The statutory provisions included in this offer document are general and indicative in nature and are neither exhaustive nor any particular investor specific.

The particulars of scheme have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and filed with Securities Exchange Board of India (SEBI). The units offered for public subscription have not been approved or disapproved by the SEBI, nor has the SEBI certified on the accuracy or adequacy of the offer document. UTI is not registered with SEBI. However, it has agreed to comply with the SEBI (Mutual Funds) Regulations, 1996 on a voluntary basis.

This is a debt oriented income scheme. The scheme aims at distributing income, if any, periodically.

1. An open-end debt oriented income scheme.
2. Open to resident individuals, institutions as well as to NRIs and OCBs.
3. The face value of a unit - Rs.10/-.
4. Minimum investment Rs. 10000/- or such amount as may be decided by UTI from to time and thereafter-subsequent minimum investment under a folio in multiples of Rs. 1000/-.
5. Declaration of NAV on a daily basis after the re-opening of the sale within 30 days from the date of closure of the initial offer.
6. Units will be sold at face value during the initial offer period from ________ to ________.On re-opening of the sales, the sale price will be at a price not more that 102% of the NAV.

 

7. Subject to the availability of distributable surplus, the first income distribution, if any, will be made after 3 months of the closure of the initial offer period and thereafter every month or at such intervals as may be decided by UTI from time to time.
8. Option to re-invest income distribution at NAV. However, in case of investment below Rs 30000/- income distribution will be compulsorily reinvested.
9. Repurchase will open within 30 days of the closure of initial offer period. Any repurchase made within 3 months from the date of investment will be at a price not less than 99% of the NAV. Thereafter, repurchase will be at NAV.
10. Current tax position as on the date of this offer document:

It is confirmed that:

I. the Draft Offer Document forwarded to Securities And Exchange Board of India is in accordance with the SEBI (Mutual Funds )Regulations, 1996 and the guidelines and directives issued by SEBI from time to time within the overall framework of UTI Act and UTI General Regulations;

II. all legal requirements connected with 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 duly complied with;

III. the disclosures made in the offer documents are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the proposed scheme;

IV. all the intermediaries named in the offer documents are registered with SEBI and till date such registration is valid.

Date: ________

Place: Mumbai Sd/-

S.S.Hegde

seal:

1. Cover Page
2. Due diligence
3. Definitions
4. Risk factors
5. Investment Objectives, Policies & Stock lending
6. Units and Offer
7. Sale of units
8. Expenses
9. Transfer/ Pledge/Assignment of units
10. Income Distribution & Capitalisation
11. Reinvestment of Income distributed
12. Repurchase of units
13. Termination of the Scheme
14. Inter scheme Transfers
15. Associate transactions & borrowings
16. Corporate investment in UTI scheme and UTI investments in such corporates.
17. NAV Determination and valuation of assets
18. Accounting Policies
19. Tax treatment of investments
20. Members’ rights & services
21. Constitution and Management of UTI
22. Other service providers for the scheme
23. Investors’ grievance redressal
24. Penalties, pending litigations, material findings of inspections/investigations.
25. Condensed financial information

In this scheme unless the context otherwise requires:

1. "Acceptance date" or "date of acceptance" with reference to an application made by an applicant to the UTI for sale or repurchase of units by the UTI means the day on which the branch office/ Unit Trust of India Financial centre(UFC)/authorised collection centres of UTI with Cash Management Service(CMS), after being satisfied that such application is complete in all respects, accepts the same. The acceptance date in respect of applications received at the franchise office/ authorised collection centres of UTI without CMS or any other authorised centre as may be decided by UTI from time to time but will not be beyond the 5^th working day (T+5) from the date of receipt (T) of such applications at these offices/ centres.
2. The "Act" means the Unit Trust of India Act, 1963 (52 of 1963).
3. "Applicant" means a person who is eligible to participate in the scheme and who is not a minor or a mentally handicapped person and shall include the alternate applicant mentioned in the application form.
4. "Alternate applicant" in case of a minor means the parent other than the parent who has made the application on behalf of the minor and in case of mentally handicapped person, the alternate applicant mentioned in the application form when units are purchased for the benefit of mentally handicapped person.
5. "Eligible trust" means an eligible trust as defined in the Unit Trust of India General Regulations 1964.
6. "Firm", "partner" and "partnership" have the meanings assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression partner shall also include any person who being a minor is admitted to the benefits of the partnership.
7. "Member" used as an expression under the scheme shall mean and include the applicant who has been allotted units under the scheme. "Member" also means a "unitholder" including the persons holding units in the depository mode and both the expressions can be read synonymously.
8. "Non Resident Indian (NRI)" shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, "Non-Resident Indian (NRI)" means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a "person of Indian origin" if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.
9. "Number of units deemed to be in issue" means the aggregate of the number of units issued and still remaining outstanding.
10. 'Overseas Corporate Bodies (OCBs)' means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least 60% by NRIs and includes overseas trusts in which not less than sixty percent beneficial interest is held by NRIs directly or indirectly but irrevocably.
11. "Person " shall include an eligible Trust as defined above.
12. "Registrars" means a person whose services may be retained by UTI to act as the Registrar under the scheme, from time to time.
13. "Regulations" means Unit Trust of India General Regulations, 1964 made under Section 43 (1) of the Act.
14. "RBI" means the Reserve Bank of India, constituted under the Reserve Bank of India Act, 1934.
15. "SEBI" means the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992).
16. "SEBI (MFs) Regulations" means The Securities and Exchange board of India (Mutual Funds) Regulations, 1996 as amended from time to time framed by SEBI in exercise of powers conferred under Securities and Exchange Board of India Act, 1992.
17. "Society" means a society established under the Societies Registration Act of 1860 or any other society established under any State or Central law for the time being in force.
18. "Unit" means one undivided share of the face value of Rupees ten in the unit capital and includes, where the context so requires, a unit issued as fully paid up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserve formed or otherwise in respect of this scheme.
19. "Unit Capital" means the aggregate of the face value of units issued under the scheme and outstanding for the time being.
20. "Unit Trust" or "Trust" or "UTI" means the Unit Trust of India established under Section 3 of the Act.
21. All other expressions not defined herein but defined in the Act/ Regulations shall have the respective meanings assigned to them by the Act/ Regulations.
22. Words importing singular shall include the plural and all reference to masculine gender shall include the feminine gender and vice versa.

1. Mutual Funds and securities investments are subject to market risks and the NAV of the units issued under the scheme may go up or down depending on the factors and forces affecting the capital markets.
2. Performance of previous scheme/plan is not necessarily an indication of future results. There can be no assurance that the objective of the scheme will be achieved.
3. UTI- Regular Income Scheme (UTI-RIS) is only the name of the scheme and do not in any manner indicate the quality of the scheme, its future prospects or returns.
4. Realisation of all the assurances and promises, if any, made are subject to the laws of the land as they exist at any relevant point of time.
5. Growth, appreciation and income, if any, referred to in this offer document are subject to the tax laws and other fiscal enactments as they exist from time to time.
6. Bonds /debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case.
7. Interest -Rate Risk: Bonds/ Government securities which are fixed return securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI, the price levels at which the market is already dealing in existing securities. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/ Government securities are also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the Rupee may also affect security prices. Such rise and fall in price of bonds/ government securities in the portfolio of the fund may influence the NAV under both the Plans of the fund as and when such changes occur.
8. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the fund might have to incur a significant "impact cost" while transacting large volumes in a particular security
9. Stock Lending: It is one of the means of earning additional income for the scheme with least risk. The risk could be in the form of non-availability of ready securities for sale during the period the stocks remain lent. The scheme would be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities. However, the risk would be adequately covered by taking in of suitable collateral from the borrower by the intermediary involved in the process. UTI will have a lien on such collateral. It will also have other suitable checks and controls to minimise any risk involved in the stock lending process.
10. Investment in overseas market: The success of investment in overseas market depends upon the ability of the fund manager to understand conditions of those market and analyse the information which could be different from Indian markets. This would involve operations in foreign markets it would be subject to exchange rate fluctuation risk besides the market risks of those markets.
11. Trading in debt and equity derivatives involves certain specific risks like :

1. Credit Risk: This is the risk on default by the counter party. This is usually to the extent of difference between actual position and contracted position. This risk is eliminated where derivative transactions happen through clearing corporation.
2. Market Risk: Market movement may also adversely affect the pricing and settlement of derivative trades like cash trades.
3. Illiquidity Risk: The market risk as a derivative may not be sold or purchased at a fair price due to lack of liquidity in the market.
4. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability to predict the future market movement and in the event of incorrect prediction, if any, performance of the fund could be lower.
5. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not for the notional principal amount.
6. Participating in derivatives is a highly specialised activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing the overall market in these segments could be highly speculative due to action of other participants in the market.

1. This is a debt oriented income scheme. The scheme aims at distributing income, if any, periodically.
2. Minimum and Maximum asset allocation :

1. Debt (Government Securities and Money Market instruments including Corporate rated debts) -Minimum 90%, Maximum 100%
2. Equity/Equity Related Instruments -Minimum Nil Maximum 10%

To minimise the credit risk in debt instruments , investment would be made only in investment grade papers of which at least 90% would be in AA and above rated papers.

3. Investment in Money Market Instruments:

(i) While no fixed allocation will normally be made for investment in money market instruments like Call Deposits, Commercial Papers, Treasury Bills etc. the same may be kept to the minimum generally to meet the liquidity needs of the plan.

(ii) Pending deployment of funds of the scheme in securities in accordance with the investment objectives as stated above, UTI may invest the funds of the scheme in short term deposits of scheduled commercial banks.

(iii) UTI retains the option to alter the asset allocation for a short term period on defensive considerations.

"Fundamental attributes" in the context of the scheme will be

1. Type of Scheme: UTI- Regular Income Scheme (UTI-RIS) is an open end debt oriented

Income scheme.

(d) No change in the fundamental attributes of the scheme will be carried out unless:

1. the existing unitholders are intimated by individual communication,
2. an advertisement is given in English daily newspaper having nationwide circulation and in a Marathi newspaper, and
3. the members are given an option to exit at prevailing NAV without any exit load.

(e) The Board may from time to time add to or otherwise amend the scheme and any amendment /addition thereof will be notified in the Official Gazette as required in terms of section 21(4) of the Act.

(f) Any change/amendment/modification of the fundamental attributes of the scheme will be made with the prior approval of the SEBI. In respect of other changes/amendments/modifications not being of fundamental nature and not affecting the interest of the member adversely, SEBI will be kept informed.

1. The scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorised to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAV of scheme with the prior approval of the Board of Trustees. Provided that such limit shall not be applicable for investments in government securities and money market instruments.
2. The scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees.

Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

3. No term loans will be advanced by this scheme.
4. UTI shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction or engage in badla finance.
5. To enter into derivatives transactions on a recognised stock exchange for the purpose of hedging and re-balancing the portfolio as may be permissible under guidelines issued by SEBI.
6. UTI shall, get the securities purchased by it transferred in its name.
7. (i) The scheme will participate in the securities lending programme, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediary.

(ii) The maximum exposure of the scheme to a single intermediary in the securities lending programme at any point of time would be 10% of the market value of the security class of the scheme or such limit as may be specified by SEBI.

(iii) If mutual funds and UTI are permitted to borrow stocks the scheme may in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

8. The scheme may invest in securities issued by overseas/foreign companies and listed abroad or securities issued by Indian Corporates to foreign/overseas investors and listed on foreign stock exchanges directly by subscribing to such issues or purchasing them on the foreign stock exchanges in accordance with the SEBI/RBI guidelines issued in that regard from time to time.
9. The scheme shall not make any investment in any unlisted security of an associate or group company of UTI; or any security issued by way of private placement by an associate or group company of UTI; or the listed securities of group companies of UTI which is in excess of 25% of the net assets.
10. Investment in non-publicly offered debt: Depending upon the available yields the scheme would be investing in non-publicly offered debt securities.
11. Based upon the liquidity needs, the scheme may invest in Government of India/State Government Securities without any restriction on the extent to which such investment can be made.
12. The scheme shall invest not more than 10% of its NAV in the equity shares or equity related instruments of any company.
13. The aggregate value of "illiquid securities" of scheme, which are defined as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.
14. Procedure followed at UTI for taking investment decisions:

The investments both in debt and equity are acquired through secondary market as well as by direct subscription to the issues. UTI Board lays down broad norms for investment. All primary investment proposals after thorough scrutiny in accordance with these norms by the Dealing Department are sent to the fund managers, who make their recommendations based on the investment objective and availability of funds of/under the schemes. For secondary market investments, day to day deliberations take place among the fund managers, research analysts and dealers. The recommendations of the fund managers are then discussed at the level of Executive Director and in appropriate cases with the Chairman before they are executed.

All investments, whether primary or secondary markets, are reported to the Executive Committee/Board of Trustees for ratification. The performances of the schemes are placed before the concerned Asset Management Committee (AMC) periodically for performance evaluation. There are three AMCs – one each for US 64, equity schemes and debt and other schemes.

i. The scheme may use hedging techniques including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

ii. The scheme intends to use derivatives mainly for the purpose of hedging and/or rebalancing of the portfolio against any anticipated move in the equity and debt markets. A hedge is primarily designed to offset a loss on a portfolio with a gain in the hedge position.

iii. The investment manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market. One of the strategies could be to use index futures with a view to increasing/ decreasing the overall level of investment in equities.

iv The Fund Manager may sell the Index Forward by taking a short position in Index Futures. to save on the cost of outflow of funds or in the event of negative view on the market,.

v. As per the current norms laid down by the Board of Trustees of UTI, the value of derivative contracts outstanding at any point of time will be limited to 20% of the net assets of the scheme. The Board of Trustees may, in future, revise the limits within the SEBI (MFs) Regulations in keeping with the investment objectives of the scheme.

Consider a portfolio of the size of Rs. 100 crore having the following asset composition:

Equity -Rs. 90 crore

Cash -Rs. 10 crore

Beta of Portfolio -1.1

If at any time, the investment manager is not optimistic on the market and/or expects it to decline, he/she may, with a view to protecting the portfolio from such decline, decide to sell index futures. In this case, the ideal value of futures contracts to be sold so as to achieve a perfect hedge would be 1.1(90) equal to Rs.99 crore. Supposing that the index futures at that time are selling at 4300 level. The number of contracts to be purchased by the investment manager (assuming a lot size of 50 per contract - Rs.99 crore/ 4300 x50) will be 4600 (rounded off). At a later date, assuming that the market declines by 10% and the index future price falls to 3900 and the investment manager decides to close out the position. While, due to a 10% fall in the market, the value of the stock portfolio would have declined by 11% i.e. by Rs. 9.9 crore, the net gain arising from futures position will work out to Rs. 9.2 crore arrived at as under:

(Sale price per contract: 50(4300)

Covered Price per contract = 50 (3900)

Profit per contract = 50(400) = 20000

Total Profit = 4600 (20000) = Rs. 9.2 crore

Thus that will reduce the net loss on the hedged portfolio to just Rs. 0.7 (i.e. Rs.9.9 - Rs.9.2) crore as against the expected loss of Rs. 9.9 crore had the portfolio having remained unhedged. The cost which the scheme will have to bear will be the opportunity cost which will be the interest, on the margin money amount in this case Rs. 9.9 crore (assuming the margin specified by the Exchange is 10% of the value of the futures contract) and the brokerage.

(p)Exposure Limits followed are as under:

i) As per the Regulations, the total exposure in any security of a company by the scheme should will not exceed 5% of the scheme corpus(book value). As per Regulations those debentures which are secured by underlying assets from the definition of securities issued by a company, will be excluded provided their asset cover is 1.5 times or more and the dividend declared by the company is more than 6%.

ii) Amount invested in debt of any company shall not exceed 20% of the investible funds of any scheme.

iii) The total investment made by any scheme in the securities of a company shall not exceed 15% of the outstanding securities issued by the company. That will exclude the investment made through rights issue.

iv) Total debt investment in a single company shall not exceed 5% of UTI’s total investible funds. Total investment in a single NBFC shall not exceed Rs 100 crores.

v) Also, total investment in a single industry shall not exceed 10% of the UTI’s investible funds.

i) Debt instruments are basically obligations undertaken by the issuer of the instrument as regards certain future cash flows representing interest and principal, which the issuer would pay to the legal owner of the instrument. Debt market is a platform for the investors to transact in debt market instruments. At present there is only one secondary market for debts i.e. the Wholesale Debt Market of NSE.

ii) The basic features of the debt market instrument are as follows:

• Fixed maturity
• Pre-determined rate of interest (coupon)
• Pre determined redemption value
• Rights of bond holders different from that of shareholders
• Privilege in recovery
• Secured Investment
• Debenture Trustees
• Credit quality of the instrument

iii) The various elements of the debt market are:

• Instruments
• Issuers - entities which issue these instruments.
• Investors - entities which invest in debt instruments or trade in these instruments.
• Interventionists or Regulators - the regulators and the regulations governing the market.
• Intermediaries - merchant bankers and brokers who link the issuers/ sellers and investors.

(iv) Currently, the instruments available and the likely yields in this segment are:

1. This scheme shall be called the UTI- Regular Income Scheme (UTI-RIS).
2. The scheme is an open-end debt oriented income scheme.
3. The face value of each unit issued under the scheme shall be Rs.10/- and units will be issued in fractions upto three decimal places.
4. Re-investment option: Re-investment of income distribution, if any, at NAV or such other price as may be decided by UTI from time to time.

An application for units may be made by any resident or non-resident Indian as well as non-individuals as indicated below:

1. a resident individual or a NRI or person of Indian origin residing abroad either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court,
2. a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. An application cannot be made by an adult and minor jointly,
3. a Hindu Undivided Family both resident and non-resident,
4. an individual for the benefit of another individual who is a mentally handicapped person,
5. a body corporate including a company formed under the Companies Act, 1956 or established under State or Central Law for the time being in force,
6. a bank including a scheduled bank, a regional rural bank, a co-operative bank etc,
7. an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing,
8. a society as defined under the scheme,
9. a Financial Institution,
10. an Army/Navy/Air Force/Paramilitary Fund,
11. a partnership firm,

(An application by a partnership firm shall be made by not more than three members of the firm and the first named person shall be recognised by UTI for all practical purposes as the member. The first named person in the application form should either be authorised by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)

12. OCB.

Application shall be made for a minimum sum of Rs.10, 000/- or such other amount as may be decided by UTI from time to time. However, Income Distribution, if any, to the members who have invested less that Rs 30000/- shall be compulsorily re-invested.

Under a folio after the minimum amount of initial investment the subsequent minimum investment should be Rs 1000 and in multiples thereof.

(c) In case of investment of Rs.50, 000/- and above, the resident or a NRI investing out of non-resident ordinary account is advised to furnish Income Tax P.A.N./G.I.R. number and I.T. Circle address in case he/she is having so. The P.A.N/G.I.R number if alloted at a later date may be informed to UTI.

7. Bank account particulars of applicant / member & Electronic Clearing Service (ECS):

1. In order to avoid fraudulent encashment of Income Distribution Warrants/repurchase/ maturity proceeds cheques, SEBI has made it mandatory for members, to furnish their bank account particulars i.e. nature of account, account number and name and address of the bank branch. The members are also required to furnish the 9 digit bank and branch MICR code number in the application for payment to bank account of the member through ECS as indicated under (b) below. Those of the applicants/members who authorise payment of income / repurchase proceeds to their relatives in India will be required to furnish the bank account particulars together with MICR code number of such resident relative.
2. Income/ repurchase proceeds will be directly sent for credit to the member's account through ECS where such facility is currently available and other centres as and when such facility is made available at those centres. If, however, the number of members at any centre are not found sufficient or for any other reasons it is found inconvenient to pay through ECS, UTI may decide to effect the payment by an alternate mode like credit to bank account or by issue of cheque/draft as may be decided from time to time. Currently, direct credit, if any, through ECS to the member’s bank account is made only if the amount of any single instrument does not exceed Rs.5, 00,000/-.
3. The cheques/ drafts/IDWs as mentioned above at (b) will carry the details of the bank particulars as given by the member. While all due care will be taken by UTI while mailing the cheques/ drafts/ IDWs, it is clarified that any non-delivery by the postal department and/or wrongful encashment of the said cheques/ drafts/ IDWs so mailed UTI will not at all be liable thereafter.
4. ECS facility is also available to NRI members who have their own bank accounts in the centres where the facility is currently available or any such other centre as may be added in future.

1. For each sale and partial repurchase UTI will issue a statement of account (SOA) indicating, among other particulars, the date of acceptance, amount of investment, number of units issued/ repurchased and the outstanding balance.
2. SOA will be a valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft such issue of units will be cancelled if the cheque/ draft is returned unpaid and treated having not issued.
3. UTI shall endeavour to send the SOA within 15 working days from the date of acceptance of an application but in any case, not later than 30 days therefrom.
4. The NRI applicant may choose to receive the SOA at his/her Indian/foreign address or at the address of his/her relative resident in India.
5. UTI shall send the SOA at the address mentioned in the application form and recorded with UTI and shall not incur any liability for loss, damage, mis-delivery or non-delivery of the SOA.
6. Every member will be given a folio number which will be appearing in SOA for his initial investment. Further investments in the same name(s) would be registered under the same folio.
7. In case the unit certificate or SOA is mutilated/defaced/lost, UTI may issue a duplicate SOA on receipt of a request to that effect from the member on a plain paper or in the manner as may be prescribed from time to time.
8. If a member desires to have a unit certificate in lieu of SOA the same would be issued to him within 30 days from the date of receipt of such request.

UTI may also permit the members to switchover their investment partially or fully to any other scheme/s of UTI or vice versa as may be allowed by from time to time on such terms as may be announced. In case of partial switchover from one scheme to the other scheme/s, the condition of holding minimum investment prescribed under both the scheme has to be satisfied.

The sale and repurchase of units shall remain open throughout the year except during book closure period/s not exceeding 15 days in a year. Besides, record date/s may be announced for periodical distribution of income.

The Executive Committee of the Board of Trustees of the UTI / Chairman may suspend the sale and repurchase of units under the funds at any time in circumstances like war, disruption of trading in Stock Exchanges and other socio-economic factors after giving 3 days notice in newspapers or in such other manner as may be decided by UTI.

1. The price at which a unit will be sold by the UTI is hereinafter referred to as "Sale Price".
2. The contract for sale of units by UTI shall be deemed to have been concluded on the date of acceptance except in case application is rejected by UTI under clause VII(4) below.
3. Units will be sold at face value during the initial offer period from ________ to ________. It will re-open within a period not more than 30 days from close of initial offer period. Thereafter, the sale of units will be at a price not more than 102% of the NAV as at the close of the day on which an application is accepted.
4. The sale and repurhcase price will not be more /less than 7% of NAV.
5. The difference between the repurchase price and the sale price of the unit shall not exceed 7% calculated on the sale price or as per the limit prescribed by SEBI from time to time.
6. In respect of all applications for sale/repurchase received and accepted at UTI branch / UFCs/Registrar’s office/authorised collection centres with CMS by 2 p.m. or such other time as may be prescribed by UTI from time to time on a particular day the applicable NAV will be that of the same day. All applications received and accepted after 2 p.m. or such other time as may be prescribed by UTI from time to time, will be governed by the NAV of the next working day at Mumbai. Accordingly, the application received after 2.00 p.m. or such other time as may be prescribed on any working Friday and the applications received on Saturdays and Sundays will be at the NAV applicable for the following Monday. If the following Monday happens to be a holiday in Mumbai, then the NAV applicable for the next working day in Mumbai will be applicable.
7. For applications tendered at the authorised collection centres without CMS or such other authorised collection centres as may be prescribed by UTI from time to time the applicable NAV will be that which is applicable for the date on which such application is received at the Registrars’ office, but not beyond the 5th working day (T+5) from the date of receipt(T) of the application at these centres.
8. Non-individual applications alongwith required documents may be accepted only at UTI offices or as may be decided from time to time.

1. The payment for units by a resident applicant has to be made either by a cheque or draft or in cash to the extent of amount permissible under Income Tax Act or by RBI.
2. Cheques / drafts should be drawn on a branch of the bank situated in the city / area of the UTI office/ authorised collection centre where the application is tendered / submitted.
3. The bank draft charges, if any, will have to be borne by the applicant. However, UTI may, if it so decides, bear draft charges to the extent of Rs.25/- or such amount as may be decided. The draft commission charges will form part of the recurring expenses of the plan. However, in case of applications received along with local bank draft where the Trust has its branch office/CR or CA collection centre/franchise office/agency bank/ any other authorised centre, bank draft commission will have to be borne by the investors. Where payment is made by a bank draft, by a non-individual applicant the entire commission charges for purchasing a draft will have to be borne by the applicant.

(a) Mode of Payment

1. By a rupee draft issued by a bank/exchange house abroad on its Indian correspondent bank.
2. By a rupee cheque/draft issued out of NRE deposits of the applicant or purchased out of the FCNR proceeds.
3. By a rupee cheque/draft issued out of NRO deposits of the applicant or out of the proceeds of the NRNR/NRSR deposits.
4. Nepalese and Bhutanese currencies and cash are not accepted.

(b) Submission of NRI / OCB applications

1. At the NRI branch at Mumbai or Dubai Representative Office of UTI or any other place/s as may be announced by UTI from time to time.
2. At any of the offices of UTI/UFC/Franchise office or any other authorised collection centre provided applications are accompanied by a cheque drawn on an NRE / NRO account or by a Rupee draft payable at the place where the application is submitted.

4. Right of UTI to accept or reject applications :

1. UTI shall have the right to accept and/or to reject at its sole discretion, an application for issue of units under the scheme. An application for issue of units is liable for being rejected under the following circumstances:

1. If an application is received with amount less than the minimum prescribed amount of investment;
2. If the application has not been signed by the first applicant;
3. If the application is found to be incomplete in any respect.
4. If the bank account particulars are not furnished.
5. If the applicant is not eligible to invest in the scheme.

1. Any decision of UTI about the eligibility or otherwise of a person to make an application under the scheme shall be final and binding on the applicant.
2. Refund of application money in a rejected case will be made without UTI incurring any liability whatsoever, for interest or any other sum(s) and, at the cost of the applicant after the requisite operational and other procedural formalities, as prescribed from time to time are complied with.

5. Requirement for admission into the scheme:

1. An adult, being a parent, step-parent or other lawful guardian of a minor may hold units and deal with them in accordance with and to the extent provided, in sub-section (2A) of Section 21 of the Act. Such adult if so required shall furnish to UTI, in such manner as may be specified, proof of the age of the minor and his capacity to hold and deal with units on behalf of the minor. UTI shall be entitled to act on the statements made by such adult in the application form without any further proof.
2. Where an application is made by an individual for the benefit of another individual who is a mentally handicapped person, UTI shall act on the statements furnished and in doing so UTI shall be deemed to be acting in good faith.
3. Persons applying for units under the scheme on behalf of a minor/mentally handicapped person shall satisfy UTI about their eligibility to make an application and comply with all requirements as laid down by UTI such as submission of the birth certificate in case of minor or oculist or Psychiatrist Certificate in case of mentally handicapped.
4. UTI shall be entitled to deal only with the applicant and in the event of his death, the alternate applicant for all practical purposes and any payment in respect of the units by UTI to the said applicant or the alternate applicant shall be a good discharge to UTI.
5. Applications for units on behalf of bodies like Partnership Firms/Societies including Co-operative Societies/Bodies Corporate/Companies shall be accompanied by certified copy of Partnership Deed/Bye-Laws of the Society/Statute governing the Body Corporate/Memorandum and Articles of Association of the Company (if the same is already registered with any of the offices of UTI it is sufficient to quote the document registration number) together with Resolution of the governing Body authorising investment in the scheme/ declaration duly signed by all the partners that the partnership deed authorises investments in the units of UTI. Names of officials with their designation authorised to sign the application form and attested specimen signatures of the authorised officials should also be submitted.
6. At the time of repurchase of units, resolution of the governing body authorising repurchase and authorisation of the concerned official(s) of the Body to comply with the formalities and collect the repurchase cheque will have to be submitted.
7. A firm shall be registered as a member and the SOA/unit certificate shall be made in the name of the firm. In the event of any change in the constitution of the partnership firm, the same should be duly intimated to UTI along with the public notice, if any, issued in this regard at least within a month from the date of such change in the constitution of the firm.
8. OCB applicants are required to furnish a certificate about their ownership in form OAC or OAC-1 as may be applicable, duly certified by a Chartered Accountant / Public Accountant.
9. An individual applying for units in his official capacity shall be issued units in his official name.

6. Units held under false declaration:

1. Members who come to hold units under a false declaration /certificate shall be liable for having the unitholding cancelled and have their names deleted from the register of members.
2. In such cases UTI shall have the right to repurchase the outstanding unit holding at par or at NAV, whichever is lower, and deduct therefrom a sum equal to 25% of the repurchase price towards penalty.
3. UTI will also recover the amount of income distribution, if any, wrongly paid to such persons from out of the repurchase proceeds.
4. The amount payable to the member shall not carry any interest or any other sum irrespective of the period it might take to effect the repurchase and to pay the repurchase proceeds.

1. Nomination facility is available to individuals applying on their own behalf i.e. singly or jointly upto two.
2. Only one person, resident or NRI, including minors, can be nominated.
3. Nomination of an NRI is subject to requirements, if any, prescribed by RBI from time to time.
4. Nomination can be changed at any time during the currency of the investment.
5. Member being either parent or lawful guardian on behalf of a minor and an eligible institution, societies, bodies corporate, HUF, AoPs, BoIs, partnership firms and an applicant who has applied for units for the benefit of a mentally handicapped person shall have no right to make any nomination.
6. The facility of statutory nomination is available to a member under Section 39A of the Act.
7. Other provision will be to the extent provided in the Regulations.
8. Where a nomination in respect of any unit has been made in accordance with the Regulations, the units shall, on the death of the member(s), vest in the nominee and on compliance of necessary formalities the nominee shall be issued a SOA in respect of the units so vested subject to any charge or encumbrance over the said units.
9. Transmission made by UTI as aforesaid, shall be a full discharge to UTI from all liability in respect of the said units.

(a) The total initial issue expenses of the scheme would be within the limit of 6% of the funds collected. Thus for every Rupee invested in the scheme , not less than 94 paisae will be invested by the scheme . The estimated initial issue expenses are as under :

(b) Initial issue expenses (provisional) for the schemes launched by UTI during the financial year 2000-2001 were as follows:

(c) The initial issue expenses of UTI Mahila Unit Scheme to the extent of 24.45% of the funds collected (provisional) were borne by UTI by charge to DRF.

2. Recurring expenses:

1. The following estimated expenses incurred under the respective heads will be charged to the scheme on a recurring basis. The estimate is subject to change inter se as per actual expenses incurred during any year.

(b) The total annual recurring expenses of the scheme including administrative expenses, contribution to Development Reserve Fund (DRF) and Staff Welfare Fund (SWF) shall be subject to the following limits:

(c) Administrative expenses, contribution to DRF and contribution to SWF will not exceed the limits specified under clause 2 of regulation 52 of SEBI (MFs) Regulations, 1996, namely:

(d) While UTI does not charge any investment management and advisory fees as permissible under the SEBI (MFs) Regulations, it will ensure that the annual recurring expenses shall remain within the limits specified under regulation 52 of SEBI (MFs) Regulations.

1. A sum equal to 0.25% p.a. of the daily average Net Asset Value shall be set aside as contribution towards the Development Reserve Fund (DRF) of UTI . DRF contribution will be part of the recurring expenses.

1. UTI instituted DRF in the year 1983-84 as a common fund to enable UTI to meet the expenditure in respect of research & developmental work in connection with the introduction of new schemes, innovation of new systems and procedures at the conceptual stage and also various other productional & developmental work not related to or linked with any particular scheme itself. The Fund is also utilised for Economic and Capital Market Research, Management & Professional Training, Surveys and Market Research for UTI, Marketing and Corporate image building efforts that are not connected to any specific scheme, Human Resource Development efforts with long term effects and which may relate to UTI 's future activities and for meeting the shortfall, if any, in the assured rate of return of any of the schemes of UTI as well as the issue expenses for no-load schemes.

A sum equal to 0.10% p.a. of daily average Net Asset Value under the scheme shall be set aside as contribution to the SWF. UTI has instituted the SWF for the welfare of its employees which shall include relief in distress, medical relief, health relief or for similar other purposes.

9. TRANSFER/PLEDGE/ASSIGNMENT OF UNITS

1. Units issued under UTI-Regular Income Scheme(UTI-RIS) are not transferable/pledgeable/assignable.
2. However, if a person becomes a holder of units under the scheme by operation of law or due to death, insolvency or winding up of the affairs of member or survivors of a joint holder then subject to production of such evidence which in the opinion of UTI is sufficient, UTI may effect the transfer if the intended transferee is otherwise eligible to hold units. Transfer of units in such cases will be subject to compliance of operational requirements as may be specified by UTI from time to time.

1. Though it is the intention of the scheme to make regular income distribution, there may be instances when no income distribution could be made.
2. Income distribution, if any, under the scheme will be made subject to availability of distributable surplus and a decision is taken by UTI to make income distribution.
3. There is no assurance or guarantee to the members as to the rate of income distribution.
4. Income distribution, if any, will be made every month or at such intervals as may be decided by UTI from time to time.
5. Such of the members whose names appear in the register of members as at the record date fixed for each income distribution shall be entitled to receive the income so distributed.
6. Income distribution will be made through ECS where available and at other places by issue of an income distribution warrant.
7. Income distribution warrant, when issued, shall have validity for a period of three months.
8. Despatch of the income distribution warrants or credit through ECS shall be made not later than 30 days from the date of each distribution/ or within such number of days as may be prescribed by SEBI. UTI shall not be bound to pay interest in the event of any of the warrant reaching the members after the expiry of its validity period or in the event of that becoming stale.
9. If income distribution amount is for an amount less than Rs. 100 (rupees one hundred only), the same may be carried forward and distributed alongwith subsequent income distribution when the total of such amount exceeds Rs. 100.

(j) Income Distribution to NRI/OCB members :

Payment of income distribution to NRI/OCB members will be made in the manner indicated under clause XIII(9) subject to compliance with the requirements prescribed by RBI from time to time.

1. UTI may utilize any sums from reserves, unit premium or any such reserves including the amount of distributable surpluses of the scheme to the extent of such amounts attributable to members under each plan for issue of Bonus units.
2. Bonus units may be issued under the scheme, as may be decided by UTI from time to time.
3. Bonus units, when issued, will be in proportion to the unit holding of the member under the concerned plan as on the record date to be fixed for that purpose.
4. UTI may accordingly make appropriations and applications of the sum decided by it to be so capitalised by allotment and issue of fully paid-up units as bonus units, and generally do all acts and things required to give effect thereto.
5. The bonus units so allotted and issued as aforesaid will as regards rights and entitlements rank pari passu with the units in existence on the record date in respect of which they are allotted and issued to all intents and purposes.
6. Interest created / options exercised by a member on the units under a folio by way of nomination, if any, will automatically apply to the bonus units, subject to the member opting otherwise.

1. Members , if they so desire, will have facility to reinvest the income payable to them, into further units of the scheme. However, Income Distribution, if any, to the members who have invested less that Rs. 30000/- shall be compulsorily re-invested.
2. On exercising of such an option the full amount of such income payable to any member, after deduction of tax, if any, shall be reinvested into further units of the scheme at ex-dividend NAV based price.
3. The reinvestment, if any, shall be treated as constructive payment of income to the members as also constructive receipt of payment of the amount by the members.
4. Applicants desiring to opt for the Reinvestment facility at the time of joining the scheme may indicate the same on the application.
5. The members can also join the Reinvestment option at a later date by writing on a plain paper or by filling up the prescribed composite service form or in such other manner as may be prescribed from time to time.
6. UTI may permit changeover from Payout Option to Re-investment option or vice versa at such periodicity and on such terms as may be decided from time to time.

(a) In the event of the death of the unit holder/member, the joint holder(s)/nominee/legal representative of the member may, if he is otherwise eligible for joining the scheme as member, be permitted to hold the units and become a member. In that event a fresh SOA will be issued in his name in respect of units so desired to be held by him subject to his complying with the condition of minimum holding and the required procedure as may be prescribed by UTI from time to time.

(b) If the joint holder/nominee/ legal representative of the member is not eligible to join the scheme or he though eligible, opts for repurchase and also in cases where no nomination has been made, the claimant (i.e. joint holder/nominee/legal representative of the member, as the case may be) on surrender of the latest SOA or any such other document, as may be prescribed from time to time, issued to the deceased member and on due compliance with the procedural requirements, as may be prescribed by UTI for recognition of such claims, he shall be paid repurchase proceeds of the units outstanding to the credit of the deceased member as on the date of such acceptance.

1. UTI-RIS is an open-end scheme. UTI may, however, wind up the scheme under the following circumstances:

1. on the happening of any event which in the opinion of UTI requires the scheme to be wound up; or
2. if 75% of the members of the scheme pass a resolution to the effect that the scheme be wound up; or
3. if the SEBI so directs in the interest of the members of the scheme; or
4. if the outstanding unit holding falls below a limit to be decided by UTI.

2. Where the scheme is wound up in pursuance of sub clause (1) above, UTI shall give notice of the circumstances leading to the winding up of the scheme to SEBI and also in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating in Mumbai at least a week before the termination is effected.
3. On and from the date of advertisement indicating the termination, UTI shall cease to carry on any business activities in respect of the scheme and cease to issue, redeem and cancel units in the scheme.
4. The Board of Trustees of UTI shall call a meeting of the members of the scheme to consider and pass necessary resolution by simple majority of the members present and voting at the meeting for authorising the Trustees or any other person to take steps for winding up of the scheme.
5. The Board of Trustees or the person authorised under sub clause (4) shall dispose of the assets of the scheme in the best interest of the members of the scheme.
6. The proceeds of sale made in pursuance of sub clause (5) above, shall, in the first instance be utilised towards discharge of such liabilities as are properly due under the scheme and after making appropriate provision for meeting the expenses connected with such winding up.
7. The balance shall be paid to the members of the scheme in proportion to their respective interest in the assets of the scheme as on the date when the decision for winding up was taken.
8. UTI shall pay the repurchase value, as early as possible but not later than 10 working days after the date of duly discharged unit certificate / SOA alongwith the repurchase request or any other type of document as may be prescribed from time to time, duly discharged has been received by it at the processing centre and/or other procedural and operational formalities are complied with. The SOA, the repurchase request and other forms, if any, shall be retained by UTI for cancellation. UTI may at its discretion dispense with the requirement of calling back the unit certificate/ SOA.
9. Currently repurchase / terminal proceeds can be paid to NRI members in the manner indicated below:

1. Where units had been purchased by the member himself while he was a resident in India or out of funds held in his NRO Account or out of proceeds from his NRSR/ NRNR deposits, the proceeds can be sent to his bankers in India in rupees for credit to his NRO account or paid to his relative resident in India.
2. If the investment had been made by the member out of funds in his NRE account or from proceeds of FCNR deposits or by rupee draft purchased from a bank / exchange house operating abroad or received as gift from another NRI out of the donor’s NRE /FCNR account or by rupee draft purchased by him /her from a bank abroad, the repurchase proceeds could be credited to his NRE / NRO account provided he/she continues to be an NRI at the time of repurchase or paid to his/her relative resident in India.
3. In other cases payment will be made in rupees for credit to his NRO a/c or to his relative resident in India.

2. On completion of the winding up, UTI shall forward to the SEBI and the members of the scheme a report on the winding up containing particulars such as circumstances leading to the winding up, the steps taken for disposal of assets of the scheme before winding up, expenses of the scheme for winding up, net assets available for distribution to the members and a certificate from the auditors of the scheme.

 

3. Notwithstanding anything contained hereinabove, the applicability of the provisions of SEBI (MFs) Regulations, 1996 in respect of disclosures of half yearly reports and annual report shall continue until winding up is completed or the scheme ceases to exist.
4. After the receipt of the report referred to in item (10) above, if the SEBI is satisfied that all measures for winding up of the scheme have been completed, the scheme shall cease to exist.

(a) such transfers are on spot basis and are at the prevailing market price for quoted instruments.

Explanation : "spot basis" shall have the same meaning as specified by the stock exchanges for spot transactions.

(b) the securities so transferred are in conformity with the investment objective of the scheme/s/ plan/s to which such transfers are made; and

(c) UTI shall not transfer illiquid securities from/to the plan to /from other scheme/s/plan/s of UTI. Illiquid securities are defined as non traded, thinly traded and unlisted equity shares.

1. As advised by SEBI, purchase and sale of securities for the scheme through UTI Securities Exchange Ltd. during any block of three months shall not exceed 5% of aggregate purchase and sale of securities made by the respective scheme.

2. The scheme shall not borrow except to meet temporary liquidity needs of the scheme for the purpose of repurchase, redemption of units or payment of interest or income to the members.

1. UTI may borrow, whether in India or outside India from any authority or person, not being Government or the Reserve Bank, against such security and on such terms and conditions as may be agreed upon.
2. UTI may borrow money from the Reserve Bank-

1. repayable on demand or on the expiry of a fixed period not exceeding ninety days from the date on which the money is so borrowed, against stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India;
2. repayable on demand or within a period of eighteen months from the date on which the money is so borrowed, against the security of the bonds which UTI may issue with the approval of the Central Government;
3. on such terms and conditions and against the security of such other property of UTI as may be specified in this behalf by the Reserve Bank for the purposes of any scheme other than the first unit scheme:

1. five crore of rupees in respect of each such scheme; and
2. ten crore of rupees in respect of all such scheme in the aggregate.

1. The bonds issued by UTI under sub-section (ii) of section 20 shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central Government at the time the bonds are issued.

1. The Net Asset Value (NAV) of the scheme shall be calculated by determining the value of the scheme's assets and subtracting therefrom the liabilities of the scheme taking into consideration the accruals and provisions.
2. The NAV per unit shall be calculated by dividing the NAV of the scheme by the total number of units issued and outstanding under the scheme on the date of calculation.
3. The NAV shall be issued to the press for publication daily and will also be available on website of UTI.
4. If on any valuation day the stock exchanges are closed due to public holiday or it is not a working day in Mumbai, the prices of the previous working day shall be taken for the purpose of NAV calculations.

1. Valuation of assets

1. Traded investments, except government securities, are valued at the closing market rates on the valuation date and in its absence, the latest available quote within a period of thirty days prior to the valuation date. If no quotes are available for a period of thirty days prior to the valuation date, the same is treated as non-traded investment. When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.) in a month is both less than Rs. Five lacs and the total volume is less than fifty thousand shares, it is considered as thinly traded security and valued as per norms set down for non traded equity shares. For example, if the volume of trade is one lac and value is Rs. Four Lacs , the share does not qualify as thinly traded. Also if the volume traded is forty thousand, but the value of trades is Rs. six lacs, the share does not qualify as thinly traded. A debt security (other than Government Securities) that has a trading volume of less than Rs. fi