iti arbitrage fund - iti mutual fund · 2019-08-09 · centres / website / distributors or brokers....

SCHEME INFORMATION DOCUMENT

New Fund Offer Opens on

August 20, 2019

New Fund Offer Closes on

September 03, 2019

Scheme reopens for continuous sale and repurchase from

September 12, 2019

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (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.

The 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 / Investor Service Centres / Website / Distributors or Brokers.

The investors / unitholders are advised to refer to the Statement of Additional Information (SAI) for details of ITI Mutual Fund, Tax and Legal issues and general information on www.itimf.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 Investor Service 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 August 05, 2019.

ITI ARBITRAGE FUND(An open ended scheme investing in arbitrage opportunities)

Offer of Units of v 10/- each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices

This product is suitable for investors who are seeking*:

• Togenerateincomebypredominantlyinvesting in arbitrage opportunities

• Investmentspredominantlyinarbitrageopportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments

* Investorsshouldconsulttheirfinancialadvisers if in doubt about whether the product is suitable for them.

Riskometer

Investors understand that their principal will be at moderately low risk

NAME AND ADDRESS OF MUTUAL FUNDITI Mutual FundNaman Midtown ‘A’ Wing 21st Floor, Senapati Bapat Marg Prabhadevi Mumbai 400 013

NAME AND ADDRESS OF ASSET MANAGEMENT COMpANyITI Asset Management LimitedRegisteredOffice:Naman Midtown ‘A’ Wing 21st Floor, Senapati Bapat Marg Prabhadevi Mumbai 400 013CIN:U67100MH2008PLC177677

NAME AND ADDRESS OF TRUSTEE COMpANyITI Mutual Fund Trustee private LimitedRegisteredOffice:Naman Midtown ‘A’ Wing 21st Floor, Senapati Bapat Marg Prabhadevi Mumbai 400 013CIN:U65999MH2016PTC287077

www.itimf.com

Toll Free Number: 1800-266-9603 | Non Toll Free Number: 022-6621 4999 | Email: [email protected]

| SCHEME INFORMATION DOCUMENT

ITI ArbITrAge Fund

TABLE OF CONTENTSPage Nos.

HIGHLIGHTS / SUMMARy OF THE SCHEME 3

I INTRODUCTION 5

A. RISK FACTORS 5

B. REQUIREMENTOFMINIMUMUNITHOLDERSINTHESCHEME 6

C. SPECIALCONSIDERATIONS,IFANY 7

D. DEFINITIONS 8

E. DUEDILIGENCEBYTHEASSETMANAGEMENTCOMPANY 11

II INFORMATION ABOUT THE SCHEME 12

A. TYPEOFTHESCHEME 12

B. INVESTMENT OBJECTIVE OF THE SCHEME 12

C. HOWWILLTHESCHEMEALLOCATEITSASSETS 12

D. WHEREWILLTHESCHEMEINVEST 13

E. INVESTMENTSTRATEGIES&APPROACH 18

F. INVESTMENTBYTHEAMCINTHESCHEME 21

G. FUNDAMENTALATTRIBUTES 21

H. HOWWILLTHESCHEMEBENCHMARKITSPERFORMANCE 21

I. WHOMANAGESTHESCHEME 21

J. WHAT ARE THE INVESTMENT RESTRICTIONS 23

K. HOW HAS THE SCHEME PERFORMED 25

L. ADDITIONALSCHEMERELATEDDISCLOSURE 25

III UNITS AND OFFER 26

A. NEW FUND OFFER 26

B. ONGOINGOFFERDETAILS 32

C. PERIODICDISCLOSURES 41

D. COMPUTATION OF NAV 44

IV FEES AND EXpENSES 45

A. NEW FUND OFFER (NFO) EXPENSES 45

B. ANNUALSCHEMERECURRINGEXPENSES 45

C. LOADSTRUCTURE 46

D. WAIVEROFLOADFORDIRECTAPPLICATIONS 47

E. TRANSACTIONCHARGES 47

V. RIGHTS OF UNITHOLDERS 48

VI. pENALTIES, pENDING LITIGATION OR pROCEEDINGS By ANy REGULATORy AUTHORITy

48

SCHEME INFORMATION DOCUMENT | page 3

ITI ArbITrAge Fund

HIGHLIGHTS / SUMMARy OF THE SCHEMEName of the Scheme ITI Arbitrage Fund

Type of Scheme An open ended scheme investing in Arbitrage opportunities

Category of Scheme Arbitrage Fund

Investment Objective The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.

However, there is no assurance that the investment objective of the scheme will be realized.

Liquidity The Scheme will offer Units for Subscription and Redemption at NAV based prices on all Business Days on an ongoing basis. The AMC shall dispatch the redemption proceeds within 10 Business Days from date of receipt of redemption request from the unitholder/ investor.

Benchmark NIFTY50ArbitrageIndex

The Fund reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Transparency / NAV Disclosure

TheAMCwillcalculateanddisclosethefirstNAVoftheSchemewithin5businessdaysfromthedateofallotment. Subsequently, the AMC will calculate and disclose the NAVs on all the Business Days. The AMC shall update the NAVs on its website (www.itimf.com) and on the Association of Mutual Funds in India - AMFI(www.amfiindia.com)before9.00p.m.oneveryBusinessDay.Incaseofanydelay,thereasonsforsuchdelaywouldbeexplainedtoAMFIinwriting.IftheNAVsarenotavailablebeforethecommencementofBusiness Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasonsandexplainingwhentheMutualFundwouldbeabletopublishtheNAV.

The AMC shall disclose portfolio of the Scheme along with ISIN as on the last day of each month / half year onitswebsiteviz.www.itimf.comandonthewebsiteofAMFIviz.www.amfiindia.comwithin10daysfromthe close of each month/ half-year respectively in a user-friendly and downloadable spreadsheet format. In case of Unitholders whose e-mail addresses are registered, the AMC shall send via e-mail both the monthly and half-yearly statement of the Scheme portfolio within 10 days from the close of each month/ half-year respectively. Further, the AMC shall publish an advertisement in all India edition of at least two daily newspapers, one each in English and Hindi, every half year disclosing the hosting of the half-yearly statement of the schemes’ portfolio(s) on the AMC’s website and on the website of AMFI.

The AMC shall provide a physical copy of the statement of the Scheme portfolio, without charging any cost, onspecificrequestreceivedfromaUnitholder.TheschemewiseannualreportshallbehostedonthewebsiteoftheAMC/MutualFund(www.itimf.com)andAMFI(www.amfiindia.com)notlaterthanfourmonths(orsuchotherperiodasmaybespecifiedbySEBIfromtimetotime)fromthedateofclosureoftherelevantaccounting year (i.e. 31st March each year). Further, the physical copy of the scheme wise annual report shallbemadeavailabletotheUnitholdersattheregistered/corporateofficeoftheAMCatalltimes.Incase of Unitholders whose e-mail addresses are registered with the Fund, the AMC shall e-mail the annual report or an abridged summary thereof to such Unitholders. The Unitholders whose e-mail addresses are notregisteredwiththeFundmaysubmitarequesttotheAMC/Registrar&TransferAgenttoupdatetheiremail ids or communicate their preference to continue receiving a physical copy of the scheme wise annual report or an abridged summary thereof. Unitholders may also request for a physical or electronic copy of the annual report / abridged summary, by writing to the AMC at [email protected] from their registered emailidsorcallingtheAMConthetollfreenumber1800-266-9603orbysubmittingawrittenrequestatany of the nearest investor service centers of the Fund. Further, the AMC shall publish an advertisement in all India edition of at least two daily newspapers, one each in English and Hindi, every year disclosing the hosting of the scheme wise annual report on its website and on the website of AMFI. The AMC shall provide aphysicalcopyoftheabridgedsummaryoftheannualreport,withoutcharginganycost,onspecificrequestreceived from a Unitholder.

Loads Entry Load – Not applicable

SEBIvideitscircularno.SEBI/IMD/CIRNo.4/168230/09datedJune30,2009hasdecidedthatthereshallbenoentryLoadforallMutualFundSchemes.Theupfrontcommissiononinvestmentmadebytheinvestor,if any, shall be paid to the ARN Holder (AMFI registered Distributor) directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN Holder.

*Exit Load:

• IftheUnitsareredeemed/switchedoutonorbefore30daysfromthedateofallotment–0.25%.

• IftheUnitsareredeemed/switchedoutafter30daysfromthedateofallotment–NIL.


ITI ArbITrAge Fund

Redemption /Switch-Out of Units would be done on First in First out Basis (FIFO).

*TheentireExitLoad,netofGoods&servicetax,shallbecreditedtotheScheme.

FormoredetailsonLoadStructure,refertotheparagraph‘LoadStructure’.

Minimum Application Amount

Rs.5,000andinmultiplesofRe.1/-thereafter

Minimum Additional purchase Amount

Rs. 1,000 and in multiples of Re. 1/- thereafter

Minimum Redemption Amount

Rs. 1,000 and in multiples of Re. 1/- or account balance whichever is lower.

There will be no minimum redemption criterion for Unit based redemption.

plans and Options under the Scheme

The Scheme shall offer two plans viz. Direct Plan and Regular Plan with a common portfolio and separate NAVs.

Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.

BothDirectandRegularPlan(s)offerstwoOptions,viz.,(i)GrowthOption;and(ii)DividendOption.

DividendOptionwillhave(i)DividendPayout;and(ii)DividendReinvestmentfacility.

The Investors should indicate the plan / option / sub-option / facility for which Subscription is made by indicatingthechoiceintheappropriateboxprovidedforthispurposeintheapplicationform.Incaseofvalidapplication received without any choice of option/ facility, the following default plan / option / sub-option /facilitywillbeconsidered:

Default plan

Investors subscribing under Direct Plan of the Scheme will have to indicate “Direct Plan” against the Scheme name in the application form. However, if distributor code is mentioned in application form, but “Direct Plan” is mentioned against the Scheme name, the distributor code will be ignored and the application will be processed under “Direct Plan”. Further, where application is received for regular Plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.

The below table summarizes the procedures which would be adopted by the AMC for applicability of Direct Plan/RegularPlan,whileprocessingapplicationform/transactionrequestunderdifferentscenarios:

Sr. No.

AMFI Registration Number (ARN) Code mentioned in the application form/

transaction request

plan as selected in the application form/ transaction request

Transaction shall be processed and Units shall

be allotted under

1. Not Mentioned Not Mentioned Direct Plan

2. Not Mentioned Direct Direct Plan

3. Not Mentioned Regular Direct Plan

4. Mentioned Direct Direct Plan

5. Direct Not Mentioned Direct Plan

6. Direct Regular Direct Plan

7. Mentioned Regular Regular Plan

8. Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall endeavour to contact the investor/distributor and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transactionunderDirectPlanfromthedateofapplicationwithoutanyexitload.

Default Option–Growth

Default facility under Dividend option – Dividend Reinvestment


ITI ArbITrAge Fund

I. INTRODUCTION

A. RISK FACTORS

i. STANDARD RISK FACTORS• InvestmentinMutualFundUnitsinvolvesinvestmentrisks

such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

• Astheprice/value/interestratesofthesecuritiesinwhichthe Scheme invests fluctuates, the value of your investment in the Scheme may go up or down.

• PastperformanceoftheSponsor/AMC/MutualFunddoesnot guarantee future performance of the Scheme.

• ThenameoftheSchemedoesnotinanymannerindicateeither the quality of the Scheme or its future prospects and returns.

• The sponsors are not responsible or liable for any lossresulting from the operation of the Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.

• Thepresentschemeisnotaguaranteedorassuredreturnscheme.

ii. SCHEME SpECIFIC RISK FACTORS The performance of the Scheme may be affected by changes

inGovernment policies, general levels of interest ratesand risks associated with trading volumes, liquidity and settlementsystems,etc.SomeoftheSchemespecificrisksarelistedbelow:

• Therecanbenoassuranceorguaranteethatthearbitrageopportunitiesmayexistatall times inthecapitalmarket.The lack of arbitrage opportunities shall not provide an opportunitytotheFundManagertoexploitpricedifferencesin the capital markets.

• Incaseofheavy redemptionsbefore theExpiryDay (lastThursday of every month or any day specified by the exchange),theliquidityand/orNAVoftheSchememightbeaffected. In such cases, the Fund Manager may be required tounwindpositionsinderivativesegmentsbeforetheExpiryDay, which may result in a fall in NAV.

• TheperformanceoftheSchemewilldependontheabilityof the Fund Manager to identify suitable opportunities in the cash and derivative market. No assurance can be given that Fund Manager will be able to locate investment opportunities or tocorrectlyexploitpricespread in theequitymarkets.There may be instances where the price spread between cashandderivativemarketisinsufficienttomeetthecostof carry. In such situations, the Fund Manager due to lack of opportunities in the derivative market, may not be able to outperform liquid/money market funds. In addition to this, there can be increase in number of transactions as the Fund Manager has to take simultaneous calls in cash and derivative market, which may lead to high portfolio turnover and consequently will lead to high transaction costs.

1. Risk Factors Associated with Equity & Equity related instruments:

The value of the Scheme’s investments may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, etc. Settlement periods and transfer procedures may restrict

the liquidity of the investments made by the Scheme. TheSchememay face liquidity riskor execution riskorredemption risk or the risk of NAV going below par. At times, takingbenefitofinvestinginSpecialSituationsmayinvolvecertain risks like the promoter may choose not to accept the discovered prices or the Regulatory hurdles may delay any specificcorporateaction.Fordetails,pleasereferSAI.

a. Risks related to Special situations:

Special Situations are out of the ordinary situations that companiesfindthemselvesin,fromtimetotime.Suchsituations present an investment opportunity to the Fund Manager who can judge the implications of that opportunity that can unlock value for investors.

Such trades are subject to all such risks that any equity securitymayhave;howeverincertaincasestheriskscanbemorespecificasmentionedbelow:

• The promotermay choose not to accept thediscoveredprices;

• Regulatoryhurdlesmaydelayanyspecificcorporateaction

2. Risk Factors Associated with Fixed Income / Money Market Instruments:

Interest rate risk:Priceofafixedincomeinstrumentgenerallyfalls when the interest rates move up and vice- versa. The extentoffallorriseinthepricesdependsuponthecouponand maturity of the security. It also depends upon the yield level at which the security is being traded. The NAV of the Scheme isexpected to increase froma fall interest rateswhile it would be adversely affected by an increase in the level of interest rates.

Spread risk:Inafloatingratesecuritythecouponisexpressedin terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security.

Credit risk or default risk: Credit risk is the risk that the issuer of a debenture/ bond or a money market instrument may default on interest and/or principal payment obligations. Even when there is no default, the price of a security may changewithexpectedchanges in thecredit ratingof theissuer.ItistobenotedherethataGovernmentSecurityisasovereign security and is the safest. Corporate bonds carry ahigheramountofcreditriskthanGovernmentSecurities.Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency.

Liquidity & Settlement Risk:Theliquidityofafixedincomesecurity may change, depending on market conditions leading to changes in the liquidity premium attached to the price of such securities. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Differentsegmentsofthefinancialmarketshavedifferentsettlement cycle/periods and such settlement cycle/periods may be impacted by unforeseen circumstances, leading to Settlement Risk. This can adversely affect the ability of the Fundtoswiftlyexecutetradingstrategieswhichcanleadtoadverse movements in NAV.

Reinvestment risk: Interest rates may vary from time to time. The rate at which intermediate cash flows are reinvested may


ITI ArbITrAge Fund

differ from the original interest rates on the security, which can affect the total earnings from the security.

performance Risk: Performance of the Scheme may be impacted with changes in factors, which affect the capital market and in particular the debt market.

prepayment Risk: The Scheme may receive payment of monthly cashflows earlier than scheduled, which may result in reinvestment risk.

Market risk:Lowerratedorunratedsecuritiesaremorelikelyto react to developments affecting the market as they tend to be more sensitive to changes in economic conditions than higher rated securities.

3. Risk Factors Associated with Derivatives Derivative products are leveraged instruments and can

provide disproportionate gains as well as disproportionate lossestotheinvestor.Executionofsuchstrategiesdependsupon the ability of the fund manager to identify such opportunities.Identificationandexecutionofthestrategiesto be pursued by the fund manager involve uncertainty and decisionoffundmanagermaynotalwaysbeprofitable.Noassurance can be given that the fund manager will be able toidentifyorexecutesuchstrategies.

The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

Tradinginderivativeshasthefollowingrisks:

a. Anexposure toderivatives in excessof thehedgingrequirements can lead to losses.

b. Anexposuretoderivativescanalsolimittheprofitsfroma genuine investment transaction.

c. Efficiency of a derivatives market depends on the developmentof a liquid andefficientmarket for theunderlying securities.

d. Derivatives carry the risk of adverse changes in the market price.

e. Illiquidity Risk i.e. risk that a derivative trade cannot be executedorreversedquicklyenoughatafairprice,dueto lack of liquidity in the market.

The Fund may use derivatives instruments like equity futures &options, or other derivative instruments as permittedundertheRegulationsandGuidelines.Usageofderivativeswill expose the Scheme to liquidity risk, open positionrisk, and opportunities risk etc. Such risks include the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. In case of the derivative strategies, it may not be possible to square off the cash position against thecorrespondingderivativepositionattheexactclosingprice available in the Value Weighted Average Period. Debt derivatives instruments like interest rate swaps, forward rate agreements or other derivative instruments also involve certain risks. For details, please refer SAI.

4. Common risk factors affecting the Arbitrage Strategies followed by this Scheme are as under:

Liquidity Risk: In case of Arbitrage trades, under abnormal circumstancesitwillbedifficulttosquareoffthetransactiondue to liquidity being poor in the underlying stock, stock futures or options market. However the fund will aim at taking exposureonlyintoliquidstocks/derivativeswheretherewillbe minimal risk to square off the transaction. The fund will

ensure this by analyzing historical data of volume and open interest.

Open position Risk: If the fund is not able to have a net market-neutral position due to any operational reasons, the schemeattimesisexposedtomovementinthepricesoftheunderlying. The Scheme will endeavour to cover or square off the positions as soon as possible.

Opportunities Risk: For any arbitrage strategy, where the cost of carry reduces drastically (in a depressed market conditions), there will be less opportunity for fund manager togeneratereturnsthatcanexceedmoneymarketreturns.Inabsenceofprofitablearbitrageopportunitiesavailableinthe market, the scheme may predominantly invest in cash, short term debt and money market securities.

Execution Risk: The prices which are seen on the screen neednotbethesameatwhichexecutionwilltakeplace.

Mark to Market Risk: Options arbitrage is a risk free strategy, however there could be a mark to market loss that would arise and additional margin may need to be provided for the same.

Basis Risk: In extraordinary circumstances, the FundManagermayhavetounwindpositionsbeforetheexpiryata basis which maybe higher than the initiation basis to meet redemptions. Premature unwinding of the position might resultinthelockedinprofitsnotgettingrealized.

Corporate Action Risk: In the case of arbitrage in corporate actions, the corporate action might get delayed due to regulatory hurdles or other unforeseen circumstances. This mightaffecttheyieldexpectedfromthespecifictrade.

Tracking Error Risk:ThisriskisspecifictoIndexarbitrage.Corporate actions such as demergers might result in the weightsoftheindexstockstochange.Thismightleadtoatrackingerroraffectingthereturnstoacertainextent.

B. REQUIREMENT OF MINIMUM UNITHOLDERS IN THE SCHEME

The Scheme shall have a minimum of 20 Unitholders and nosingleUnitholdershallaccountformorethan25%ofthecorpus of the Scheme. However, if such limit is breached during the NFO of the Scheme, the Fund will endeavor to ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme does not have a minimum of 20 Unitholders in the stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. The aforesaid conditions should be complied with in each subsequent calendar quarter on an average basis. In case the Scheme does not have a minimum of 20 Unitholders on an ongoing basis for each calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. If there is a breachofthe25%limitbyanyUnitholderoverthequarter,a rebalancing period of one month would be allowed and thereafter the Unitholder who is in breach of the rule shall begiven15daysnoticetoredeemhisexposureoverthe25%limit.FailureonthepartofthesaidUnitholdertoredeemhisexposureoverthe25%limitwithintheaforesaid15dayswould lead to automatic Redemption by the Mutual Fund on


ITI ArbITrAge Fund

theApplicableNAVonthe15thdayofthenoticeperiod.TheFund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. SpECIAL CONSIDERATIONS, IF ANy • TheSponsorsarenotresponsibleforanylossresultingfrom

the operation of the Scheme beyond the initial contribution ofanamountofRs.1,00,000(RupeesOneLakh)collectivelymade by them towards setting up the Mutual Fund or such other accretions and additions to the initial corpus set up by the Sponsor.

• ProspectiveinvestorsshouldstudythisSchemeInformationDocument (‘SID) and Statement of Additional Information (‘SAI’) carefully in its entirety and should not construe the contentshereof asadvise relating to legal, taxation,financial,investmentoranyothermattersandareadvisedtoconsulttheir legal,tax,financialandotherprofessionaladvisorstodeterminepossiblelegal,tax,financialorotherconsiderations of subscribing to or redeeming units, before making a decision to invest / redeem / hold Units.

• TheAMC,TrusteeortheMutualFundhavenotauthorizedanyperson to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information or as provided by the AMC in connection with this offering. Prospective Investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information or as provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.

• Neither this SID or SAI nor theMutual Fund has beenregistered in any jurisdiction outside India. The distribution of this SID in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this SID are required to inform themselves about, and to observe, any such restrictions and or legal compliance requirements. No persons receiving a copy of this SID or Key Information Memorandum and any accompanying application form in such jurisdiction may treat this SID or such application form as constituting an invitation to them to subscribe for Units, nor should they in any event use any such application form, unless such an invitation could lawfully be made to them in the relevant jurisdiction and such application form could lawfully be used without compliance of any registration or other legal requirements.

• Redemptiondue tochange in the fundamentalattributesof the Scheme or due to any other reasons may entail taxconsequences.TheTrustee,AMC,MutualFund, theirdirectors or their employees shall not be liable for any such taxconsequencesthatmayariseduetosuchRedemptions.

• The tax benefits described in this Scheme InformationDocument and Statement of Additional Information are as available under the present taxation laws and areavailable subject to relevant conditions. The Unitholders/ investorsshouldbeawarethattherelevantfiscalrulesortheir interpretation may change. As is the case with any investment,therecanbenoguaranteethatthetaxpositionor theproposed taxpositionprevailingat the timeofaninvestmentintheSchemewillendureindefinitely.Inviewoftheindividualnatureoftaxconsequences,eachUnitholder/ investor is advised to consult his / her own professional taxadvisor.

• IntheeventofsubstantialinvestmentsmadebytheAMCortheSponsororitsShareholdersortheiraffiliates/associatesor group companies, either directly or indirectly in the Scheme, Redemption of units by these entities may have an adverse impact on the performance of the Scheme. This may also affect the ability of the other Unitholders/ investors to redeem their units.

• Subject to theapprovalofBoardofDirectorsof theAMCand Trustee Company and immediate intimation to SEBI, a restriction on redemptions may be imposed by the Scheme undercertainexceptionalcircumstances,whichtheAMC/Trustee believe that may lead to a systemic crisis or event that constrict liquidityofmost securitiesor theefficientfunctioning of markets. Please refer to the paragraph “Right toLimitRedemptions”forfurtherdetails.

• Pursuant to the provisions of Prevention of MoneyLaundering Act, 2002, if after due diligence, the AMCbelieves that any transaction is suspicious in nature as regards money laundering, on failure to provide required documentation, information, etc. by the Unitholder/ investor, the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND and / or to freeze the folios of the Unitholder/ investor(s), reject any application(s) / redemptions / allotment of units and effect mandatory redemption of unit holdings of the investor(s) at the applicableNAVsubjecttopaymentofexitload,ifany.

• TheMutual Fundmaydisclosedetailsof the investor‘s/Unitholder‘s account and transactions there under to those intermediaries whose stamp appears on the application form or who have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the Unitholder. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.

• AnydisputearisingoutoftheSchemeshallbesubjecttothenon-exclusive jurisdictionof theCourts inMumbai, India.StatementsinthisSIDare,exceptwhereotherwisestated,based on the law practiced currently in India, and are subject to changes therein.


ITI ArbITrAge Fund

D. DEFINITIONS

"AMC" or "Asset Management Company” or “Investment Manager”

ITIAssetManagementLimited,incorporatedundertheprovisionsoftheCompaniesAct,1956andapprovedbySecuritiesandExchangeBoardofIndiatoactastheAssetManagementCompanyforthescheme(s)of ITI Mutual Fund.

"Applicable NAV" The NAV applicable for purchase or redemption or Switching of Units based on the time of the Business Day on which the application is time stamped.

“Book Closure” The time during which the Asset Management Company would temporarily suspend Sale, redemption and Switching of Units.

“Business Day” Adayotherthan:

i. SaturdayandSunday;

ii. AdayonwhichthebanksinMumbaiand/orRBIareclosedforbusiness/clearing;

iii. AdayonwhichtheNationalStockExchangeofIndiaLimitedand/ortheBombayStockExchangeLimitedareclosed;

iv. Adaywhichisapublicand/orbankHolidayatanInvestorServiceCentre/OfficialPointofAcceptancewheretheapplicationisreceived;

v. AdayonwhichSale/Redemption/SwitchingofUnitsissuspendedbytheAMC;

vi. Adayonwhichthemoneymarketsand/ordebtmarketsareclosed/notaccessible;

vii. A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such othereventsastheAMCmayspecifyfromtimetotime;

The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres/OfficialPointsofAcceptance.

“Business Hours” Presently9.30a.m.to5.30p.m.onanyBusinessDayorsuchothertimeasmaybeapplicablefromtimeto time.

“Consolidated Account Statement (CAS) ”

Consolidated Account Statement is a statement containing details relating to all the transactions across all mutual funds viz. purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan, and bonus transactions, and holding at the end of the month. Further, in case of investors who hold demat account(s), CAS shall also include transaction in dematerialized securities across demat accounts of the investors and holding at the end of the month.

"Custodian" ApersonwhohasbeengrantedacertificateofregistrationtocarryonthebusinessofcustodianofsecuritiesundertheSecuritiesandExchangeBoardofIndia(CustodianofSecurities)Regulations1996,whichforthetimebeingisSBI-SGGlobalSecuritiesPrivateLimited.

"Depository" DepositoryasdefinedintheDepositoriesAct,1996(22of1996)andinthisSIDreferstoNationalSecuritiesDepositoryLimitedandCentralDepositoryServicesLimited.

"Depository participant" ‘Depository Participant’ means a person registered as such under subsection (1A) of section 12 of the SecuritiesandExchangeBoardofIndiaAct,1992.

"Derivative" Derivative includes (i) a security derived from a debt instrument, share, loan whether secured or unsecured, riskinstrumentorcontractfordifferencesoranyotherformofsecurity;(ii)acontractwhichderivesitsvaluefromtheprices,orindexofprices,orunderlyingsecurities.

"Dividend" Income distributed by the Mutual Fund on the Units.

"Equity Related Instruments"

“Equity Related Instruments” includes convertible bonds and debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and any other like instrument.

"Exit Load" LoadonRedemption/SwitchoutofUnits.

"Floating Rate Debt Instruments"

FloatingratedebtinstrumentsaredebtinstrumentsissuedbyCentraland/orStateGovernment,corporatesor PSUs with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed with the issuerandtheFund.Theinterestontheinstrumentscouldalsobeinthenatureoffixedbasispointsoverthe benchmark gilt yields.

"Foreign Institutional Investors" or "FII"

FIImeansForeignInstitutionalInvestor,registeredwithSEBIundertheSecuritiesandExchangeBoardofIndia(ForeignInstitutionalInvestors)Regulations,1995,asamendedfromtimetotime.

"Foreign portfolio Investor" or "FpI"

FPImeansapersonwhosatisfiestheeligibilitycriteriaprescribedunderRegulation4andhasbeenregisteredunderChapterIIofSecuritiesandExchangeBoardofIndia(ForeignPortfolioInvestor)Regulations, 2014.


ITI ArbITrAge Fund

"Gilts" or "Government Securities"

SecuritiescreatedandissuedbytheCentralGovernmentand/oraStateGovernment(includingTreasuryBills)orGovernmentSecuritiesasdefinedinthePublicDebtAct,1944,asamendedorre-enactedfromtime to time.

“Holiday” The day(s) on which the banks (including the Reserve Bank of India) are closed for business or clearing in Mumbai or their functioning is affected due to a strike/ bandh call made at any part of the country or duetoanyotherreasonandontheday(s)onwhichthestockexchangesareclosed.

"Investment Management Agreement"

TheagreementdatedApril7,2017,enteredintobetweenITIMutualFundTrusteePrivateLimitedandITIAssetManagementLimited,asamendedfromtimetotime.

"Investor Service Centres" or "ISCs"

DesignatedOfficesofITIAssetManagementLimitedorsuchothercentres/officesasmaybedesignatedby the AMC from time to time.

"Load" In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out and in the case of Sale/ Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit in addition to the Applicable NAV.

“Market Capitalisation” Market value of the listed company, which is calculated by multiplying its current market price by number of its shares outstanding

"Money Market Instruments"

Includescommercialpapers,commercialbills,treasurybills,Governmentsecuritieshavinganunexpiredmaturity upto one year, call or notice money, certificate of deposit, usance bills and any other like instrumentsasspecifiedbytheReserveBankofIndiafromtimetotime.

"Mutual Fund" or "the Fund" ITIMutualFund,atrustsetupundertheprovisionsoftheIndianTrustsAct,1882.

"Net Asset Value" or "NAV" Net Asset Value per Unit of the Scheme, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI (MF) Regulations from time to time.

"Non-Resident Indian" or "NRI"

A person resident outside India who is either a citizen of India or a person of Indian origin.

"Official points of Acceptance" or “OpA”

Places,asspecifiedbyAMCfromtimetotimewhereapplicationforsubscription/redemption/switchwill be accepted on ongoing basis.

"person of Indian Origin" or “pIO”

AcitizenofanycountryotherthanBangladeshorPakistan,if(a)heatanytimeheldanIndianpassport;or(b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of IndiaortheCitizenshipAct,1955(57of1955);or(c)thepersonisaspouseofanIndiancitizenorpersonreferred to in sub-clause (a) or (b).

“Qualified Foreign Investor” or “QFI”

QFIshallmeanapersonwhofulfillsthefollowingcriteria:

i. Resident in a country that is a member of Financial Action Task Force (FATF) or a member of a group whichisamemberofFATF;and

ii. ResidentinacountrythatisasignatorytoIOSCO‘sMMOU(AppendixASignatories)orasignatoryofabilateralMOUwithSEBI:

Provided that the person is not resident in a country listed in the public statements issued by FATF from timetotimeon-(i)jurisdictionshavingastrategicAnti-MoneyLaundering/CombatingtheFinancingofTerrorism(AML/CFT)deficienciestowhichcountermeasuresapply,(ii)jurisdictionsthathavenotmadesufficientprogressinaddressingthedeficienciesorhavenotcommittedtoanactionplandevelopedwiththeFATFtoaddressthedeficiencies.ProvidedfurthersuchpersonisnotresidentinIndia.Providedfurther that such person is not registered with SEBI as Foreign Institutional Investor or Sub-account or Foreign Venture Capital Investor.

Explanation.-Forthepurposesofthisdefinition:

(1)Theterm"Person"shallcarrythesamemeaningundersection2(31)oftheIncomeTaxAct,1961;(2)Thephrase“residentinIndia”shallcarrythesamemeaningasintheIncomeTaxAct,1961;(3)“Resident"inacountry,otherthanIndia,shallmeanresidentasperthedirecttaxlawsofthatcountry.(4)“BilateralMoU with SEBI” shall mean a bilateral MoU between SEBI and the overseas regulator that inter alia provides forinformationsharingarrangements.(5)MemberofFATFshallnotmeananAssociatememberofFATF.

“Rating” Anopinionregardingsecurities,expressedintheformofstandardsymbolsorinanyotherstandardisedmanner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.

“RBI” Reserve Bank of India, established under the Reserve Bank of India Act, 1934, (2 of 1934).

"Registrar and Transfer Agent" or "RTA"

KarvyFintechPrivateLimited,currentlyactingasregistrartotheScheme(s),oranyotherregistrarappointedby the AMC from time to time.

"Redemption / Repurchase" Redemption of Units of the Scheme as permitted.


ITI ArbITrAge Fund

“Regulatory Agency” GovernmentofIndia,SEBI,RBIoranyotherauthorityoragencyentitledtoissueorgiveanydirections,instructions or guidelines to the Mutual Fund.

“Repo” Sale/Repurchase of Securities with simultaneous agreement to repurchase / resell them at a later date.

“Reverse Repo” Purchase of Securities with a simultaneous agreement to sell them at a later date.

"Sale / Subscription" Sale or allotment of Units to the Unit holder upon subscription by the investor / applicant under the Scheme.

"Scheme" ITI Arbitrage Fund

“Scheme Information Document”

This document issued by ITI Mutual Fund, offering for Subscription of Units of ITI Arbitrage Fund (including Options there under).

"SEBI" SecuritiesandExchangeBoardofIndia,establishedundertheSecuritiesandExchangeBoardofIndiaAct, 1992.

"SEBI (MF) Regulations" or "Regulations"

SecuritiesandExchangeBoardofIndia(MutualFunds)Regulations,1996,asamendedfromtimetotime.

"Short Selling" Short selling means selling a stock which the seller does not own at the time of trade.

"Sponsors" TheInvestmentTrustofIndiaLimited(erstwhile,FortuneFinancialServices(India)Limited)andFortuneCreditCapitalLimited

"Statement of Additional Information" or "SAI"

The document issued by ITI Mutual Fund containing details of ITI Mutual Fund, its constitution, and certain tax,legalandgeneralinformation.SAIislegallyapartoftheSchemeInformationDocument.

"Stock Lending" Lendingofsecuritiestoanotherpersonorentityforafixedperiodoftime,atanegotiatedcompensationin order to enhance returns of the portfolio.

"Switch" Redemption of a unit in any scheme (including the plans / options therein) of the Mutual Fund against purchase of a unit in another scheme (including the plans/options therein) of the Mutual Fund, subject to completionofLock-inPeriod,ifany.

“Systematic Investment plan” / “SIp”

A plan enabling investors to save and invest in the Scheme on a periodic basis submitting post dated cheques/ payment instructions.

“Systematic Transfer plan” or “STp”

AplanenablinginvestorstotransferafixedamountatregularintervalsintootherschemesofITIMutualFund.

“Systematic Withdrawal plan” / “SWp”

FacilitygiventotheUnitholderstowithdrawaspecifiedsumofmoneyonperiodicbasisfromhisinvestmentin the Scheme.

“Trust Deed” TheTrustDeeddatedApril6,2017madebyandbetweenTheInvestmentTrustofIndiaLimited(erstwhile,FortuneFinancialServices(India)Limited),FortuneCreditCapitalLimitedandITIMutualFundTrusteePrivateLimitedtherebyestablishinganirrevocabletrust,calledITIMutualFund.

“Trustee” or “Trustee Company”

ITIMutualFundTrusteePrivateLimitedincorporatedundertheprovisionsoftheCompaniesAct,2013and approved by SEBI to act as the Trustee to the Schemes of the Mutual Fund.

"Unit" The interest of the Unitholder which consists of each Unit representing one undivided share in the assets of the Scheme.

“Unitholder” A person holding Unit in the Scheme of ITI Mutual Fund offered under this Scheme Information Document.

INTERpRETATIONForallpurposesofthisSchemeInformationDocument,exceptasotherwiseexpresslyprovidedorunlessthecontextotherwiserequires:

• Allreferencestothemasculineshallincludethefeminineandallreferences,tothesingularshallincludethepluralandvice-versa.

• Allreferencesto“dollars”or“$”refertoUnitedStatesDollarsand“Rs”refertoIndianRupees.A“crore”means“tenmillion”anda“lakh” means a “hundred thousand”.

• AllreferencestotimingsrelatetoIndianStandardTime(IST).

• Referencestoadayaretoacalendardayincludinganon-BusinessDay.


ITI ArbITrAge Fund

E. DUE DILIGENCE By THE ASSET MANAGEMENT COMpANy Itisconfirmedthat:

i. ThedraftSchemeInformationDocumentforwardedtoSEBIisinaccordancewiththeSEBI(MutualFunds)Regulations,1996and the guidelines and directives issued by SEBI from time to time.

ii. All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Governmentandanyothercompetentauthorityinthisbehalf,havebeendulycompliedwith.

iii. The disclosures made in the draft Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the proposed scheme.

iv. The intermediaries named in the draft Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Place:Mumbai Sd/- Date:20thDecember,2018 Name:Mr.GraceRRabi Designation:HeadRisk&Compliance

Note : TheDueDiligenceCertificatedated20thDecember,2018asstatedabove,wassubmittedwithSEBI.


ITI ArbITrAge Fund

II. INFORMATION ABOUT THE SCHEME

A. TypE OF THE SCHEME An open ended scheme investing in arbitrage opportunities.

B. THE INVESTMENT OBJECTIVE OF THE SCHEME The investment objective of the Scheme is to generate

income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized.

C. HOW WILL SCHEME ALLOCATE ITS ASSETS ? The Scheme will aim to have a fully hedged portfolio to meet

its Investment Objective.

1. Under normal circumstances, the asset allocation would beasfollows:

Asset Class Indicative Allocation

(% of net assets)

Risk profile

Equity&Equityrelatedinstruments including derivatives

65%-100% Medium to High

Debt instruments (including floating rate debt instruments and securitized debt)* with maturity up to 91 days only

0%-35% Low

2. Under defensive circumstances, the asset allocation wouldbeasfollows:

Asset Class Indicative Allocation

(% of net assets)

Risk profile

Equity&Equityrelatedinstruments including derivatives

0%-35% Medium to High

Debt instruments (including floating rate debt instruments and securitized debt)* with maturity up to 91 days only

65%-100% Low

*securitizeddebtcumulativeallocationnottoexceed30%ofthe net assets of the Scheme.

The Scheme will not invest in Foreign Securities and ADRs/GDRs issuedby Indianor foreign companies.TheSchemewillnotinvestinStockLendingandShortSelling.

Note: Defensive circumstances are when the arbitrage

opportunities in the market are negligible or returns are lower than alternative investment opportunities as per the allocation pattern. The allocation under

defensive circumstances will be made keeping in view the interest of the Unit holders. Such position will be closely monitored by the Fund Managers and necessary rebalancing will be done at suitable opportunity but not later than 30 days.

The margin money requirement for the purposes of derivative exposurewill beheld in the formofTermDeposits, cash or cash equivalents or as may be allowed under the Regulations.

Money Market Instruments include CPs, commercial bills,CorporateDebt,T-Bills,andGovernmentsecuritieshavinganunexpiredmaturityuptooneyear,CDs,usancebills, Tri Party Repos, Repo/ Reverse Repo and any other like instruments having a maturity of 1 year or less, as specifiedbytheRBIfromtimetotime.

The above percentages are indicative and not absolute. Further, The Scheme shall not invest in credit default swaps,

repos in corporate bonds and foreign securities. The Scheme shall not engage into securities lending and borrowing.

TheSchemecantakederivativeexposureuptoalimitasstatedinthetablesabove.Thetotalexposurerelatedtooptionspremiumpaidwillnotexceed20%ofthenetassets of the Scheme.

The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a singlecounterpartyinsuchtransactionswillnotexceed10%of the net assets of the Scheme.

Thecumulativegrossexposure throughequity, debtandderivativepositionswillnotexceed100%ofthenetassets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treatedasnotcreatinganyexposure.

The Scheme may undertake repo/reverse repo transactions in Corporate Debt Securities as per latest SEBI guidelines.

From time to time, the Scheme may hold cash and/or invest in the Tri Party Repo or repo to meet the liquidity requirements.

The Scheme may also invest in other schemes managed by the AMC or in the schemes of any other Mutual Fund within the regulatory limits, provided it is in conformity with the investment objectives of the Scheme.

Pending deployment of funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelinesissuedbySEBIvideitscirculardatedApril16,2007,asamendedfromtimetotime.

While it is the intention of the Scheme to maintain themaximum/minimum exposure provided in thetables above, there may be instances when these percentagesmaybeexceededonshorttermdefensiveconsiderations. Typically, this may occur while the Scheme is new and the corpus is small thereby causing diversificationissuesorthereexistnosuitableequityand equity related opportunities or due to unusual / unforeseen conditions, such rebalancing is not in the interest of Unit holders. Unusual conditions include, butarenot limited to, extremevolatilityof thestockmarket, fixed income andmoneymarkets, naturalcalamities, communication breakdowns, internal system breakdowns, strikes, bandhs, riots or other situations.


ITI ArbITrAge Fund

Change In Asset Allocation :

Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above can vary substantially depending upon the perception of the Fund Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and defensive considerations. The Scheme reserves the right to invest its entire allocation indebtandmoneymarketsecuritiesinanyoneofthefixedincome security classes.

In the event of the asset allocation falling outside the limits specified in the asset allocation table, the Scheme will rebalance the portfolio within 30 days. However, if market conditions do not permit the Fund Manager to rebalance the portfolio of the Scheme within the stipulated period of 30days,justificationforthesameshallbeprovidedtotheInvestment Committee and the reason for the same shall be recorded in writing. The Investment Committee shall then decide on the course of action.

Subject to the above, any change in the asset allocation affecting the investmentprofileof theSchemesshall beeffected only in accordance with the provisions of sub regulation (15A)ofRegulation18of theRegulations, asdetailed later in this document.

Comparison with existing open-ended Equity Scheme:

Scheme Name Type Investment Objective Differentiation AUM (Rs in crore)

as on July 31, 2019

No. of folios as on

July 31, 2019

ITI Multi Cap Fund

An open ended equity scheme investing across large cap, mid cap, small cap stocks

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfoliothat predominantly invests in equity and equity-related securities of companies across various market capitalisation.However, there can be no assurance that the investment objective of the Scheme will be realised

The scheme invests substantially in a portfolio consisting of equity and equity related securities.Asset Allocation under normal circumstances -Equity and Equity related securities acrossmarketcap(65%- 100%oftotalassets);Debt & Money MarketInstruments (0% - 25%of total assets).

D. WHERE WILL THE SCHEME INVEST?Subject to the Regulations, the corpus of the Schemewillmainlybe invested inany (butnotexclusively)of thefollowingsecurities:

1. Investment in Equity securities: The Scheme will invest in Equity and Equity related instruments including equity derivatives.

Derivatives: The Scheme may invest in DerivativeInstrumentstotheextentpermittedunderSEBICircularsDNPD/Cir-29/2005datedSeptember14,2005,DNPD/Cir-29/2005 dated January 20, 2006, SEBI/DNPD/Cir-31/2006datedSeptember22,2006andCIR/IMD/DF/11/2010datedAugust18,2010on‘TradingbyMutualFundsonExchangeTradedDerivatives’ asamendedfrom time to time. Derivative products are specializedinstruments that require investment techniques and risk analysis different from those associated with stocks andbonds. The use of derivatives requires an understanding not only of the underlying instrument but also of thederivative instruments itself. The Scheme may investinthefollowingEquityDerivativeInstrumentslike:

i. Futures: A futures contract is an agreement betweenthe buyer and the seller for the purchase and saleofaparticularassetataspecificpriceonaspecificfuture date. The price at which the underlyingasset would change hands in the future is agreedupon at the time of entering into the contract. The

actual purchase or sale of the underlying asset involving payment of cash and delivery of the instrument does not take place until the contracted date of delivery. A futures contract involves an obligationonboth theparties to fulfill the termsof the contract. Currently, futures contracts have a maximumexpirationcycleof3-months.Afuturescontractonthestockmarketindexgivesitsownerthe right and obligation to buy or sell the portfolio ofstockscharacterizedbytheindex.Stockindexfuturesarecashsettled;thereisnodeliveryoftheunderlying stocks.

ii. Options: An option is a contract which providesthe buyer of the option (also called the holder)the right, without the obligation, to buy or sell aspecifiedassetat anagreedpriceonoruptoaparticular date. For acquiring this right the buyerhas to pay a premium to the seller. The seller onthe other hand has the obligation to buy or sell that specifiedassetattheagreedprice.Thepremiumis determined considering number of factors suchas the underlying asset’s market price, the number ofdaystoexpiration,strikepriceoftheoption,thevolatility of the underlying asset and the risk lessrateofreturn.Thestrikeprice,theexpirationdateandthemarketlotsarespecifiedbytheexchanges.An option contract may be of two kinds, viz., a calloption or a put option. An option that providesthe buyer the right to buy is a call option. The

29.2082 2310


ITI ArbITrAge Fund

buyer of the call option (known as the holder of the option) can call upon the seller of the option (known as writer of the option) and buy from him the underlying asset at the agreed price at any timeonorbeforetheexpirydateoftheoption.Theselleroftheoptionhastofulfilltheobligationonexerciseoftheoption.Therighttoselliscalledaputoption.Here,thebuyeroftheoptioncanexercisehis right to sell the underlying asset to the seller of the option at the agreed price. Options are of twotypes:EuropeanandAmerican.InaEuropeanoption,theholderoftheoptioncanonlyexercisehisrightonthedateofexpiration.InanAmericanoption,hecanexercisethisrightanytimebetweenthepurchasedateandtheexpirationdate.

iii. Other derivative instruments: The Scheme may also invest in debt derivative instruments like Interest Rate Swaps, Forward Rate Agreements or such other debt derivative instruments as may be introduced from time to time. An Interest Rate Swap (IRS) isafinancialcontractbetween twopartiesexchangingastreamof interestpayments foranotional principal amount on multiple occasions during a specified period. Typically, one party receivesapre-determinedfixed rateof interestwhile the other party, receives a floating rate, which is linked to a mutually agreed benchmark with provision for mutually agreed periodic resets. A Forward Rate Agreement (FRA) is basically a forward starting IRS. It is an agreement between two parties to pay or receive the difference between anagreedfixedrate(theFRArate)andtheinterestrate (reference rate) prevailing on a stipulated future date, based on a notional principal amount for an agreed period. The only cash flow is the difference between the FRA rate and the reference rate. As is the case with IRS, the notional amounts arenotexchangedinFRA.Tohedge&balancetheportfolio, derivative instruments like Interest Rate Swaps&ForwardRateAgreementsmaybeusedtocreatesyntheticfixedratebonds/floatingratebonds. We wish to submit that, creation of synthetic fixedratebonds/floatingratebondsisahedgingandportfoliorebalancingtechnique.Anexampleisstatedbelowtoexplainthesaidproposition.

Swapscanbeusedtocreatesyntheticfixedrateinstruments.Letustakeanexampleofa1YearFloatingRateBondwithaspreadof50bps(basispoints) over a benchmark say, Overnight MIBOR. Ordinarily, this fetches the investor a yield of the benchmark (which is floating) plus 50 bps onan annualized basis. However, by receiving 1 yr fixedrateontheswapside,whathappensisthatthebondgetsconverted intoafixed ratebond.Letusassumethatthe1yearswaponthesamebenchmark is received for the same principal amountattherateof8.00%.

StepA:InvestorreceivesOvernightMIBOR+50bpson the Floating Rate Bond

StepB:Investorentersintoa1yearOIStransaction–Investorreceivesfixedrateof8%&Investorpaysfloating rate i.e., Overnight MIBOR,

Netimpactfortheinvestor: (MIBOR+50bps)+8%-MIBOR =8.00%+50bps =8.50%(Fixed)

Thus through the swap, the floating rate bond gets converted‘synthetically’intoafixedratebond.

2. Investment in Debt securities:

• Commercial paper (Cp) is an unsecured negotiable money market instrument issued in the form of a promissory note. CPs is issued by corporates as an alternativesourceofworkingcapitalfinance.Theyare issued at a discount to face value, as may be determinedmutuallybytheissuer&investor.CPis traded in secondary market and can be freely bought and sold before maturity.

• Certificates of Deposit (CD) is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources. The maturity period ofCDsissuedbythebanksisbetween7daysandone year. FIs can issue CDs for a period not less than1yearandnotexceeding3yearsfromthedateof issue. CDs also are issued at a discount to face value and can be traded in secondary market akin to CPs.

• Government securities: The Scheme intends to invest itsassets in securitiesofGovernmentofIndiaand /orStateGovernment to theextentofSEBI prescribed limits, if any. Such securities may be:

i. Supported by the ability to borrow from the Treasury or

ii. Supported by Sovereign guarantee or the State Governmentor

iii. SupportedbyGovernment of India / StateGovernmentinsomeotherway.Theabovewilldepend upon the nature of securities invested.

CentralGovernmentSecuritiesareasovereigndebtobligationof theGovernmentof Indiawithzero-risk of default and are issued on its behalf by the RBI.TheyformapartoftheGovernment’sannualborrowingprogram,andareusedtofundthefiscaldeficitalongwithothershortandlong-termfundrequirements.

CentralGovernmentSecuritiesarenormallyfixedinterest securities where the interest is paid semi-annually.Different typesofCentralGovernmentSecuritiesare thefixed interest securities, fixedinterestsecuritywithput/calloption,fixedinterestsecurity where the subscription amount is paid in installments,fixed interestsecuritywhere thematurity amount is received in installments, floating ratebond,capital-indexedbondandzero-couponbonds.

State government securities are issued by the respective State governments in co-ordination withtheRBI.StateGovernmentSecuritiesarefixedinterest securities where the interest is paid semi-annually.

• Treasury Bills (T-Bills)areissuedbytheGovernmentof India to meet their short-term borrowing requirement. Presently, T-Bills are issued for originalmaturitiesof91days,182daysand364days. T-Bills are issued at a discount to their face value and redeemed at par.


ITI ArbITrAge Fund

• Short Term Deposits are deposits with Banks forafixedtermataratewhichisdeterminedbyvarious factors such as the term, the amount etc. Pending deployment as per investment objective, the corpus of the Scheme may be invested in short-term deposits of Scheduled Commercial Banks as provided under the Regulations.

• Tri party Repo is a money market instrument that enables entities, to borrow and lend against sovereign collateral security. It is in electronic form. The maturity ranges from 1 day to 90 days and can also be made available up to 1 year. CentralGovernmentSecuritiesincludingT-billsareeligible securities that can be used as collateral for borrowing through Tri Party Repo.

• Repo (Repurchase agreement) A Repo or Reverse Repo is a transaction in which two parties agree to sell and repurchase the same security. Under such an agreement the seller sells specified securities with an agreement to repurchase the same at a mutually decided future date and price. Similarly, the buyer purchases the securities with an agreement to resell the same to the seller on an agreed date at a predetermined price. The transaction results in Tri-party repo.

Such a transaction is called a Repo when viewed from the perspective of the seller of the securities and borrower of funds and Reverse Repo when viewed from the perspective of the buyer of the securities and lender of funds. The eligible securities for a repo/reverse repo transaction in the IndianfinancialmarketsatpresentareGovernmentSecurities, State Government Securities andTreasury Bills.

The Scheme may enter into Reverse Repo, hedging or such other transactions as may be allowed to Mutual Fund from time to time.

• Non Convertible Debentures as well as Bonds are securities issued by Public Sector Enterprises, Public Sector Banks, All India Financial Institutions, Private Sector Companies etc for their normal business activities, which may be secured or unsecured against assets of the company. This isoneofthesourcesoffinancingforcorporateswhich may be in the nature of short term or long term depending on the requirement of the entity. They are priced at a spread over the corresponding government security depending on the level of perceivedrisk.Differenttypesofsecuritiesarefixedinterest securities with or without put/call option, fixedinterestsecuritywherethematurityamountisreceived in installments, floating rate bonds, zero-coupon bonds (bonds with no intervening interest cash flows) etc.

Frequency of interest payments could be annual/semi-annual/quarterly/monthly or zero coupon bonds etc depending on each issue.

• Floating rate debt instruments are debt instruments issued by Central / State governments, Corporates, PSUs, etc. with interest rates that are reset periodically. The periodicity of interest reset could be daily, monthly, quarterly, half yearly, and annually or any other periodicity that may be mutually agreed between the issuer and the Fund.

For details on definition & Risk associated withinvestment in the above security, please refer SAI.

3. Investments in the Schemes of Mutual Fund

The Scheme may invest in schemes managed by the AMC or in the schemes of any other Mutual Fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing the SEBI Regulations. As per the SEBI Regulations, no Investment Management fees will be charged for such investments and the aggregate inter scheme investment made by all schemes in the schemes of the Mutual Fund or in the schemes under the management of any other assetmanagementcompanyshallnotexceed5%oftheNet Asset Value of the Mutual Fund.

4. Any other like instruments as may be permitted by RBI/SEBI/ such other Regulatory Authority from time to time.

The above-mentioned securities could be listed, unlisted, secured, unsecured, rated or unrated and may be acquired through Primary, secondary market offerings, private placements, rights offer etc. Further, investments indebentures,bondsandotherfixedincomesecuritieswill usually be in instruments, which have been assigned investment grade ratings by an approved rating agency. Incaseswherethedebtinstrumentisunrated,specificapproval from the Board of the Asset Management Company and the Board of Trustees shall be obtained. However, the same shall be subject to limitations as contained in clause 1 and 1A, of Schedule VII to SEBI (MutualFunds)Regulations,1996.

Securitised Debt Obligations - Securitization is a structured financeprocesswhichinvolvespoolingandrepackagingofcash-flowproducingfinancial assets intosecurities thatare then sold to investors. They are termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. MBS is an asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. Such Mortgage could be either residential or commercial properties.

Passthrough,PaythroughorotherParticipationCertificates,representing interest in a pool assets including receivables. Itrepresentsbeneficialinterestinanunderlyingpoolofcashflows. These cash flows represent dues against single or multiple loans originated by the sellers of these loans.

Cash Management Bills GovernmentofIndia,inconsultationwiththeReserveBank

of India, issue a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary cash requirementoftheGovernment.TheCMBshavethegenericcharacter of T-bills but are issued for maturities less than 91days.LikeT-bills,theyarealsoissuedatadiscountandredeemed at face value at maturity.

The following are certain additional disclosures w.r.t. investmentinsecuritizeddebt:

(i) How the risk profile of securitized debt fits into the risk appetite of the scheme

Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn issuesPass-Through-Certificates (PTCs).ThesePTCsare transferablesecuritieswithfixed incomecharacteristics. The risk of investing in securitized debt is


ITI ArbITrAge Fund

similar to investing in debt securities. However it differs in tworespects:

a) Typically the liquidity of securitized debt is less than similar debt securities.

b) For certain types of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which may reduce returns if the re-investment rates are lower than initially envisaged.

Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns, he may invest in securitized debt up to the limits specifiedintheassetallocationtableabove.

(ii) policy relating to originators based on nature of originator, track record, NpAs, losses in earlier securitized debt, etc

The originator is the person who has initially given the loan. The originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). An analysis of the originator is especially important in case of retail loans as this affects the credit quality and servicing of the PTC. The key risk is that of the underlying assets and notoftheoriginator.Forexample,lossesorperformanceofearlier issuances does not indicate quality of current series. However such past performance may be used as a guide to evaluate the loan standards, servicing capability and performance of the originator.

Originatorsmaybe:Banks,NonBankingFinanceCompanies,Housing Finance Companies, etc.

The fund manager / credit analyst evaluates originators based on the following parameters

• Trackrecord. • Willingnesstopay,throughcreditenhancementfacilities

etc.

• Abilitytopay.

• Businessriskassessment,whereinfollowingfactorsareconsidered:

- Outlook for the economy (domestic and global).

- Outlook for the industry.

- Companyspecificfactors.

In addition a detailed review and assessment of rating rationale is done including interactions with the originator as well as the credit rating agency.

The following additional evaluation parameters are used as applicable for the originator / underlying issuer for pool loan andsingleloansecuritizationtransactions:

• TransactionstructureincludingParversuspremiumandcredit enhancement

• ReputationofOriginatorinthemarket

• Proportionofoverdueassetsofthepoolortheunderlyingloan, as the case may be

• Trackrecordofservicingofthepoolortheloan,asthecase may be

• Anydisputesorlitigationsintheoriginatedpools

• Creditqualityandrating

• LoantoValueratio

• Liquidityfacility

(iii) Risk mitigation strategies for investments with each kind of originator

Riskwouldbemitigated toa large extentby the criticalevaluation parameters mentioned above. Further, Risk mitigation strategies typically include additional credit enhancement, overcollateralization, interest subvention, presence of subordinate tranches, analysing ageing of the pools i.e. how long the loan has been with Originator before securitization etc.

Some of the risks with securitized debt investments and the correspondingriskmitigatingstrategiesarelistedbelow:

Risk mitigation strategy

Limited Recourse, Delinquency and Credit Risk Inadditiontocarefulscrutinyofcreditprofileofborrower/

pool additional security in the form of adequate cash collaterals and other securities may be obtained to ensure that they all qualify for similar rating.

Bankruptcy of the Originator or Seller Normally,specificcareistakeninstructuringthesecuritization

transaction so as to minimize the risk of the sale from the Originator not being construed as a ‘true sale’. It is also in the interest of the originator to demonstrate the transaction as a true sale to get the necessary revenue recognition and taxbenefits.

Liquidity and price risk Securitized debt instruments are relatively illiquid in the

secondary market and hence they are generally held to maturity. The liquidity risk and HTM (Held To Maturity) nature is taken into consideration at the time of analyzing the appropriateness of the securitization.

prepayment Risk A certain amount of prepayments is assumed in the

calculations at the time of purchase based on historical trends and estimates. Further, a stress case estimate is calculated and additional margins are built in.

(iv) The level of diversification with respect to the underlying assets, and risk mitigation measures for less diversified investments

In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. In caseofdiversifiedpoolsofloans,theoverallcharacteristicof the loans is analyzed to determine the credit risk.

The credit analyst shall look at ageing (i.e. how long the loan has been with the originator before securitization) as one way of judging the performance potential of the PTC. Additional risk mitigants may include interest subvention, over collateralization, presence of an equity / subordinate tranche and / or guarantees. The credit analyst shall also useanalysesbycreditratingagenciesontheriskprofileofthe securitized debt.


ITI ArbITrAge Fund

Frameworkthatwillbeappliedwhileevaluatinginvestmentdecisionrelatingtoapoolsecuritizationtransaction:

Characteristics /Type of pool

Mortgage Loan

Commercial Vehicle and

Construction Equipment

Cars Two Wheelers

Micro Finance pools

personal Loans

Single Sell Downs

Others

ApproximateAverageMaturity (In months)

Upto 10 years

Upto 5years

Upto 5years

Upto 3 years

Upto 80weeks

Upto 3 years

Refer Note 1

Refer Note 2

Collateral Margin (including Cash,guarantees,excessInterest spread, subordinate tranche)

>5% >5% >4% >4% >4% >4% “ “

AverageLoantoValueRatio <90% <90% <90% <90% Unsecured Unsecured “ “

Average seasoning of the Pool

>3 months >3 months >3 months >3 months >3 months >3 months “ “

MaximumSingleexposurerange

<5% <7% Retail Retail Retail Retail “ “

AverageSingleexposurerange%

<5% <5% Retail Retail Retail Retail “ “

Note1:Incaseofsecuritizationinvolvingsingleloansorasmallpoolofloans,thecreditriskoftheborrowerisanalyzed.Theinvestment limits applicable to the underlying borrower are applied to the single loan sell-down.

Note2:Otherinvestmentswillbedecidedonacase-to-casebasis.

The credit analyst may consider the following risk mitigating measuresinhisanalysisofthesecuritizeddebt:

• Size of the loan–The size of the loan is generallyanalysed on a sample basis and an analysis of the static pool of the originator is undertaken to ensure that the same matched with static pool characteristics. It also indicates whether there is high reliance on very small ticket size borrower which could result in delayed and expensiverecoveries.

• Averageoriginalmaturityof thepool– theanalysisof the average maturity of the pool is undertaken to evaluate whether the tenor of the loans are generally in line with the average loan in the respective industry and repayment capacity of the borrower.

• Loan tovalue ratio,averageseasoningof thepoolofunderlying assets – these parameters will be evaluated based on the asset class as mentioned in the table above.

• Default ratedistribution– the credit teamgenerallyensures that all the contracts in the pool are current to ensure zero default rate distribution.

• Geographicaldistribution–theanalysisofgeographicaldistribution of the pool is undertaken to ensure prevention of concentration risk.

• Credit enhancement facility– credit enhancementfacilities in the formofcashcollateral, suchasfixeddeposits, bank guarantee etc. could be obtained as a risk mitigation measure.

• Liquidfacility–theseparameterswillbeevaluatedbasedon asset class as mentioned in the table above.

• Structureof thepoolof theunderlyingassets–Thestructure of the pool of the underlying asset class or combination of various asset classes as mentioned in

the table above. We could add new asset class depending upon the securitization structure and changes in market acceptability of asset classes.

(v) Minimum retention period of the debt by originator prior to securitization

Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the “true sale” criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period before they can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Fund will invest in securitized debt that are compliant with the laws and regulations.

(vi) Minimum retention percentage by originator of debts to be securitized

RBI has prescribed the minimum retention percentage as 5%or10%ofthebookvalueoftheloansbeingsecuritiseddepending on the original maturity of the loans and the features of the securitisation transaction.

(vii) The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of an originator and the originator in turn makes investments in that particular scheme of the fund

The key risk is securitized debt relates to the underlying borrowers and not the originator. In a securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer. However, the originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). As the originators may also invest in the scheme, the fund manager shall ensure that the investment decision is based on parameters as set by the Investment Committee of the asset management company and the committee shall review the same at regular interval.


ITI ArbITrAge Fund

(viii) The resources and mechanism of individual risk assessment with the AMC for monitoring investment in securitized debt

Thefundmanagementteamhastherequiredexperiencetoanalyse and monitor investments in securitised debts. On an on-going basis the rating movement of the securitised debts will be monitored. Credit research agencies also provide analysis of individual instruments and pools. The periodic reports received by the AMC on pool performance will be scanned to check for any change in asset quality and related impact on debt servicing and any impact that it can have on the credit ratings.

Note: The information contained herein is based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy, risk mitigation measures and other information contained herein may change in response to the same.

E. INVESTMENT STRATEGy & AppROACH The Scheme will invest in arbitrage opportunities between

spotand futurespricesof exchange tradedequitiesandthe arbitrage opportunities available within the derivative segment. If suitable arbitrage opportunities are not available in the opinion of the Fund Manager, the Scheme may invest in short term debt and money market securities.

The Fund Manager will evaluate the difference between the price of a stock in the futures market and in the spot market. If the price of a stock in the futures market is higher than in the spotmarket,afteradjustingforcostsandtaxestheschemeshall buy the stock in the spot market and sell the same stock in equal quantity in the futures market, simultaneously.

The Scheme will endeavor to build similar market neutral positions that offer an arbitrage potential for e.g. buying the basketofindexconstituentsinthecashorfuturessegmentandsellingtheindexfutures,etc.TheSchemewouldalsolook to avail of opportunities between one futures contract and another.

The margin money requirement for the purposes of derivative exposurewillbeheldintheformofTermDeposits,cashorcash equivalents.

Derivative & Arbitrage Strategies:Derivativesarefinancialcontractsofpre-determinedfixedduration,whosevaluesarederivedfromthevalueofanunderlyingprimaryfinancialinstrument,index,suchas:interestrates,exchangeratesandequities.

The Scheme will invest in arbitrage opportunities between spotand futurespricesofexchange tradedequities.TheScheme may build similar hedge positions that offer an arbitragepotentialforexamplebuyingthebasketofindexconstituents in the cash or futures segment and selling the indexfutures,andsellingthecorrespondingstockfuture,etc.

The Scheme will also invest in low risk derivatives strategies. These strategies will involve any combination of cash, futures and options.

The Scheme will invest in opportunities arising out of corporate actions announced in stocks that offer superior risk adjusted returns and IPOs.

1. Cash Future Arbitrage: This strategy is employed when the price of the future is trading at a premium to the price of its underlying in spot market. The Scheme shall buy the stock in spot market and endeavor to simultaneously sell the future at a premium on a quantity neutral basis.

Buying the stock in spot market and selling the futures results into a hedge where the Scheme has locked in a spread and is not affected by the price movement of cash market and futures market. The arbitrage position can be continuedtillexpiryofthefuturecontracts.Thefuturecontracts are settled based on the last half an hour’s weighted average trade of the spot market. Thus there is a convergence between the spot price and the futures marketonexpiry.ThisconvergencehelpstheSchemeto generate the arbitrage return locked in earlier.

Onorbeforethedateofexpiry,ifthepricedifferentialbetween the spot and futures position of the subsequent month maturity still remains attractive, the scheme may rollover the futures position and hold onto the position in the spot market. In case such an opportunity is not available, the scheme would liquidate the spot position and settle the futures position simultaneously.

Rolling over of the futures transaction means unwinding the short position in the futures of the current month and simultaneously shorting futures of the subsequent month maturity, and holding onto the spot position.

Illustrations Buy 100 shares of Company A at Rs 100 and sell the

same quantity of stock’s future of the Company A at Rs 101.

1. Market goes up and the stock end at Rs 200. At the endof themonth (expiryday) the future

expiresautomatically:Settlementpriceoffuture=closing spot price = Rs 200

Gainonstockis100*(200-100)=Rs10,000Losson future is 100*(101-200) = Rs – 9,900 Net gain is 10,000 – 9,900 = Rs 100

2. MarketgoesdownandthestockendatRs50. At the endof themonth (expiryday) the future

expiresautomatically:Settlementpriceoffuture=closingspotprice=Rs50

Lossonstockis100*(50-100)=Rs–5,000Gainonfuture is100*(101-50)=Rs5,100Netgain is5,100–5,000=Rs100

Unwinding the position: Buy 100 shares of Company A at Rs 100 and sell the

same quantity of stock’s future of the Company A at Rs 101.

The market goes up and at some point of time during the month(beforeexpiry)thestocktradesatRs120andthefuturetradesatRs119thenweunwindtheposition:

Buyback the futureatRs119: loss incurred is (101-119)*100=Rs–1,800Sell thestockatRs120:gainrealized:(120-100)*100=Rs2,000

Netgainis2,000–1,800=Rs200

Rolling over the futures: Wekeepthestocksposition.Closetoexpiry,ifthestocks

priceisatRs150thenthestock’sfutureisclosetoRs150aswell.Also if thecurrentmonthstock future isbelowthenextmonthstockfuture,werolloverthefuturepositiontothenextexpiry:

StockfuturenextmonthisatRs151StockfuturecurrentmonthisatRs150

Thensell futurenextmonthatRs151andbuybackactualfutureatRs150=gainof100*(151-150)=Rs100 and the arbitrage is continuing.


ITI ArbITrAge Fund

2. Index Arbitrage: TheNifty 50derives its value fromfiftyconstituentstocks;theconstituentstocks(intheirrespective weights) can be used to create a synthetic indexmatchingtheNiftyIndex.Also,theoretically,thefair value of a future is equal to the spot price plus the cost of carry.

Theoretically,therefore,thepricingofNiftyIndexfuturesshouldbeequal to thepricingof thesynthetic indexcreated by futures on the underlying stocks.

Duetomarketimperfections,theindexfuturesmaynotexactlycorrespondtothesyntheticindexfutures.TheNiftyIndexfuturesnormallytradesatadiscounttothesyntheticIndexduetolargevolumesofstockhedgingbeingdoneusingtheNiftyIndexfuturesgivingrisetoarbitrage opportunities.

One instance inwhichan indexarbitrageopportunityexistsiswhenIndexfutureistradingatadiscounttotheindex(spot)andthefuturesoftheconstituentstocksare trading at a cumulative premium.

The fund manager shall endeavour to capture such arbitrage opportunities by taking long positions in the NiftyIndexfuturesandshortpositionsinthesyntheticindex(constituentstockfutures).

Based on the opportunity, the reverse position can also be initiated.

Index Arbitrage (Spot market): This strategy is very similartotheindexarbitragestrategyexplainedabove.Thisstrategycanbeexecutedwhentheindexfutureistradingatapremiumtotheunderlyingindex.TheFundManagerwillbuytheindexconstituents(ratioofweightsintheindex)inthespotmarketandsimultaneouslyselltheindexfutureatapremium.Onexpiryday,thefuturesexpireatcash.Thisconvergencehelpsrealizetheprofitslocked-in.

3. portfolio protection/ Hedging: The Scheme may use exchange-traded derivatives to hedge the equityportfolio.

Illustrations of hedging using options– Call Option (Buy): The fund buys a call option at the

strike price of say Rs.1000 and pays a premium of say Rs.50,thefundwouldearnprofitsifthemarketpriceofthestockatthetimeofexpiryoftheoptionismorethan1050beingthetotalofthestrikepriceandthepremiumthereon.Ifonthedateofexpiryoftheoptionthestockprice isbelowRs1000, the fundwillnotexercise theoptionwhileitlosesthepremiumofRs.50.

put Option (Buy): The fund buys a Put Option at Rs 1000 bypayingapremiumofsayRs50.Ifthestockpricegoesdown to Rs. 900, the fund would protect its downside and wouldonlyhavetobearthepremiumofRs50insteadof a loss of Rs 100 whereas if the stock price moves up tosayRs.1100thefundmaylettheOptionexpireandforego the premium thereby capturing Rs. 100 upside afterbearingthepremiumofRs.50.TheSchememayusebothindexandstockfuturesandoptionstohedgethe stocks in the portfolio.

4. The Scheme may use derivative instruments like Interest rateswapslikeOvernightIndexedSwaps(OIS),Forwardrate agreements, or such other derivative instruments as may be introduced from time to time. Derivatives will be used for the purpose of hedging, increasing the returns of the Scheme and portfolio balancing as may

bepermittedundertheRegulationsandGuidelines.

Investment strategywhile usingOvernight IndexedSwaps:InarisinginterestratescenariotheSchememayenhance returns for the investor by hedging the risk on itsfixedinterestpayingassetsbyenteringintoanOIScontractwheretheSchemeagreestopayafixedinterestrateonaspecifiednotionalamount,forapredeterminedtenor and receives floating interest rate payments on thesamenotionalamount.ThefixedreturnsfromtheScheme’sassetsandthefixedinterestpaymentstobemade by the Scheme on account of the OIS transaction offseteachotherandtheSchemebenefitsonthefloatinginterest payments that it receives.

The Scheme may enter into an opposite position in case of a falling interest rate scenario, i.e., to hedge the floating rate assets in its portfolio the Scheme enters intoanOIStransactionwhereinitreceivesafixedinterestrateonaspecifiednotionalamountforaspecifiedtimeperiod and pays a floating interest rate on the same notional amount. The floating interest payments that the Scheme receives on its floating rate securities and the floating interest payments that the Scheme has to pay on account of the OIS transaction offset each other andtheSchemebenefitsonthefixedinterestpaymentsthat it receives in such a scenario.

5. Other Arbitrage Derivative Strategies: The Scheme will also invest in arbitrage opportunities arising out of corporate actions (e.g. – mergers, FPO, delisting, open offers,etc).Thesearejustafewexamplesofarbitrageopportunities arising out of corporate actions. This is notanexhaustivelistaseverycorporateactioncouldoffer a different and unique opportunity.

The Scheme may also use derivative instruments as may be introduced from time to time, with the underlying beinganyofthestocksinarecognizedstockexchange.

The Scheme may deploy one or more of the above mentionedderivativeStrategiestotheextendtheyarein line with the investment objective of the Scheme.

Special Situations (Corporate Actions)The Scheme may take advantage of situations that present an investment opportunity to Fund Manager who can judge the implications of that opportunity that can unlock value for investors. Some of these situations are Merger of businesses or companies which may result in synergies in business activities. Demerger may result in separation / spin-off of business operation / activity from some other business operation / activity., Companies may consider a buy-back of their shares from the market due to various reasons (like company has substantial free reserves, managementisconfidentofthefuturegrowthpotential,meetingwiththeregulatorynorms,etc.)andunlocksignificantvalueforshareholders. Companies may consider delisting their companies fromtherespectivestockexchange.Itmaybeattherequestofthepromoters,acquisitions;BIFRunderSICAetc.,Companymayofferitsexistingshareholdersarighttopurchaseadditionalsharesata discount to the prevailing market price. A company may want toinfusecapitalforfutureprojects,raiseitsholdingasitexpectsgood prospects going forward. A carefully analyzed rights issue canunlockvalueforshareholders;OpenOfferisaneventthatincreases the share holding of the acquirer. An open offer can be voluntary or involuntary. An open offer is an indication that parties are interested in increasing their stake in the company. This can be positive for the company over the long run and gives the investor a signal for good times ahead, Debt restructuring i.e. a company may want to change its capital structure by means of reducing debt.Higherdebtcanleadtolowerprofitsandcashflows.An


ITI ArbITrAge Fund

attempt by the company to reduce debt or swap the same with other lower costs options can unlock value for shareholders. There could by many other events that may result in share priceappreciation.Suchsituationsmayinclude;turnarounds,companies undergoing restructuring, asset plays, and companies affected by regulatory changes and primary market listings. The scheme will carefully analyze any such instance and participate inthesameassuch;corporateactionoftenunlocksalotofvaluefor the investors

Strategy for investments in Debt/ Money Market Instruments:To achieve its investment objective, the Scheme may also invest, in Debt Instruments which are listed/unlisted and/or rated/unrated debt or money market instruments/securities, securities issued/guaranteedbytheCentral/StateGovernments,securitiesissuedby public/private sector companies/corporations, short term depositswithbankslikeFixedDeposits,financialinstitutionsand/or money market instruments such as commercial paper, certificatesofdeposit,permittedsecuritiesunderareverse-repoagreement,etc.Theseinstrumentsmaycarryafixedrateofreturnor a floating rate of return or may be issued on a discounted basis. Investments will be made in instruments, which in the opinion of the Fund Manager, are of an acceptable credit quality and chance of default is minimum while conforming to the internal broad guidelines provided in the Investment Policy. The Fund Manager will generally be guided by, but not restrained by, the ratings announced by various rating agencies and independent in-house assessment on the assets in the portfolio. The fund management team with the support of research team will take an active view of the interest rate movement by keeping a close watch on various parameters of the Indian economy, as well as developments in global markets. Investment views / decisions will be taken on the basisofthefollowingparameters:

1. Prevailing interest rate scenario

2. Qualityofthesecurity/instrument(includingthefinancialhealth of the issuer)

3. Maturityprofileoftheinstrument

4. Liquidityofthesecurity

5. Growthprospectsofthecompany/industry

6. Anyotherfactorintheopinionofthefundmanagementteam

Investment in Mutual Fund Units:Toavoidduplicationofportfoliosandtoreduceexpenses,theScheme may also invest in scheme managed by the AMC or in the scheme of other Mutual Fund, provided that aggregate inter-scheme investment made by all schemes managed by the AMC either in its own schemes or of any other Mutual Fund shall not exceed5%orsuchotherpermittedlimit,oftheNetAssetValueof the Fund. No investment management fees shall be charged for investing in other schemes of the fund or in the schemes of any other Mutual Fund.

Risk Control:ITI Arbitrage Fund will allocate assets predominantly in arbitrage opportunitiesbetweenspotandfuturespricesofexchangetradedequities and the arbitrage opportunities available within the equity derivative segment and the balance in debt and money market instruments.

This allocation will be steadily monitored and it shall be ensured that investments are made in accordance with the Scheme objective and within the regulatory and internal investment restrictions prescribed from time to time. This Scheme offers lowerriskalternativetopurediversifiedequityfundsduetoitsinvestment strategy.

Since disciplined investing requires risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process.

The fund has designed a detailed process to identify, measure, monitor and manage the portfolio risk. The aim is not to eliminate the risk completely but to have a structured mechanism towards riskmanagementtherebymaximizingpotentialopportunitiesand minimize the adverse effects of risk. Few of the key risk identifiedare:

Risk & Description specific to the Scheme

Risk mitigants / Management Strategy

Market Risk

Risk arising due to vulnerability to price fluctuations and volatility, having material impact on the overall returns of the Scheme

Endeavour to have a well diversified portfolio of good companies with the ability to use cash/derivatives for hedging

Derivatives Risk

Various inherent risks arising as a consequence of investing in derivatives.

Continuous monitoring of the derivatives positions and strict adherence to the regulations and internal norms

Credit risk

R i s k a s s o c i a t e d w i t h repayment of investment

Investment universe carefully selected to only include issuers with high credit quality

performance risk

Risk arising due to change in factors affecting the market

Understand the working of the markets and respond e f f e c t i v e l y t o m a r k e t movements

Concentration risk

Risk arising due to over exposureinfewsecurities

Investing across the spectrum o f i s s u e r s a n d ke e p i n g flexibilitytoinvestacrosstenor

Liquidity risk

RiskarisingduetoinefficientAssetLiabilityManagement,resulting in high impact costs

Control portfolio liquidity at portfolio construction stage. Havingoptimummixofcash&cashequivalentsalongwiththe debt papers in the portfolio

Interest rate risk

P r i c e v o l a t i l i t y d u e t o movement in interest rates

Control the portfolio duration and periodically evaluate the portfolio structure with respecttoexistinginterestratescenario

Event risk

Price risk due to company or sectorspecificevent

U n d e r s t a n d b u s i n e s s e s to respond effectively and speedily to events.

Usageofderivatives:Hedgeportfolios, if required, in case of predictable events with uncertain outcomes

portfolio Turnover:The Scheme will endeavour to keep the portfolio turnover at a reasonable level. However the portfolio turnover ratio may vary


ITI ArbITrAge Fund

as the scheme may change the portfolio according to Asset Allocation to align itself with the objectives of the scheme. Portfolioturnovermayalsovary,basedoninflows&outflowsinthe fund. The effect of higher portfolio turnover could be higher brokerage and transaction costs.

F. INVESTMENT By THE AMC IN THE SCHEMETheAMCmayalsoinvestinexistingSchemesoftheMutualFund.AspertheexistingSEBI(MF)Regulations,theAMCwillnotchargeInvestment Management and Advisory fee on the investment madebyitintheSchemeorotherexistingschemesoftheFund.

G. FUNDAMENTAL ATTRIBUTESFollowing are the Fundamental Attributes of the Scheme, in terms ofRegulation18(15A)oftheSEBI(MF)Regulations:

(i) Type of Scheme – An open ended scheme investing in arbitrage opportunities.

(ii) Investment Objective -

Main Objective: The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.

However, there is no assurance that the investment objective of the scheme will be realized.

Investment pattern: The tentative Equity/ Debt portfolio break-upwithminimumandmaximumassetallocation,isdisclosed in the Section on “Asset Allocation and Investment Pattern”.

(iii) Terms of Issue

Liquidity provisions: The Scheme, being open ended the Unitsarenotproposedtobelistedonanystockexchange.However, the Trustee reserves the right to list the Units as and when this Scheme is permitted to be listed and considers it necessary in the interest of Unit holders of the Fund.

TheSchemeofferssubscription&redemptionfacilityattheApplicable NAV on every Business Day. The procedures for Purchase/Redemption of Units on an ongoing basis are set out in Paragraph B under Section III of this SID.

As per SEBI Regulations, the Mutual Fund shall dispatch redemption proceeds within 10 Business Days of receiving a valid redemption request. In case the redemption proceeds are not dispatched within 10 Business Days of the date of receipt of a valid redemption request, interest will be paid

fromthe11thdayonwards@15%perannumorsuchotherrate as may be prescribed by SEBI from time to time.

Aggregate fees and expenses charged to the Scheme: The aggregate feesandexpenseschargedto theSchemewillbeinlinewiththelimitsdefinedintheSEBIRegulationsasamendedfromtimetotime.Theaggregatefeeandexpensesto be charged to the Scheme are detailed in Section IV of this Document.

Any safety net or guarantee provided: The Scheme does not provide any guaranteed or assured return.

Change in Fundamental Attributes:

InaccordancewithRegulation18(15A)of theSEBI (MF)Regulations, the Board of Trustees shall ensure that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s) thereunder or the trust or fee and expensespayableoranyotherchangewhichwouldmodifythe Scheme(s) and the Plan(s) / Option(s) thereunder and affecttheinterestsofUnitholdersiscarriedoutunless:

• Awrittencommunicationabouttheproposedchangeis sent to each Unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the languageof the regionwhere theHeadOfficeof theMutualFundissituated;and

• TheUnitholdersaregivenanoptionforaperiodof30daystoexitattheprevailingNetAssetValuewithoutanyexitload.

H. HOW WILL THE SCHEME BENCHMARK ITS pERFORMANCE?

The Scheme performance would be benchmarked against Nifty 50ArbitrageIndex.TheTrusteemaychangethebenchmarkinfuture if a benchmark better suited to the investment objective of the Scheme is available.

JustificationofBenchmark

The Scheme performance would be benchmarked against Nifty 50Arbitrageindexwhichmeasuretheperformanceofarbitragestrategies.Theindexmeasuresperformanceofportfolioinvolvinginvestment in equity and equivalent short position equity futures, etc. It is the most popular and widely followed benchmark to track the performance of the equity market in India.

The Trustee reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, subject to the Regulations and other prevalent guidelines.

I. WHO MANAGES THE SCHEME? Allfundswillbemanagedinaco-fundmanagermodel.Co-managedbyMr.MilanModyandMr.GeorgeHeberJoseph.

Name of the Fund Manager Age / Qualification Experience of the Fund Manager in the last 10 years

Names of other schemes

under his management

Mr. Milan Mody Age : 40 years

Qualification : MBA Finance and B.COM

Hehas joinedITIAssetManagementLimited inNovember2017andhasover16yearsofworkexperience inFundManagementandDealing inFixedIncomeMarket.

ITILiquidFund


ITI ArbITrAge Fund

Name of the Fund Manager Age / Qualification Experience of the Fund Manager in the last 10 years

Names of other schemes

under his management

PastExperience:Lastdesignation–Product&InvestmentManager–ZyFinResearchPrivateLtdfromNov2015toOctober2017.HewasmanagingIndianFixedIncomeETFscoveringIndianSovereignBond ETF and PSU Corporate Bond ETF with a totalassetsoverUSD75million,othermanagedETFsincludeZyfinTurkeySovereignBondETFandZyfinMSCIIndiaETFincollaborationwithforeigninstitutional players. During his tenure he was responsible for Fund Management and Product Developmentcoveringfixedincomemarkets.PriortojoiningZyFinResearchPrivateLtd,hewasaFundManageratSahara IndiaLife InsuranceCompanyLtdmanagingULIPsandTraditionalschemeportfolios and he was associated with the company fromNovember2005tillOctober2015.DuringhistenurehehasmanagedsixULIPschemeswithparticipating and non-participating funds (traditional schemes) along with his team. He was also associated with debt Intermediaries like Darashaw and BRICS securities (who caters to institutional investors and FPIsinWholesaleDebtMarket)from2002to2005.

Mr. George Heber Joseph Age: 44

Qualification : ACA, ACMA, Bachelor of Arts – English

language and literature and Bachelor of Commerce

Hehas joinedITIAssetManagementLimited inNovember2018andhasover16yearsofworkexperienceinFundManagement,EquityResearchand Capital Markets.PastExperience:Lastdesignation–SeniorFundManager(VicePresidentGrade&KeyManagementPersonnel) – ICICI Prudential Asset Management Co.Ltd.HehasbeenassociatedwiththeFundManagement Team of ICICI Prudential Asset ManagementCompanyLimitedfrom2008to2018.He has tracked various sectors, wide variety of stocks, managed flagship funds like Multicap (ICICI PrudentialMulticapFund),ELSS(ICICIPrudentialLongTermEquityFund–TaxSaving),ChildCare(ICICIPrudentialChildCareGiftPlan)andwasalsoresponsible for various closed ended schemes of ICICI Prudential Mutual Fund with assets under managementexceedingRs10000cores.During his tenure he was also heading the Portfolio Management Services Division, was responsible to oversee fund managers activities, managing research analysts, performance measurement and work as a sounding board for fund managers. In his previous assignments he has been associated with organisations likeDSPMerrillLynchLtd,WiproLtd,MetLifeIndia,CholamandalamInvestments&FinanceCompanyLtdandTanfacIndustriesLtdwherehehashandledfundmanagement and corporate treasury responsibilities.

ITI Multi Cap Fund

ITILiquidFund


ITI ArbITrAge Fund

J. WHAT ARE THE INVESTMENT RESTRICTIONS? The investment policy of the Scheme complies with the rules, regulations and guidelines laid out in SEBI (Mutual Funds) Regulations,1996.

AspertheRegulations,specificallytheSeventhSchedule,thefollowing investment restrictions are currently applicable to the Scheme:

1. TheSchemeshallnot investmorethan10%of itsNAVindebt instruments comprising money market instruments and non-money market 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 the Act. Suchinvestmentlimitmaybeextendedto12%oftheNAVofthe Scheme with the prior approval of the Board of Trustees andtheBoardofdirectorsoftheAMC:

Provided that such limit shall not be applicable for investments inGovernmentSecurities, treasurybillsandTri-partyRepo:

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.

2. TheSchemeshallnot investmorethan10%of itsNAVinunrated debt instruments issued by a single issuer and the totalinvestmentinsuchinstrumentsshallnotexceed25%of the NAV of the Scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of AMC.

3. No Mutual Fund under all its schemes should own more than 10%ofanycompany’spaidupcapitalcarryingvotingrights.

4. Transfer of investments from one scheme to another scheme inthesameMutualFundshallbeallowedonlyif:

a) Such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall have thesamemeaningasspecifiedbyaStockExchangeforspottransactions);and

b) The securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made.

5. TheSchememay invest inotherSchemesof theAMCorany other Mutual Fund without charging any fees, provided the aggregate inter-Scheme investment made by all the Schemes under the same management or in Schemes under management of any other Asset Management Company shall notexceed5%oftheNetAssetValueoftheFund.

6. TheSchemeshallbuyandsell securitieson thebasisofdeliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities:

Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard.

Further, the Scheme may enter into derivatives transactions inarecognizedstockexchange,subjecttotheframeworkspecifiedbySEBI.

7. PendingdeploymentoffundsoftheSchemeinsecuritiesinterms of the investment objectives of the Scheme, the Fund may invest the funds of the Scheme in short term deposits

of scheduled commercial banks subject to the following guidelinesasspecifiedbySEBI.

a. “Short Term” for parking of funds shall be treated as a periodnotexceeding91days.

b. Short Term deposits shall be held in the name of the Scheme.

c. Total investment of the Scheme in short term deposit(s) of all the Scheduled Commercial Banks put together shall notexceed15%ofthenetassets.However,thislimitcanberaisedupto20%ofthenetassetswithpriorapprovalof the Board of Trustees.

d. Investments in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed20%oftotaldeploymentbytheMutualFundinshort term deposits.

e. TheSchemeshallnotinvestmorethan10%ofthenetassets in short term deposit(s) of any one scheduled commercial bank including its subsidiaries.

f. The Scheme shall not invest in short term deposit of a bank which has invested in the Scheme.

The aforesaid limits shall not apply to term deposits placed as margins for trading in cash and derivatives market.

8. TheSchemeshallnotmakeanyinvestmentin:

a) Any unlisted security of an associate or group company oftheSponsor;or

b) Any security issued by way of private placement by an associateorgroupcompanyoftheSponsor;or

c) The listed securities of group companies of the Sponsor, whichisinexcessof25%ofthenetassetsoftheSchemeof the Fund.

9. The Scheme shall not make any investment in any fund of funds Scheme.

10. Theschemeshallnotinvestmorethan10%ofitsNAVintheequity shares or equity related instruments of any company.

11. Theschemeshallnotinvestmorethan5%ofitsNAVintheunlisted equity shares or equity related instruments, being an open ended scheme.

12. No loans for any purpose shall be advanced by the Scheme.

13. The Fund shall not borrow except tomeet temporaryliquidity needs of the Fund for the purpose of repurchase / redemption of Units or payment of interest and dividend to the Unit holders. Provided that the Fund shall not borrow morethan20%ofthenetassetsofanyindividualSchemeandthedurationoftheborrowingshallnotexceedaperiodof6months.

14. TheSchemeshallnotinvestmorethan25%ofitsnetassetsin debt&Moneymarket Instruments issuedby issuersbelonging to one sector. AMC shall utilize the “Sector” classificationprescribedbyAMFIforthispurpose.However,this limit shall not apply to investments in Bank CDs, Tri PartyRepo,GovernmentSecurities,T-BillsandAAAratedsecurities issued by Public Financial Institutions and Public Sector Banks.

TheSchememayhaveanadditionalexposuretofinancialservices sector (over and above the limit of 25%) notexceeding15%ofthenetassetsoftheSchemebywayofincreaseinexposuretoHousingFinanceCompanies(HFCs)registered with National Housing Bank.


ITI ArbITrAge Fund

Provided further that the additional exposure to suchsecurities issued by HFCs are rated AA and above and the totalinvestment/exposureinHFCsshallnotexceed25%ofthe net assets of the Scheme.

a) TheSchemeshallnothavetotalexposure inagroup(excluding investments insecurities issuedbyPublicSector Units, Public Financial Institutions and Public SectorBanks)exceeding20%ofthenetassetsofthescheme.Suchinvestmentlimitmaybeextendedto25%of the net assets of the scheme with the prior approval of the Board of Trustees.

b) Forthispurpose,agroupmeansagroupasdefinedunderregulation 2 (mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, itssubsidiaries, fellow subsidiaries, its holding company and its associates.

15. TheSchemewillcomplywithanyotherregulationsapplicableto the investments of Mutual Funds from time to time.

These investment restrictions shall be applicable at the time of investment and changes do not have to be effected merely because, owing to appreciations or depreciations in value, or byreasonofthereceiptofanyrights,bonusesorbenefitsinthe nature of capital or of any Schemes of arrangement or for amalgamation,reconstructionorexchange,oratanyrepaymentor redemption or other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceededforreasonsbeyonditscontrol,theAMCshallassoonas possible take appropriate corrective action, taking into account the interests of the Unit holders.

Inaddition,certaininvestmentparameters(likelimitsonexposureto sectors, industries, companies, etc.) may be adopted internally by the AMC, and amended from time to time, to ensure appropriate diversification/securityfortheFund.TheTrusteeshipCompany/ AMC may alter these above stated limitations from time to time, andalsototheextenttheSEBI(MutualFunds)Regulations,1996change, so as to permit the Schemes to make its investments in the full spectrum of permitted investments for Mutual Fund to achieve its investment objective. As such all investments of the Schemes will be made in accordance with SEBI (Mutual Funds) Regulations,1996,includingScheduleVIIthereof.

Investments Limitations and Restrictions in Derivatives:In accordance with SEBI guidelines, the following conditions shall apply to the Scheme’s participation in the derivatives market. Please note that the investment restrictions applicable to the Scheme’s participation in the derivatives market will be as prescribed or varied by SEBI or by the Trustees (subject to SEBI requirements) from time to time.

position limit for the Fund in index options contracts:ThepositionlimitfortheMutualFundinindexoptionscontractsshallbeasfollows:• TheFund’spositionlimitinallindexoptionscontractsona

particularunderlyingindexshallbeRs.500Croresor15%of the totalopen interestof themarket in indexoptions,whicheverishigher,perStockExchange.

• Thislimitwouldbeapplicableonopenpositionsinalloptionscontractsonaparticularunderlyingindex.

position limit for the Fund in index futures contracts:ThepositionlimitfortheMutualFundinindexfuturescontractsshallbeasfollows:• TheFund’spositionlimitinallindexfuturescontractsona

particularunderlyingindexshallbeRs.500Croresor15%of the total open interestof themarket in index futures,

whicheverishigher,perStockExchange.• Thislimitwouldbeapplicableonopenpositionsinallfutures

contractsonaparticularunderlyingindex.

Additional position limit in index derivatives for hedging of the Fund:In addition to the position limits above, the Fund may take exposureinequityindexderivativessubjecttothefollowinglimits:• Shortpositionsinindexderivatives(shortfuturesandlong

puts)shallnotexceed(innotionalvalue)theFund’sholdingof stocks.

Longpositionsinindexderivatives(longfuturesandlongcalls)shallnotexceed(innotionalvalue)theFund’sholdingofcash,government securities, T-Bills and similar instruments.

position limit for the Fund for stock based derivative contracts:The position limit for the Mutual Fund in a derivative contract on a particular underlying stock, stock option contracts and stock futurescontractsshallbeasfollows:

• Forstockshavinganapplicablemarket-wisepositionlimit(MWPL)ofRs.500Croresormore,thecombinedfuturesandoptionspositionlimitshallbe20%ofapplicableMWPLorRs. 300 Crores, whichever is lower and within which stock futurespositioncannotexceed10%ofapplicableMWPLorRs.150Crores,whicheverislower.

• Forstockshavinganapplicablemarket-wisepositionlimit(MWPL)lessthanRs.500Crores,thecombinedfuturesandoptionspositionlimitwouldbe20%ofapplicableMWPLandfuturespositioncannotexceed20%ofapplicableMWPLorRs.50Croreswhicheverislower.

position limit for the Scheme:The position limit / disclosure requirements for the Scheme shall beasfollows:

• For stock option and stock futures contracts, the gross open position across all derivative contracts on a particular underlyingstockoftheSchemeshallnotexceedthehigherof:

1%ofthefreefloatmarketcapitalization(intermsofnumberof shares) OR

5%of theopen interest in thederivative contractsonaparticular underlying stock (in terms of number of contracts (Shares).

• Forindexbasedcontracts,theFundshalldisclosethetotalopen interest held by its Scheme or all Schemes put together inaparticularunderlyingindex,ifsuchopeninterestequalsto or exceeds15%of the open interest of all derivativecontractsonthatunderlyingindex.

This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a stock exchange.

Exposure Limit:

1. Thecumulativegrossexposure throughequity, debtandderivativepositionsshouldnotexceed100%ofthenetassetsof the Scheme.

2. The Scheme shall not write options or purchase instruments with embedded written options.

3. Thetotalexposurerelatedtooptionpremiumpaidshallnotexceed20%ofthenetassetsoftheScheme.

4. Cash or cash equivalent instruments under the Scheme, with


ITI ArbITrAge Fund

residual maturity of less than 91 days shall be treated as not creatinganyexposure.

5. Exposureduetohedgingpositionsmaynotbeincludedintheabovementionedlimitssubjecttothefollowing:

a. Hedging positions are the derivative positions that reduce possible losses on an existing position insecuritiesandtilltheexistingpositionremains.

b. Hedgingpositionscannotbetakenforexistingderivativepositions.Exposuredue tosuchpositionsshallhavetobeaddedandtreatedasexposurewhilecalculatingcumulativegrossexposure.

c. Any derivative instrument used to hedge shall have the sameunderlyingsecurityastheexistingpositionbeinghedged.

d. The quantity of underlying associated with the derivative positiontakenforhedgingpurposesdoesnotexceedthequantityof theexistingpositionagainstwhichhedgehas been taken.

The Scheme shall enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions shall be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases willnotexceedthevalueofrespectiveexistingassetsbeinghedgedbytheScheme.Exposuretoasinglecounterpartyinsuchtransactionsshouldnotexceed10%ofthenetassetsof the Scheme.

6. Exposure due to derivative positions taken for hedgingpurposesinexcessoftheunderlyingpositionagainstwhichthe hedging position has been taken, shall be included while calculatingcumulativegrossexposure.

7. Eachpositiontakeninderivativesshallhaveanassociatedexposure as defined under. Exposure is themaximumpossible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall becomputedasfollows:

position Exposure

LongFuture FuturesPrice*LotSize*NumberofContracts

Short Future FuturesPrice*LotSize*NumberofContracts

Option bought OptionPremiumPaid*LotSize*Numberof Contracts.

The Trustee may alter the above restrictions from time to time totheextentthatchangesintheRegulationsmayallowandasdeemedfitinthegeneralinterestoftheUnitHolders.

K. HOW HAS THE SCHEME pERFORMED? The Scheme is a new Scheme and does not have any performance track record.

L. ADDITIONAL SCHEME RELATED DISCLOSURES (I) pORTFOLIO DISCLOSURES

(a) TOp 10 HOLDINGS OF THE SCHEME The Scheme is a new scheme and hence the same

is not applicable.

(b) SECTOR WISE pORTFOLIO HOLDINGS OF THE SCHEME

The Scheme is a new scheme and hence the same is not applicable.

For latest monthly portfolio holdings of the Scheme, investors are requested to visit www.itimf.com

(c) pORTFOLIO TURNOVER RATIO OF THE SCHEME The Scheme is a new scheme and hence the same

is not applicable.

(II) AGGREGATE VALUE OF INVESTMENTS HELD IN THE SCHEME By THE FOLLOWING CATEGORy OF pERSON(S)

Net Asset Value of Units held by

AMC’s Board of Directors

Scheme’s Fund Manager(s)

Other Key Managerial personnel

Not Applicable


ITI ArbITrAge Fund

III. UNITS AND OFFER

A. NEW FUND OFFER (NFO)

New Fund Offer period

This is the period during which a new scheme sells its units to the investors

NFO opens on: August 20, 2019

NFO closes on: September 03, 2019

The closing date.

New Fund Offer price:

This is the price per unit that the investors have to pay to invest during the NFO

Rs. 10/- per unit

Minimum Amount for Application in the NFO

Rs5,000/-andinmultiplesofRe1/-thereafter

Minimum Target amount

This is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. However, if AMC fails to refund the amountwithinfiveworkingdays,interestasspecifiedbySEBI(currently15%p.a.)willbe paid to the investors from theexpiryoffiveworkingdaysfrom the date of closure of the subscription period.

Rs. 10 crores

Maximum Amount to be raised (if any)

Thisisthemaximumamountwhich can be collected during the NFO period, as decided by the AMC.

Not Applicable

plans / Options offered The Scheme will have two Plans i.e. Regular Plan and Direct Plan.

Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.

BothRegularandDirectPlan(s),offerthebelowoptions/sub-options/facilities:

The Trustee / AMC reserves the rights to change the record date from time to time.

Default plan

Investors subscribing under Direct Plan of the Scheme will have to indicate “Direct Plan” against the Scheme name in the application form. However, if distributor code is mentioned in application form, but “Direct Plan” is mentioned against the Scheme name, the distributor code will be ignored and the application will be processed under “Direct Plan”. Further, where application is received for Regular Plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.

The below table summarizes the procedures which would be adopted by the AMC for applicability of Direct Plan / Regular Plan, while processing application form/transaction request under different scenarios:


ITI ArbITrAge Fund

Sr.No. AMFI Registration Number (ARN) Code mentioned in the application

form/ transaction request

plan as selected in the application form/ transaction request

Transaction shall be processed and Units

shall be allotted under

1. Not Mentioned Not Mentioned Direct Plan2. Not Mentioned Direct Direct Plan3. Not Mentioned Regular Direct Plan4. Mentioned Direct Direct Plan5. Direct Not Mentioned Direct Plan6. Direct Regular Direct Plan7. Mentioned Regular Regular Plan8. Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall endeavour to contact the investor/distributor and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shallreprocessthetransactionunderDirectPlanfromthedateofapplicationwithoutanyexitload.

Default Option – Growth

Default facility under Dividend Option – Reinvestment(i) Growth Option The Mutual Fund will not declare any dividends under this option. The income earned under

this Option will remain invested in the option and will be reflected in the NAV. This option is suitable for investors who are not looking for current income but who have invested with the intention of capital appreciation.

(ii) Dividend Option Under this option, dividends will be declared at periodic intervals at the discretion of the

Trustees, subject to availability of distributable surplus calculated in accordance with SEBI (MF) Regulations. On payment of dividend, the NAV of the Units under dividend option will fall totheextentofthedividendpayoutandapplicablestatutorylevies,ifany.

Dividend option offers (i) Dividend payout; and (ii) Dividend Reinvestment facility. It must be distinctly understood that the actual declaration of dividend and frequency thereof is at the sole discretion of Board of Trustee. There is no assurance or guarantee to the Unit holders as to the rate of dividend distribution nor that the dividend will be paid regularly.

Dividend payout Facility Under this facility, dividend declared, if any, will be paid (subject to deduction of dividend distribution taxandstatutorylevy,ifany)tothoseUnitholders,whosenamesappearintheregisterofUnitholdersonthenotifiedrecorddate.

IfdividendpayableunderdividendpayoutoptionislessthanRs.500/-,thenthedividendwouldbe compulsorily reinvested in the option of the Scheme.

Dividend Reinvestment Facility Under this facility, the dividend due and payable to the Unit holders will be compulsorily and without any further act by the Unit holder, reinvested in the dividend option at a price based on the prevailing ex-dividendNetAssetValueperUnitontherecorddate.Theamountofdividendre-investedwillbenetoftaxdeductedatsource,whereverapplicable.Thedividendssoreinvestedshallconstitutea constructive payment of dividends to the Unit holders and a constructive receipt of the same amount from each Unit holder for reinvestment in Units.

On reinvestment of dividends, the number of Units to the credit of Unit holder will increase to the extentofthedividendreinvesteddividedbytheApplicableNAV.

There shall, however, be no Load(s) (if any) on the dividend so reinvested.

Fordetailsontaxationofdividend,pleaserefertheSAI.

Notes:

a. An investor on record for the purpose of dividend distributions is an investor who is a Unit Holder as of the Record Date. In order to be a Unit Holder, an investor has to be allocated Units representing receipt of clear funds by the Scheme.


ITI ArbITrAge Fund

b. Investors should indicate the name of the Plan and/or Option, clearly in the application form. In case of valid applications received, without indicating the Plan and/or Option etc. or where the details regarding Option are not clear or ambiguous, the default options as mentioned above, will be applied.

Investors shall note that once Units are allotted, AMC shall not entertain requests regarding change of Option, with a retrospective effect.

Dividend policy Under the Dividend option, the Trustee will have discretion to declare the dividend, subject to availability of distributable surplus calculated in accordance with the Regulations. The actual declaration of Dividend and frequency will inter-alia, depend on availability of distributable surplus calculatedinaccordancewithSEBI(MF)RegulationsandthedecisionsoftheTrusteeshallbefinalin this regard. There is no assurance or guarantee to the Unitholder as to the rate of Dividend nor that will the Dividend be paid regularly.

The AMC/Trustee reserves the right to change the frequency of declaration of Dividend or may provide additional frequency for Declaration of Dividend.

Dividend Distribution procedure InaccordancewithSEBICircularno.SEBI/IMD/CirNo.1/64057/06datedApril4,2006,theprocedureforDividenddistributionwouldbeasunder:1. QuantumofDividendandtherecorddatewillbefixedbytheTrustee.Dividendsodecided

shall be paid, subject to availability of distributable surplus. 2. Within one calendar day of decision by the Trustee, the AMC shall issue notice to the public

communicating the decision about the Dividend including the record date, in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language oftheregionwheretheheadofficeoftheMutualFundissituated.

3. Record date shall be the date, which will be considered for the purpose of determining the eligibility of Unitholders whose names appear on the register of Unitholder for receiving Dividends.TheRecordDatewillbe5calendardaysfromthedateofissueofnotice.

4. The notice will, in font size 10, bold, categorically state that pursuant to payment of Dividend, theNAVoftheSchemewouldfalltotheextentofpayoutandstatutorylevy(ifapplicable).

5. TheNAVwillbeadjustedtotheextentofDividenddistributionandstatutorylevy,ifany,attheclose of Business Hours on record date.

6. Beforetheissueofsuchnotice,nocommunicationindicatingtheprobabledateofDividenddeclaration in any manner whatsoever will be issued by Mutual Fund.

The requirement of giving notice shall not be applicable for dividend options having frequency upto one month.

Allotment Full allotment will be made to all valid applications received during the New Fund Offer Period. AllotmentofUnits,shallbecompletednotlaterthan5businessdaysafterthecloseoftheNewFund Offer Period.

Onacceptanceoftheapplicationforsubscription,anallotmentconfirmationspecifyingthenumberofunitsallottedbywayofe-mailand/orSMSwithin5businessdaysfromthedateofclosureofNFOperiod will be sent to the Unitholders/ investors registered e-mail address and/or mobile number.

IncaseswheretheemaildoesnotreachtheUnitholder/investor,theFund/itsRegistrar&TransferAgents will not be responsible, but the Unitholder/ investor can request for fresh statement/confirmation.TheUnitholder/investorshallfromtimetotimeintimatetheFund/itsRegistrar&Transfer Agents about any changes in his e-mail address.

NormallynoUnitcertificateswillbeissued.However,iftheapplicantsodesires,theAMCshallissueanon-transferableUnitcertificatetotheapplicantwithin5BusinessDaysofthereceiptofrequestforthecertificate.Unitcertificate,ifissued,mustbesurrenderedalongwiththerequestfor Redemption / Switch or any other transaction of Units covered therein.

The Trustee reserves the right to recover from an investor any loss caused to the Scheme on account of dishonour of cheques issued by the investor for purchase of Units of the Scheme.

Applicants under both the Direct and Regular Plan(s) offered under the Scheme will have an option to hold the Units either in physical form (i.e. account statement) or in dematerialized form.

Where investors / Unitholders, have provided an email address, an account statement reflecting the units allotted to the Unitholder shall be sent by email on their registered email address. However, in case of Unit Holders holding units in the dematerialized mode, the Fund will not send the account statement to the Unit Holders. The statement provided by the Depository Participant will be equivalent to the account statement.


ITI ArbITrAge Fund

Refund Fund will refund the application money to applicants whose applications are found to be incomplete, invalid or have been rejected for any other reason whatsoever. The Refund proceeds will be paid bywayofNEFT/RTGS/Directcredits/IMPS/anyotherelectronicmannerifsufficientbankingdetails are available with the Mutual Fund for the Unitholder or else through dispatch of Refund instrumentswithin5businessdaysoftheclosureofNFOperiod.Inabsenceoftherequiredbankingdetails to process the refund through electronic manner, the refund instruments will be dispatched within5businessdaysoftheclosureofNFOperiod.Intheeventofdelaybeyond5businessdays,theAMCshallbeliabletopayinterestat15%perannumorsuchotherrateofinterestasmaybeprescribed from time to time. Refund orders will be marked “A/c Payee only” and drawn in the name oftheapplicant(inthecaseofasoleapplicant)andinthenameofthefirstapplicantinallothercases, or by any other mode of payment as authorised by the applicant. All refund orders will be sent by registered post or as permitted by Regulations.

Who can invest

This is an indicative list and you are requested to consult your financialadvisortoascertainwhether the scheme is suitable toyourriskprofile.Prospectiveinvestors are advised to satisfy themselves that they are not prohibited by any law governing them and any Indian law from investing in the Scheme and are authorised to purchase units of mutual funds as per their respective constitutions, charter documents, corporate / other authorisations and relevant statutory provisions.

The following persons (subject, wherever relevant, to purchase of Units, being permitted and duly authorized under their respective constitutions / bye-laws, charter documents and relevant statutory regulations)areeligibleandmayapplyforpurchaseSubscriptiontotheUnitsundertheScheme:

1. Residentadult individualseithersinglyor jointly(notexceedingthree)oronanAnyoneorSurvivorbasis;

2. HinduUndividedFamily(HUF)throughKarta;3. Minorthroughparent/legalguardian;4. PartnershipFirmsincludinglimitedliabilitypartnershipfirms;5. Proprietorshipinthenameofthesoleproprietor;6. Companies,BodiesCorporate,PublicSectorUndertakings(PSUs.),AssociationofPersons

(AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act,1860;

7. Banks(includingCo-operativeBanksandRegionalRuralBanks)andFinancialInstitutions;8. ReligiousandCharitableTrusts,Wakfsorendowmentsofprivatetrusts(subjecttoreceiptof

necessary approvals as “Public Securities” as required) and Private trusts authorised to invest inmutualfundschemesundertheirtrustdeeds;

9. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) residing abroad on repatriation basisoronnon-repatriationbasis;

10. ForeignPortfolioInvestors(FPIs)registeredwithSEBI;11. Army,AirForce,Navyandotherpara-militaryunitsandbodiescreatedbysuchinstitutions;12. ScientificandIndustrialResearchOrganisations;13. Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission

ofGovernmentofIndia/RBI;14. Provident/Pension/GratuityFundtotheextenttheyarepermitted;15. OtherschemesofITIMutualFundoranyothermutualfundsubjecttotheconditionsand

limitsprescribedbySEBIRegulations;16. Trustee,AMCorSponsorortheirassociatesmaysubscribetoUnitsundertheScheme;17. SuchotherpersonasmaybedecidedbytheAMCfromtimetotime.

Who cannot invest ItshouldbenotedthatthefollowingpersonscannotinvestintheScheme:1. Any individual who is a foreign national or any other entity that is not an Indian resident under

theForeignExchangeManagementAct,1999(FEMAAct)exceptwhereregisteredwithSEBIasaFPIorFIIorsubaccountofFIIorotherwiseexplicitlypermittedunderFEMAAct/byRBI/byanyotherapplicableauthority,orasstatedintheexceptioninpointno.5hereunder;

2. Overseas Corporate Bodies (OCBs) 3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the

Financial Action Task Force (FATF), from time to time. 4. ResidentsofCanadaasdefinedundertheapplicablelawsofCanada;5. U.S.Person*(includingallpersonsresidinginU.S.,U.S.Corporationsorotherentitiesorganised

underthelawsofU.S),exceptlumpsumsubscriptionandswitchtransactionrequestsreceivedfrom Non-resident Indians / Persons of Indian origin who at the time of such investment, are physically present in India and submit only a physical transaction request along with such documents / undertakings, etc. as may be prescribed by the AMC / Mutual Fund from time to time, and subject to compliance with all applicable laws and regulations prior to investing in the Scheme, and provided that such persons shall not be eligible to invest through the SIP route / systematic transactions.


ITI ArbITrAge Fund

*The term “U.S. Person” means any person that is a U.S. Person within the meaning of Regulations under the Securities Act of 1933 of the United States or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc., as may be in force from time to time.

The physical application form(s) for transactions (in non-demat mode) from such U.S. person will be acceptedonlyattheofficialpointsofacceptanceoftransactionsoftheFundinIndia.Additionally,such transactions in physical application form(s) will also be accepted through Distributors of the AMC and other platforms in India, subject to receipt of such additional documents/undertakings, etc., as may be stipulated by the AMC / Trustee from time to time.

The investor shall be responsible for complying with all applicable laws for such investments. The AMC/Trustee reserves the right to put the application form/transaction request on hold/reject the subscription/transaction request and redeem the units, if already allotted, as the case may be, as andwhenidentifiedbytheAMCthatthesameisnotincompliancewiththeapplicablelaws,theterms and conditions stipulated by the AMC/Trustee from time to time and/or the documents/undertakings provided by such investors are not satisfactory. Such redemption will be processed attheapplicableNetAssetValueandsubjecttoapplicabletaxesandexitload,ifany.

IfanexistingUnitHolder(s)subsequentlybecomesaU.S.PersonorResidentofCanada,thensuchUnit Holder(s) will not be able to purchase any additional Units in any of the Schemes of the Fund exceptinthemannerstatedinpointno.5above.

TheMutualFundreservestherighttoinclude/excludenew/existingcategoriesofinvestorstoinvest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any. The Mutual Fund / Trustee / AMC may redeem Units of any Unitholder in the event it is found that the Unitholder has submitted information either in the application or otherwise that is false, misleading or incomplete or Units are held by any person in breach of the SEBI Regulations, any law or requirements of any governmental, statutory authority.

Where can you submit the filled up applications

DuringtheNFOperiod,theapplicationsdulyfilledupandsignedbytheapplicantsshouldbesubmittedattheofficeoftheISCsofAMC/RTAwhosenamesandaddressesarementionedatthe end of this document.

AMC reserves the right to appoint collecting bankers during the New Fund Offer Period and change the bankers and/or appoint any other bankers subsequently.

Please refer to the back cover page of the Scheme Information Document for details.

How to Apply Please refer to the SAI and application form for the instructions

Listing The Scheme is an open ended equity scheme, sale and repurchase will be made on a continuous basisandthereforelistingonstockexchangesisnotenvisaged.However,theTrusteemayattheirdiscretionlisttheunitsonanyStockExchange

Special products / facilities available during the NFO

Switching Option

During the NFO period, Switch request will be accepted upto 3.00 p.m. on the last day of the NFO. The investors will be able to invest in the NFO under the Scheme by switching part or all of their Unitholdings,ifany,heldintherespectiveoption(s)/plan(s)oftheexistingscheme(s)oftheMutualFund (subject to completion of lock-in period, if any, of the Units of the scheme(s) from where the Units are being switched).

The Switch will be effected by way of a Redemption of Units from the Scheme/ Plan and a reinvestment of the Redemption proceeds in the Scheme and accordingly, to be effective, the Switch must comply with the Redemption rules of the Scheme/ Plan and the issue rules of the Scheme (e.g.astotheminimumnumberofUnitsthatmayberedeemedorissued,ExitLoadetc).Thepriceat which the units will be switched - out will be based on the redemption price of the scheme from which switch - out is done and the proceeds will be invested into the scheme at the NFO Price.

The Switch request can be made on a pre-printed form or by using the relevant tear off section of the Transaction Slip enclosed with the Account Statement, which should be submitted at any of the ISCs.

Applications Supported by Blocked Amount (ASBA) facility ASBAfacilitywillbeprovidedtotheinvestorssubscribingtoNFOoftheScheme.Itshallco-existwiththeexistingprocess,whereincheques/demanddraftsareusedasamodeofpayment.Pleaserefer ASBA application form for detailed instructions.

Stock Exchange Infrastructure Facility: TheinvestorscansubscribetotheUnitsinthe“Growth“optionand“Dividend”optionoftheSchemethroughMutualFundServiceSystem(“MFSS”)platformofNationalStockExchangeand“BSEStARMF”platformofBombayStockExchange.


ITI ArbITrAge Fund

MF Utility (MFU):Investor can also subscribe to the Units of the Scheme through MFU which allows transacting in multiple Schemes of various Mutual Funds with a single form / transaction request and a single paymentinstrument/instruction.Allfinancialandnon-financialtransactionspertainingtoSchemesof ITI Mutual

Fund can also be submitted through MFU either electronically or physically through the authorized Points of Service (“POS”) of MFUI. The list of POS of MFUI is published on the website of MFUI at www.mfuindia.com and may be updated from time to time.

Further, Systematic Investment plan (SIp) / Systematic Withdrawal plan (SWp) / Systematic Transfer plan (STp) / Dividend Transfer plan (DTp) facilities would be available to the investors. For details, investors/ unitholders are requested to refer to paragraph “Special Products available” given in the document under Ongoing Offer Details.

The policy regarding reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the Scheme or the AMC) involved in the same.

Unitsonceredeemedwillbeextinguishedandwillnotbereissued.

Restrictions, if any, on the right to freely retain or dispose of units being offered.

pledge of Units:-

The Units under the Scheme may be offered as security by way of a pledge / charge in favour of scheduledbanks,financialinstitutions,non-bankingfinancecompanies(“NBFC’s),oranyotherbody. The AMC/RTA will note and record such Pledged Units. A standard form for this purpose is available on request at all ISCs and the Mutual Fund website (www.itimf.com ). The AMC shall mark alienonthespecifiedunitsonlyuponreceivingthedulycompletedformanddocumentsasitmayrequire.Disbursementofsuchloanswillbeattheentirediscretionofthebank/financialinstitution/ NBFC or any other body concerned and the Mutual Fund assumes no responsibility thereof.

The Pledgor will not be able to redeem/switch Units that are pledged until the entity to which the Units are pledged provides a written authorisation to the Mutual Fund that the pledge / lien/ charge may be removed. As long as Units are pledged, the Pledgee will have complete authority to redeem such Units. Dividends declared on Units under lien will be paid / re-invested to the credit of the Unit Holderandnotthelienholderunlessspecifiedotherwiseinthelienletter.

For units of the Scheme held in electronic (Demat) form, the rules of Depository applicable for pledge will be applicable for Pledge/Assignment of units of the Scheme. Pledgor and Pledgee musthaveabeneficialaccountwiththeDepository.TheseaccountscanbewiththesameDPorwith different DPs.

Lien on Units:-

Onanongoingbasis,whenexistingandnewinvestorsmakeSubscriptions,pendingclearanceofthe payment instrument, a temporary hold (lien) will be created on the Units allotted and such Units shall not be available for redemption/switch out until the payment proceeds are realised by the Fund. In case the cheque/draft is dishonoured during clearing process by the bank, the transaction will be reversed and the Units allotted there against shall be cancelled under intimation to the applicant. In respect of NRIs, the AMC/ RTA shall mark a temporary hold (lien) on the Units, in case the requisite documents (such as FIRC/Account debit letter) have not been submitted along with the application form and before the submission of the redemption request. The AMC reserves the right to change the operational guidelines for temporary lien on Units from time to time.

Right to Limit Redemptions:-

Subject to the approval of Board of Directors of the AMC and Trustee Company and immediate intimation to SEBI, a restriction on redemptions may be imposed by the Scheme when there are circumstances, which the AMC / Trustee believe that may lead to a systemic crisis or event that constrictliquidityofmostsecuritiesortheefficientfunctioningofmarketssuchas:

1. Liquidityissues-whenmarketatlargebecomesilliquidaffectingalmostallsecuritiesratherthananyissuerspecificsecurity.

2. Marketfailures,exchangeclosures-whenmarketsareaffectedbyunexpectedeventswhichimpactthefunctioningofexchangesortheregularcourseoftransactions.Suchunexpectedevents could also be related to political, economic, military, monetary or other emergencies.

3. Operational issues–when exceptional circumstances are caused by forcemajeure,unpredictable operational problems and technical failures (e.g. a black out). Such cases can only be considered if they are reasonably unpredictable and occur in spite of appropriate diligence of third parties, adequate and effective disaster recovery procedures and systems.


ITI ArbITrAge Fund

Suchrestrictiononredemptionmaybeimposedforaspecifiedperiodoftimenotexceeding10workingdaysinany90daysperiod.However,ifexceptionalcircumstances/systemiccrisisreferredabovecontinuesbeyondtheexpectedtimelines,therestrictionmaybeextendedfurthersubjectto the prior approval of Board of Directors of the AMC and Trustee Company giving details of circumstancesandjustificationforseekingsuchextensionshallalsobeinformedtoSEBIinadvance.

Procedure to be followed while imposing restriction on redemptions

a. NoredemptionrequestsuptoINR2lacsperrequestshallbesubjecttosuchrestriction;

b. WhereredemptionrequestsareaboveINR2lacs:

i. TheAMCshall redeem thefirst INR2 lacsofeach redemption request,withoutsuchrestriction;

ii. Remaining part over and above INR 2 lacs shall be subject to such restriction and be dealt asunder:

- Any Units which are not redeemed on a particular Business Day will be carried forward forRedemptiontothenextBusinessDay,inorderofreceipt.

- Redemptions so carried forward will be priced on the basis of the Applicable NAV (subject totheprevailingLoad,ifany)ofthesubsequentBusinessDay(s)onwhichredemptionsare being processed.

- Undersuchcircumstances,totheextentmultipleredemptionrequestsarereceivedatthesame time on a single Business Day, redemptions will be made on a prorata basis based on the size of each redemption request, the balance amount being carried forward for redemptiontothenextBusinessDay.

Cash Investments in mutual funds

In order to help enhance the reach of mutual fund products amongst small investors, who may not betaxpayersandmaynothavePAN/bankaccounts,suchasfarmers,smalltraders/businessmen/workers, SEBI has permitted receipt of cash transactions for fresh purchases/ additional purchases totheextentofRs.50,000/-perinvestor,perfinancialyearshallbeallowedsubjectto:

i. compliancewithPreventionofMoneyLaunderingAct,2002andRulesframedthereunder;theSEBICircular(s)onAntiMoneyLaundering(AML)andotherapplicableAntiMoneyLaunderingRules,RegulationsandGuidelines;and

ii. sufficientsystemsandproceduresinplace.

However, payment towards redemptions, dividend, etc. with respect to aforementioned investments shall be paid only through banking channel.

The Fund/ AMC is currently in the process of setting up appropriate systems and procedures for the said purpose. Appropriate notice shall be displayed on its website viz. as well as at the Investor Service Centres, once the facility is made available to the investors.

B. ONGOING OFFER DETAILS

Ongoing Offer period

This is the date from which the scheme will reopen for subscriptions / redemptions after the closure of the NFO period.

TheSchemewillreopenforcontinuoussubscription/redemptionwithin5BusinessDaysfromthedate of allotment.

Ongoing price for Subscription (purchase) / switch-in (from other schemes/plans of the Mutual Fund) by investors.

(This is the price you need to pay for purchase/switch-in)

At the Applicable NAV

Ongoing price for redemption (sale) / switch-outs (to other schemes/plans of the Mutual Fund) by investors.

(This is the price you will receive for redemptions/switch outs)

AttheApplicableNAVsubjecttoprevailingexitload.

During the continuous offer of the Scheme, the Unitholder can redeem the Unit at Applicable NAV, subjecttopaymentofExitLoad,ifany.Itwillbecalculatedasfollows:

RedemptionPrice=ApplicableNAV*(1-ExitLoad,ifany)

Example:IftheApplicableNAVisRs.10,ExitLoadis2%thenredemptionpricewillbe:

= Rs. 10*(1-0.02)

=Rs.9.80


ITI ArbITrAge Fund

Cut off timing for subscriptions / redemptions / switches

This is the time before which your application (complete in all respects) should reach the officialpointsofacceptance.

Subscriptions/purchases including Switch – ins for amount less than Rs. 2 Lacs:

• Inrespectofvalidapplicationsreceivedupto3.00p.m.onaBusinessDayalongwithalocalchequeorademanddraftpayableatparat theOfficialPoint(s)ofAcceptancewhere theapplication is received, the closing NAV of the day on which application is received shall be applicable.

• Inrespectofvalidapplicationsreceivedafter3.00p.m.onaBusinessDayalongwithalocalchequeorademanddraftpayableatparat theOfficialPoint(s)ofAcceptancewhere theapplicationisreceived,theclosingNAVofthenextBusinessDayshallbeapplicable.

• Inrespectofvalidapplicationsreceivedwithoutstationcheques/demanddraftsnotpayableatparattheOfficialPoint(s)ofAcceptancewheretheapplicationisreceived,theclosingNAVof the day on which the cheque / demand draft is credited shall be applicable.

Subscriptions/purchases including Switch – ins for amount equal to or more than Rs. 2 Lacs:

• InrespectofvalidapplicationsreceivedforanamountequaltoormorethanRs.2lacsupto3.00p.m.onaBusinessDayattheOfficialPoint(s)ofAcceptanceandwherethefundsforthe entire amount of subscription / purchase as per the application / switch-in request, are credited to the bank account of the Scheme before the cut-off time i.e. available for utilization before the cut-off time - the closing NAV of the day on which application is received shall be applicable.

• InrespectofvalidapplicationsreceivedforanamountequaltoormorethanRs.2lacsafter3.00p.m.onaBusinessDayattheOfficialPoint(s)ofAcceptanceandwherethefundsforthe entire amount of subscription / purchase as per the application / switch-in request, are creditedtothebankaccountoftheSchemebeforethecut-offtimeofthenextBusinessDayi.e.availableforutilizationbeforethecut-offtimeofthenextBusinessDay-theclosingNAVofthenextBusinessDayshallbeapplicable.

• IrrespectiveofthetimeofreceiptofapplicationsforanamountequaltoormorethanRs.2lacsattheOfficialPoint(s)ofAcceptance,wherethefundsfortheentireamountofsubscription/purchase as per the application / switch-in request, are credited to the bank account of the Scheme before the cut-off time on any subsequent Business Day i.e. available for utilization before the cut-off time on any subsequent Business Day - the closing NAV of such subsequent Business Day shall be applicable.

Applicable NAV in case of Multiple applications: In case of multiple applications received on the samedayundertheSchemefromthesameinvestor(identifiedbasistheFirstHolder’sPANandGuardian’sPANincaseofinvestorbeingMinor)withinvestmentamountaggregatingtoRs2lacsand above, such multiple applications will be considered as a single application and applicable NAV will be based on funds available for utilization. Transactions in the name of minor, received through guardian should not be aggregated with the transaction in the name of same guardian.

For determining the availability of funds for utilisation, the funds for the entire amount of subscription/purchase (including switch-in) as per the application should be credited to the bank account of the Scheme before the cut-off time and the funds are available for utilisation before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.

Redemptions including Switch–Outs:

• Inrespectofvalidapplicationsreceivedupto3p.m.onabusinessdaybytheMutualFund–the closing NAV of the day of receipt of application, shall be applicable.

• Inrespectofvalidapplicationsreceivedafter3p.m.onabusinessdaybytheMutualFund–theclosingNAVofthenextbusinessdayshallbeapplicable.

The above mentioned cut off timing shall be applicable to transactions through the online trading platform.TheDateofAcceptancewillbereckonedasperthedate&time;thetransactionisenteredinstockexchange‘sinfrastructureforwhichasystemgeneratedconfirmationslipwillbeissuedto the unitholder.

Where can the applications for purchase / redemption / switches be submitted?

Please refer the back cover page of the Scheme Information Document.

Minimum amount for purchase/redemption/switches

Minimum Amount for Subscription / purchase: Rs.5,000/-andinmultiplesofRe.1/-thereafter.

Minimum Amount for Switch in: Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Minimum Additional purchase Amount: Rs. 1,000/- and in multiples of Re.1/- thereafter.


ITI ArbITrAge Fund

Minimum Amount for Redemption / Switch-outs:

Rs. 1,000 and in multiples of Re. 1/- or account balance whichever is lower. There will be no minimum redemption criterion for Unit based redemption.

IncasetheInvestorspecifiesboththenumberofunitsandamount,thenumberofUnitsshallbeconsidered for Redemption. In case the unitholder does not specify the number or amount, the request will not be processed.

Where Units under a Scheme are held under both Direct and Regular Plans and the redemption / Switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with the folio number), failing which the request would be processed from the Regular Plan. However, where Units under the requested Option are held only under one Plan, the request would be processed under such Plan.

Minimum balance to be maintained and consequences of non maintenance

There is no minimum balance requirement.

Investors may note that in case balance in the account of the Unit holder does not cover the amount of redemption request, then the Mutual Fund is authorized to redeem all the Units in the folio and send the redemption proceeds to the Unit holder.

Special products Available 1. SySTEMATIC INVESTMENT pLAN (SIp)

This facility enables investors to save and invest periodically over a long period of time.

particulars Frequency Available

Daily Weekly Monthly

SIP Transaction Dates

Every Business Day 7th,14th,21st,28th 1stor7thor14thor21stor28thofevery month

Minimum no. of installments and Minimum amount of installment*

One Month installments ofRs.500/-eachandin multiples of Re.1/- thereafter

12 installments ofRs.500/-eachand in multiples of Re.1/- thereafter

12 installments ofRs.500/-eachand in multiples of Re.1/- thereafter

Mode of Payment a. Electronic Clearing Service (ECS)

b. Direct Debit Mandate through select banks with whom AMC has an arrangement

c. Post Dated Cheques (PDCs)

d. National Automated Clearing House (NACH) Facility

*Minimum application amount is not applicable to SIP Transaction

(i) Aninvestorneedstoprovidethefirstcheque/DemandDraftwiththeSIPapplicationform.Thedateofthefirstchequeshallbethesameasthedateoftheapplication.

Theremainingpaymentinstructions/chequecanbeonanydatesofthemonthasspecifiedin the SIP application form.

(ii) TheapplicableNAVinsuchfirstsaleshallbetheNAVbasedonthedateandtimeofreceiptof application along with the cheque subject to the funds are available for utilization.

(iii) SIPshallbestartedsubjecttorealizationofthefirstinstallment.

(iv) There is no upper limit for individual installments / aggregate investment made under Daily/ Weekly/Monthly SIP.

(v) The request for enrollment / processing of SIP will only be on a Business Day at the applicable NAV. In case during the term of SIP processing date falls on a non-Business Day, then such requestwillbeprocessedonthenextfollowingBusinessDay’sapplicableNAV.

(vi) TherequestforenrollmentofSIPintheprescribedformshouldbereceivedatanyofficialpoint of acceptance / Investor service center at least 30 Calendar Days in advance before the execution/commencementdate.

(vii) TherequestfordiscontinuationofSIPintheprescribedformshouldbereceivedatanyofficialpoint of acceptance / Investor Service Center at least 30 Calendar Days in advance before the execution/commencementdate.

(viii) The units will be allotted to the investor at applicable NAV of the respective Business Days on which the investment are sought to be made as per the applicable cut-off timing subject to the funds are available for utilisation.


ITI ArbITrAge Fund

(ix) TheAMCmayalsobasedonchequeauthorizationreceivedfromtheUnitholderapproachtheUnitholder’s bank for setting up standing instruction for remittance of the stated SIP amount at stated intervals in favor of the Fund. In case the bank fails to take cognizance of the cheque authorisation, the Unitholder may be requested to re-send post-dated cheques. In case any particulardateofthepostdatedchequefallsonaholidaytheimmediatenextBusinessDayswill be considered for this purpose.

The Unitholder’s account will be credited with the number of units at the applicable Sale Price. Unitholdermayalsoleaveastandinginstructionwithhis/herbanktoperiodicallyremitafixedsum from his/her account into the Scheme. A Unitholder should note that the market value of the Scheme’s units is subject to fluctuation. Before going in for the Systematic Investment Plan,theUnitholdershouldkeepinmindthattheSIPdoesnotassureaprofitorprotectagainsta loss.

(x) IncaseofinvestmentsunderSIP,if3ormoreconsecutivepaymentinstructionsprovidedbytheinvestor/unitholderaredishonoredforeitherinsufficiencyoffundsorasaresultofastoppayment instruction issued by the investor/unitholder or any other reason as intimated by the bank, the AMC reserves the right to discontinue the SIP facility provided to the investor/unitholder.

(xi) AninvestorcanalsoinvestintheSchemethroughSIPFacilitythroughtheStockExchangemechanismassuchSIPfrequencyavailableundertheStockExchangemechanismfromtimeto time.

The provision for Minimum Application Amount will not be applicable under SIP Investments.

SIp through post-dated cheques Thedateofthefirstchequeshallbethesameasthedateoftheapplicationwhiletheremainingcheques shall be post dated cheques which shall be dated uniformly. Investors can invest in SIP byprovidingpost-datedchequestoOfficialPoint(s)ofAcceptance.AllSIPchequesshouldbeofthe same amount and same SIP transaction date opted. Cheques should be drawn in favour of the Scheme and “A/c Payee only”. A letter will be forwarded to the Investor on successful registration of SIP. The Post Dated cheques will be presented on the dates mentioned on the cheque and subject to realization of the cheque.

SIp through / Direct Debit / NACH Investors may also enroll for SIP facility through NACH (Debit Clearing) of the RBI or for SIP Direct DebitFacilityavailablewithspecifiedBanks/Branches.InordertoenrollforSIPNACHorDirectDebitFacility,anInvestormustfill-uptheApplicationFormforSIPNACH/DirectDebitfacility.In case of SIP with payment mode as NACH/Direct Debit, Investors shall be required to submit a cancelled cheque or a photocopy of a cheque of the bank account for which the NACH/Direct Debit Mandate is provided. AllSIPcheques/paymentinstructionsshouldbeofthesameamountandsamedate(excludingfirstcheque).However,thereshouldbeagapof30calendardaysbetweenfirstSIPInstallmentandthe second installment in case of SIP started during the ongoing offer. Units will be allotted at the Applicable NAV of the respective SIP transaction dates as per SIP mandate. In case the SIP transaction date falls on a non-business day or falls during a Book Closure period,theimmediatenextBusinessDaywillbeconsideredforthispurpose.AnextensionofanexistingSIPmandatewillbetreatedasafreshSIPmandateonthedateofsuchapplication, and all the above conditions need to be met with. ForapplicableLoadonPurchasesthroughSIP,pleasereferparagraph“LoadStructure”giveninthe document.

Micro Systematic Investment plan (Micro SIp):

The unit holder will have the facility of MicroSIP under the current Systematic Investment Plan facility. The Minimum Investment amount per installment will be as per applicable minimum investment amountoftherespectiveScheme.ThetotalinvestmentunderMicroSIPcannotexceedRs.50,000/-.TheminimumredemptionamountwillbeRs.500/-plusinmultiplesofRe.1/-.InlinewithSEBIletterno.OW/16541/2012datedJuly24,2012,addressedtoAMFI,Investmentsin the mutual fund schemes [including investments through Systematic Investment Plans (SIP)] uptoRs.50,000/perinvestorperyearshallbeexemptedfromtherequirementofPAN.However,requirementsofKnowYourCustomer(KYC)shallbemandatory.Accordingly,investorsseekingtheaboveexemptionforPANstillneedtosubmittheKYCAcknowledgement,irrespectiveoftheamountofinvestment.ThisexemptionwillbeavailableonlytoMicroinvestmentmadebytheindividuals being Indian citizens (including NRIs, Joint holders, minors acting through guardian andsoleproprietaryfirms).PIOs,HUFs,QFIsandothercategoriesofinvestorswillnotbeeligibleforthisexemption.The AMC / Trustee reserve the right to change / modify the terms and conditions under the SIP prospectively at a future date.


ITI ArbITrAge Fund

(2) Systematic Transfer plan (STp):

ThisfacilityenablestheUnitholdertotransferfixedamountperiodicallyfromoneschemeofthe Mutual Fund (“Transferor Scheme”) to another (“Transferee Scheme”) by redeeming units oftheTransferorSchemeattheApplicableNAV,subjecttoExitLoad,ifanyandinvestingthesameamountinTransfereeSchemeattheApplicableNAV,onarecurrentbasisforaspecifiedperiodatspecifiedfrequencyaspertheinvestor’sSTPmandate.Theprovisionof“MinimumRedemption Amount” of the designated Transferor Scheme(s) and “Minimum Application Amount” of the designated Transferee Scheme(s) shall not be applicable to STP. Investors may register for STP using a prescribed enrollment form. STP facility is offered by the Scheme subjecttofollowingtermsandconditions:


Daily Weekly Monthly

STP Transaction Dates

Every Business Day 7th,14th,21st,28th 1stor7thor14thor21stor28thofevery month


One Month installments ofRs.500/-eachandin multiples of Re.1/- thereafter

2 installments of Rs. 500/-eachandinmultiples of Re.1/- thereafter

2 installments of Rs.500/-eachand in multiples of Re.1/- thereafter

*Minimum application amount is not applicable to STP Transaction

Note: Anyone or more STP transaction dates from the available dates can be selected by the Unit Holders under the Monthly frequency Incase the STP dates fall on a non business day or a day followedbyanonbusinessdaythanthetransferwillhappenonthenextbusinessday.

Default options

Default Frequency – Monthly

DefaultDateformonthlyfrequency–7thofeverymonth1. If any STP transaction due date falls on a non-Business Day, then the respective transactions

will be processed on the immediately succeeding Business Day. 2. If theSTPperiodorno.of installments isnotspecified in the transactionForm, theSTP

transactions will be processed until the balance of units in the unit holder’s folio in the Transferor Scheme becomes zero.

3. STP registered for more than one date under monthly option then it will be considered as separateSTP instruction for thepurposeof fulfilling thecriteriaunder “Minimumno.ofinstallments” section above.

4. The AMC reserves the right to introduce STP facility at any other frequencies or on any other dates as the AMC may feel appropriate from time to time.

5. TheloadstructureintheTransfereeSchemeprevailingattimeofsubmissionofSTPapplication(whetherforfreshenrollmentorextension)willbeapplicableforalltheinvestmentthroughSTPspecifiedinsuchapplication.

6. TheSTPmandatehastobesubmitted7businessdayspriortothefirstSTPdate.TheSTPfacility may be discontinued by a Unit holder by giving a written notice of 10 Business days to anyoftheOfficialPoint(s)ofAcceptance.STPmandatewillterminateautomaticallyifthereis no Unit balance in the Transferor Scheme on the STP transaction date or upon the Mutual Fund receiving a written intimation of death of the sole / 1st Unit holder.

7. UnitsmarkedunderlienorpledgeintheTransferorSchemewillnotbeeligibleforSTP.8. IncasetheunitbalanceintheTransferorSchemeislesserthanamountspecifiedbytheunit

holders for STP, the AMC will transfer remaining unit balance to the Transferee Scheme. 9. STP in a folio of minor will be registered only upto the date of minor attaining majority even

though the instruction may be for the period beyond that date.

The provision for Minimum Application Amount will not be applicable under STP Investments.

The AMC / Trustee reserve the right to change / modify the terms and conditions under the STP prospectively at a future date.

3. SySTEMATIC WITHDRAWAL pLAN (SWp)

This facility enables an investor to withdraw sums from their Unit accounts in the Scheme at periodicintervalsthroughaone-timerequest.Thewithdrawalscanbemadeasfollows:


ITI ArbITrAge Fund


Monthly Quarterly

SWP Transaction Dates 1stor7thor14thor21stor28thofeverymonth

1stor7thor14thor21stor28thofmonthofeveryQuarter


2installmentsofRs.500/-each and in multiples of Re.1/- thereafter

2installmentsofRs.500/-each and in multiples of Re.1/- thereafter

*Minimum application amount is not applicable to SWP Transaction

1. The withdrawals will commence from the start date mentioned by the investor in the SWP Application Form. The Units will be redeemed at the Applicable NAV of the respective dates on which such withdrawals are sought.

2. The request for enrollment / processing of SWP will only be on a Business Day at the applicable NAV. In case during the term of SWP processing date falls on a non-Business Day,thensuchrequestwillbeprocessedonthenextfollowingBusinessDay’sapplicableNAV.

3. TherequestforenrollmentofSWPintheprescribedformshouldbereceivedatanyofficialpointofacceptance/Investorservicecenteratleast7BusinessDaysinadvancebeforetheexecution/commencementdate.

4. The request for discontinuation of SWP in the prescribed form should be received at any officialpointofacceptance/InvestorServiceCenteratleast10BusinessDaysinadvancebeforetheexecution/commencementdate.

The provision for Minimum Application Amount will not be applicable under SWP Investments.

A request for STP / SWP will be treated as a request for Redemption from/Subscription into the respective Option(s)/Plan(s) of the Scheme(s) as opted by the Investor, at the applicable NAV.

Switching Options:

a) Inter - Scheme Switching option Unitholders under the Scheme have the option to Switch part or all of their Unitholdings in

the Scheme to any other Scheme offered by the Mutual Fund from time to time. The Mutual FundalsoprovidestheUnitholderstheflexibilitytoSwitchtheirinvestmentsfromanyotherscheme(s) / plan (s) offered by the Mutual Fund to this Scheme. This option will be useful to Unitholders who wish to alter the allocation of their investment among the scheme(s) / plan(s) of the Mutual Fund in order to meet their changed investment needs.

The Switch will be effected by way of a Redemption of Units from the Scheme at Applicable NAV,subjecttoExitLoad,ifanyandreinvestmentoftheRedemptionproceedsintoanotherScheme offered by the Mutual Fund at Applicable NAV and accordingly the Switch must comply with the Redemption rules of the Switch out Scheme and the Subscription rules of the Switch in Scheme.

b) Intra -Scheme Switching option Unitholders under the Scheme have the option to Switch their Unit holding from one plan/

optiontoanotherplan/option(i.e.RegularPlantoDirectPlanandGrowthoptiontoDividendoption and vice-a-versa). The Switches would be done at the Applicable NAV based prices and the difference between the NAVs of the two options will be reflected in the number of Unit allotted.

Switching shall be subject to the applicable “Cut off time and Applicable NAV” stated elsewhere in the Scheme Information Document. In case of “Switch” transactions from one scheme to another, the allocation shall be in line with Redemption payouts.

4. DIVIDEND TRANSFER pLAN (DTp)

Under this facility, the dividend declared in the Scheme, if any, can be transferred to any other open-endedschemeoftheFund(inexistenceatthetimeofdeclarationofdividend,asperthe features of the respective scheme) at the Applicable NAV based prices. The amount to theextentofthedividenddeclared(netofthedistributiontaxandstatutorylevy,ifany)willbe automatically transfer out of this Scheme (source scheme) to the transferee scheme at the ApplicableNAVbasedpricesofthetransfereeschemeontheex-dividenddateandequivalentunits will be allotted. The details, including mode of holding, of unit holders in the transferee schemewillbeaspertheexistingfoliointhesourcescheme.Unitsinthetransfereeschemewill be allotted in the same folio.


ITI ArbITrAge Fund

IfthedividendpayableundertheDividendTransferPlanisequaltoorlessthanRs.500thenthedividendwouldbecompulsorily reinvested in theexistingoptionof theScheme.Theprovision for ‘MinimumApplicationAmount’ specified in the respectiveTargetScheme’sScheme Information Document (SID) will not be applicable under DTP.

In case any of the record date falls on a non business day, the record date shall be the immediately following Business Day. All Units will rank pari passu, among Units within the same Option in each respective Plan under the Scheme, as to assets, earnings and the receipt of dividend distributions, if any, as may be declared by the Trustee.

The AMC, in consultation with the Trustee reserves the right to discontinue/add more options / facilities at a later date subject to complying with the prevailing SEBI guidelines and Regulations.

Stock Exchange Infrastructure Facility:

Theinvestorscansubscribeto/switch/redeemtheUnitsoftheSchemeunder“Growth”optionthroughMutualFundServiceSystem(“MFSS”)platformofNationalStockExchangeand“BSEStARMF”platformofBombayStockExchange.PleasecontactanyoftheInvestorServiceCentersoftheMutual Fund to understand the detailed process of transacting through this facility.

Account Statements • Onacceptanceoftheapplicationforsubscription,anallotmentconfirmationspecifyingthenumberofunitsallottedbywayofe-mailand/orSMSwithin5businessdaysfromthedateofreceipt of transaction request will be sent to the Unitholders registered e-mail address and/or mobile number.

• Whereinvestors/Unitholders,haveprovidedanemailaddress,anaccountstatementreflectingthe units allotted to the Unitholder shall be sent by email on their registered email address.

• TheUnitholdermayrequestforaphysicalaccountstatementbywriting/callingtheAMC/ISC/RTA.TheAMCshalldispatchanaccountstatementwithin5BusinessDaysfromthedate of the receipt of request from the Unit holder.

• NormallynoUnitcertificateswillbeissued.However,iftheapplicantsodesires,theAMCshallissueanon-transferableUnitcertificatetotheapplicantwithin5BusinessDaysofthereceiptofrequestforthecertificate.Unitcertificate,ifissued,mustbesurrenderedalongwiththerequest for Redemption / Switch or any other transaction of Units covered therein.

Consolidated Account Statement (CAS) • Consolidatedaccountstatementforeachcalendarmonthshallbeissued,onorbeforetenth

day of succeeding month, detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds, to all the investors in whose folios transaction has taken place during that month.

PursuanttoSEBICircularno.SEBI/HO/IMD/DF2/CIR/P/2016/42datedMarch18,2016readwithSEBI/HO/IMD/DF2/CIR/P/2016/89datedSeptember20,2016,followingadditionaldisclosure(s)shallbeprovidedinCASissuedforthehalfyear(endedSeptember/March):a. The amount of actual commission paid by the AMCs /Mutual Funds (MFs) to distributors (in

absolute terms) during the half-year period against the concerned investor’s total investments in each MF Scheme. The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by the AMC /MFs to the distributors. Further, the commission disclosed in CAS shall be gross commission andshallnotexcludecostsincurredbydistributorssuchasGoodsandServicesTax(GST)(whereverapplicable,asperexistingrates),operatingexpenses,etc.

b. Thescheme’saveragetotalexpenseratio(inpercentageterms)forthehalf-yearperiodforthescheme’s applicable plan (regular or direct or both) where the concerned investor has actually invested in.

Suchhalf-yearlyCASshallbeissuedtoallMFinvestors,excludingthoseinvestorswhodonothaveany holdings in MF schemes and where no commission against their investment has been paid to distributors, during the concerned half-year period. • TheAMCshallidentifycommoninvestorsacrossfundhousesbytheirpermanentaccount

number (PAN) for the purposes of sending CAS. • Intheeventtheaccounthasmorethanoneregisteredholder,thefirstnamedUnitholdershall

receive the CAS. • Thetransactionsviz.purchase,redemption,switch,dividendpayout,dividendreinvestment,

systematic investment plan, systematic withdrawal plan and systematic transfer plan, carried out by the Unit holders shall be reflected in the CAS on the basis of PAN.

• TheCASshallnotbereceivedbytheUnitholdersforthefolio(s)notupdatedwithPANdetails.The Unit holders are therefore requested to ensure that the folio(s) are updated with their PAN.

• PursuanttoSEBICircularno.CIR/MRD/DP/31/2014datedNovember12,2014,Depositoriesshall generate and dispatch a single consolidated account statement for investors (in whose folio the transaction has taken place during the month) having mutual fund investments and holding demat accounts.


ITI ArbITrAge Fund

• BasedonthePANsprovidedbytheassetmanagementcompanies/mutualfunds’registrarandtransfer agents (AMCs/MF-RTAs, the Depositories shall match their PAN database to determine the common PANs and allocate the PANs among themselves for the purpose of sending CAS. For PANs which are common between depositories and AMCs, the Depositories shall send the CAS. In other cases (i.e. PANs with no demat account and only MF units holding), the AMCs/ MF-RTAs shall continue to send the CAS to their unit holders as is being done presently in compliancewiththeRegulation36(4)oftheSEBI(MutualFunds)Regulations.

• WherestatementsarepresentlybeingdispatchedbyemaileitherbytheMutualFundsorbythe Depositories, CAS shall be sent through email. However, where an investor does not wish to receive CAS through email, option shall be given to the investor to receive the CAS in physical form at the address registered in the Depository system.

Half yearly Consolidated Account Statement • Aconsolidatedaccountstatementdetailingholdingacrossallschemesattheendofevery

sixmonths(i.e.September/March),onorbefore10thdayofsucceedingmonth,toallsuchUnitholders holding units in non- demat form in whose folios no transaction has taken place during that period shall be sent by email.

• Thehalfyearlyconsolidatedaccountstatementwillbesentbye-mailtotheUnitholderswhosee-mailaddressisregisteredwiththeFund,unlessaspecificrequestismadetoreceivethesame in physical mode.

Option to hold units in dematerialised (demat) form TheUnitholderswouldhaveanoptiontoholdtheUnitsunder“Growth”optiononlyinelectronici.e. demat form. The Applicants intending to hold Units in demat form will be required to have a beneficiaryaccountwithaDepositoryParticipant(DP)oftheNSDL/CDSLandwillberequiredtomentionintheapplicationformDP’sName,DPIDNo.andBeneficiaryAccountNo.withtheDPatthe time of purchasing Units. Incaseinvestorsdesiretoconverttheirexistingphysicalunits(representedbystatementofaccount) into dematerialized form or vice versa, the request for conversion of units held in physical form into Demat (electronic) form or vice versa should be submitted along with a Demat/Remat Request Form to their Depository Participants. In case the units are desired to be held by investor in dematerializedform,theKYCperformedbyDepositoryParticipantshallbeconsideredcomplianceof the applicable SEBI norms. Investors desirous of having the Units of the Scheme in dematerialized form should contact the ISCs of the AMC/Registrar. For details, Investors may contact any of the Investor Service Centres of the AMC.

Account Statement for demat account holders In case of Unit Holders holding units in the dematerialized mode, the AMC will not send the account statement to the Unit Holders. The demat statement issued by the Depository Participant would be deemed adequate compliance with the requirements in respect of dispatch of statements of account.

Dividend The Dividend warrants / cheque / demand draft shall be dispatched to the Unit Holders within 30 days of the date of declaration of the dividend. In the event of failure to dispatch the dividend within thestipulated30dayperiod,theAMCshallbeliabletopayinterest@15percentperannumforthedelayed period, to the Unit holders. TheDividendproceedswillbepaidbywayofECS/EFT/NEFT/RTGS/Directcredits/anyotherelectronicmannerifsufficientbankingdetailsareavailablewiththeMutualFundfortheUnitholder.IncaseofspecificrequestforDividendbywarrants/cheques/demanddraftsorunavailabilityofsufficientdetailswiththeMutualFund,theDividendwillbepaidbywarrant/cheques/demanddraftsand payments will be made in favour of the Unit holder (registered holder of the Units or, if there aremorethanoneregisteredholder,onlytothefirstregisteredholder)withbankaccountnumberfurnished to the Mutual Fund.

Redemption The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date of receipt of redemption application, complete / in good order in all respects.

How to Redeem A Transaction Slip can be used by the Unitholder to request for Redemption. The requisite details shouldbeenteredintheTransactionSlipandsubmittedatanISC/OfficialPointofAcceptance.TransactionSlipscanbeobtainedfromanyoftheISCs/OfficialPointsofAcceptance.

procedure for payment of redemption

1. Resident Unitholders Unitholders will receive redemption proceeds directly into their bank account through various

electronicpayoutmodessuchasDirectcredit/NEFT/RTGS/IMPSunlesstheyhaveoptedto receive the proceeds through Cheque/ Demand Draft. Redemption proceeds will be paid in favour of the Unit holder (registered holder of the Units or, if there is more than one registered


ITI ArbITrAge Fund

holder,onlytothefirstregisteredholder)through“AccountPayee”cheque/demanddraftwithbank account number furnished to the Mutual Fund (please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI, even in cases where investments are made in cash). Redemption cheques will be sent to the Unit holder’s address(or,ifthereismorethanoneholderonrecord,theaddressofthefirst-namedUnitholder).

The redemption proceeds will be sent by courier or (if the addressee city is not serviced by thecourier)byregisteredpost/UCPtotheregisteredaddressofthesole/firstholderasperthe records of the Registrars. For the purpose of delivery of the redemption instrument, the dispatch through the courier / Postal Department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non-delivery or any consequences thereof, if the dispatch has been made correctly as stated above.

2. Non-Resident Unitholders Payment to NRI / FII Unit holders will be subject to the relevant laws / guidelines of the RBI as

areapplicablefromtimetotime(alsosubjecttodeductionoftaxatsourceasapplicable). InthecaseofNRIs: i. Credited to the NRI investor’s NRO account, where the payment for the purchase of the

UnitsredeemedwasmadeoutoffundsheldinNROaccount;or ii. Remitted abroad or at the NRI investor’s option, credited to his NRE / FCNR / NRO account,

where the Units were purchased on repatriation basis and the payment for the purchase of Units redeemed was made by inward remittance through normal banking channels or out of funds held in NRE / FCNR account.

In the case of FIIs, the designated branch of the authorized dealer may allow remittance of net sale/maturityproceeds(afterpaymentoftaxes)orcredittheamounttotheForeignCurrencyaccount or Non-resident Rupee account of the FII maintained in accordance with the approval granted to it by the RBI.

TheFundwillnotbeliableforanydelaysorforanylossonaccountofanyexchangefluctuations,whileconvertingtherupeeamountinforeignexchangeinthecaseoftransactionswithNRIs/ FIIs. The Fund may make other arrangements for effecting payment of redemption proceeds in future.

Effect of Redemption The number of Units held by the Unit Holder in his/ her/ its folio will stand reduced by the number ofUnitsRedeemed.Unitsonceredeemedwillbeextinguishedandwillnotbere-issued.The normal processing time may not be applicable in situations where details like bank name, bank account no. etc. are not provided by investors/ Unit holders. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques and/or any delay/ loss in transit.

Redemption by investors transacting through the Stock Exchange mechanism Investorswhowishtotransactthroughthestockexchangeshallplaceordersforredemptionsascurrently practiced for secondary market activities. Investors must submit the Delivery Instruction Slip to their Depository Participant on the same day of submission of redemption request, within suchstipulatedtimeasmaybespecifiedbyNSE/BSE,failingwhichthetransactionwillberejected.Investors shall seek redemption requests in terms of number of Units only and not in Rupee amounts. Redemption amounts shall be paid by the AMC to the bank mandate registered with the Depository Participant.

Redemption by investors who hold Units in dematerialized form RedemptionrequestforUnitsheldindematmodeshallnotbeacceptedattheofficesoftheMutual Fund/AMC/Registrar. Unit holders shall submit such request only through their respective Depository Participants.

Delay in payment of redemption / repurchase proceeds

The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 Business days from the date of redemption or repurchase. The AMC shall be liable to pay interest to the Unit holders@15%p.a.orsuchotherrateasmaybeprescribedbySEBIfromtimetotime,incasetheredemption / repurchase proceeds are not dispatched within 10 Business days from the date of receipt of the valid redemption/repurchase application, complete in all respects. However, the AMC shall not be liable to pay any interest or compensation in case of any delay in processingtheredemptionapplicationbeyond10BusinessDays,incaseofanydeficiencyintheredemption application or if the AMC/RTA is required to obtain from the Investor/Unit holders any additionaldetailsforverificationofidentityorbankdetailsorsuchadditionalinformationunderapplicable regulations or as may be requested by a Regulatory Agency or any government authority, which may result in delay in processing the application.


ITI ArbITrAge Fund

C. pERIODIC DISCLOSURES

Net Asset Value

This is the value per unit of the scheme on a particular day.Youcanascertainthevalue of your investments by multiplying the NAV with your unit balance.

TheAMCwillcalculateanddisclosethefirstNAVoftheSchemewithin5businessdaysfromthedate of allotment. Subsequently, the AMC will calculate and disclose the NAVs on all the Business Days. The AMC shall update the NAVs on its website (www.itimf.com) and of the Association of MutualFundsinIndia-AMFI(www.amfiindia.com)before9.00p.m.oneveryBusinessDay.Incaseofanydelay,thereasonsforsuchdelaywouldbeexplainedtoAMFIinwriting.IftheNAVsarenotavailable before the commencement of Business Hours on the following day due to any reason, theMutualFundshallissueapressreleasegivingreasonsandexplainingwhentheMutualFundwould be able to publish the NAV. Unitholders may also avail a facility of receiving latest NAVs throughSMSontheirregisteredmobilenumbers,bysubmittingaspecificrequestinthisregardtotheAMC/Registrar&TransferAgent.

Information regarding NAV can be obtained by the Unitholders / Investors by calling or visiting the nearest ISC.

Monthly and Half yearly Disclosures: portfolio / Financial Results

This is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures advertisement.

The AMC shall disclose portfolio of the Scheme along with ISIN as on the last day of each month /halfyearonitswebsiteviz.www.itimf.comandonthewebsiteofAMFIviz.www.amfiindia.com within 10 days from the close of each month/ half-year respectively in a user-friendly and downloadable spreadsheet format. In case of Unitholders whose e-mail addresses are registered, the AMC shall send via e-mail both the monthly and half-yearly statement of the Scheme portfolio within 10 days from the close of each month/ half-year respectively. Further, the AMC shall publish an advertisement in all India edition of at least two daily newspapers, one each in English and Hindi, every half year disclosing the hosting of the half-yearly statement of the schemes’ portfolio(s) on the AMC’s website and on the website of AMFI. The AMC shall provide a physical copy of the statement oftheSchemeportfolio,withoutcharginganycost,onspecificrequestreceivedfromaUnitholder.

Half yearly Results The Mutual Fund shall within one month from the close of each half year (i.e. 31st March and 30th September),hostasoftcopyofitsunauditedfinancialresultsonitswebsitewww.itimf.com.TheMutualFundshallalsopublishanadvertisementdisclosingthehostingofsuchfinancialresultsonits website, in at least one English daily newspaper having nationwide circulation and in a newspaper havingwidecirculationpublishedinthelanguageoftheregionwheretheHeadOfficeoftheMutualFundissituated.TheunauditedfinancialresultsshallalsobedisplayedonthewebsiteofAMFI.

Annual Report The scheme wise annual report shall be hosted on the website of the AMC / Mutual Fund (www.itimf.com)andAMFI(www.amfiindia.com)notlaterthanfourmonths(orsuchotherperiodasmaybespecifiedbySEBIfromtimetotime)fromthedateofclosureoftherelevantaccountingyear(i.e.31st March each year). Further, the physical copy of the scheme wise annual report shall be made availabletotheUnitholdersattheregistered/corporateofficeoftheAMCatalltimes.

In case of Unitholders whose e-mail addresses are registered with the Fund, the AMC shall e-mail the annual report or an abridged summary thereof to such Unitholders. The Unitholders whose e-mailaddressesarenotregisteredwiththeFundmaysubmitarequesttotheAMC/Registrar&Transfer Agent to update their email ids or communicate their preference to continue receiving a physical copy of the scheme wise annual report or an abridged summary thereof. Unitholders may also request for a physical or electronic copy of the annual report / abridged summary, by writing to the AMC at [email protected] from their registered email ids or calling the AMC on the toll free number1800-266-9603orbysubmittingawrittenrequestatanyofthenearestinvestorservicecenters of the Fund.

Further, the AMC shall publish an advertisement in all India edition of at least two daily newspapers, one each in English and Hindi, every year disclosing the hosting of the scheme wise annual report on its website and on the website of AMFI. The AMC shall provide a physical copy of the abridged summaryoftheannualreport,withoutcharginganycost,onspecificrequestreceivedfromaUnitholder.

Associate Transactions Please refer to Statement of Additional Information (SAI).

Taxation

This is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her owntaxadvisors/authorizeddealers with respect to the specificamountoftaxandother implications arising out of his or her participation in the schemes.

ITIMutualFundisaMutualFundregisteredwiththeSecuritiesExchangeBoardofIndiaandhencetheentireincomeoftheMutualFundwillbeexemptfromtheIncometaxinaccordancewiththeprovisionsofsection10(23D)oftheIncomeTaxAct,1961(theAct).

ThefollowingsummaryoutlinesthekeytaximplicationsapplicabletounitholdersbasedontherelevantprovisionsundertheIncome-taxAct,1961(‘Act’)andtheamendmentsmadebytheFinance Act, 2019.

Category of this Scheme:

As the Scheme shall be primarily investing in equity and equity related securities, the Scheme shall beclassifiedas“EquityOrientedFund”aspertheprovisionsmentionedintheAct.


ITI ArbITrAge Fund

Under defensive circumstances to protect its objective of giving absolute returns with low volatility, the Scheme may even invest its corpus largely in debt and money market securities. In such a situation, the Scheme may at any point of time lose its status of an equity oriented Scheme and suchconversionmayhavetaxconsequences.Itmaybenotedthatnopriorintimation/indicationwould be given to investors in such cases.

Insuchanaforesaidsituationwhereinvestmentindomesticequitysharesisbelow65%asexplainedabove,taxprovisionsofanEquityOrientedSchememaynotbeapplicableforsuchaperiodwheretheSchemeisnotclassifiedasequityorientedSchemeundertheIncomeTaxAct,1961.Consequently,taxprovisionsassummarizedinTable-IVbelowwouldbeapplicable.Investorsarerequestedtoexaminetheassetallocationfromtimetotimeforeverypurchase/transfer/redemptionbeforeclaimingtaxexemptionsavailableforEquityOrientedSchemes.

The Information is provided only for general information purposes. However, in view of the individual natureoftheimplications,eachinvestorisadvisedtoconsulthisorheroritsowntaxadvisors/authoriseddealerswithrespecttothespecificamountoftaxandotherimplicationsarisingoutofhisorheroritsparticipationintheScheme.ThetaxtotheinvestorsandtheMutualFundarebased on status of the Scheme.

“EquityOrientedFund”isdefinedtomeanafund–

• Wheretheinvestiblefundsareinvestedbywayofequitysharesindomesticcompaniestotheextentofmorethansixtyfivepercentofthetotalproceedsofsuchfund;and

• WhichhasbeensetupunderaschemeofaMutualFundspecifiedinsection10(23D)oftheAct.

Provided that the percentage of equity shareholding of the fund shall be computed with reference totheannualaverageofthemonthlyaveragesoftheopeningandclosingfigures.

I) Tax on distributed income to unit holders (u/s 115R):

Aspersection10(35)oftheAct, incomereceivedinrespectoftheunitsofaMutualFundspecifiedundersection10(23D)oftheAct,isexemptinthehandsoftheunitholders.However,theFundwouldbe required topayadistribution taxon incomedistributedat the rateof12.9422%(10/90*100+Surcharge12%+Cess4%)(refernote1)u/s115R.

II) Income Tax Rates (*)

Category of Units

Residents NRI/pIO & Other Non-Resident other than FII/FpI

FIIs / FpIs

Short Term Capital Gain (period of holding less than 12 months)

Units of an equity oriented

Scheme

Where STT has been paid:15%(u/s111A)

Where STT has not beenpaid:Taxableat normal rates of taxapplicabletothe

assessee

WhereSTThasbeenpaid:15%(u/s111A)

In respect of non-resident non corporate, where STT hasnotbeenpaid:Taxable

atnormalratesoftaxapplicable to the assessee

In respect of non-resident corporate, where STT has

notbeenpaid:40%

Where STT has beenpaid:15%

(u/s 111A)

Where STT has not been paid:30%(u/s

115AD)

Long Term (period of holding more than 12 months)

Units of an equity oriented

Scheme

Where STT has been paidontransfer:10%onincomeexceeding

one lakh rupees withoutindexation#

(u/s 112A)

Where STT has not beenpaid:20%with

indexation

Where STT has been paid ontransfer:10%onincomeexceedingonelakhrupees

(u/s 112A)

Where STT has not been paidandtheunitsarelisted:

20%(u/s112)

Where STT has not been paid and the units are unlisted:10%(u/s112)

Where STT hasbeenpaid:10%onincomeexceedingone

lakh rupees (u/s 112A)

Where STT has not been paid:10%(u/s

115AD)


ITI ArbITrAge Fund

Note:

1. UnderFinanceAct,2018,section115Rhasbeenamendedtoprovidethatonincomedistributedtoanypersonbyanequityorientedfund,itshallbeliabletopayadditionalincometaxattherateof10%ontheincomesodistributed.

Forthepurposeofdeterminingthetaxpayable,theamountofdistributedincomeshallbeincreasedtosuchamountaswould,afterreductionoftaxfromsuchincreasedamount,beequal to the income distributed by the Mutual Fund. The impact of the same has not been reflected above.

2. EquityOrientedFundswillalsoattractSecuritiesTransactionTax(STT)atapplicablerates.

#FinanceAct,2018terminatedtheexemptiongrantedundersection10(38)tolongtermcapitalgains arising on transfer of listed shares or units of equity oriented mutual funds or units of business trusts by introduction of section 112A to provide that long term capital gains arising from transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented fund or aunitofabusinesstrustshallbetaxedat10%withoutindexationandforeigncurrencyfluctuationbenefitonsuchcapitalgainsexceedingonelakhrupees.

III) TDS Rates (*)

Category of Units Residents NRI/pIO & Other Non-Resident other than FII/FpI

FIIs / FpIs

Short Term Capital Gain (period of Holding Less than or equal to 12 months)

Units of an equity oriented Scheme (where STT has been paid)

Nil 15% Nil

Long Term Capital Gain (period of Holding More than 12 months)

Units of an equity oriented Scheme (where STT has been paid on transfer)

Nil 10%onincomeexceedingonelakh rupees

Nil

(*)plus surcharge and cess as applicable:-

IV) (a) Income Tax Rates (*)

Category of Units Residents NRI/ pIO & Other Non-resident other than FII

FIIs

Short Term Capital Gain (period of Holding less than or equal to 36 months)

Units of a non-equity oriented Scheme

Taxableatnormalratesoftaxapplicabletothe

assessee

ResidentCompanies: 25%*$/30%*

In respect of non-resident noncorporate,taxable

at normal rates of taxapplicabletothe

assessee.

In respect of non-resident corporate:40%

30%(u/s115AD)

Long Term Capital Gain (period of Holding More than 36 months)

Listedunitsofanon-equity oriented scheme

20%withindexation (u/s 112)


10%(u/s115AD)

Unlisted units of a non-equity oriented scheme


10%withoutindexationandnoexchange

fluctuation (u/s 112)

10%(u/s115AD)

$ForAY2019-20,taxshallbeleviedat25%ifthetotalturnoverorgrossreceiptsfortheFinancialyear2016-17doesnotexceedINR250lacs.


ITI ArbITrAge Fund

(b) TDS Rates (*)

Category of Units Residents NRI/ pIO & Other Non-resident other than FII

FIIs

Short Term Capital Gain (period of Holding less than or equal to 36 monthsUnits of an non-equity oriented Scheme

Nil 30%fornon-residentsnoncorporates

40%fornon-residentcorporate(u/s195)

Nil (u/s 196D)

Long Term Capital Gain (period of Holding More than 36 months)Listedunitsofanon-equity oriented scheme

Nil 20%withindexationfornonresidents(u/s195)

Nil (u/s 196D)

Unlisted units of a non-equity oriented scheme

Nil 10%withoutindexationandexchangefluctuation

for non residents (u/s 112)

Nil (u/s 196D)

(*) plus surcharge and cess as applicable

Surcharge applicable as under:

Rates of Surcharge

particulars

Taxable Income Rs . 50 lacs to 1 crore

Rs. 1 crore to 10 crores

Exceeding Rs. 10 crores

1. Individuals/HUF 10% 15% 15%2. Firm/LocalAuthority/Co-operativeSociety Nil 12% 12%3. Domestic Company Nil 7% 12%4. Foreign Company Nil 2% 5%

Cess applicable as under:

AsperFinanceAct2018,“HealthandEducationCess”shallbeleviedattherateof4%ofincometaxincludingsurcharge.

Forfurtherdetailsontaxation,pleaserefertotheSectionon‘TaxationoninvestinginMutualFunds’in‘StatementofAdditionalInformation(‘SAI’).Investorsshouldbeawarethatthefiscalrules/taxlawsmaychangeandtherecanbenoguaranteethatthecurrenttaxpositionmaycontinueindefinitely.

Investor services For any enquiries and/or queries or complaints in respect of any terms and conditions of/investments in this Scheme, the investors are advised to address a suitable communication to AMC and marked totheattentionofInvestorRelationsOfficer–Ms.PallaviSinghat022–[email protected] Written communications may also be forwarded to Naman Midtown, ‘A’ Wing, 21st floor, Senapati Bapat Marg, Prabhadevi, Mumbai 400 013, India.

OurInvestorRelationsExecutivescanalsobereachedatthefollowingTollFreeNo.–1800-266-9603anygrievanceswithrespecttotransactionsthroughBSEStARand/orNSEMFSSplatform,the investors / Unit Holders should approach either the stock broker or the investor grievance cell oftherespectivestockexchange.

D. COMpUTATION OF NAV The Net Asset Value (NAV) per unit of the Scheme for each option will be computed by dividing the net assets of the Scheme by the number of units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specifiedinScheduleVIIIoftheSEBI(MF)Regulations,orsuchnormsasmaybespecifiedbySEBIfromtimetotime.

TheNAVoftheUnitsundertheSchemewillbecalculatedonadailybasisasshownbelow:

NAV per unit (Rs.) =(Market / Fair Value of Scheme’s Investments + Current Assets including Accrued Income - Current Liabilities and provisions)No. of units outstanding under the Scheme / Option on the valuation day

The NAV shall be calculated up to four decimal places. However the AMC reserves the right to declare the NAVs up to additional decimal placesasitdeemsappropriate.SeparateNAVwillbecalculatedanddisclosedforeachPlan/Option.TheNAVsoftheGrowthOptionandtheDividendOptionwillbedifferentafterthedeclarationofthefirstDividend.TheAMCwillcalculateanddisclosetheNAVoftheScheme on all the Business Days.


ITI ArbITrAge Fund

IV. FEES AND EXpENSES ThissectionoutlinestheexpensesthatwillbechargedtotheScheme.

A. NEW FUND OFFER (NFO) EXpENSES Theseexpensesare incurred for thepurposeof various

activities related to the NFO like sales and distribution fees, paid marketing and advertising, Registrar and Transfer Agent expenses,printingandstationary,bankchargesetc.

In accordance with the provisions of SEBI Circular no. SEBI/ IMD/CIRNo.1/64057/06datedApril04,2006andSEBI/IMD/CIRNo.4/168230/09datedJune30,2009,theNFOexpensesshall be borne by the AMC/Sponsor.

B. ANNUAL SCHEME RECURRING EXpENSES ThesearethefeesandexpensesforoperatingtheScheme.

These expenses include InvestmentManagement andAdvisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the tablebelow:.

TheAMChasestimatedfollowingmaximumexpensesforthefirst500croresofthedailynetassetsoftheScheme,which will be charged to the Scheme. For the actual current expensesbeingcharged, the Investorshould refer to thewebsite of the AMC.

Sr. No.

Expense Head % of Daily Net Assets

i. Investment Management and Advisory Fees

Upto2.25%

ii. Trustee Fees

iii. Audit Fees

iv. Custodian Fees

v. RTA Fees

vi. Marketing&Sellingexpensesincl.agent commission

vii. Cost related to investor communication

viii. Cost of fund transfer from location to location

ix. Cost of providing account statements and dividend redemption cheques and warrants

x. Costs of statutory advertisements

xi. Costtowardsinvestoreducation&awareness (at least 0.02 percent)

xii. Brokerage&transactioncostoverandabove0.12percentand0.05percentfor cash and derivative market trades respectively

xiii. GoodsandServicestaxonexpensesother than investment and advisory fees

xiv. GoodsandServicestaxonbrokerageand transaction cost

xv. OtherExpenses#

Sr. No.

Expense Head % of Daily Net Assets

A. Maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) and 6 (a)

Upto 2.25%

B. Additionalexpensesunderregulation52(6A)(c) Upto0.05%

C. Additionalexpensesforgrossnewinflowsfromspecifiedcities Upto0.30%

#AnyotherexpenseswhicharedirectlyattributabletotheScheme, may be charged with approval of the Trustee within theoveralllimitsasspecifiedintheSEBI(MF)Regulationsexceptthoseexpenseswhicharespecificallyprohibited.

These estimates have been made in good faith as per the information available to the Investment Manager and are subject to change inter-se or in total subject to prevailing Regulations.TheAMCmayincuractualexpenseswhichmaybe more or less than those estimated above under any head and/orintotal.TypeofexpenseschargedshallbeaspertheSEBI Regulations.

Fungibilityofexpenses:TheexpensestowardsInvestmentManagementandAdvisoryFeesunderRegulation52 (2)andthevarioussub-headsofrecurringexpensesmentionedunderRegulation52(4)ofSEBI(MF)Regulationsarefungiblein nature. Thus, there shall be no internal sub-limits within the expense ratio for expense headsmentioned underRegulation52(2)and(4)respectively.Further,theadditionalexpensesunderRegulation52(6A)(c)maybeincurredeithertowardsinvestment&advisoryfeesand/ortowardsotherexpenseheadsasstatedabove.

Direct Plan shall have a lower expense ratio excludingdistributionexpenses,commission,etc.andnocommissionfor distribution of Units will be paid/ charged under Direct Plan.

Thetrusteeshipfeesshallbesubjecttoamaximumof0.02%per annum of the daily Net Assets of the schemes of the Mutual Fund. Such fee shall be paid to the Trustee Company at monthly frequency. The Trustee Company may charge furtherexpensesaspermittedfromtimetotimeundertheTrust Deed and SEBI (MF) Regulations.

Goods and Services tax on expenses other than theinvestment management and advisory fees, if any, shall be chargedtotheSchemewithinthemaximumlimitof totalexpenseratioasprescribedunderregulation52oftheSEBI(MF)Regulations.GoodsandServicestaxonbrokerageandtransactioncostpaidforexecutionoftrade,ifany,shallbewithinthelimitprescribedunderregulation52oftheSEBI(MF) Regulations.

In terms of SEBI circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, the AMC shall annually set apart at least0.02%ondailynetassetswithinthemaximumlimitof recurring expensesasperRegulation52 for investoreducation and awareness initiatives.

ThetotalexpensesoftheSchemeincludingtheinvestmentmanagementandadvisoryfeeshallnotexceedthe limitsstatedinRegulation52(6)whichareasfollows:

(i) OnthefirstRs.500croresofthedailynetassets-2.25%;

(ii) OnthenextRs.250croresofthedailynetassets-2.00%;


ITI ArbITrAge Fund

(iii) On thenextRs.1250croresof thedailynetassets-1.75%;

(iv) On thenextRs.3,000croresof thedailynetassets -1.60%

(v) On thenextRs.5,000croresof thedailynetassets -1.50%

(vi) OnthenextRs.40,000croresofthedailynetassets-Totalexpenseratioreductionof0.05%foreveryincreaseofRs.5,000croresofdailynetassetsorpartthereof.

(vii)Onthebalanceoftheassets-1.05%;

Inaddition to the limitsspecified in regulation52(6), thefollowingcostsorexpensesmaybechargedtotheSchemeasperregulation52(6A),namely-

(a) Brokerage and Transaction costs incurred for the executionoftradesmaybecapitalizedtotheextentof0.12 per cent of the value of trades in case of cash market transactionsand0.05percentofthevalueoftradesincase of derivatives transactions. Any payment towards brokerageandtransactioncosts(includingGST,ifany)incurredfortheexecutionoftrades,overandabovethesaid0.12percentforcashmarkettransactionsand0.05per cent for derivatives transactions may be charged to theschemewithinthemaximumlimitofTotalExpenseRatio (TER)asprescribedunderRegulation52of theSEBI (MF) Regulations.

(b) Expensesnotexceedingof0.30percentofdailynetassets,ifthenewinflowsfromsuchcitiesasspecifiedby SEBI/AMFI from time to time are at least –

(i) 30percentofgrossnewinflowsintheScheme,or;

(ii) 15percentoftheaverageassetsundermanagement(yeartodate)oftheScheme,whicheverishigher:

Provided that if inflows from such cities is less than the higherofsub-clause(i)orsub-clause(ii),suchexpenseson daily net assets of the Scheme shall be charged on proportionatebasis:

Providedfurtherthatexpenseschargedunderthisclauseshallbeutilisedfordistributionexpensesincurredforbringing inflows from such cities.

Provided further thatamount incurredasexpenseonaccount of inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment;

(c) Additionalexpenses,incurredtowardsdifferentheadsmentioned under regulations 52(2) and 52(4), notexceeding 0.05 per cent of daily net assets of thescheme.

Further, Goods and Services tax on investmentmanagement and advisory fees shall be charged to the Scheme,inadditiontotheaboveexpenses,asprescribedunder the SEBI (MF) Regulations.

TherecurringexpensesincurredinexcessofthelimitsspecifiedbySEBI(MF)RegulationswillbebornebytheAMC or the Sponsor.

ThecurrentexpenseratioswillbeupdatedontheAMCwebsite and on the AMFI website at least three working dayspriortotheeffectivedateofthechange.Theexactweb link for TER is www.itimf.com/statutory-disclosure/total-expense-ratio.

Illustration: Impact of Expense Ratio on the Scheme’s return

particulars Regular plan Direct plan

Opening AUM a Rs. 10,000,000.00 Rs. 10,000,000.00

Opening NAV b 10.0000 10.0000

O/s Units c=a/b 1,000,000.00 1,000,000.00

Market Value of Investment (Assumed)

d Rs.10,002,650.00 Rs.10,002,650.00

NAV before charging ExpenseRatio

e=d/c 10.0027 10.0027

TotalExpenseRatioin%

f 2.00% 1.50%

TotalExpenseRatio in value

g=e*f 0.0005 0.0004

Closing NAV h=e-g 10.0022 10.0023

Returns without expenseRatio

i 9.67% 9.67%

Returns with expenseRatio

j 7.67% 8.17%

Notes: 1. The above computation assumes no investment/

redemption made during the year. The investment is madeintheGrowthoptionofthescheme.

2. The above computation is simply to illustrate the impact of expenses of the schemes. The actual expensescharged to the schemes will not be more than the amount that can be charged to the scheme as mentioned in this SID.

3. It is assumed that expenses charged are evenlydistributed throughout the year. Tax impact oncustomers has not been considered due to the individual nature of this impact.

4. Calculations are based on assumed one day NAV and actual returns may differ from those considered above.

C. LOAD STRUCTURE Loadisanamountwhichispaidbytheinvestortosubscribe

to the units or to redeem the units from the Scheme. This amount is used by the AMC to pay commission to the distributors and to take care of other marketing and selling expenses. Load amounts are variable and are subjectto change from time to time. For the current applicable structure, please refer to the website of the AMC (www.itimf.com)ormaycallat1800-266-9603oryourdistributor.

Applicable Load Structure#

EntryLoad Not Applicable

Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/168230/09datedJune30,2009,noentry load will be charged by the Scheme to the investor. The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered Distributor) directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN Holder.


ITI ArbITrAge Fund

Applicable Load Structure#

ExitLoad

(asa%ofApplicable NAV)

*Exit Load: • IftheUnitsareredeemed/switchedout

on or before 30 days from the date of allotment–0.25%.

• IftheUnitsareredeemed/switchedoutafter 30 days from the date of allotment –NIL

Redemption /Switch-Out of Units would be done on First in First out Basis (FIFO). *TheentireExitLoad,netofGoods&servicetax,shallbecreditedtotheScheme.

# Applicable for normal subscriptions / redemptionsincluding transactions under special products such as SIP, SWP, etc. offered by the AMC.

Thereshallbenoexitloadforswitchesbetweentheoptionsunder the same Plan and within the Scheme i.e. dividend and growth options.

Switch of investments from Regular Plan to Direct Plan under thesameSchemeshallbesubjecttoapplicableexitload,unless the investments were made directly i.e. without any distributor code. However, any subsequent switch-out or redemption of such investments from Direct Plan will not besubjecttoanyexitload.

Noexitloadshallbeleviedforswitch-outfromDirectPlanto Regular Plan under the Scheme. However, any subsequent switch-out or redemption of such investment from Regular Planshallbesubjecttoexitloadbasedontheoriginaldateof investment in the Direct Plan.

There shall be no load on issue of units allotted on reinvestmentofdividendforexistingaswellasprospectiveinvestors.

GSTonexit load, ifany,shallbepaidoutof theexit loadproceeds.Theentireexitload(netofGST),charged,ifany,shall be credited to the Scheme.

The AMC/Trustee reserves the right to change / modify the LoadstructureoftheScheme,subjecttomaximumlimitsasprescribed under the Regulations. However, the Redemption Pricewillnotbelowerthan93%oftheNAVoraspermitted/ prescribed under the SEBI Regulations from time to time. Similarly, the difference between the Subscription Price and theRedemptionPriceshallnotexceedthepermittedlimitasprescribedbySEBIfromtimetotimewhichispresently7%calculated on the Subscription Price.

AnyimpositionorenhancementofLoadinfutureshallbeapplicable on prospective investments only. At the time of changingtheLoadStructure:

1. An Addendum detailing the changes will be attached to Scheme Information Document (s) and Key Information Memorandum. The addendum may be circulated to all the distributors / brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.

2. The addendum will be displayed on the website of the AMC and arrangements will be made to display the addendum in the form of a notice in all the Investor ServiceCentresanddistributors/brokersoffice.

3. TheintroductionoftheExitLoadalongwiththedetailsmay be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issuedaftertheintroductionofsuchLoad.

4. A public notice shall be given in respect of such changes in one English daily newspaper having nationwide

circulation as well as in a newspaper published in the languageofregionwheretheHeadOfficeoftheMutualFund is situated.

5. AnyothermeasurewhichtheMutualFundmayconsidernecessary.

The investors / unitholders are requested to check the prevailing load structure of the Scheme before investing. For the current applicable exit load structure, please refer to the website of the AMC (www.itimf.com) or may call at 1800-266-9603 (toll free no.) or your distributor.

D. WAIVER OF LOAD FOR DIRECT TRANSACTIONS Not Applicable

E. TRANSACTION CHARGES In accordance with SEBI Circular No. IMD/ DF/13/ 2011 dated

August 22, 2011, the AMC/ Fund shall deduct a Transaction Charge on per purchase /subscription of Rs. 10,000/- and above, as may be received from new investors (an investor whoinvestsforthefirsttimeinanymutualfundschemes)andexistinginvestors.Thedistributorsshallhaveanoptionto either “Opt-in / Opt-out” from levying transaction charge based on the type of product. Therefore, the “Opt-in / Opt-out” status shall be at distributor level, basis the product selected by the distributor.

Transaction charges shall be deducted for Applications for purchase/ subscription received through distributor/ agent as under (only if that distributor / agent has opted to receive thetransactioncharges):

Investor Type Transaction Charges New Investor (First Time Mutual Fund Investor)

Transaction charge of Rs.150/-for per purchase / subscription of Rs.10,000 and above will be deducted from the subscription amount and paid to the distributor/agent of the first time investor. The balance of the subscription amount shall be invested.

ExistingInvestor Transaction charge of Rs.100/- for per purchase / subscription of Rs.10,000 and above will be deducted from the subscription amount and paid to the distributor/agent of the first time investor. The balance of the subscription amount shall be invested.

The transaction charges and the net investment amount and the number of units allotted will be clearly mentioned the Account Statement issued by the Mutual Fund.

In case of investments through Systematic Investment Plan (SIP) the transaction charges shall be deducted only if the total commitment through SIP (i.e. amount per SIP installmentxNo.ofinstallments)amountstoRs.10,000/-and above. In such cases, the transaction charges shall be deducted in 3-4 installments.

Transactionchargesshallnotbedeductedif: a. The amount per purchases /subscriptions is less than

Rs.10,000/-; b. The transaction pertains to other than purchases/

subscriptions relating to new inflows such as Switch/SIP/SWP/STP etc.

c. Purchases/Subscriptions made directly with the Fund through any mode (i.e. not through any distributor/agent).

d. Subscription made through Exchange Platformirrespective of investment amount.


ITI ArbITrAge Fund

V. RIGHTS OF UNITHOLDERS Please refer to SAI for details.

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

Thissectionshallcontainthedetailsofpenalties,pendinglitigation,andactiontakenbySEBIandotherregulatoryandGovernmentAgencies.

All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed.

Not Applicable

In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last threeyearsorpendingwithanyfinancialregulatorybodyorgovernmentalauthority,againstSponsor(s)and/ortheAMCand/ortheBoardofTrustees/TrusteeCompany;forirregularitiesorforviolationsinthefinancialservicessector,orfordefaultswithrespecttoshareholdersordebentureholdersanddepositors,or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed.

Not Applicable

Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, 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 (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed.

Not Applicable

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.

Not Applicable

AnydeficiencyinthesystemsandoperationsoftheSponsor(s)and/ortheAMCand/ortheBoardofTrustees/TrusteeCompanywhichSEBIhasspecificallyadvisedtobedisclosedintheSID,orwhichhasbeennotifiedbyanyotherregulatoryagency,shallbedisclosed.

Not Applicable

The Scheme under this Scheme Information Document was approved by the Board of Directors of ITI Mutual Fund Trustee Private Limited(TrusteetoITIMutualFund)on05.12.2018.TheTrusteehasensuredthattheSchemeisanewproductofferedbyITIMutualFundandisnotaminormodificationofitsexistingschemes.

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996andtheguidelinesthereundershallbeapplicable.

For and on behalf of ITI Asset Management Limited

Sd/- Mr. George Heber Joseph ChiefExecutiveOfficerandChiefInvestmentOfficer

Place:Mumbai Date:20thDecember2018.


LIST OF OFFICIAL POINTS OF CONTACTS/ACCEPTANCE OF TRANSACTIONS

OFFICE OF ITI ASSET MANAGEMENT LIMITEDMumbai: Naman Midtown, ’A’ Wing, 21st floor, Senapati Bapat Marg, Prabhadevi, Mumbai 400 013. Ahmedabad:102,6thAvenue,Nr.MithakaliCrossRoad,AboveSBIBank,Navrangpura,Ahmadabad–380009.Kochi: P M Arcade, 1st Floor, Kavalakkal Junction, Kaloor KadavanthraRoad,Kochi–682017.Rajkot: 1st Floor, Mahavir Apartment, Above Swastik PoliceStore,NearMotiTankiCircle,Rajkot–360001

BRANCH OFFICES OF KARVy FINTECH pRIVATE LIMITED

Andhra pradesh:#15/149,1stFloor,SRTowers,SubashRoad,Opp.ToLalithaKalaParishad,Anantapur515001.•D.No:23B-5-93/1,SavithriComplex,EdaravariStreet,NearDr.PrabhavathiHospital, R.R. Pet, Eluru534002.•D.No:6-10-27,SrinilayamArundelpet,10/1,Guntur522002.•ShopNo.43,1stFloor,SVComplexRailwayStationRoad,NearSBIMainBranch,Kurnool518004.16-2-158,3rdfloor,MogaralaComplex,SundayMarketLane,Pogathota,Nellore-524001.•D.NO:4/625,BhairaviComplex,UpstairsKarurVysyaBank,GandhiRoad,proddatur516360.•D.No:6-1-4,RangacharyStreet,T.Nagar,NearAxisBankStreet,Rajahmundry533101.•D.No:4-1-28/1,VenkateswaraColony,NearIncomeTaxOffice,Srikakulam532001.•H.No:10-13-425,1st Floor,TilakRoad,Opp: SrideviComplex,Tirupathi517501.•Soubhagya,19-6-1/3,2ndFloor,NearFortBranch,Opp:ThreeTemples,Vizianagaram535002.•39-10-7,Opp:MunicipalWaterTank,Labbipet,Vijayawada520010.•DoorNo: 48-8-7,DwarakaDiamond,GroundFloor,Srinagar,Visakhapatnam 530016.

Assam:1stFloor,BajrangbaliBuilding,NearBoraServiceStation,GSRoad,Guwahati781007.•N.N.DuttaRoad,ChowchakraComplex,Premtala,Silchar 788001.

Bihar: 1stFloor,LalBhawanTowerChowk,NearKiranCinema,Gaya823001.•3A,3rdFloor,AnandTower,ExhibitionRoad,Opp.ICICIBank,patna800001.•NearHotelDiamond,SurbhiComplex,O.C.TownshipGate,KapasiyaChowk, Begusarai851117.•2ndFloor,ChandralokComplex,Ghantaghar,Radha Rani Sinha Road, Bhagalpur812001.•JayaComplex,2ndFloor,AboveFurniturePlanet,Donar Chowk, Darbhanga846003.•FirstFloor,ShuklaComplex,NearICICIBank,CivilCourtBranch,Company Bagh, Muzaffarpur 842001.

Chatisgarh:ShopNo.1,FirstFloor,PlotNo.1,CommercialComplex,NehruNagar-East, Bhilai 490020.•ShopNo.225,226&227,2ndFloorNarayanPlaza,LinkRoad,Bilaspur 495001.•OfficeNo. S-13, Second Floor, Reheja Tower, Fafadih Chowk, Jail Road, Raipur492001.•1stFloor,CityCentre,97IRCC,TransportNagar,Korba495677.

Goa:2ndFloor,DalalCommercialComplex,Pajifond,Margao403601.•FlatNo.1-A,H.No.13/70,TimotioBldg,HeliodoroSalgadoRoad,NexttoNavhindBhavan(MarketArea),panjim 403001.

Gujarat:201/202,ShailComplex,Opp:MadhusudanHouse,B/HGirishColdDrink,OffC.G.Road,Navrangpura, Ahmedabad 380006.•B-42,VaibhavCommercialCenter,NrTvsDownTown,ShrowRoom,Grid CharRasta,Anand380001.•L/2,KevalShoppingCenter,OldNationalHighway,Ankleshwar, Ankleshwar393002.•203,CornerPoint,JetalpurRoad,Baroda,Gujarat,Baroda 390007.•ShopNo.147-148,AdityaComplex,NearKasakCircle,Bharuch392001.•KrushnaDarshanComplex,ParimalChowk,OfficeNo.306-307,3rdFloor,AboveJedBlueShowRoom,Bhavnagar364002.•Shop#12,ShreeAmbicaArcade,Plot#300,Ward12,Opp.CGHighSchool,Near HDFC Bank, Gandhidham370201.•123,FirstFloor,MeghMalharComplex,Opp.Pathika,Sector 11, Gandhinagar 382011.•136-137-138,MadhavPalaza,Opp.SBIBank,Nr.LalBunglow,Jamnagar361001.•124-125,PunitShoppingCenter,M.G.Road,RanavavChowk,Junagadh 362001.•Ul/47,ApolloEnclave,Opp.SimandharTemple,ModheraCrossRoad,Mehsana384002.•104/105,NearParasCinema,CityPoint,Nadiad,Nadiad387001.•1/1ChinmayAracade,Opp.Sattapir Road, Tower Road, Navsari 396445.•302,MetroPlaza,NearMotiTankiChowk,RajkotRajkot, Gujarat360001.•G-5,EmpireStateBuliding,Nr.UdhnaDarwajaRingRoad,Surat 395002.•ShopNo.2,PhirozaCorner,Opp.NextShowRoom,TithalRoad, Valsad 396001.•ShopNo.12,GroundFloor,SheetalAppatment,NearKPTower,Vapi 396195.

Haryana:6349,NicholsonRoad,AdjacentKOSHospital,AmbalaCantt,Ambala 133001.•A-2B,3rdFloorNeelamBataRoad,PeerkiMazar,NehruGroundnit,Faridabad121001.•ShopNo.18,GroundFloor,Sector14,Opp.AkdTower,NearHudaOffice,Gurgaon122001.•SCO71,1stFloor,RedSquareMarket, Hissar 125001.•JAVAComplex,1stFloor,AboveVijayaBank,GTRoad,panipat 132103. •1stFloor,AshokaPlaza,DelhiRoad,Rohtak124001.•205,RModelTown,AboveCentralBankOf India, Sonepat131001.•JagdhariRoad,AboveUCOBank,NearD.A.V.GirlsCollege,yamuna Nagar135001.•18/369,CharChamanKunjpuraRoad,BehindMiglaniHospital,Karnal 132001.

Himachal pradesh: Triveni Building, By Pas Chowkkhallini, Shimla171002.•SahniBhawan,AdjacentAnandCinemaComplex,TheMall,Solan173212.

Jammu & Kashmir:Gupta’sTower,2ndFloor,CB-12RailHeadComplex,Jammu180012.

Jharkhand: B-1, 1st Floor, City Centre, Sector- 4, Near Sona Chandi Jwellers, Bokaro827004.•208,New Market, 2nd Floor, Bank More, Dhanbad826001.•2ndFloor,RRSquareSBShopArea,NearRelianceFootPrint&Hotel-BSParkPlaza,MainRoad,Bistupur,Jamshedpur831001.•RoomNo.307,3rdFloor,CommerceTower,BesideMahabirTower,Ranchi834001.

Karnataka:59,SkandaPuttannaRoad,Basavanagudi,Bangalore560004.•CTSNo.3939/A2A1,Above Raymonds Show Room, Beside Harsha Appliances, Club Road, Belgaum590001.•No.1,KHBColony,GandhiNagar,Bellary583103.•D.No.376/2,4thMain,8thCross,PJExtension,Opp.Byadgishettar School, Davangere577002.•307/9-A,1stFloor,NagarkarColony,EliteBusinessCenter, Nagarkar Colony, P B Road, Dharwad580001.•CTSNo.2913,1stFloor,AsianTowers,JagathStationMainRoad,NextToAdithyaHotel,Gulbarga 585105.•SASNo.212,GroundFloor,Sampige Road, 1st cross, Near Hotel Souther Star, K R Puram, Hassan573201.•CTCNo.483/A1/A2,GroundFloor,ShriRamPalza,BehindKotakMahindraBank,ClubRoad,Hubli 580029.

•MahendraArcade,Opp.CourtRoad,KarangalPadi,Mangalore 575003.•L-350,SilverTower,Ashoka Road, Opp. Clock Tower, Mysore570001.•SriMatraNaikaComplex,1stFloor,AboveShimogaDiagnosticCentre,LLRRoad,Durgigudi,Shimoga577201.

Kerala: 1st Floor, JP Towers, Mullackal KSRTC Bus Stand, Alleppy688011.•2ndFloor,SoubhagyaShoppingComplex,ArayidathpalamMavoorRoad,Calicut673004.•AliArcade,1stFloor,KizhavanaRoad,Panampilly Nagar,NearAtlantisJunction,Ernakualm682036.•2ndFloor,PrabhathComplex,Fort Road, Nr. ICICI Bank, Kannur 670001.•SreeVigneswaraBhavan,ShastriJunction,Kadapakada,Kollam691001.•1stFloor,CsiascensionSquareRailwayStationRoad,CollectoratePO,Kottayam 686002.•FirstFloor,PeekaysArcadeDownHill,Malappuram676505.•No:20&21,MetroComplex,H.P.O. Road, Palakkad H.P.O.Road, palakkad678001.•FirstFloor,PulimoottilPioneer,PalaRoad,Thodupuzha685584.•2ndFloor,ErinjeryComplex,Ramanchira,OppAxisBank,Thiruvalla689107.•2ndFloor,BrothersComplex,NaikkanalJunction,ShornurRoad,NearDhanalakshmiBankHO,Thrissur680001.•2ndFloor,AkshayaTower,Sasthamangalam,Trivandrum695010.

Madhya pradesh:107,1stFloor,HotelUtkarsh, J.H.CollegeRoad,Betul460001.•KayKayBusi-ness Centre, 133, Zone I, MP Nagar, Above City Bank, Bhopal 462011.•27,RMOHouseStationRoad,AboveMaaChamundaGaesAgency,Dewas455001.•2ndfloor,203-205BalajiCorporateHouse, Above ICICI Bank, 19/1 New Palasia, Near Curewell Hospital, Janjeerwala Square Indore, Indore452001.•GroverChamber,43NayaBazar,MalviyaChowk,Opp.ShyamMarket,Jabalpur 482002.•1,NagpalBhawan,FreeGanjRoad,DoBatti,NearNokiaCare,Ratlam457001.•IIfloor,AboveShivaKanchMandir,5CivilLines,Sagar470002.•101,AashtaTower,13/1DhanwantriMarg,Freeganj, Ujjain456010.•2ndFloor,RajeevPlaza,JayendraGanj,Lashkar,Gwalior 474009.•MotiPalace, Near Ramjanki Mandir, Morena476001.•IstFloor,AngooriBuilding,BesidesAllahabadBank,TransUniversityRoad,CivilLines,Rewa485001.•1stFloor,GopalComplex,NearBusStand,Rewa Road, Satna485001.•1stFloor,M.P.R.P.Building,NearBankOfIndia,Shivpuri 473551.

Maharashthra:ShopNo.4,SantakripaMarket,GGRoad,Opp.BankOfIndia,Nanded431601.•BlockNo.06,VamanNagar,Opp.D-MartJuleSolapur,Solapur413004.•YamunaTarangComplex,ShopNo.30,GroundFloor,N.H.No.06,MurtizapurRoad,OppRadhakrishnaTalkies, Akola 444004. •ShopNo.21,2ndFloorGulshanTower,NearPanchsheelTalkies,JaistambhSquare,Amaravathi 444601.•RamkunjNiwas,RailwayStationRoad,NearOsmanpuraCircle,Aurangabad 431005.•ShopNo.6OfficeNo.2,1stFloor,RautsRaghuvanshiComplex,BesideAzadGarden,MainRoad,Chandrapur 442402.•GroundFloor,IdealLaundry,LaneNo4,KholGalli,NearMuthootFinance,Opp.BhavasarGeneralStore,Dhule 424001.•269,JaeeVishwa,1stFloor,Baliram Peth,AboveUnitedBankOfIndia,Near KishorAgencies, Jalgaon 425001.•PlotNo.2/1,HouseNo.102/1,MataMandir Road, Mangaldeep Appartment, Opp Khandelwal Jewelers, Dharampeth, Nagpur440010.•F-1,SuyojitSankulSharanpurRoad,NearRajivGandhiBhavan,Nasik422002.•605/1/4EWard,Shahupuri,2ndLane,LaxmiNiwas,NearSultaneChambers,Kolhapur416001.•24/B,RajaBahadurCompound, Ambalal Doshi Marg, Behind BSE Bldg, Fort, Mumbai400001.•MozaicBldg,CTSNo.1216/1,FinalPlotNo.576/1TP,SchemeNo.1,FCRoad,Bhamburda,ShivajiNagar,pune 411004.

Meghalaya:AnnexManiBhawan,LowerThanaRoad,NearRKMLPSchool,Shillong793001.

New Delhi: 305,NewDelhiHouse,27BarakhambaRoad,New Delhi 110001.

Orissa:M.SDasStreet,Gopalgaon,Balasore,Orissa,Balasore756001.•DivyaNandanKalyanMandap,3rdLane,DharamNagar,NearLohiyaMotor,Berhampur (Or)760001.•A/181,BackSide Of Shivam Honda Show Room, Saheed Nagar, Bhubaneswar751007.•Opp.DarghaBazar,Policestation,DarghaBazar,POBuxiBazar,Cuttack753001•1stFloorSandhuComplex,KacheryRoad, Uditnagar, Rourekla769012•KoshalBuilderComplex,NearGoalBazaarPetrolpump,Sambalpur768001.

pondicherry:BuildingNo:7,1stFloor,ThiayagarajaStreet,pondicherry605001.

punjab:72-A,Taylor’sRoad,Opp.AgaHeritageClub,Amritsar 143001.•#2047-A,2ndFloor,TheMallRoad,AboveMaxNewYorkLifeInsurance,Bhatinda151001.•TheMallRoad,ChawlaBulding, Ist Floor, Opp. Centrail Jail, Near Hanuman Mandir, Ferozepur152002.•1stFloor,TheMallTower,Opp KapilaHospital,Sutheri Road,Hoshiarpur146001.•1st Floor,ShantiTowersSCO No.37, PUDAComplex,Opposite TehsilComplex,Jalandhar 144001.•SCO136,1stFloor,Above AirtelShowroom,FerozeGandhiMarket,Ludhiana141001.•1stFloor,DuttRoadMandirWaliGali,CivilLines,BaratGhar,Moga 142001.•2ndFloor,SahniArcadeComplex,Adj.IndraColonyGate,Railway Road, pathankot145001.•SCO27D,ChottiBaradari,NearCarBazaar, patiala 147001.

Rajasthan: 302, 3rd Floor, Ajmer Auto Building, Opposite City Power House, Jaipur Road, Ajmer 305001.•101,SaurabhTowerOpp.Uit,NearBhagatSinghCircleRoadNo.2,Alwar301001.•ShopNo.27-281stFloor,HeeraPannaMarket,PurRoad,Bhilwara311001.•70-71,2ndFloor,Dr.ChaharBuilding,PanchsatiCircle,SadulGanj,Bikaner334003.•S16/A,IIIrdFloor,LandMarkBuilding Opp Jai Club, Mahaver Marg, C Scheme, Jaipur302001.•203,ModiArcadeChopasniRoad, Jodhpur 342001.•PlotNo.259,1stfloor,NearLalaLajpatRaiCircle,ShoppingCentre,Kota -324007.•FirstFloor,SuperTower,BehindRamMandir,Near TaparyaBagichi,Sikar332001.•35EBlock,Opp:SheetlaMataVaateka,Sri Ganganagar335001.•201-202,MadhavChambers,Opp.GPO,ChetakCircle, Udaipur 313001.

Tamil Nadu:F-11,AkshayaPlaza,1stFloor,108,AdhithanarSalaiEgmore,Opp.ToChiefMetropolitan Court, Chennai600002.•3rdFloor,JayaEnclave,1057,AvinashiRoad, Coimbatore 641018.•No.9,OldNo:4/B,NewAgraharam,PalaniRoad, Dindigul624001.•No.4,VeerappanTradersComplex,KMYSalai,SathyRoad,Opp.ErodeBusStand,Erode638003.•No.2,GopiArcade, 100 Feet Road, Karaikudi630001.•No.6,OldNo.1304,Thiru-vi-kaRoad,NearG.R.Kalyan Mahal, Karur639001.•RakeshTowers,30-C,Istfloor,ByepassRoad,Opp.NagappaMotors, Madurai 625010. •HNo.45,1stFloor,EastCarStreet,Nagercoil629001. •105/2,Arun Towers, Paramathi Road, Namakkal637001.•146/4,RamanathanBuilding,1stFloor,New Scheme Road, pollachi642002.•SundaramMasilamaniTowers,TSNo.54765479,PM


Road, Old Tirumayam Salai, Near Anna Statue, Jublie Arts, pudukottai622001.•SriGanapathyComplex,14B/5/18,TPMillsRoad,Virudhungar,Dist Rajapalayam626117. •No.3/250,BrindavanRoad,6thCross,PerumalKovilbackside,Fairland’s,Salem636016.•363,ThiruthangalRoad,Opp:TNEB,Sivakasi626123.•No.70,NalliahComplex,SrinivasamPillaiRoad,Tanjore 613001. •55/18,JeneyBuilding,SNRoad,NearAravindEyeHospital,Tirunelveli627001. •Firstfloor,244A,AboveSelvakumarDeptStores,PalladamRoad,Opp,toCottonMarketComplex,Tirupur641604.•60,SriKrishnaArcade,ThennurHighRoad,Trichy620017.•4B,A34A37,Mangalmal Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin628003.•No.6,NEXUSTowers,2ndFloor,Officer’sLine,AbovePeterEngland&BataShowroom,OpptoVoorheesSchool,Vellore-632001.

Telangana:KarvyHouse,No:46,8-2-609/KAvenue4,StreetNo.1BanjaraHills,Hyderabad 500034.•H.No.4-2-130/131,AboveUnionBank,JafriRoad,RajeevChowk, Karimnagar 505001.•HNo:5-6-430,AboveBankOfBaroda,FirstFloor,BesideHDFCBank,HyderabadRoad,Nizamabad 503003.•5-6-95,1stFloor,Opp:B.EdCollage,LashkarBazar,ChandraComplex,Hanmakonda,Warangal 506001.

Tripura: Bidurkarta Chowmuhani, J N Bari Road, Tripura (West), Agartala799001.

Union Territory: SCO- 2423-2424, Above Mirchi Restaurent, New Aroma Hotel, First Floor, Sector 22-C, Chandigarh160022.

Uttar pradesh: 1st Floor, Deepak Wasan Plaza, Behind Holiday Inn, Sanjay Place, Agra282002.•1st Floor, Kumar Plaza, Ramghat Road, Aligarh 202001.•RSATowers,2ndFloor,AboveSonyTVShowroom,57,SPMarg,CivilLines,Allahabad211001.•1stFloor,AlkalBuilding,Opp.Nagaripalika,CivilLine,Azamgarh276001.•1stFloor,RearSide,A-SquareBuilding,154-ACivilLines,OppD.M.Residence, Station Raod, Bareilly-243001.•1stFloor,ShantiNiketan,Opp.ZilaPanchayat,CivilLines, Deoria274001.•1stFloor,C-7,LohiaNagar,Ghaziabad201001.•2ndFloor,ShubhraHotelComplex,Mahaubagh,Ghazipur233001.•ShriMarketSahabgunj,StationRoad,Gonda271001.•AboveV.I.P.Houseajdacent,A.D.GirlsCollege,BankRoad,Gorakpur273001.•RNComplex,

1-1-9-G,InFrontOfPathakHonda,Ummarpur,Jaunpur 222002.•371/01NarayanPlaza,GwaliorRoad, Near Jeevan Shah Chauraha, Jhansi284001.•15/46,B,GroundFloor,Opp:MuirMills,CivilLines,Kanpur208001.•IstFloor,A.A.Complex,5ParkRoad,Hazratganj,ThaperHouse,Lucknow 226001.•149/11,SchoolBazaar,NearUCObank,Opp.HariMandir,Mandi175001.•AmbeyCrown,2ndFloor, InFrontOfBSACollege,GaushalaRoad,Mathura281001.•1stFloor,MediCentre, Opp ICICI Bank, Hapur Road, Near Bachha Park, Meerut 250002.•AbhayMandir,AboveHDFCBank,DankinGunj,Mirzapur231001.•OmArcade,ParkerRoad,AboveSyndicateBank,Chowk Tari Khana, Moradabad244001.•405,4thFloor,VishalChamber,PlotNo.1,Sector-18,Noida201301.•RadhikaBhavan,Opp.PadminiHotel,MurdhwaRenukoot,Renukoot231217.•18MissionMarket,CourtRoad,Saharanpur247001.•1st/A-375,VVColony,DistSonebhadra,Shaktinagar231222.•12/12-A,SuraComplex,AryaNagar,Opp.MalGodam, Sitapur 261001.•1077/3,CivilLines, Opp.Bus Stand,CivilLines,Sultanpur228001.•D-64/132,1stFloor,AnantComplex,Sigra,Varanashi 221010.

Uttaranchal: Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun 248001.•AboveKapilazSweetHouse,Opp.LICBuilding,Pilikothi,KaladhungiRoad,Haldwani263139.•8,GovindPuri,Opp.LIC2,AboveVijayBank,MainRoad,RanipurMore,Haridwar249401.•ShreeAshadeepComplex,16CivilLines,NearIncomeTaxOffice,Roorkee247667.

West Bengal:114/71,GTRoad,NearSonyCentre,BhangaPachil, Asansol713303.•AmbikaMarketComplex,(GroundFloor)Nutanganj,Post&DistBankura,Bankura722101.•ThakurMarketComplex,GorabazarPostBerhamporeDistMurshidabad,72No.,NayasarakRoad, Barhampore (Wb)742101.•AnimaBhavan,1stFloor,HoldingNo-42,Sreepally,G.T.Road,Burdwan–713103.•JCGhoshSaranu,BhangaGara,Chinsurah,Hooghly, Chinsurah712101.•MWAV-16,BengalAmbuja,2ndFloor,CityCentre,Distt.Burdwan,Durgapur-16, Durgapur 713216.•DBCRoad,Opp.NiralaHotel,Jalpaiguri 735101. •180MalanchaRoad,BesideAxisBankLtd.,Kharagpur721304.•ApeejayHouse(BesideParkHotel),CBlock,3rdFloor,15ParkStreet,Kolkata700016.•SahisTuli,UnderWardNo.6,No.1,GovtColony, English Bazar Municipality, Malda732101.•NanakComplex,SevokeRoad,Siliguri734001.

COLLECTION CENTRES OF KARVY FINTECH PRIVATE LIMITED

Karnataka:No.337,GF-3,KarunaComplex,SampigeRoad,Opp:NewVegetableMarket,Malleshwaram, Bangalore560003. •No.408,CitaBldg, IFloor,NextToVodafone Office,Koramangala, Bangalore560095.

Maharashtra:6&7,131,AndheriIndustrialEstate,VeeraDesaiRoad,Andheri(West),Mumbai 400053.•ShopNo.4,GroundFloor,ShramSaflyaBldg,NGAcharyaMarg,Chembur,Mumbai 400071.•ShopNo.43-A,GroundFloor,VashiPlazaSector-17,NearApnaBazar,Vashi,Mumbai 400705.•104,SangamArcade,VPRoad,Opp:RailwayStation,AboveAxisBankATM,VileParle(West), Mumbai 400056.•A-1,HimanshuBuilding,SodawalaLane,NearChamundaCircle,Borivali(West), Mumbai 400092.•101,YaswantTower,1stFloor,OppositePujaHotel,RamMarutiRoad,Naupada, Thane (West), Mumbai 400602.

Tamilnadu:G1,GroundFloor,No.22,VijayaraghavaRoad,SwathiCourt,TNagar,Chennai600017.•NewNo.51,GandhiNagar,FirstMainRoad,Adyar, Chennai 600020.•T92,GroundFloor,3rd Avenue Main Road, Annanagar, Chennai 600040.•No155/7,Ullagaram,MedavakkamMainRoad (Opp to IDBI ATM), Madipakkam, Chennai 600061.

Telangana:CrystalPlaza,2ndFloor,MandayLane,NearSunshineHospital,PGRoad,Secunderabad 500003.

Uttar pradesh:B-1/2,VijayKhand,NearUnionBankOfIndia,GomtiNagar, Lucknow 226010.•Hig-67,SectorE,Aliganj,Lucknow226024.•KSMTower,CP-1SinderDump,Near AlambaghBus Station, Alambagh, Lucknow 226005.

West Bengal:2ndFloor,RoomNo.226,RNMukherjeeRoad,Kolkata 700001.

Notes:

1. The center is only a collection point with Time-stamping impression.

2. This center will not have capability of scrutiny. All transactions are scrutinize and rejections if any will happen only at local branch.

3. Any TSM failures, despite the branch efforts to maintain it, may lead to non-acceptance of transactions.

4.Onlyfullycomplianttransactionsareacceptedatthislocation.Incase,freshpurchasethetransactionsshouldhavetheKYCacknowledgementslipalongwiththem.

5.Liquidtransactions/NFOsarenothandledhere.

6.OnlyEquitySchemesandfewofFMP’s(supportingaboveguidelinesonly)areacceptedatthislocation.

ITI Asset Management LimitedRegistered Office:

Naman Midtown ‘A’ Wing, 21st Floor Senapati Bapat Marg, Prabhadevi, Mumbai 400 013

CIN:U67100MH2008PLC177677

Aug

’19

www.itimf.com

Toll Free Number: 1800-266-9603 | Non Toll Free Number: 022-6621 4999 | Email: [email protected]