Case no.: CRLAppealNo.325/2008beforeHCDelhi inComp/u/s8(1),64(2)andalso readwithsections6(4),6(5),49and73(3)ofFERA,1973.
Details/brief nature of the case: Allegationsof violation of FERA regarding Deposit ofForeign Currency Notes in NRE A/c of oneMr. Sarbir Singh, from 25.01.92 to 31.01.92.The Directorate Enforcement in order dated11.08.04 held that Bank has failed to ensurethe genuineness of the transactions and hascontravened the provisions of FERA. Penaltyof ` 5 lacs was imposed. Appeal filed withAppellate Authority, which has been dismissedon07.12.2007.CriminalAppealbefore theDelhiHighCourthasbeenfiled,whichispending.
Bank’s Reply/defense: Bank’s contention is thateach time deposits are made of the amountof less than 10000 USD, hence there is noviolationofprovisionsofFERAAct,1973.
Present Status and remarks: On 03.03.2010interim stay orders have been made absolute.Matter will be listed in due course in regularmatters.
TotalNo.ofCases:2
Totalamountinvolved:` 15lacs
(v) Sponsor and Branch: Bank of Baroda, EasternZone,CamacStreet
Name of the party: Special Director ofEnforcementDirectorate
Court/Tribunal & Case no./Year: EnforcementDirectorate
Details/brief nature of the case:Bankhadgivenloan of ` 2.55 crores to M/s Corpus Credit &Leasing Ltd., against FCNR FDR of $1 million(US) belonging to Mrs. And Mr. Bhagwandas& Devbala Pawani held with Camac StreetBranch. The then Chief Manager procured thesaid FDR of Pawanis from their InternationalBranch and handed over the same to borrower.Investigations conducted under provisions ofFERA revealed that the signatures of Mrs. andMr. Pawani on the account opening form didnot match with those on the consent letter,discharged FCNR FDR. Chief Manager hadnot verified the genuineness of the documentscollected from Notice No. 4 either from thePawanis or from International Branch, Bank ofBaroda,Dubai.
Bank’s Reply/defence: Bank followed all thedirections of RBI and remittance of $ 1 million(US) was received by Bank through authorizedbanking channel and was genuine. Further, theproceeds of the FCNRFDR, alongwith interestthereon, was paid by the Bank to the Pawanison maturity, in accordance with establishedremittance. Hence, there was no violationof FERA. The loan granted to the borrowercompanyM/sCorpusCredit&LeasingLtd.wasa rupee loan and involved no outgo of foreignexchange.
Present Status and remarks: Special Directorhas imposed a penalty of ` 10,00,000 (RupeesTen Lakhs) on the Bank for violation of FERA.Bank filed an appeal against the same beforethe Appellate Authority for Foreign Exchange,MinistryofLaw,Justice&CompanyAffairs.LDH6.03.2014 no hearing took place as oppositepartydidnotappear.NDH17.07.2014.
Region – Bihar, Patna
Zone–Bihar,Jharkhand&Orissa,Patna:
(vi) Sponsor and Branch: Bank of Baroda, PatnaMainbranch
Name of the party/Litigant/Complainant:Assessing Officer, Income Tax Department,Patna
Court/Tribunal & Case No./Yr.: High Court,Patna.AppealNo.MA-632/2013
Details/brief nature of case: Patna Main branchhas not deducted TDS from the FDRs held indifferent organisations for the F.Y. 2007-08 and2008-09.
Bank’s reply/defence: Appeal filed by bankbefore the Income Tax Appellate Tribunal wasdismissed. Against the order of the ITAT bankhasfiledMisc.AppealintheHon’bleHighCourt,Patnawhichispending.
Present Status and remarks: The appeal in theHigh Court was last listed on 03.03.2014 forhearing. The oral order has been passed on03.03.2014 wherein it is directed that notify thecase for admission hearing. The matter is notlisted in the cause list of the cases for hearingafter03.03.2014.
TotalNo.ofCases:01
Total amount involved/claimed amount: ` 96.96Lacs
(c) Penalties and Proceedings against Punjab National Bank:-
I Penalty Imposed – ` 1,00,000/- (` OneLakhOnly)
(RBI has imposed a penalty of` 1,00,000/- on account of shortage inSecurityGeneralLedgerA/c)
II Penalty Imposed – ` 3,00,00,000/-(` ThreeCroreOnly)
(The penalties imposed by RBI under theprovisionsofSection46(4) of theBankingRegulation Act, 1949, for contraventionsofanyof theprovisionsof theActornon-compliance with any other requirement ofthe Banking Regulation Act, 1949; order,rule or condition specified by ReserveBankofIndiaundertheAct.)
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UTI - Bluechip Flexicap Fund - SID - 2017
(d) Penalties and Proceedings against State Bank of India Penalties imposed on foreign offices and foreign subsidiaries of State Bank of India during 2013-14
delayed submission of financialstatement as at the end ofDecember2012
SAR19,000(` 2.68lac)
07.04.2013
April2013 Jeddah --do- Non adherence to therequirement of incorporatingNational ID/Civil RegisterNumber of the drawer ofthe cheque in the slip of alldishonouredcheques
SAR11,700(1.64lacs)
27.04.2013
June2013 RegionalRepresentativeOffice,Manila
SecuritiesExchangeCommissionofManila(SEC)
delayed submission of GeneralInformation Sheet and proof ofInward Remittance (for ManilaRepresentativeoffice
BankIndonesia error in reported data forcalculation ofminimum statutoryreserve
IDR17,712,377(` 0.87lacs)
12.12.2013
December2013
BankSBIIndonesia
BankIndonesia 25 forex purchase transactionsdone by a customer wereconsidered to be in violationof Bank Indonesia’s regulationconcerning foreign exchangepurchasesagainstIDR
IDR250,000,000(` 12.23lacs)
30.12.2013
June2013 SBIMauritius*(SBIML)
BankofMauritius
This was due to Bank ofMauritius found that SBIMauritius has failed to complywiththeguidelinesofAnti-MoneyLaundering and Combating theFinancingofTerrorism.
MUR500,000(` 9.96lacs)
17.07.2013
* Bank of Mauritius imposed a penalty of MUR 100,000/- i.e. equivalent of ` 1.75 lacs for a violation reported inDecember2012.Thiswasduetonon-adherenceofguidelinesonadvertisementbyBankofMauritius.
Penalties imposed on State Bank of India during 2013-14 on Domestic Operations
PeriodName of
Office/Branch/ Subsidiary
Penalty imposed
byBrief details
Penalty imposed
(Rupees in lacs)
Date of Payment
July2013
StateBankofIndia
ReserveBankofIndia
Penalty under Section 47A (1) (c)readwith Section 46(4) of the BankingRegulation Act 1949, for allegedviolation of its guidelines/statutoryprovisions on issue/sale of drafts/gold coins against cash, non capturingof beneficial owner details in CBSand non-availability of a scenariofor generating alerts for monitoringtransactions in accounts with highturnoverbutlowenddaybalance.
` 300.00lacs
15.07.2013
March2014
CAGNewDelhiBranch
IncomeTaxAuthorities
Late remittance of TDS pertaining toCAGNewDelhibranch.
Reasons such as non conduct ofsurprise verification of Currency Chest(CC) branches, shortage in soiled noteremittances and CC balance, detectionof mutilated/ counterfeit notes inreissuable packets etc.(detailed in the annexure)
` 237.06lacs
Penalties paidon various datesin Circles of SBI.(Dates of paymentfor penalties of` 1.00 lacs andaboveare furnishedinthelistannexed)
Penalties above one lac and nature of penalty thereof (` in lacs)
2. Details of all enforcement actions taken by SEBI in the last threeyearsand/orpendingwithSEBI for theviolationof SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ orcancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)and/ or theAMCand/ or theBoard ofTrustees /TrusteeCompanyand/ or any of the directors and/ or key personnel(especially the fundmanagers) of theAMCandTrusteeCompanywere/ are a party.The details of the violation shallalsobedisclosed.
Against Bank of Baroda(a) Bank of Barodawas one of the bankers to the public issue of shares of JaltarangMotels Limited (“Jaltarang”).
The prospectus issued by the Company categorically stated that the company’s shares would be listed on thestockexchangesatAhmedabadandBombaybut permission for listing couldbeobtainedonly fromAhmedabadStockExchange(ASE).
While ASE accorded approval on March 4, 1996, Bombay Stock Exchange (BSE) rejected the request of thecompany (Jaltarang) for listingofshares.However, theBank (BankofBaroda),onMarch25,1996 transferredasumof` 38,89,218/-collectedfromthepublic,tothecompany’s(Jaltarang)account.
SinceBSEhad refused to list thecompany’sshares, thepublic issuebecamevoid in termsofsection73of theCompaniesActnecessitatingrefundoftheapplicationmoneyforthwithtotheapplicants.
Themattercame to thenoticeofSEBI.Toprotect the interestofapplicantsSEBI,afterholdingan inquiry,by itsorderdatedJanuary19,2000directed thebank to refund thesumof` 4,031,018/-being theapplicationmoneywith interest at 15% fromMarch25, 1996 i.e. the day the bankallowedwithdrawal of the funds by Jaltarang inrespectoffundscollectedfromthepublicissue.
TheBankpreferredanappeal before theSecuritiesAppellateTribunal against the aforesaid order ofSEBI.Thetribunal, by its order dated July 27, 2000, rejected the appeal of the Bank. On which the bank filed an appeal
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UTI - Bluechip Flexicap Fund - SID - 2017
(Appeal No.2 of 2000) before the High Court,Mumbai against the said order of the Tribunal.The High Court, Mumbai, on November 13,2000, granted interim relief of stay of theoperation of the orders dated July 27, 2000 ofthe Securities Appellate Tribunal and January19, 2000 of SEBI and has further directed thatthe matter be placed on the board for finalhearing.
Present Status: The matter is still pending withHighCourtMumbai.
There are no further communication/queriesfrom any regulatory authority to BOBCAPS inthematter.
(b) The merchant banking division of the Bank ofBarodawas the pre-issue leadmanager for thepublic issue of shares of Trident Steels Limited(“Trident”)inNovember,1993.
SEBIissuedashowcausenoticedatedApril29,2004callingupon themerchantbankingdivisionof the Bank to show cause why action shouldnot be taken against it for failing in its duty toexercise due diligence in the above mentionedpublic issue. SEBI alleged that the merchantbanking division of the Bank did not disclosethematerial fact that 750,000 shares out of thepreissuecapitalofTridenthadbeenpledgedbythe directors and shareholders of those sharesto the Industrial Finance Branch of the Banktowards enhancement of various credit facilitiesextendedbytheBanktoTrident.
In October 1989, the directors and holders ofthose shares have given an undertaking thatas long as the dues of Trident to the Bank arenot paid in full, they will not transfer, deal withor dispose off equity or preference shares heldby them in the company or any shares thatmightbeacquired in future,withoutpriorwrittenconsentoftheBank.
BOBCAPS, in its reply to theshowcausenoticeofSEBI,hassubmitted that itwas theobligationof Trident to give true disclosures and that anypunitive action will lie solely against TridentSteelsLtd.,itspromotersanddirectors.
Present Status: There are no furthercommunication/queries fromSEBI to BOBCAPSinthematter.
TheenquiryhasbeendroppedbySEBI.
(c) The Bank of Baroda had acted as leadmanagers to the public issue of Kraft IndustriesLimited (“Kraft”) in May 1995. It is alleged thatthe Managing Director and Promoter of KraftIndustriesLtd.didnotpossess thequalificationsas mentioned in the prospectus filed for raisingthefunds.
SEBI required from the Bank being merchantbanker to the issue, the copies of qualificationcertificatesofthecompany’sManagingDirector.
On enquiring, the Managing Director of KraftIndustries Ltd. informed the Bank of having lost
the certificates in transit. The bank has repliedaccordinglytoSEBI.
Theinquiryisstillpending.
Present Status: There are no furthercommunication/queries fromSEBI to BOBCAPSinthematter.
(d) M. S. Shoes East Limited (MS Shoes) cameout with a public issue of 17,584,800 zerointerest unsecured fully convertible debenturesin February 1995. The Bank of Baroda wasone of the Lead Managers to the issue withresponsibility for post issue management andhadunderwrittentheissueupto` 150,000,000.
After the closure of the issue, MS Shoescomplained to the underwriters that some ofthe cheques accompanying the application forsubscription were returned unpaid resultingin the collected amount falling short of theminimum subscription amount. Therefore MSShoescalledupontheunderwriters todischargetheir underwriting liability to the extent ofproportionate devolution and raised a claim onthe bank for ` 116,665,043 towards devolutionofunderwritingliability.
Thebankdeclined the claimon the ground thatsince the issue was declared oversubscribedby the Registrars to the issue no liability candevolve on the Bank under its underwritingcommitment.
SEBI has issued an enquiry notice dated July20, 1995 to the bank, but closed the matterwithoutimposinganypenaltyonthebank.
Complaint was filed on behalf of MS Shoes,at Vikaspuri Police Station against SBI CapitalMarkets Limited, the bank, its principal officersincluding the then CMD and others allegingcheating and breach of trust. The High Court,New Delhi, by order dated December 11, 2000orderedtransferofthecasetoCentralBureauofInvestigation(CBI).
TheinvestigationbytheCBIisstillpending.
Present Status: There are no furthercommunication/queries from CBI or SEBI toBOBCAPSinthematter.
TheenquiryhasbeendroppedbySEBI.
State Bank of India
AgainstSponsor:
SEBI served show cause notice dated08.11.2012 under rule 4 of the adjudicationRulesforthedeficienciesobservedinDebentureTrustee operations during their inspectionconducted from 26.07.2010 to 30.07.2010 atStateBankof India,MumbaiMainbranch.Bankhas made payment of ` 6.80 lacs towards thesettlement charges to SEBI on 13.01.2015 forthe same. The settlement order was passedon 28.01.2015 by the Adjudicating Officer thusdisposing of the said Adjudication ProceedingspendinginrespectofSBI.
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UTI - Bluechip Flexicap Fund - SID - 2017
3. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately.
UTI AMC Ltd.a) A writ petition has been filed by UTI
Asset Management Company Ltd.,UTI Mutual Fund and UTI TrusteeCompany Private Ltd. challenging theorder dated 06.08.2008 passed by theCentral Information Commission on theapplicability of the Right to InformationAct, 2005, which has been stayed by theHonourable High Court, Bombay. The writhas been admitted and stay will continuepending the hearing and final disposal ofthe petition. The matter will come up forhearinginduecourse.
b) There are 10 criminal cases pendingrelated to normal operations of theschemes of UTI MF such as non-transferof units, non-receipt of unit certificates,non-receipt of redemption proceeds orincome distribution, closure of scheme/plan. These cases are not maintainableand judging from our experience suchcases are generally dismissed by Courtsorwithdrawnbythecomplainant.
All thecaseswerefiled inthenameofthethen Manager/Branch Manager/Chairman(Key personnel) of the erstwhile UnitTrust of India.Wehavealready settled allthese cases by paying the amount/issuingcertificate to the complainant. However,cases are continuing due to proceduralaspectasfinalordersof theCourtsare tobe pronounced. All the cases filed before2003, stood transferred to the successorof UTI i.e, UTI MF due to transfer ofscheme after passing ofTheUnitTrust ofIndia (Transfer of Undertaking & RepealAct)2002.
c) There are 31 cases pending at differentcourts related to suits/petitions filedby a) contract workmen, b) employeesassociation, c) employees/ex-employeesetc. These cases are pending at differentlevelsforadjudication.
d) A Special Leave Petition has been filedby Bajaj Auto Ltd. before the HonourableSupreme Court of India against the finaljudgement and order dated 09.10.2006 ofthe Honourable High Court of Bombay inthematterofthewindingupofUTIGrowth& Value Fund- Bonus Plan with effectfrom 01.02.2005 in pursuance to circulardated 12.12.2003 of SEBI. The matter isadmitted on 10.07.2008 andwill be heard
induecourse.
e) One Writ Petition filed by R K Sanghipending before High Court of MadhyaPradesh Principal Seat at Jabalpurchallenging termination of SeniorCitizenship Unit Plan (SCUP). We havealreadyfiledaffidavit in reply in thematterand now petition will be heard in duecourse.
Income Tax Related Matter(a) The orders cum demand notices for
` 0.01 crore (Previous Year ` 0.12 crore)is pending with Income Tax Office – TDSon various grounds. The company hasfiled appeals to the appellate authorityon the said orders mentioning that all thepayments have been duly complied. Thegrounds of appeal are well supported inlaw. As a result, the company does notexpect the demand to crystalise into aliability.
(b) Assessment Order has been passed forthe Assessment Years 2010-11 raising aDemand of 2.27 crore. The company hasfiled appeals with CIT(A) In respect ofsuchorder.
(c) The reassessment order for theAssessment Year 2009-10 has beenpassed raising a demand of ` 5.25 crore.TheappealshavebeenfiledbeforeCIT(A)againstboththeorders.
(d) Assessment Order has been passed forthe Assessment Year 2012-13 & 2013-14raisingademandof` 0.74crore&` 0.78crore respectively. The demand has beenpaid and appeals have been filed beforeCIT(A)againstboththeorders.
UTI GETF: The Maharashtra Sales Tax authorities have
disallowed refund claim and raised tax demandunder the Maharashtra Value Added Tax Act2002forUTIGETFforasumof` 2,65,23.583/-plus interest and penalty for the years 2007-08 to 2012-13 . Penalties for some years havebeenset asideby theAppellateauthorities.Thematter is being contested, Appeals/Writ Petitionhave been filed with the appellate authorities/Courtsagainstthedenialoftherefundclaimandraisingofdemand.
4. Any deficiency in the systems and operationsof the Sponsor and/or the AMC or the TrusteeCompany which SEBI has specifically advisedto be disclosed in the SID, or which has beennotifiedbyanyotherregulatoryagency.-NIL
Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines there under shall be applicable.
DUBAI REPRESENTATIVE OFFICEUTI International Limited, Office No.4, Level 4, Al Attar Business Towers, Near DIFC, Post Box No. 29288, Sheikh Zayed Road, Dubai (UAE),Tel:+971-4-3857707•Fax:+971-4-3857702.
MF UTILITY FOR INVESTORSTheonlineportalofMFUtilitiesIndiaPrivateLtd(MFUI) i.e.www.mfuonline.comandauthorisedPointsofService(“POS)ofMFUIshallactasOfficialPointsofAcceptance(OPAs)inadditiontotheexistingOPAsoftheUTIAMCLtd.ForfurtherdetailspleaserefertoSID/SAI.
