IDBI–PRINCIPAL

Monthly Income Fund

(An Open-ended Income Fund having periodical distributions with no Assured Returns)

 

Offer for units of Rs. 10/- face value during initial offer period and at applicable NAV based price thereafter

 

IDBI Mutual Fund

Bajaj Bhavan, 2nd Floor, Nariman Point, Mumbai 400 021, India

 

Investment Manager

IDBI-PRINCIPAL Asset Management Company Limited

Bajaj Bhavan, 2nd Floor, Nariman Point, Mumbai 400 021, India. Tel: 204 4988, Fax:204 4990

 

Sponsors

Industrial Development Bank of India, and

Principal Financial Services Inc.

 

Trustees

Board of Trustees with IDBI as the Principal Trustee

 Scheme Initial Offer opens on December __, 2001

Scheme Initial Offer closes on  December __, 2001

Scheme Open For ongoing subscription from  : January __, 2002

 

The terms of this Offering have been prepared in accordance with the Securities & Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time including by way of Circulars, Press Releases, or Notifications issued by the Securities & Exchange Board of India (SEBI) or the Government of India to regulate the activities and growth of mutual funds. This Offering Circular has been filed with SEBI. The Units being offered for public subscription have not been approved or disapproved by SEBI. Further, SEBI has not certified the accuracy or the adequacy of the Offering Circular. Any changes made to be made to this Offer Document are subject to approval by the Trustees / SEBI / Unitholders, as may be required.

This Offer Document sets forth concisely, necessary information about the Scheme for a prospective unitholder, to make an informed investment decision in the Scheme described herein.  Unitholders should carefully read the Offer Document prior to making a decision to invest in the Scheme and retain the Offer Document for future reference.  No person has been authorized to give any information or to make any representations not confirmed in this Offer Document in connection with the offer or the issue of units, and any information or representations not contained herein must not be relied upon as having been authorized by the Mutual Fund, or the AMC.

The Scheme is an open ended Scheme. This Offer Document is dated  December __, 2001.  The Offer Document will remain effective till a 'material change' (other than a change in the Fundamental Attributes and within the purview of the Offer Document) occurs. The offer document shall be fully revised and updated atleast once in two years. Till the time the offer document is revised and reprinted, an addendum giving details of the each of the changes shall be attached to offer document. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all offer documents already in stock. The addendum shall also be sent to the existing unitholders.

 

In this Offer Document, all references to “dollars” or “$” refers to United States dollars, and “Rs.” Refers to Indian Rupees.  A “crore” means “ten million” and a “lakh” means a “hundred thousand”.


 

IDBI Mutual Fund

Bajaj Bhavan, 2nd  Floor, Nariman Point, Mumbai 400 021

Phone + 91 22 204 4988 Fax + 91 22 2044990

E mail mailto:services@idbimutualprincipal.comcustomer@idbiprincipal.com

 

Sponsors

·          Industrial Development Bank of India

IDBI Tower, Cuffe Parade, Mumbai 400 005

 

·          Principal Financial Services Inc.

711 High Street, Des Moines,

Iowa 50392-0200, USA

 

Trustee

Board of Trustees with IDBI as Principal Trustee

 

Investment Manager

IDBI – PRINCIPAL Asset Management  Company Limited                                                  Bajaj Bhavan, 2nd  Floor , Nariman Point, Mumbai 400 021

 

Registrar and Transfer Agent

Karvy Consultants Limited.                         

21, Avenue 4,  Street No. 1, Banjara Hills, Hyderabad 500 034

 

Custodian

Stock Holding Corporation of India Limited

Mittal Court, B-Wing 224, Nariman Point, Mumbai 400 021

 

Auditors

 

 

N.M. Raiji and Co., Chartered Accountant Universal  Insurance Building, Sir P.M. Road Mumbai 400 001

LEGAL ADVISORS

CRAWFORD BAYLEY & CO.,

4th Floor, State Bank of India Bldg., Fort, Mumbai 400 023

 

DAVE & GIRISH & CO.

1st floor, Sethna Building

55, Maharshi Karve Road,

Marine Linies, Mumbai 400 002

 

                                       


Table of Contents

Highlights                              

8

Risk Factors

10

Special Considerations

13

Due Diligence Certificate

16

Abbreviations & Definitions

17

Brief Introduction to Future Goals Series

22

Scheme Features

22

Additional Features for Unitholders under the Future Goals Asset Allocation Programme

 

34

Constitution of the Mutual Fund

38

The Fund

38

The Sponsors

38

Industrial Development Bank of India

38

Principal Financial Services, Inc.

39

Trustees of IDBI Mutual Fund

40

Members

40

Duties & Responsibilities of Trustees

41

Unitholders Consent

44

Trusteeship Fees

44

Management of the Fund

45

Investment Manager - IDBI - PRINCIPAL Asset Management Company Limited

45

Share holding pattern of IDBI-PRINCIPAL Asset Management Co Ltd

45

Investment Management Fees

46

Duties and Responsibilities of AMC

46

Board of Directors

47

Key Personnel and Their Relevant Experience

48

Custodian

49