Month: January 2023

Non Convertible Debentures ( NCD ) : Meaning, Features and more Non-convertible debentures (NCD) are fixed-income instruments, usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. They offer relatively higher interest rates when compared to convertible debentures. What are Non Convertible Debentures (NCDs) Non-convertible debentures fall under the debt category. They cannot be converted into equity or stocks. NCDs have a fixed maturity date and the interest can be paid along with the principal amount either monthly, quarterly, or annually depending on the fixed tenure specified.

PROCEDURE FOR TRANSMISSION OF UNITS ON DEATH OF A UNITHOLDER Transmission of Units is a process whereby units held by a deceased unitholder are transferred either to the nominee or to the legal heirs of the deceased unitholder as the case may be. The detailed guidelines for Transmission of Units under various situations / scenarios and the forms/formats and supporting documents to be submitted by the claimants under each scenario is provided below. 1. DELETION OF NAMES OF THE DECEASED UNIT HOLDERS IN CASE OF DEATH OF 2ND AND/OR 3RD HOLDER : i. Request Form (Form T1) from surviving unitholder(s)

PROCEDURE FOR CHANGE OF BANK ACCOUNT AND DOCUMENTS REQUIRED BANK ACCOUNT IS MANDATORY FOR MUTUAL FUND INVESTMENT As per SEBI Mutual Fund Regulations, it is mandatory for mutual fund investors to provide their bank account details in their application for purchase of Units in the specified section, without which the application is liable to be rejected. Application for purchase of Units typically consists of space to provide details of one bank account (due to limited space), wherein the details of the bank account of the applicant (first applicant in case of multiple applicants) must be provided.

INVESTOR SERVICE FAQS WHAT IS A FOLIO NUMBER? Much like a bank account number, a Folio number is your Account Number in a Mutual Fund Scheme, under which yours Unit holdings in a mutual fund scheme are recorded in the Unit Holders’ Register. Most Mutual Funds allot a Master Folio number, so that Unit holdings of a unit holder (or same set of unit holders, in case of joint holders) are shown under a common folio number thereby avoiding the need to remember multiple folio numbers. WHAT IS AN ACCOUNT STATEMENT? As the name suggests, it is a statement that

TRACK YOUR MF INVESTMENTS USING FUND FACT SHEET. TRACK YOUR MF INVESTMENTS USING FUND FACT SHEET. It’s easy to get lost (and confused) with information overload about mutual funds that is freely available in the Internet, especially for new investors who simply may not know where to start. Many investors choose to passively trust their funds to a financial advisor. While advisors are useful and often irreplaceable partners in your financial journey, it is preferable that investors have at least a modicum of knowledge about their own investments — and that doesn’t necessarily involve poring over massive and mind-boggling spread-sheets.

NOMINATION NOMINATION FACILITY Nomination is a facility that enables an individual unitholder (including sole proprietor of sole proprietary concern) to nominate a person, who can claim the Units held by the unitholder or the redemption proceeds thereof in the event of death the unitholder. If the Units are held jointly by more than one person, all joint unit holders are required to together nominate a person in whom all the rights in the units would vest in the event of death of all the joint unit holders. As per Regulation 29 A of SEBI Mutual Funds Regulations, 1996, mutual funds

CONSOLIDATED ACCOUNT STATEMENT (CAS) WHAT IS A CONSOLIDATED ACCOUNT STATEMENT ? Consolidated Account Statement (CAS) is a single/combined account statement which shows the details of financial transactions made by an investor during a month across all Mutual Funds and also other securities held in dematerialised (Demat) mode. CAS is issued for those folios / accounts wherein a financial transaction has been made during a month and wherein unit holders are identical, identified by Income Tax Permanent Account (PAN). CAS is generated on a monthly basis in respect of the PANs common to the RTAs and the Depositories.

SYSTEMATIC INVESTMENT PLAN – SIPSebi Complaints Readdress System – Register Complaints OnlineSystematic Investment Plan (SIP) is an investment plan (methodology) offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund scheme periodically, at fixed intervals – say once a month, instead of making a lump-sum investment.

REDEMPTION OF UNITS – USING REDEMPTION FORM REDEMPTION OF UNITS – USING REDEMPTION FORM In order to redeem funds through offline mode, the unit holder needs to submit a duly signed Redemption Request form to the AMC’s or the Registrar’s designated office. In the redemption form one needs to fill in details like unit holder’s name, folio number, scheme name including the plan details, and number of units to redeemed (or the redemption amount desired). In addition, all the holders have to sign the Redemption form. The proceeds from the redemption will be credited to the registered bank account of

SECTION I – KYC AND UNIFORM KYC WHAT IS KYC? KYC is an acronym for “Know Your Customer” and is a term used for Customer Identification Process as a part of Account Opening process with any financial entity. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card) and address proof and In-Person Verification (IPV). KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002 and Rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations