SECURITIES AND EXCHANGE BOARD OF INDIA

MUMBAI

FORM - NS

Filing of scheme offer document in terms of sub-regulation (1) of regulation 28 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

ESCORTS INDEX FUND

(Name of the Scheme)

ESCORTS MUTUAL FUND

(Name of the Mutual Fund)

ESCORTS ASSET MANAGEMENT LIMITED

(Name of the Asset Management Company)

11, SCINDIA HOUSE, CONNAUGHT CIRCUS, NEW DELHI 110 001

(Address of the Mutual Fund)

Approximate Date of Proposed Public Offering: ----------, 2001

This filing will become deemed effective 21 days after the date of such filing.

ESCORTS INDEX FUND

AN OPEN ENDED INDEX SCHEME

OFFER OF UNITS OF FACE VALUE OF RS. 10 EACH

The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and filed with Securities and Exchange Board of India and the Units being offered for public subscription have not been approved or disapproved by the Securities and Exchange Board of India nor has the Securities and Exchange Board of India certified on the accuracy or adequacy of the Offer Document.

This Offer Document shall remain effective until a ‘material change’ (other than a change in fundamental attributes and within the purview of the Offer Document) occurs and thereafter the changes shall be filed with the SEBI and circulated to the unitholders alongwith quarterly / half yearly reports

(A) The Offer Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing;

(B) Prospective investors should study this Offer Document carefully, in its entirety and independently consult their legal, tax and investment advisors to determine possible legal, tax, financial and other consequences of subscribing to, purchasing or holding Units under the Scheme, before making an application for subscription to Units under the Scheme; and

ESCORTS MUTUAL FUND

Head Office: 11, Scindia House, Connaught Circus,

New Delhi 110 001

Tel: (011) 335-1343, 331-9991, 332-1654 Telefax: (011) 376-1495

SPONSOR TRUSTEE ASSET MANAGEMENT COMPANY

Escorts Finance Limited Escorts Investment Trust Limited Escorts Asset Management Limited

N-6, Pratap Building N-6, Pratap Building N-6, Pratap Building

Connaught Circus Connaught Circus Connaught Circus

New Delhi 110 001 New Delhi 110 001 New Delhi 110 001

INITIAL OFFER OPEN FROM ---------, 2001 TO --------, 2001

ON-GOING SALE / REPURCHASE OF UNITS FROM ----------, 2001

TABLE OF CONTENTS

S.No.	Contents	Page No.
I	Definitions	4
II	A. Highlights B. Risk Factors	5 5
III	Due Diligence by the Asset Management Company	6
IV	Expenses A. Unitholder Transaction Expenses or Sales Load B. Initial Issue Expenses · For the present scheme · Past schemes C. Annual Scheme Recurring Expenses	6 7 7 7
V	Condensed Financial Information	8
VI	Constitution of Escorts Mutual Fund A. The Mutual Fund B. Functions and Responsibilities of the constituents of Escorts Mutual Fund · The Sponsor · The Asset Management Company · The Trustee · Custodian C. Board of Trustees D. Summary of substantive provisions of the Deed of Trust which may be of material interest to the Unitholders E. Trusteeship Fee	9 9 9 11 12 12 13 13
VII	Investment Objectives and Policies Introduction to Index Funds A. Investment Objective B. Asset Allocation C. Fundamental Attributes D. Investment Approach E. Change in investment pattern F. Investment Policies and risk control G. Derivatives & Hedging H. Underwriting I. Investment in Illiquid Securities J. Investment by the AMC in the Scheme K. Portfolio Turnover Policy L. Investment Restrictions M. Policy for borrowings N. Securities Lending	13 15 16 17 17 18 18 18 20 20 20 20 20 21 21
VIII	Management of Escorts Mutual Fund A. Name of the AMC B. Fund Manager C. Key Personnel D. Investor relations officer E. Board of Directors F. AMC’s Compensation G. The Custodian H. Investor (Registrar and Transfer Agency) Services I. The Auditors	21 21 22 22 22 22 23 23 23
IX	Units and Offer A. Initial Offer	23

S.No.

Contents

Page No.

Sale of Units

A. Who can apply

B. Availability of application forms and offer document

C. How to apply(Instructions for investors)

D. Mode of payment

E. Dual Investment Options

F. Investment Plans

1. Systematic Investment Plan

2. Dividend Re-investment Plan

3. Systematic Withdrawal Plan

G. Inter Plan Switching

H. Basis of Allotment

I. Statement of Account

J. Refunds

K. Transfer

L. Transmission

M. Listing

N. Duplicate Statements of Account/Dividend Warrants/Redemption Warrants, Consolidation of Accounts

O. Register of Unitholders

P. Personal Accident Insurance

Q. Sale and Repurchase of Demat Units through Stock Exchanges

R. Winding Up

S. Subsequent purchase of Units