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OFFER DOCUMENT

RELIANCE MUTUAL FUND

Reliance Gold Exchange Traded Fund

An open-ended Gold ETF

Sale of units at Rs.100/- per unit during the New Fund Offer Period and thereafter at applicable

NAV based prices as set out in this Offer Document

New Fund Offer Opens on ___________________, 2007Closes on ___________________, 2007

SPONSORReliance Capital LimitedCorporate Office: H Block, 1st Floor, Dhirubhai Ambani Knowledge City,Koparkhairne, Navi Mumbai - 400 710.Tel. 022 – 30327000, Fax. 022 - 30327202

TRUSTEEReliance Capital Trustee Co. Limited

Corporate Office: Express Building (4th

& 6th

Floor), 14, 'E' Road, Churchgate, Opp.Churchgate Station, Mumbai 400 020.

Tel. 022 – 3041 4800, Fax. 022 – 3041 4899

INVESTMENT MANAGER

Reliance Capital Asset Management Limited

Corporate Office: Express Building (4th & 6th Floor), 14, 'E' Road, Churchgate,Opp. Churchgate Station, Mumbai 400 020.

Tel. 022 – 3041 4800, Fax. 022 – 3041 4899

REGISTRARKarvy Computershare (P) Limited

Karvy Plaza, 21, Road No.4, Street No.1, Banjara Hills, Hyderabad – 500 034Tel: 040- 2331 2454, Fax: 040 –2331 1968

CUSTODIAN:

Deutsche BankKodak House, Ground Floor, Mumbai – 400 001

AUDITORS TO THE SCHEME Haribhakti & Co.42, Free Press House, Nariman Point, Mumbai - 400 021

INVESTORS SHOULD NOTE THAT

This Offer Document sets forth concisely the information that a prospective investor ought to knowbefore investing. Investors should carefully read the Offer Document before making an investmentdecision. Investors are advised to consult their legal / tax and other professional advisors in regard totax/legal implications relating to their investments in the Scheme and before making decision to invest inthe Scheme or redeem the Units in the Scheme.

This Offer Document remains effective until a ‘material change’ (other than a change in FundamentalAttributes and within the purview of the offer document) occurs. Material changes will be filed withSecurities and Exchange Board of India (SEBI) and circulated to the Unitholders or may be publiclynotified by advertisements in the newspapers, subject to the applicable Regulations. The Unit holders ofthe Scheme are not being offered any guaranteed returns.

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The Exchange does not in any manner:-i) warrant, certify or endorse the correctness or completeness of any contents of this Offer

Document; orii) warrant that the Units of the Scheme will be listed or will continue to be listed on the Exchange;

oriii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its

management or any scheme or project of this Mutual Fund; and it should not for any reason bedeemed or construed that this offer document has been cleared or approved by the Exchange.Every person who desires to apply for or otherwise acquires any Units of RGETF may do sopursuant to independent inquiry, investigation and analysis and shall not have any claim againstthe Exchange whatsoever by reason of any loss which may be suffered by such personconsequent to or in connection with such subscription / acquisition whether by reason ofanything stated or omitted to be stated herein or for any other reason whatsoever.

This Offer Document is dated ___________ and was approved by the Board of AMC and the Trusteeson February 15, 2007.

The Trustees have ensured that Reliance Gold Exchange Traded Fund approved by them is a new

product offered by Reliance Mutual Fund and is not a minor modification of the existingscheme/fund/product

PLEASE RETAIN THIS OFFER DOCUMENT FOR FUTURE REFERENCE.

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I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE ................................................... .....6 II. DEFINITIONS AND ABBREVIATIONS ................................................ .............................. 15 III. SUMMARY OF THE SCHEME................................................. ........................................ 18 IV. CONSTITUTION AND MANAGEMENT OF THE FUND............. ........................................ 22 1. THE FUND .......................................................................................................................22 2.

SPONSOR COMPANY .....................................................................................................22

3. THE TRUSTEE.................................................................................................................23 4. ASSET MANAGEMENT COMPANY (AMC)........................................................................29 5. AUDITORS .......................................................................................................................40 6. THE CUSTODIAN.............................................................................................................40 7. THE REGISTRAR .............................................................................................................42 8. BANKERS TO THE ISSUE ................................................................................................42 V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS OF THE SCHEME.......44 1. INVESTMENT OBJECTIVE ...............................................................................................43 2 ASSET ALLOCATION PATTERN .......................................................................................43 3. BENCHMARK INDEX .......................................................................................................43 4. INVESTMENT STRATEGY................................................................................................43 5. INVESTMENT PROCESS .................................................................................................44 6. CASE FOR INVESTING IN GOLD ....................................................................................44 7. TRACKING ERROR .........................................................................................................45 8. FUNDAMENTAL ATTRIBUTES .........................................................................................45 9. INVESTMENT PHILOSOPHY AND FOCUS ......................................................................46 10. DEBT MARKET IN INDIA ................................................................................................47 11. PORTFOLIO TURNOVER ..............................................................................................48 12. INVESTMENT LIMITATIONS/RESTRICTIONS .................................................................48 13.UNDERWRITING BY THE SCHEME.................................................................................50 14. BORROWING BY THE MUTUAL FUND ...........................................................................50 15.COMPUTATION OF NET ASSET VALUE .........................................................................50 16. VALUATION OF ASSETS................................................................................................51 14. ACCOUNTING POLICIES & STANDARDS .......................................................................53 15. INVESTMENT BY THE AMC IN THE FUND .....................................................................56 16. DEPOSITORY ................................................................................................................56 17. POLICY FOR INTER-SCHEME TRANSFERS ..................................................................56 VI. UNITS AND OFFER....................................................... ................................................. 57 1. (A) NEW FUND OFFER (NFO) ..........................................................................................57 (B) CONTINUOUS OFFER....................................................................................................57 2. MINIMUM TARGET ..........................................................................................................57 3. MINIMUM NUMBER OF INVESTORS IN SCHEME/PLAN...................................................58 4. PURCHASE OF UNITS .....................................................................................................58 5. ALLOTMENT PRICE / PURCHASE PRICE ........................................................................58 6. ROUNDING OFF OF UNITS ..............................................................................................59 7. EXPENSES OF NEW FUND OFFER .................................................................................59 8. CONSIDERATION FOR RGETF UNITS DURING THE NEW FUND OFFER PERIOD ..........59 9. PURITY OF GOLD ............................................................................................................59 10. CREATION UNIT ............................................................................................................59 11. DEMATERIALISATION ...................................................................................................60 12. LISTING .........................................................................................................................60 13. WHO CAN INVEST.........................................................................................................60 14. JOINT APPLICANTS.......................................................................................................61 15. ALLOTMENT STATEMENT.............................................................................................62 16. APPLICABLE NAV FOR PURCHASE / CREATION /REDEMPTION OF UNITS

DIRECTLY FROM THE FUND ..........................................................................................62 17. HOW TO APPLY FOR RGETF UNITS ..............................................................................63 18. SETTLEMENT OF PURCHASE/SALE OF RGETF UNITS ON THE STOCK EXCHANGE ...63 19. TRANSFER / PLEDGE/ ASSIGNMENT OF UNITS ...........................................................64

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20. TRANSMISSION.............................................................................................................65 21. DIVIDEND PAYOUT OPTION ..........................................................................................65 22. POLICY ON UNCLAIMED REDEMPTION AND DIVIDEND AMOUNTS ..............................66 23. PROCEDURE FOR CREATING RGETF IN CREATION UNIT SIZE ...................................66 24. PREVENTION OF MONEY LAUNDERING .......................................................................67 25. MODE OF PAYMENT .....................................................................................................68 26. WHERE TO SUBMIT APPLICATION FORMS ...................................................................69 27. SYSTEMATIC INVESTMENT PLAN (SIP) ........................................................................70 28. NOMINATION ................................................................................................................71 29. REDEMPTION OF UNITS: .............................................................................................71 30. PROCEDURE FOR REDEEMING RGETF IN CREATION UNIT SIZE/LOT SIZE ................72 31. MINIMUM ACCOUNT BALANCE .....................................................................................73 32. PAYMENT OF PROCEEDS .............................................................................................73 33. RIGHT TO LIMIT REDEMPTION......................................................................................74 35. DURATION OF THE SCHEME ........................................................................................75 VII. LOADS AND RECURRING EXPENSES ..................................................... .....................76 A. LOAD STRUCTURE OF THE SCHEME .............................................................................76 B. APPLICABLE LOAD STRUCTURE ....................................................................................76 C. FEES AND EXPENSES OF THE SCHEME .......................................................................76 VIII. UNITHOLDER'S RIGHTS AND SERVICES ........................................................ ............81 A. UNIT HOLDERS' RIGHTS .................................................................................................81 B. REGISTER OF UNIT HOLDERS .......................................................................................82 C. VOTING RIGHTS OF THE UNIT HOLDERS ......................................................................82 D. DISPATCH OF ACCOUNT STATEMENT / UNIT CERTIFICATE .........................................82 E. NAV INFORMATION ........................................................................................................83 F. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS .......................................83 G. SERVICES TO UNIT HOLDERS .......................................................................................83 IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND ................................................. 87 X. CONDENSED FINANCIAL INFORMATION................................................. .....................91 XI. OTHER MATTERS ................................................ ....................................................... . 103 XII.PENALTIES & PENDING LITIGATION........................................................ ................... 147

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I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE

HIGHLIGHTS

1. The Sponsor of the Mutual Fund is Reliance Capital Limited (RCL) having a net worth of overRs.4122.46 crores as on March 31, 2006.

2. Reliance Capital Asset Management Ltd. (RCAML) is the Investment Manager for the schemes ofReliance Mutual Fund, managing assets of over Rs. 39,000 crores of over 3 million unit holders’accounts as on January 31, 2007.

3. Reliance Gold Exchange Traded Fund (“RGETF”) is an open ended Gold ETF of Reliance MutualFund and will be listed on NSE and any other stock exchange(s) as may be decided by the RelianceCapital Asset Management Ltd. after the allotment of the New Fund Offer period in the form of anExchange Traded Fund (“ETF”) tracking the domestic price of gold through investments in physicalgold, Gold Related Instruments, debt paper linked to gold prices, money market instruments withexposure on the futures and options on the commodities market, and other fixed income securitiesor derivatives as may be permitted by SEBI from time to time.

4. RGETF is designed to provide returns that closely correspond to the returns provided by thedomestic price of gold.

5. RGETF will have two plans , namely, Plan A & Plan B which will have separate portolios andseparate expense structure .Plan A: Each unit of RGETF will be approximately equal to the price of1 (one) gram of gold closing on the date of allotment.Plan B: Each unit of RGETF will be approximately equal to the price of1000 grams of gold closing on the date of allotment.

6. Each unit of RGETF being offered will have a face value of Rs.100/-. The number of units allottedwould be the total amount invested divided by the Allotment Price. Allotment price of RGETF perunit will be based on the cost of investments. In other words, RGETF being offered will have a facevalue of Rs100/- each and will be issued at a premium equivalent to the difference between theallotment price and the face value of Rs. 100/- in both the plans.

7. After the NFO, “RGETF” will be listed on NSE and any other stock exchange(s) as may be decidedby the Reliance AMC after the closure of the New Fund Offer period, subsequent buying or sellingby investors can be made from the secondary market on the NSE. RGETF can be bought/sold likeany other stock on the Exchange. The minimum number of units that can be bought or sold is 1(one) unit. Alternatively Authorised Participant can directly buy /sell in blocks from the fund in‘Creation Unit’ Size, as defined below.

8. The fund at its discretion will also redeem RGETF in lot size of 100 units in exchange of Gold orcash subject to applicable load.

9. The Authorised Participants can directly buy/sell with the Fund in Creation Units. As RGETF can bebought/sold directly from the Fund, this mechanism provides efficient arbitrage between the tradedprices and the NAV, thereby reducing the incidence of RGETF being traded at premium/discounts toNAV. RGETF will be available in dematerialized form. This will help in consolidating with other

portfolio holdings and will eliminate need for physical storage thereby eliminating risks. Theapplicant under the Scheme will be required to have a beneficiary account with a DepositoryParticipant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP IDNumber and its beneficiary account number with DP. Since RGETF are to be issued / repurchasedand traded compulsorily in dematerialized form, no request for rematerialisation of RMF will beaccepted.

10. Investors may register for Systematic Investment Plan (SIP) during the New Fund Offer and duringthe continuous offer on the 2nd & 18

thof every calendar month.

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11. Investment Objective:

The investment objective is to seek to provide returns that closely correspond to returns provided byprice of gold through investment in physical Gold and Gold related securities. However, the performanceof the scheme may differ from that of the domestic prices of Gold due to expenses and or other relatedfactors.

12. Investment Strategy:

The Fund manager would use a ‘passive’ approach to try and achieve the investment objective of theScheme. The scheme does not try to ‘‘beat’’ the gold market but aims to replicate the returns whichcommensurate the returns generated by gold during that period. It will however endeavor to seektemporary defensive positions when markets decline or appear over valued to the extent of itsinvestment in money market or other debt securities.

The fund manager would not make any judgment about the investment merit of a particular security norwill it attempt to apply any economic, financial or market analysis. This style of Passive FundManagement would eliminate the risks involved with active management with regard to over / underperformance vis-à-vis a benchmark.

13. Transparency

? The AMC will calculate and disclose the first NAV not later than 30 days from the closure of NewFund Offer Period. Subsequently, the NAV will be calculated and uploaded on the AMFI site by9.00 pm on every Working Day and also Reliance Mutual Fund’s website i.e.www.reliancemutual.com. The NAV shall be released to at least two daily newspapers to bepublished on the next day.

? Publication of abridged half-yearly un-audited financial results in the newspapers or as may beprescribed under the Regulations from time to time.

? Communication of portfolio on a half-yearly basis to the Unit holders directly or through thepublications or as may be prescribed under the Regulations from time to time.

? Dispatch of the annual reports of the respective Scheme within the stipulated period as required

under the Regulations.

14. Liquidity: All investors including Authorised Participants and other investors may sell their units inthe stock exchange(s) on which these units are listed on all the trading days of the stock exchange. Inaddition, mutual fund will purchase & repurchase units from investors during the 2

nd& 18

thof every

month in the calendar year.Mutual fund will repurchase units from Authorised Participants on any business day provided the unitsoffered for repurchase is not less than 1000 units in Plan A and 1 unit in Plan B.Creation unit size for the Authorised Participants both in the new fund offer Period and for subsequentcreation and redemption of RGETF :

? for Plan A = 1000 units and in multiples of 1 unit thereafter.

? for Plan B = 1 unit and in multiples of 1 unit thereafter.

15. Switch Facility: Switch-in into the scheme from other schemes will be allowed during the New FundOffer period and on the 2nd & 18

thof every calendar month during Ongoing basis, at the applicable

loads. However switch out from this scheme will not be available.

16. Repatriation: Full Repatriation benefits would be available to NRIs/FIIs subject to applicableconditions.

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17. Benefits of RGETF:

The Macro view:

? India is a major player in the global gold market, both through ownership and annual flow ofpurchases of gold, and through enormous success in the labour-intensive export -oriented jewellery

business.? Modernisation of the gold market has been a long-standing policy goal in India. A key element of

modernising any financial market is shifting away from closed clubs of dealers engaging in privatetransactions and bilateral negotiation, to a framework with anonymous trading taking place betweenparticipants from all across the country, all of whom are on a level playing field. An essential featureof modernisation of finance is the removal of entry barriers, so that it is easy for finance companiesto enter and exit any kind of financial activity. The Gold ETF promises to be a step forward for thegold spot market in offering such a trading framework, characterised by nationwide participation byhouseholds and without entry barriers faced by finance companies.

? The Gold ETF is a gold spot instrument, which is distinct from gold futures. However, there aresynergies between both initiatives, since they both strengthen different aspects of the gold market. Astrong gold ETF market helps to strengthen the gold futures market, and vice versa.

The Micro View

From the narrow viewpoint of a household also, the RGETF offers many benefits. Gold is a part of theportfolio of millions of households in the country. For households, the gold ETF offers the followingadvantages:

? Zero concerns about physical security, theft or adulteration when faced with the tasks of custodyand spot transactions.

? A transparent secondary market, which will offer reduced transactions costs when compared withexisting over the counter (“OTC”) transactions on the gold spot market. The existing unregulatedspot market suffers from acute problems of wide bid -offer spreads, and penalisation of customerson questions of purity.

? Once banks and other moneylenders accept the transparency and liquidity of the Gold ETF, it wouldbecome possible to pledge Gold ETF units as collateral for loans. This would greatly assist many

low-income households by easing the credit constraints that they face. A household which maypossess physical gold today would, in comparison, obtain more limited credit access owing toconcerns about the purity and liquidity of the physical gold. In contrast, the Gold ETF units willeliminate concerns about purity, and will offer assured secondary market liquidity.

? RGETF is likely to trade in units which correspond to 1 gram of gold. This would make transactionsaccessible to a large number of households who presently find it difficult to do transactions of 1gram or 1 tola of gold.

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RISK FACTORS AND SPECIAL CONSIDERATIONS

GENERAL RISK FACTORS

? Market Risk: Mutual funds and securities investments are subject to market risks and there is no

assurance or guarantee that the objectives of the Scheme will be achieved. The NAV of the Schemewill react to the prices of gold, Gold Related Instruments and stock market movements. The Unitholder could lose money over short periods due to fluctuation in the NAV of the Scheme in responseto factors such as economic and political developments, changes in interest rates and perceivedtrends in stock prices market movements, and over longer periods during market downturns.

? Additionally, the prices of gold may be affected by several factors such as global gold supply anddemand, investors’ expectations with respect to the rate of inflation, currency exchange rates,interest rates, etc. Crises may motivate large-scale sales of gold, which could decrease thedomestic price of gold. Some of the key factors affecting gold prices are:

? a. Central banks’ sale: central banks across the world hold a part of their reserves in gold.

The quantum of their sale in the market is one of the major determinants of gold prices. Ahigher supply than anticipated would lead to subdued gold prices and vice versa. Central

banks buy gold to augment their existing reserves and to diversify from other asset classes.This acts as a support factor for gold prices.

b. Producer mining interest: Bringing new mines on-line is a time consuming and at timeseconomically prohibitive process that adds years onto potential supply increases frommining production. On the other hand, lower production has a positive effect on gold prices.Conversely excessive production capacities would lead to a downward movement in goldprices as the supply goes up.

c. Macro-economic factors: A weakening dollar, high inflation, the massive US trade deficitsall act in favor of gold prices. The global trend of rising interest rates also had a positiveimpact on gold prices. Gold being regarded as a physical asset would lose its luster in adeflationary environment as gold is used effectively as an inflation hedge.

d. Geo political issues: any uncertainty on the political front or any war-like situation alwaysacts as a booster to gold prices. The prices start building up war premiums and hence such

movements. Stable situations would typically mean stable gold prices.e. Seasonal demand: Since the demand for Gold in India is closely tied to the production of

jewellery pices tend to increase during the times of year when the demand for jewelry is thegreatest, the demand for metals tends to be strong a few months ahead of these festiveseasons, especially Dussera, Diwali, Akshaya Trithya festival and summer wedding seasonin in India. Christmas, Mothers Day, Valentine’s Day, are also major festive and shoppingfor Gold.

f. Change in duties & levies.

? The gold held by the Custodian of RGETF may be subject to loss, damage, theft or restriction ofaccess due to natural event or human actions. The Trustees may not have adequate sources ofrecovery if its gold is lost, damaged, stolen or destroyed and recovery may be limited, even in theevent of fraud, to the market value of gold at the time the fraud is discovered.

? The custodian will maintain adequate insurance for its bullion and custody business. The liability ofthe Custodian is limited under the agreement between the AMC and the Custodian which establishthe Mutual Fund’s custody arrangements, or the custody agreements.

? Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance ofthe Scheme.

? The investment decision made by the AMC may not always be profitable.

? Reliance Gold Exchange Traded Fund is only the name of the Scheme and does not in any mannerindicate either the quality of the Scheme; it's future prospects or returns.

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? The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemebeyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and suchother accretions and additions to the corpus.

? The Mutual Fund is not guaranteeing or assuring any dividend. The Mutual Fund is also notassuring that it will make periodical dividend distributions, though it has every intention of doing so.All dividend distributions are subject to the availabilty of distributable surplus in the Scheme.

Market Trading Risks ? Absence of Prior Active Market: Although RGETF units described in this Offer Document are to

be listed on the Exchange, there can be no assurance that an active secondary market will developor be maintained.

? Lack of Market Liquidity: Trading in RGETF on the Exchange may be halted because of marketconditions or for reasons that in the view of the market authorities or SEBI, trading in RGETF is notadvisable. In addition, trading in RGETF is subject to trading halts caused by extraordinary marketvolatility and pursuant to Stock Exchange(s) and SEBI ‘‘circuit filter’’ rules. There can be noassurance that the requirements of the market necessary to maintain the listing of RGETF willcontinue to be met or will remain unchanged. RGETF may suffer liquidity risk from domestic as wellas international market.

? Time lag in procurement / redemption of physical gold: - Procurement of gold bars may take upto

1 month in case of adverse shortage of gold bars. It may not be possible to sell gold bar intentionallyand may delay redemption depending on the market conditions.

? RGETF may trade at prices other than NAV : RGETF may trade above or below its NAV. The NAVof RGETF will fluctuate with changes in the market value of Scheme’s holdings. The trading pricesof RGETF will fluctuate in accordance with changes in their NAVs as well as market supply anddemand of RGETF. However, given that RGETF can be created and redeemed only in “CreationUnits” directly with the fund, it is expected that large discounts or premiums to the NAVs of RGETFmay not sustain due to arbitrage possibility available.

? Operational Risks: GETF are relatively new product and their value could decrease if unanticipatedoperational or trading problems arise.

? Regulatory Risk: Any changes in trading regulations by the Exchange or SEBI may affect the abilityof Authorised Participant and or Large Investors to arbitrage resulting into wider premium/ discountto NAV. Although RGETF are proposed to be listed on Exchange, the AMC and the Trustees will notbe liable for delay in listing of Units of the Scheme on Exchange / or due to connectivity problemswith the depositories due to the occurrence of any event beyond their control.

? Political Risks: Whereas the Indian market was formerly restrictive, a process of deregulation hasbeen taking place over recent years. This process has involved removal of trade barriers andprotectionist measures, which could adversely affect the value of investments. It is possible that thefuture changes in the Indian political situation, including political, social or economic instability,diplomatic developments and changes in laws and regulations could have an effect on the value ofinvestments. Expropriation, confiscatory taxation or other relevant developments could affect thevalue of investments.

? Competition Risks: An investment in RGETF may be adversely affected by competition from othermethods of investing in gold.

SCHEME SPECIFIC RISK FACTORS:

The value of the units relates directly to the value of the gold held by the scheme and fluctuations in theprice of gold could adversely affect investment value of the units.

The RGETF is designed to mirror as closely as possible the performance of the price of gold bullion andthe value of units directly relate to the value of the Gold held by the Scheme less the Scheme’s liabilities(including accrued but unpaid expenses). Gold prices have been quite volatile historically. The price ofgold has fluctuated from a low of $530 to a high of $726 between Jan-06 and Feb-07 between based onthe London AM Fix

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Several factors may affect the price of gold, including:

? Global gold supplies and demand, which is influenced by factors such as forward selling by goldproducers, purchases made by gold producers to unwind gold hedge positions, central bankpurchases and sales, and productions and cost levels in major gold producing countries such asthe South Africa, the United States and Australia.

?

Investors’ expectations with respect to the rate of inflation;? Currency exchange rates;

? Interest rates;

? Investment and trading activities of hedge funds and commodity funds; and

? Global or regional political, economic or financial events and situations.

In addition, investors should be aware that there is no assurance that gold will maintain its long-termvalue in terms of purchasing power in the future. In the event that the price of gold declines, the value ofinvestment in units is expected to decline proportionately.

? Changes in indirect taxes like custom duties for import, sales tax, VAT or any other levies willhave an impact on the valuation of gold and consequently the NAV of the scheme.

? Although, the objective of the Fund is to seek to provide returns that closely correspond toreturns provided by price of gold through investment in physical Gold and Gold relatedsecurities, the performance of the scheme may differ from that of the domestic prices of Golddue to expenses and or other related factors.

Credit & Interest Rate Risk

The Fund may also invest in Gold Related Instruments, money market instruments, bonds, securitiseddebts & other debt securities as permitted under the Regulations which are subject to price, credit andinterest rate risk. Trading volumes and settlement periods and transfer procedures may restrict liquidityin debt investments.

• Right to Limit Redemptions: The Trustee, in the interest of the Unit holders of the Scheme offered inthis Offer Document and keeping in view of the unforeseen circumstances / unusual market conditions,may limit the total number of Units, which can be redeemed on any Working Day depending on the total“Underlying Stock of Gold” that can be readily sold in the local market available with the fund.

• Redemption Risk – The Unit Holders may note that even though this is an open-ended scheme, theScheme would ordinarily repurchase Units in Creation Unit size. Thus unit holdings less than theCreation Unit size can normally only be sold through the secondary market, unless no quotes areavailable on the Exchange for 5 trading days consecutively. Further, the price received upon theredemption of RGETF units may be less than the value of the gold represented by them. The resultobtained by subtracting the Fund’s expenses and liabilities on any day from the price of the gold ownedby the fund on that day is the net asset value of the fund which, when divided by the number of unitsoutstanding on that date, results in the net asset value per unit, or NAV.In case the fund is not in a position to sell the underlying gold in the market to generate cash, the fund

reserves the right to / may exercise the option of redeeming the units of RGETF in the form of physicalgold.The unitholder may opt to take delivery of physical gold instead of redemption proceeds in cash, subjectto a minimum of 100 units. In such a scenario, the investor will have to collect the gold bar(s) from theCustodian at his own cost as per procedure prescribed by the AMC & its Custodian from time to time.Any risk associated with transportation of gold once it has been released by the custodian will be borneby the Investor only. The investor will have to bear the incidences of taxes/levies/charges as applicableform time to time while redeeming physical gold bars.

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• Asset Class Risk : The domestic price of gold may vary from time to time. Further, the returns fromthe types of securities in which a Scheme invests may under perform returns from the various generalsecurities markets or different asset classes. Different types of securities tend to go through cycles ofout-performance and under performance in comparison of the general securities markets.

• Passive Investments: As RGETF is not actively managed, the underlying investments may beaffected by a general decline in the domestic price of gold and other instruments invested under the

plan. RGETF invests in the Gold & securities mentioned in the asset allocation regardless of theirinvestment merit. The AMC does not attempt to take defensive positions in declining markets. Further,the fund manager does not make any judgment about the investment merit nor shall attempt to applyany economic, financial or market analysis.

• Tracking Error Risk: Tracking error means the variance between daily returns of the underlyingbenchmark (gold in this case) and the NAV of the scheme for any given period. NAV of the Scheme isdependant on valuation of gold. Gold has to be valued as per the formula provided by SEBI in its circularno. SEBI/IMD/CIR No. 2/65348/06 dated April 21, 2006. NAV so computed may vary from the price ofGold in the domestic market.

Factors such as the fees and expenses of the Scheme, cash balance, changes to the Underlying assetsand regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying assetsof the scheme. The Scheme’s returns may therefore deviate from those of its Underlying assets.

Tracking error could be the result of a variety of factors including but not limited to:? Delay in the purchase or sale of gold due to

o Illiquidity of gold,o Delay in realisation of sale proceeds,o Creating a lot size to buy the required amount of gold

? The scheme may buy or sell the gold at different points of time during the trading session at the thenprevailing prices which may not correspond to its closing prices.

? The potential for trades to fail, which may result in the Scheme not having acquired gold at a pricenecessary to track the benchmark price.

? The holding of a cash position and accrued income prior to distribution of income and payment ofaccrued expenses.

? Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.? Execution of large buy / sell orders? Transaction cost (including taxes and insurance premium) and recurring expenses? Realisation of Unit holders’ fundsThe scheme will endeavor to minimise the tracking error by? Setting off of incremental subscriptions against redemptions, during liquidity window? Use of gold related derivative instruments, as and when allowed by regulations? Rebalancing of the portfolio

Given the structure of RGETF, the AMC expects the tracking error to be lower. The AMC will endeavorto keep the tracking error as low as possible. Under normal circumstances, such tracking errors are notexpected to exceed 2% per annum. However this may vary when the markets are very volatile.

Tax Issues: Repurchase of “RGETF” by the Fund or sale of RGETF by the investor on the StockExchange may attract short or long term capital gain tax depending upon the holding period of the Units.Moreover, converting RGETF units to Gold may also attract Wealth tax. The investor will have to bearthe incidences of taxes/levies/charges as applicable form time to time while redeeming physical goldbars.The tax benefits described in this Offer Document, are as available under the present taxation laws andare available subject to relevant conditions. The information given is included only for general purposeand is based on advise received by the AMC regarding the law and practice currently in force in Indiaand the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. Asis the case with any investment, there can be no guarantee that the tax position or the proposed taxposition prevailing at the time of an investment or redemption in the Scheme will endure indefinitely. Inview of the individual nature of tax consequences, each investor is advised to consult his / her ownprofessional tax advisor.

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Gold is subject to indirect tax not restricted to the following : Sales Tax, Octroi, VAT, Stamp Duty, andCustom Duty.

MINIMUM NUMBER OF INVESTORS & LIMIT OF HOLDING BY A SINGLE INVESTOR: As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No.10/22701/03 and dated June 14,2005 ref SEBI/IMD/CIR NO.1/42529/05, each scheme and individual plan(s) under the schemes shouldhave a minimum of 20 investors and no single investor should account for more than 25% of the corpusof such scheme/ plan(s) at portfolio level within a period of three months or at the end of the succeedingcalendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO andthe 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the schemeshall meet with both the conditions of minimum number of investor and holding as a percentage of thecorpus.Determining the breach of 25% limit - The average net assets of the scheme would be calculateddaily and any breach of the 25% holding limit by an investor would be determined. At the end of thequarter, the average of daily holding by each such investor is computed to determine whether thatinvestor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over thequarter, a rebalancing period of one month would be allowed and thereafter the investor who is inbreach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure onthe part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days

would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15thday of the notice period.

SPECIAL CONSIDERATIONS

The Mutual Fund is not assuring or guaranteeing that it will be able to make regular/periodicaldistributions to its Unit holders. Periodical distributions will be dependent on the availability ofdistributable surplus

The Trustees have the right in their sole discretion; to limit redemptions under certain circumstancesmentioned elsewhere in the Offer Document.

Investors should study this Offer Document carefully in its entirety before investing in this Scheme andshould not construe the contents hereof as advise relating to legal, taxation, investment or any othermatters. Investors are advised to consult their legal, tax, investment and other professional advisors todetermine possible legal, tax, financial or other considerations of subscribing to or redeeming units,before making a decision to invest / redeem Units and to retain this Offer Document for futurereference.

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DUE DILIGENCE CERTIFICATE

It is confirmed that:

• The Draft Offer Document of Reliance Gold Exchange Traded Fund, forwarded to SEBI, is inaccordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued bySEBI from time to time.

• All the legal requirements in connection with the launch of the Scheme as also the guidelines,instructions etc., issued by the Government and any other competent authority in this behalf, have beenduly complied with.

• The disclosures made in the Offer Document are true, fair and adequate to enable the investors tomake a well-informed decision regarding investment in the Scheme.

• According to the information provided to us, Deutsche Bank, the Custodian, Karvy Computershare Pvt.Ltd., the Registrar and the Collecting Bankers are registered with SEBI and until the date, suchregistrations are valid.

• The contents of the Offer Document including figures, data, yields etc. have been checked and arefactually correct.

Place: Mumbai Name: Balkrishna KiniDate: March 15, 2007 Designation: Head – Legal & Compliance

Note : The Due Diligence Certificate as stated above was submitted to the Securities and ExchangeBoard of India on March 15, 2007.

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II. DEFINITIONS AND ABBREVIATIONS

In this Offer Document, the following words and expressions shall have the meaning specified below,unless the context otherwise requires:

Applicable NAV: Applicable NAV is the Net Asset Value per Unit at the close of the Working Day onwhich the application for purchase or redemption is received at the designated investor service centreand is considered accepted on that day. An application is considered accepted on that day, subject to itbeing complete in all respects and received prior to the cut-off time on that Working Day.

Asset Management Company/AMC/Investment Manager/RCAM: Reliance Capital AssetManagement Limited, the Asset Management Company incorporated under the Companies Act 1956,and authorized by SEBI to act as the Investment Manager to the Schemes of Reliance Mutual Fund(RMF).Allotment Price:Allotment price is the price at which each unit will be allotted and will be equal to the face value ofRs100/- plus premium equivalent to the difference between the face value and price of gold per gramunder Plan A & per 1000 grams under Plan B, as on the date of allotment

(Each unit issued in Plan A of RGETF will be approximately equal to the closing price of 1 gram of gold

on the date of initial allotment after closure of NFO.

Each unit issued in Plan B of RGETF will be approximately equal to the price 1000 gram of gold closingon the date of initial allotment after closure of NFO. )

Application Form: Application form for subscribing to Units of RGETF as specified in this OfferDocument.

AMFI : Association of Mutual Fund in India.Authorised Participants: Member of the National Stock Exchange or any other recognised stockexchange or any other person who is appointed by the AMC to act as Authorised Participant as decidedby the AMC.

Collecting Bank: Branches of Banks for the time being authorized to receive application(s) for units,as mentioned in this document.

Continuous Offer: Offer of the Units when the Scheme becomes open ended, after closure of the

New Fund Offer.

Custodian: Deutsche Bank, Mumbai, acting as Custodian to the Scheme, or any other custodian whois appointed by the Trustee.

Crore: Ten Million Indian RupeesCreation unit:

‘Creation Unit’ is a fixed number of “RGETF” units, which are exchanged for an investment linked togold & gold related instruments called the “Portfolio Deposit” and a “Cash Component”. Creation unit is a fixed number of RGETF units which are exchanged for physical gold kept with the

custodian, in lieu of which units are allotted to the Authorized Participants.

In case of redemption, a fixed number of “RGETF” units will be exchanged for either equivalent cash ordelivering physical gold.Creation unit size for the Authorised Participants both in the new fund offer Period and for subsequentcreation and redemption of RGETF:

? for Plan A = 1000 units and in multiples of 1 unit thereafter.? for Plan B = 1 unit and in multiples of 1 unit thereafter.

The facility of creating / redeeming units in Creat ion Unit size is available to the Authorised Participants.The Authorized participant has the option to deposit at least 1 kilogram of physical gold & in multiples of1 kilogram thereof in order to create units of the scheme.

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a. Portfolio Deposit: These are LBMA Good Delivery physical gold bars imported by Banksauthorized by RBI to deal in Gold and other securities. The value of gold and other instruments willbe linked to the domestic prices of gold. Portfolio Deposit can change from time to time.

b. Cash Component for Creation Unit: The Cash Component represents the difference between theapplicable net asset value of a Creation Unit and the market value of the Portfolio deposit. Thisdifference may include accrued dividends, accrued annual charges including management fees andresidual cash in the scheme. In addition the Cash Component may include transaction cost ascharged by the Custodian/Depository Participant, equalization of dividend, effect of rounding-off ofnumber of shares in portfolio Deposit and other incidental expenses for Creating Units. The cashcomponent will vary from time to time and will be computed and announced by the AMC on itswebsite every Business Day.

c. Cash Component for Redemption in Creation Unit Size: The Cash Component represents thedifference between the applicable net asset value of a creation unit and the market value of thePortfolio deposit. This difference may include accrued dividend, accrued annual charges includingmanagement fees and residual cash in the scheme. Any transaction cost charged by theCustodian/DP, equalization of dividend and other incidental expenses for redeeming units may alsoform part of Cash Component. The cash component for redemption may vary from time to time andwill be computed and announced by the AMC on its website.

CDSL: Central Depository Services (India) Ltd.

Designated Investor Service Centres (DISC): Any official point of acceptance fortr ansa ct io n as may be designated by the Asset Management Company from time to time, whereinvestors can tender the request for subscription, redemption or switching of units etc.Depository: Depository means a body corporate as defined in the Depositories Act, 1996 (22 of 1996)and includes National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL).

Entry Load: Load on subscriptions / switch in

Exit Load: Load on redemptions / switch out.

ETF: Exchange Traded Fund.

Exchange : The Stock Exchange Limited, Mumbai or The National Stock Exchange of India Limited orany other exchange where the Units are listed.

FII: Foreign Institutional Investors, registered with SEBI under the Securities and Exchange Board ofIndia (Foreign Institutional Investors) Regulations, 1995.

Gold Related Instruments: Instrument having gold as underlying security, as may be specified by SEBIfrom time to time;

Indian Rupees / Rs : The lawful currency of India

Investment Management Agreement (IMA): The Agreement entered into between RelianceCapital Trustee Co. Limited and Reliance Capital Asset Management Limited by which RCAM has beenappointed the Investment Manager for managing the funds raised by RMF under the various Schemes,and all amendments thereof.

Lakh : One hundred thousand

LBMA :London Bullion Market Association

Load: A charge that may be levied as a percentage of NAV at the time of entry into the scheme/plans orat the time of exiting from the scheme/ plans.

Local Cheque: A Cheque handled locally and drawn on any bank, which is a member of the banker'sclearing house located at the place where the application form is submitted.

NAV / Net Asset Value: Net Asset Value of the Units in each plan of the Scheme is calculated inthe manner provided in this Offer Document or as may be prescribed by Regulations from time to time.The NAV will be computed upto four decimal places.

NRI: Non-Resident Indian.

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New Fund Offer Period : The dates on or the period during which the initial subscription to units ofthe scheme can be made if any, such offer period not being more than thirty days.NSDL: National Securities Depository Ltd

Offer Document: The document issued by Reliance Mutual Fund, offering units of Reliance GoldExchange Traded Fund for subscription.

OTC : Over the counter.

Plans: Plan A & Plan B under the SchemePurchase Price: Purchase Price to the investor of Units of any of the plans computed in the mannerindicated in this Offer Document.Portfolio Deposit: These are LBMA Good Delivery physical gold bars imported by Banks authorized byRBI to deal in Gold and other securities. The value of gold and other instruments will be linked to thedomestic prices of gold. Portfolio Deposit can change from time to time.

Regulations/ Mutual Fund Regulations: Securities and Exchange Board of India (MutualFunds) Regulations as amended from time to time and such other regulations as may be in force fromtime to time to regulate the activities of Mutual Funds.

RBI / Reserve Bank of India: Reserve Bank of India, established under the Reserve Bank of IndiaAct, 1934.

RMF /Mutual Fund/the Fund: Reliance Mutual Fund, (formerly known as Reliance Capital Mutual

Fund), a Trust under Indian Trust Act, 1882 and registered with SEBI vide registration numberMF/022/95/1 dated June 30, 1995.RCTC/Trustee/Trustee Company: Reliance Capital Trustee Co. Limited, a Company incorporatedunder the Companies Act, 1956, and authorized by SEBI and by the Trust Deed to act as the Trustee ofReliance Mutual Fund.RCL/Sponsor/Settlor: Reliance Capital LimitedRedemption / Repurchase Price : Redemption Price to be paid to Authorised Participants and / orUnitholders of Units of any of the Plans computed in the manner indicated in this Offer Document.Registrar /Karvy: Karvy Computershare Pvt Ltd., who have been appointed as the Registrar or anyother Registrar who is appointed by RCAM.Scheme: Scheme of RGETF comprising of Plan A and Plan B.SEBI / Regulator: Securities and Exchange Board of India.Trust Deed: The Trust Deed entered into on April 25, 1995 between the Sponsor and the Trustee, andall amendments thereof.Trust Fund: The corpus of the Trust, unit capital and all property belonging to and/or vested in theTrustee.Tracking Error: Tracking error means the variance between daily returns of the underlying benchmark(gold in this case) and the NAV of the scheme for any given period.Unit: The interest of the investors in any of the plans, of the scheme which consists of each Unitrepresenting one undivided share in the assets of the corresponding plan of the scheme.Unitholder: A person who holds Unit(s) under the scheme.Underlying Stock / Securities: Instruments invested in by the Fund manager, other than gold and GoldRelated Instruments, for each of the Plans, subject to the approval of the Regulator and / or incompliance with the Regulations.Working Day: Any day, other than a Saturday or Sunday or any day on which Banks in Mumbai areClosed for commercial transactions or The Stock Exchange, Mumbai and/or National Stock Exchangeare closed for transactions or a day on which banks are open but The Stock Exchange, Mumbai and/or

The National Stock Exchange are closed for transactions or a day on which sale of units is suspendedby the AMC / Trustee or a day on which normal business could not be transacted due to storms, floods,bandhs, strikes or any other calamities, etc, subject to modifications by RCAM from time to time.

Words and Expressions used in this Offer Document and not defined shall have the samemeaning as in the Regulations.

Words in singular shall include the plural and vice versa.

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I I I . SUMMARY OF THE SCHEME

SCHEME FEATURES:

Scheme: Reliance Gold Exchange Traded Fund

Type: An open-ended Gold Exchange Traded Fund that tracks the domestic prices of gold throughinvestments in physical Gold.

Investment Pattern: Plan A & Plan B shall have separate portfolios.

Instruments % Risk Profile

Gold or Gold Related Instruments as permitted byregulators from time to time

90%- 100% Medium

Money Market instruments, Bonds, Debentures,Government Securities including T-Bills, SecuritisedDebt* & other debt securities as permitted by

regulators from time to time

0– 10% Low toMedium

*Upto 10% in securitised debt

It may be clearly understood that the percentages above are only indicative and not absolute.For further details on investment allocation please refer to section V of the Offer Document.

Investment Objective: The investment objective is to seek to provide returns that closelycorrespond to returns provided by price of gold through investment in physical Gold and Gold relatedsecurities. However the performance of the scheme may differ from that of the domestic prices of Golddue to expenses and or other related factors.

Net Asset Value: Calculated & declared every Working day

Plans: RGETF offers two plans, namely : –

1. Plan A

2. Plan B

Options: Only Dividend Pay-out Option is available in both the above plans

Minimum Application Amount:

(a) For Authorised Participants: Minimum amount Rs. 10 lakhs and in multiples of Re.1 thereafter under both the Plans

(b) For other Investors:

Plan A: Minimum of Rs 5000/- (Rupees Five thousand) and in multiples of Re 1/- thereafter.Plan B: Minimum of Rs 10,00,000/- (Rupees Ten lakhs) and in multiples of Rs.10,00,000/- thereafter.

Systematic Investment Plan (SIP):

Investors may register for SIP during New Fund Offer and during continuous offer by filling in the SIPRegistration Form. However the SIP subscription transaction shall be executed only on 2

nd& 18

thof

every calendar month or the next working day, if 2nd

& 18th

happens to be a non-working day in anycalendar month).

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Minimum SIP Installment Amount:? Rs. 100/- & in multiples of Re. 1 thereafter subject to a minimum of 50 installments, where the

subscriptions are paid through ECS Auto Debit or Direct Account Debit? Rs. 500/- & in multiples of Re. 1 thereafter subject to a minimum of 12 installments where

subscriptions are paid through Post Dated Cheques

Portfolio Disclosures: Half-yearly

Loa d Str uctur e: During NFO and Continuous Offer

Entry & Exit Load : Maximum load of 7% under both the plans the scheme.

The redemption price shall not be lower than 93% of NAV and the purchase price shall not be higherthan 107% of the NAV and the difference between the redemption price and purchase price shall notexceed 7% of the purchase price.

No entry or exit load will be levied on transactions with Authorised Participants during NFO orcontinuous offer.

Listing: The Fund would endeavor to get the units of the Scheme listed on the National Stock Exchange

and any other stock exchange(s) as may be decided by the Reliance AMC within 30 days from theclosure of the New Fund Offer period.

Liquidity : After the close of the NFO, as RGETF would be listed on the Exchange, subsequentbuying or selling by Unit holders can be made from the secondary market. The minimum number ofUnits that can be bought or sold on the exchange is 1 (one) unit. All investors including AuthorisedParticipants and other investors may sell their units in the stock exchange(s) on which these units arelisted on all the trading days of the stock exchange. The trading will be as per the normal settlementcycle.

Alternatively, Authorised Participant can directly buy / sell Units in blocks from the Fund in ‘Creation Unit’size, as defined in this Offer Document on all working days. Mutual fund will repurchase units fromAuthorised Participants on any business day provided the units offered for repurchase is not less than

1000 units in Plan A and 1 unit in Plan B..In addition, mutual fund will sell & repurchase units to /from investors on the 2

nd& 18

thof every calendar

month.

Switch Facility: Switch-in into RGETF from other schemes will be allowed during the New Fund Offerperiod and on the 2

nd& 18

thof every calendar month at the applicable loads. However switch out from

this scheme will not be available.

Inter Plan Switch : Not available

Redemption Cheques Issued: Mutual Fund sh all issue rede mption che que to AuthorisedParticipants for redemption in Creation Unit size and to Unit Holders in certain circumstances within 10Working days .

Minimum Redemption: Minimum number of units that can be bought or sold is 1 (one) unit.Reliance AMC will redeem units only in Creation Unit size. The fund at its discretion will alsoredeem RGETF in lot size of 100 units in exchange of Gold or cash subject to applicable load. Mutualfund will repurchase units from Authorised Participants on any business day provided the units offeredfor repurchase is not less than 1000 units in Plan A and 1 unit in Plan B.

Cut off time : 3:00 p.m. on working d ays as defined in the Offer Document

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Nomination Facility: Since the units of the scheme will be issued in electronic form in the Demataccount of the investor, the nomination as registered with the Depository Participant will be applicable tothe units of the scheme.

Mode of Holding (applicable for Individuals) : Single, Joint or Anyone or Survivor

Benchmark Index: As there are no indices catering to the gold sector/securities linked to Gold,

currently GETF shall be benchmarked against the price of Gold.

Purity of Gold:

All gold bullion held in the scheme’s allocated account with the custodian must be of fineness (or purity)of 995 parts per 1000 (99.5%) or higher.

Recurrin g Ex penses:

Items % of average daily net assets

(estimated)

Plan A Plan B

Investment Management and

Advisory Fees

0.50 0.50

Cost relating to Investorscommunication

0.25 0.25

Custodial Fees 0.50 0.50Registrars Fees & ProcessingCharges including stamp duty, if any

0.10 0.10

Licensing Fees 0.01 0.01Listing Fees 0.01 0.01Marketing & Sales Promotion 1.10 1.00Miscellaneous and other charges 0.03 0.03Total 2.50 2.40

The above expenses are estimates only and are subject to change inter se as per actual expensesincurred. Subject to SEBI Regulations, the AMC reserve the right to modify the above estimate for

recurring expenses on a prospective basis.

Allotment of Units:

1. Plan A: Each unit of RGETF will be approximately equal to the price of1 (one) gram of gold closing on the date of allotment.Plan B: Each unit of RGETF will be approximately equal to the price of1000 grams of gold closing on the date of allotment.

2. Each unit of RGETF being offered will have a face value of Rs.100/-. The number of units allottedwould be the total amount invested divided by the Allotment Price. Allotment price of “RGETF” perunit will be based on the cost of investments. In other words The RGETF being offered will have aface value of Rs100/ - each and will be issued at a premium equivalent to the difference between theallotment price and the face value of Rs. 100/- in both the plans.

3. RGETF will be available in the Dematerialized form.

4. The applicant under the Scheme will be required to have a beneficiary account with a DepositoryParticipant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP IDNumber and its beneficiary account number with DP.

5. Since RGETF are to be issued / repurchased and traded compulsorily in dematerialized form, norequest for rematerialisation of RMF will be accepted.

Allotment of units in respect of applications received during NFO will be made within one month fromdate of closure of the NFO (subject to realization of cheque/draft and subject to receipt of minimum amount

of investment during the New Fund Offer). For Subscriptions received after re-opening for continuous offer

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at the DISC's within the cut -off timings and considered accepted for that day, the units will be allotted asper the applicable NAV.

RCAM, in consultation with the Trustees reserves the right to discontinue/ add more plans/ options at alater date subject to complying with the prevailing SEBI guidelines and Regulations. RCAM, inconsultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the

interest of smooth and efficient functioning of the Scheme, on a prospective basis.

Duration of New Fund Offer

Opening Date :, ____________2007

Closing Date :, _____________2007

The Trustees reserve the right to extend the new fund offer (but not more than 30 days).

New Fund Offer price: During the NFO, the RGETF units offered will have a face value of Rs.100/-each and will be issued at a premium equivalent to the difference between the allotment price and theface value of Rs.100/- in both the plans as on the date of allotment.

New Fund Offer Expenses: The Scheme shall meet the entire expenses incurred during the new

fund offer from the entry load in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC.

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IV. CONSTITUTION AND MANAGEMENT OF THE FUND

1. THE FUND

Reliance Mutual Fund

Reliance Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882 with RelianceCapital Limited, as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited, as the Trustee. RMFhas been registered with the Securities & Exchange Board of India (SEBI) vide registration numberMF/022/95/1 dated June 30, 1995. The name of the Mutual Fund has been changed from RelianceCapital Mutual Fund to Reliance Mutual Fund effective March 11, 2004 vide SEBI's letter no.IMD/PSP/4958/2004 date March 11, 2004. Reliance Mutual Fund was formed to launch variousschemes under which units are issued to the public with a view to contribute to the capital market and toprovide investors the opportunities to make investments in diversified securities.

The main objects of the Trust are: - i. To carry on the activity of a Mutual Fund as may be permitted by law and formulate and devisevarious collective Schemes of savings and investments for people in India and abroad and also ensureliquidity of investments for the Unitholders;

ii. To deploy Funds thus raised so as to help the Unitholders earn reasonable returns on their savings;

and

iii. To take such steps as may be necessary from time to time to realise the effects without any limitation.

2. SPONSOR COMPANY

Reliance Capital Limited

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited,the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held byReliance Capital Limited.

Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd. (RCL). The promoters ofRCL are Reliance Industries Limited and AAA Enterprises Private Limited. Reliance Capital Limited is aNon Banking Finance Company engaged in leasing, investment and other fund based activities. Thenetworth of RCL is Rs. 4122.46 crores as on March 31, 2006. Given below is a summary of RCL'sfinancials:

(Rs. in crores)

Particulars 2005-2006 2004-2005 2003-04 Total Income 652.02 356.79 458.78Profit Before Tax 550.61 105.79 102.63Profit After Tax 537.61 105. 79 102. 63Reserves & Surplus 3849.58 1271.84 1208.50Net Worth 4122.46 1399.81 1336.33Earnin gs per Share (Rs.) 29.74 8.31 8.06

(Basic + Diluted) (Basic+ Diluted)Book Value per Share (Rs.) 112.95 109.96 104.54

Dividen d (%) 30% 29% 29%Paid up Equity Capital 223.40 127.84 127.8 3

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RCL has contributed Rupees One Lac as the initial contribution to the corpus for the setting up of theMutual Fund. RCL is responsible for discharging its functions and responsibilities towards the Fund inaccordance with the SEBI Regulations. The Sponsor is not responsible or liable for any loss resultingfrom the operation of the Scheme beyond the contribution of an amount of Rupees one lakh made bythem towards the initial corpus for setting up the Fund and such other accretions and additions to thecorpus.

3. THE TRUSTEE

Reliance Capital Trustee Co. Limited

Registered Office: Corporate Office :

EO1, Reliance Greens,

Village Motikhavdi,

P.O. Digvijaygram,

District Jamnagar - 361140

(GUJARAT)

Express Building (4th

& 6th

Floor),14, 'E' Road, Churchgate,Opp. Churchgate Station,Mumbai 400 020.Tel. 022 – 3041 4800,Fax. 022 – 3041 4899

Reliance Capital Trustee Co. Limited (RCTC), a company incorporated under the Companies Act, 1956,has been appointed as the Trustee to the Fund vide the Trust Deed dated April 25, 1995 executedbetween the Sponsor and the Trustee.

RCTC has been appointed as the Trustee to “Reliance India Power Fund”, a Venture Capital Fundregistered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005 but thisactivity is yet to commence. An application has also been filed for registration of “Reliance VentureCapital Fund” with SEBI.

1. The Directors

Directors of RCTC are:

Name and Address Other Directorships

Mr. S. P. Talwar

162, Kshitij, 16th Floor,47, Napean Sea Road,Mumbai – 400036

(Former Deputy Governor of Reserve Bank of India)

Director: Venragiri Power Generation Limited,Reliance General Insurance Company Limited,Reliance Life Insurance Company Limited, CromptonGreaves Limited, Videocon Industries Limited,Reliance Asset Reconstruction Company Limited,Housing Development and Infrastructure Limited,Reliance Communications Limited,Member: Advisory Committee – Ministry of CompanyAffairs, New Delhi Court of Jawaharlal NehruUniversity, New Delhi

Mr. S. S. BhandariP-7, Tilak Marg, ‘C; Scheme,Jaipur – 302005

Chartered Accountant

Director: M/s Vaibhav Gems Limited, Jaipur,M/s. Asian Hotels Limited,

Senior Partner: M/s S. Bhandari & Co.Chartered Acountants, Jaipur

Mr. A. N. Shanbhag*96/11, Mohini Mansion, 2nd Floor,Near D. S. High School, Sion(W),

Director: MCS LtdProprietor: Wonderland InvestmentsConsultants

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Mumbai-400 022

Tax & Investment Consultant

Member: UTI – Vigilance Committee

Mr. Anand Bhatt*Shree Sadan, East Wing, 3rdfloor,

4A, Carmichael Road,(M. L. Dahanukar Marg)Mumbai – 400 026

B.Com, L.L.B, Solicitor

Director: e-Serve International Limited,Hitech Plast LimitedRPG Guardian Private Limited

Foodworld Supermarkets Limited

Senior Partner: Wadia Gandhy & Co.

Mr. P. P. Vora503-504, Mount Everest, A wing,Bhakti Park, Near I-Max AdlabTheatreWadala, Mumbai – 400 037


Non-Executive Chairman – Jhagadia Copper Ltd.Director – National Securities Depository Ltd,Zandu Pharmaceuticals Ltd, Omaxe Limited

Senior Partner: M/s P.P. Vora & Co., CharteredAccountants

* Associate Director

2. Duties and Obligations of the Trustees

In accordance with SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed constituting the

Mutual Fund, the Trustees are required to fulfill several duties and obligations, including the

following:

a. The Trustee and the Asset Management Company shall with the prior approval of SEBI enter

into an Investment Management Agreement (IMA).

b. The Investment Management Agreement shall contain such clauses as are mentioned in the

Fourth Schedule of the SEBI (MFs) Regulations, 1996 and other such clauses as are

necessary for the purpose of making investments.

c. The Trustees shall have a right to obtain from the Asset Management Company such

information as is considered necessary by the Trustees.

d. The Trustee shall ensure before the launch of any scheme that the Asset Management

Company possesses/has done the following:

(i) Systems in place for its back office, dealing room and accounting;

(ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and submitted

their bio-data which shall contain the educational qualifications, past experience in the

securities market to SEBI, within 15 days of their appointment;

(iii) Appointed Auditors to audit its accounts;

(iv) Appointed a Compliance Officer to comply with regulatory requirement and to redress

investor grievances;

(v) Appointed Registrars and laid down parameters for their supervision;

(vi) Prepared a compliance manual and designed internal control mechanisms including

internal audit systems; and

(vii) Specified norms for empanelment of brokers and marketing agents.

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e. The Trustee shall ensure that the Asset Management Company has been diligent in

empanelling the brokers, in monitoring securities transactions with brokers and avoiding undue

concentration of business with any broker.

f. The Trustee shall ensure that the Asset Management Company has not given any undue or

unfair advantage to any associate or dealt with any of the associates of the Asset Management

Company in any manner detrimental to interest of unitholders.g. The Trustee shall ensure that the transactions entered into by the Asset Management

Company are in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Scheme.

h. The Trustee shall ensure that the Asset Management Company has been managing the Mutual

Fund Scheme independent of other activities and have taken adequate steps to ensure that the

interest of investors of one Scheme are not compromised with those of any other scheme or of

other activities of the Asset Management Company.

i. The Trustee shall ensure that all the activities of the Asset Management Company are in

accordance with the provisions of SEBI (Mutual Funds) Regulations, 1996.

j. Where the Trustees have reason to believe that the conduct of the business of the Mutual Fund

is not in accordance with the Regulations and the Scheme, they shall forthwith take suchremedial steps as deemed necessary by them and shall immediately inform SEBI of the

violation and the action taken by them.

k. Each Trustee shall file the details of his transactions in securities (above Rs.1 Lac pertransaction) with the Mutual Fund on a quarterly basis.

l. The Trustees shall be accountable for and be the Custodian of the funds and property of the

respective Schemes and shall hold the same in trust for the benefit of the unitholders in

accordance with the SEBI (Mutual Funds) Regulations, 1996 and the provisions of the Trust

Deed.

m. The Trustees shall take steps to ensure that the transactions of the Mutual Fund are in

accordance with the provisions of the Trust Deed.

n. The Trustees shall be responsible for the calculation of any income due to be paid to the

Mutual Fund and also of any income received in the Mutual Fund for the unitholders of any

Scheme in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

o. The Trustees shall obtain the consent of the unitholders of the Scheme:

(i) Whenever required to do so by SEBI in the interest of the unitholders;

(ii) Whenever required to do so, on the requisition made by three-fourths of the unitholders of

any Scheme under the Mutual Fund;

(iii) When the majority of the Trustees decide to wind up the Scheme or prematurely redeem

the Units;

p. The Trustees shall ensure that no change in the fundamental attributes of any Scheme or theTrust or fees and expenses payable or any other change which would modify the Scheme and

affects the interest of unitholders, shall be carried out unless :-

(a) A written communication about the proposed change is sent to each unitholder and an

advertisement is given in one English daily newspaper having nationwide circulation as

well as in a newspaper published in the language of the region where the head office of

the Mutual Fund is situated; and

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(b) The unitholders are given an option to exit at the prevailing net asset value without any exit

load.

q. The Trustee shall call for the details of transactions in securities by the key personnel of the

Asset Management Company in his own name or on behalf of the Asset Management

Company and shall report to SEBI, as and when required.

r. The Trustee shall quarterly review all transactions carried out between the Mutual Fund, AssetManagement Company and its associates.

s. The Trustee shall quarterly review the net worth of the Asset Management Company and shall

ensure that the same is in accordance with the clause (f) of sub-regulation (1) of regulation 21

of SEBI (Mutual Funds) Regulations, 1996.

t. The Trustee shall periodically review all service contracts such as custody arrangements,

transfer agency of the securities and satisfy itself that such contracts are executed in the

interest of the unitholders.

u. The Trustee shall ensure that there is no conflict of interest between the manner of deployment

of the net worth by the Asset Management Company and the interest of the unitholders.

v. The Trustee shall periodically review the investor complaints received and the redressal of thesame by the Asset Management Company.

w. The Trustee shall abide by the Code of Conduct as specified in the Fifth Schedule of the SEBI

(Mutual Funds) Regulations, 1996.

x. The Trustee shall furnish to SEBI on a half-yearly basis the following:

(i) A report on the activities of the Mutual Fund;

(ii) A certificate stating that the Trustees have satisfied themselves that there have been no

instances of self-dealing or front-running by any of the Trustees and by the directors and

key personnel of the Asset Management Company; and

(iii) A certificate to the effect that the Asset Management Company has been managing the

Scheme independently of any other activities and in case any activities of the nature

referred to in regulation 24(2) of the SEBI (Mutual Funds) Regulations, 1996 have been

undertaken by the Asset Management Company, adequate steps to ensure that the

interest of the unitholders are protected, have been taken.

y. The independent Trustees referred to in sub-regulation (5) of Regulation 16 shall give their

comments on the report received from the Asset Management Company regarding the

investments by the Mutual Fund in the securities of group companies of the Sponsor.

z. The Trustees shall exercise due diligence as under:

General Due Diligence:

i) The Trustees shall be discerning in the appointment of the directors on the Board of the Asset

Management Company.

ii) The Trustees shall review the desirability or continuance of the Asset Management Company if

substantial irregularities are observed in any of the Schemes and shall not allow the Asset

Management Company to float new Schemes.

iii) The Trustee shall ensure that the trust property is properly protected, held and administered by

proper persons and by a proper number of such persons.

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iv) The Trustee shall ensure that all the service providers are holding appropriate registrations

from SEBI or concerned regulatory authority.

v) The Trustees shall arrange for test checks of service contracts.

vi) The Trustees shall immediately report to SEBI of any special developments in the Mutual Fund.

Specific Due Diligence: The Trustees shall:

i) Obtain internal audit reports at regular intervals from independent auditors appointed by the

Trustees.

ii) Obtain compliance certificates at regular intervals from the Asset Management Company.

iii) Hold meetings of the Trustees once in two calendar months and atleast six such meetings shall

be held in every year.

iv) Consider the reports of the independent auditor and compliance reports of Asset Management

Company at the meetings of Trustees for appropriate action.

v) Maintain records of the decisions of the Trustees at their meetings and of the minutes of the

meetings.

vi) Prescribe and adhere to a code of ethics by the Trustees, Asset Management Company and its

personnel.

vii) Communicate in writing to the Asset Management Company of the deficiencies and checking

on the rectification of deficiencies.

aa. The independent directors of the trustees shall pay specific attention to the following, as

may be applicable, namely:-

i) The Investment Management Agreement and the compensation paid under the

agreement.

ii) Service contracts with affiliates as to whether the Asset Management Company hascharged higher fees than outside contractors for the same services.

iii) Selection of the Asset Management Company ‘s independent directors

iv) Securities transactions involving affiliates to the extent such transactions arepermitted by Regulations.

v) Selecting and nominating individuals to fill independent directors vacancies.

vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative

practices by insiders in connection with personal securities transactions.

vii) The reasonableness of fees paid to Sponsors, Asset Management Company and

others for services provided.

viii) Principal underwriting contracts and renewals

ix) Any service contract with the associates of the Asset Management Company.

ab. The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the

unitholders approval would be obtained where it affects the interest of unitholders.

Where SEBI Regulations provide for seeking the approval of the Unit Holders for anypurpose, the Trustee may adopt any of the following procedures:

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(i) Seeking approval by postal ballot or

(ii) Approval of the Unit-holders present and voting at a meeting to be specificallyconvened by the Trustee for the purpose. For this purpose, the Trustees shall give 21days notice to the Unit Holders and the Trustees may lay down guidelines for the actualconduct and accomplishment of the voting at the meeting and announcement of theresults.

Under the Trust Deed, duties and obligations also include the following:

i) In carrying out its responsibility, the Trustee and its directors shall maintain arms

length relationship with other companies, or institutions or financial intermediaries or any

body corporate with which they may be associated.

ii) The Directors of the Trustee shall not participate in any decision-makingprocess/resolutions of its board meetings for any investment in which they may be

interested.

iii) All the Trustees shall furnish to the Board of Trustees or Trustee Company particulars

of interest which he may have in any other company, or institution or financial intermediary

or any corporate by virtue of his position as Director, partner or with which he may be

associated in any other capacity.

iv) The Trustee shall not acquire or allow the AMC to acquire any asset out of the Trust

Fund and/or Unit Capital, which involves the assumption of unlimited liability or results in

encumbrance of Trust Fund and/or Unit Capital in any way.

v) The Trustee shall not make or guarantee loans or take up any activity in contraventionof SEBI Regulations except with the prior approval of SEBI nor shall it allow the AMC to do

so.

However, as and when there is an addition / modification / deletion in the duties and responsibilities

of the Trustee, due to a change in the SEBI Regulations, such addition / modification / deletion shall

be applicable here, accordingly.

The Trustee shall not be held liable for acts done in good faith if they have exercised adequate duediligence honestly.

The Trustees shall meet at least once in two calendar months and at least six such meetings shallbe held in every year to review the information / reports submitted by the AMC in accordance withthe Regulations. As per Regulations prevailing during the year ended March 31, 2006, eightmeetings of the Board of Directors of the Trustee Company were held.

The Trustees have also appointed the statutory auditors to verify the books of accounts and toascertain the true and fair representation of the state of affairs as on a particular day and toascertain profit/ loss of the Mutual Fund, as at the end of the financial year.

The Board of Trustees has constituted an Audit Committee, chaired by an independent Trustee.The Committee meets periodically to discuss the internal control systems, the scope of audit of the

internal auditors, as well as the observations made by them. It also reviews the half-yearly andannual financial accounts. Recommendations, if any, of the audit committee on any matter relating

to financial management etc. are considered in the subsequent Board meeting of AMC and

Trustees.

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3. Trusteeship Fees

Pursuant to the Trust Deed constituting the Fund, the Fund is authorised to pay the Trustee, a feefor their services, in addition to the reimbursement of all costs, charges and expenses, sum

computed at the rate of 0.05% of the amount, being the aggregate of the Trust Fund and Unit

Capital of all the Schemes put together on 1st April each year or a sum of Rs.5 Lacs, which ever is

lower or such other sum as may be agreed upon between the Settlor and the Trustee from time totime. The Trustee may charge further fees as permitted from time to time under the Trust Deed andthe Regulations.

4. ASSET MANAGEMENT COMPANY (AMC)

Reliance Capital Asset Management Limited

Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies

Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital

Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management

Limited is held by Reliance Capital Limited.

Reliance Capital Asset Management Limited was approved as the Asset Management Company for

the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual

Fund has entered into an Investment Management Agreement (IMA) with RCAM on May 12, 1995

which was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996.

Pursuant to the IMA, RCAM is authorised to act as Investment Manager of the Mutual Fund.

The networth of the Asset Management Company including Preference shares as on March 31,

2006 was Rs. 61.36crores. The Mutual Fund has launched twenty nine Schemes till date, namely:

Reliance Growth Fund (September 1995) Reliance Vision Fund (September 1995)

Reliance Income Fund (December 1997) Reliance Liquid Fund (March 1998)

Reliance Medium Term Fund (August 2000) Reliance Short Term Fund (December 2002)

Reliance Fixed Term Scheme (March 2003) Reliance Banking Fund (May 2003)Reliance Gilt Securities Fund (July 2003) Reliance Diversified Power Sector Fund

(March 2004)

Reliance Monthly Income Plan (December2003)

Reliance Floating Rate Fund (August 2004)

Reliance Pharma Fund ( May 2004) Reliance NRI Equity Fund (October 2004)

Reliance Media & Entertainment Fund(September 2004)

Reliance Index Fund (February 2005)

Reliance NRI Income Fund (October 2004) Reliance Fixed Maturity Fund – Series I(March 2005)

Reliance Equity Opportunities Fund (February2005)

Reliance Regular Savings Fund (May 2005)

Reliance Fixed Maturity Fund – Series II (April2005)

Reliance Tax Saver (ELSS) Fund (July 2005)

Reliance Liquidity Fund (June 2005) Reliance Equity Fund (February 2006)Reliance Fixed Tenor Fund (November 2005) Reliance Fixed Horizon Fund (April 2006)

Reliance Fixed Horizon Fund I (August 2006) Reliance Fixed Horizon Fund II ( November2006)

Reliance Long Term Equity Fund (November2006)

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Mr. Manu ChadhaC – 35, Malcha Marg,Chankyapuri,New Delhi – 110 021


Director:TRC Financial Services Limited, HimalayanCrest Power Limited, GIC Housing FinanceLimited, Kotla Hydro Power Limited, IspatIndustries Limited, TRC Corporate Consulting(P) Limited, Brady Air Limited,

Partner:

M/s T. R. Chadha & Co., CharteredAccountants

Mr. S. C. Tripathi27, Sector 15A,NOIDA - 201 301(UP)

Former Secretary, Govt. of India,

Petroleum / Education Ministries

Director:IL&FS Infrastructure Development Corporation

* Associate Director

4. Duties and Obligations of the Asset Management Company

In accordance with SEBI (Mutual Funds) Regulations, 1996, the Trust Deed and the Investment

Management Agreement, the Investment Manager has several duties and obligations, includingthe following:

1. The Asset Management Company shall take all reasonable steps and exercise due

diligence to ensure that the investment of funds pertaining to any scheme is not contrary tothe provisions of SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

2. The Asset Management Company shall exercise due diligence and care in all its investmentdecisions as would be exercised by other persons engaged in the same business.

3. The Asset Management Company shall be responsible for the acts of commissions oromissions by its employees or the persons whose services have been procured by the

Asset Management Company.

4. The Asset Management Company shall submit to the Trustees quarterly reports on itsactivities and the compliance with SEBI (Mutual Funds) Regulations, 1996, amended up-to-

date.

5. The Trustees, at the request of the Asset Management Company, may terminate the

assignment of the Asset Management Company at any time provided that such terminationshall become effective only after the Trustees have accepted the termination of assignment

and communicated their decision in writing to the Asset Management Company.

6. Notwithstanding anything contained in any contract or agreement or termination, the Asset

Management Company or its directors or other officers shall not be absolved of any liabilityto the Mutual Fund for their acts of commission or omission, while holding such position or

office.

7. The Chief Executive Officer of the AMC shall ensure that the Fund complies with theprovisions of the SEBI Regulations and that the investments made by the Fund Managers

are in the interest of the Unitholders and shall also be responsible for the overall riskmanagement function of the Fund.

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8. The Fund Manager shall ensure that the funds of the Scheme are invested to achieve the

objectives of the Scheme and are in the interest of the Unitholders.

9. An Asset Management Company shall not, through any broker associated with the sponsor,purchase or sell securities, which is average of 5% or more of the aggregate purchases and

sale of securities made by the mutual fund in all its schemes. Provided that for the purposesof the relevant sub-regulation, aggregate purchase and sale of securities shall exclude sale

and distribution of units issued by the mutual fund. Provided further that the aforesaid limitof 5% shall apply for a block of any three months. An Asset Management Company shall not

purchase and sell through any broker (other than an associated broker referred to above)which is average of 5% or more of the aggregate purchases and sale of securities made by

the mutual fund in all its Schemes, unless the Asset Management Company has recorded in

writing the justification for exceeding the limit of 5% and reports of all such investments aresent to the Trustees on a quarterly basis. Provided that the aforesaid limit shall apply for a

block of three months.

10. An Asset Management Company shall not utilise the services of the Sponsor or any of itsassociates, employees or their relatives, for the purpose of any securities transaction and

distribution and sale of securities, provided that an Asset Management Company may utilisesuch services if disclosure to that effect is made to the unitholders and the brokerage or

commission paid is also disclosed in the half yearly annual accounts for the Mutual Fund.

11. As per the SEBI Circular dated May 24, 2001 no brokerage will be payable for investments

made by Sponsors of the Mutual Fund in any of the Schemes of the Fund, on a prospectivebasis.

12. The Asset Management Company shall file with the Trustee the details of transactions in

securities by the key personnel of the Asset Management Company in their own name or onbehalf of the Asset Management Company and shall also report to SEBI, as and when

required by SEBI.

13. In case the Asset Management Company enters into any securities transaction with any of

its associates, a report to that effect shall be sent to the Trustee at their next meeting.

14. In case any company has invested more than 5% of the net asset value of a scheme, theinvestment made by that scheme or by any other scheme of the same mutual fund in that

company or its subsidiaries, if any, shall be brought to the notice of the Trustees by the

Asset Management Company and be disclosed in the half-yearly and annual accounts with justification for such investment provided that the latter investment has been made within

one year of the date of the former investment calculated on either side.

15. The Asset Management Company shall file with the Trustees and SEBI: -

(i) Detailed bio-data of all its directors along with their interest in other companies within 15

days of their appointment;

(ii) Any change in the interest of directors every six months and

(iii) A quarterly report to the Trustees giving details and adequate justification about the

purchase and sale of securities of the group companies of the Sponsor or the AssetManagement Company as the case may be, by the Mutual Fund during the said

quarter.

16. A statement of holding in securities of the directors of the Asset Management Companyshall be filed with the Trustees, with the dates of acquisition of such securities at the end of

each financial year.

17. The Asset Management Company shall not appoint any person as a key personnel who has

been found guilty of any economic offence or involved in violation of securities laws.

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18. The Asset Management Company shall appoint Registrars and Transfer Agents who are

registered with SEBI. Provided if the work relating to the transfer of Units is processed in-house, the charges at competitive market rates may be debited to the Scheme and for rates

higher than the competitive market rates, prior approval of the Trustees shall be obtainedand reasons for charging higher rates shall be disclosed in the annual accounts.

19. The RCAM shall not undertake any other business except that permitted under the

Regulations. The RCAM shall meet with the capital adequacy requirements, if any,separately for each of the separate activity, if any undertaken by the AMC and obtain

separate approval, if necessary under the Regulations.

20. The RCAM shall not invest in any of its schemes unless full disclosure of its intention to

invest has been made in the offer documents.

21. The RCAM shall not charge any fees on its investment in that scheme.

22. The RCAM does not face any contingent interest in connection with the business activities

carried on by it.

23. The Asset Management Company shall abide by the Code of Conduct as specified in theFifth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

24. The independent directors of the AMC shall pay specific attention to the following, as maybe applicable, namely:-

(i) The Investment Management Agreement and the compensation paid under the

agreement.

(ii) Service contracts with affiliates whether the Asset Management Company has

charged higher fees than outside contractors for the same services.

(iii) Selection of the Asset Management Company‘s independent directors

(iv) Securities transactions involving affiliates to the extent such transactions arepermitted.

(v) Selecting and nominating individuals to fill independent directors’ vacancies.

(vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulativepractices by insiders in connection with personal securities transactions.

(vii) The reasonableness of fees paid to Sponsors, Asset Management Company andothers for services provided.

(viii) Principal underwriting contracts and the renewals.

(ix) Any service contract with the associates of the Asset Management Company.

Under the Investment Management Agreement, the duties and obligations also includethe following:

a) RCAM will be responsible for making, floating, issuing Schemes for the

Trust after approval of the same by the Trustees and SEBI as well as

investing and managing the funds mobilised under various Schemes, inaccordance with the provisions of the Trust Deed and SEBI

Regulations.

b) RCAM must disclose the basis of calculating therepurchase/redemption price and Net Asset Value of the various

Schemes of the Fund to the investors, at such intervals as may bespecified by SEBI and/or the Trustees and in accordance with the SEBI

Regulations.

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c) RCAM must maintain books and records about the operation of various

Schemes of the Fund to ensure compliance with the Regulations andguidelines for Mutual Funds as may be issued by SEBI from time to

time, and shall submit a Scheme wise quarterly report on functioning ofthe Fund to the Trustee or at such intervals and in such manner as may

be required or called for by the Trustee or SEBI.

d) RCAM shall exercise all due diligence and vigilance in carrying out itsduties and in protecting the rights and interest of the unitholders.

e) RCAM will at all times ensure that the Trust Fund is segregated fromassets of RCAM and assets of any other funds for which RCAM is

responsible.

f) RCAM shall submit to the Trustee all information concerning theoperation of the various Schemes of the Fund managed by RCAM at

such intervals and in such manner as required by the Trustee to ensurethat RCAM is complying with the provisions of the Trust Deed and SEBI

Regulations.

RCAM shall observe the above-mentioned powers, duties and obligations. Notwithstanding this, the

powers, duties and obligations as stated in the regulations, from time to time, shall prevail upon thepowers stated above.

As and when there is an addition/deletion/modification in the duties and responsibilities of the AMC due

to a change in the Regulations, such additions/deletions/modifications shall be made here, accordingly.

The AMC shall not be liable to the Trustee in the event that the Mutual Fund suffers a decline in its Net

Asset Value or fails to achieve any increase therein; unless such decline or failure is caused by any actsof commission or omission or by the default or negligence of the AMC, a bonafide error of judgement not

being regarded as default or negligence nor as an act of commission or omission.

Investment Decisions: The investment decisions are taken by a team comprising of the Chief

Investment Officer and Fund Managers based on research reports, market intelligence, analysis ofmacro and micro economic indicators, market trends etc. Detailed discussions take place among the

team members before investments are finally made. Such discussions/ meetings occur more than onceduring a day if situations warrant viz. major economic or political events for a review of earlier decisions.

The Fund Managers along with their rationale record all such investment decisions.

The Chief Executive Officer / President shall be responsible for compliances of all statutoryrequirements including SEBI Regulations and will supervise investments decisions of Fund Managerstaking into consideration the overall interest of the Unitholders and assume responsibility for the day today and overall Risk Management function of Mutual Fund.

Under him Fund Manager(s) will look after investment of the funds of the Scheme(s) in a manner toachieve the investment objective of the Scheme and in the interest of Unitholders.

The performance of the Schemes is reviewed by the Board of AMC and Trustees in their periodicalmeetings. The trustee will review the performance of the scheme on a periodical basis and submit a half

yearly report to SEBI on various matters related to compliance and performance of the scheme. Theymay also compare the performance of the scheme against a benchmark index. As there are no indicescatering to the gold sector/securities linked to Gold, currently Reliance Gold Exchange Traded Fundshall be benchmarked against the price of Gold as per the extant regulations. The benchmark may bechanged in future, if a benchmark better suited to the investment objective of the scheme is available, asmay be permitted by SEBI and decided by the AMC and the Trustee and any change at a later dateshall be recorded and reasonably justified.

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5. AMC Fees : In terms of the Investment Management Agreement and the Regulations, the AMC isentitled to a management and advisory fee at the rate of 1.25% of the average daily net assets for netassets upto Rs.100 crore and at the rate of 1.00% for the net assets in excess of Rs.100 crore. ForSchemes launched on a No- Load basis, the AMC is entitled to collect an additional management fee ofupto 1% of the average net assets outstanding in each financial year and the total management fee shallnot exceed the limit stated under the Regulation 52(6) of SEBI.

6. Key Personnel of AMC & their relevant experience:

Name Age Designation Educational

Qualification Type and Nature of past

experience includingassignments held during thepast 10 years

Mr. VikrantGugnani

36 President B.Com (Hons.),C.A.

Over 10 years of experience indiverse functions such asProduct Management, Research,Infrastructure, Sales andMarketing. Prior to joiningReliance Capital Asset

Management Limited he was withCitibank N A as Vice President,Product Head Indonesia – Investment Products. Hisexperience of Citibank in Indiaalso includes Product Head India- Investment Products,Investment Counsellor - North,Y2K Project Team Leader andBranch Cash Officer. Prior to thishe was an IndependentConsultant on Project Consulting& Advisory

Mr. K.Rajagopal

58 ChiefInvestmentOfficer

M.A. CAIIB Over 33 years experience incommercial Banking, treasuryand investment operations 2001till date -Reliance Capital AssetManagement Limited ChiefInvestment Officer FundManagement, 1971-2001StateBank of India - ProbationaryOfficer- International Banking &Loans Syndication RegionalAdministration of Branches &Business Development GeneralManager - Treasury- TreasuryOperations including LiquidityManagement, InvestmentOperations, Trading, ComplianceFunctions

Mr.MadhusudanKela

38 Head – EquityInvestments

B.Com, MMS Over 13 years experience inEquity Sales & Dealing2001-03Vice President - RelianceCapital Ltd. Contributing to the

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Name Age Designation EducationalQualification

Type and Nature of pastexperience including

assignments held during thepast 10 years development of the Mutual Fund(100% owned by RCL) 1998-99

Peregrine Securities VicePresident - Equity & SalesDealing 1996-98UBS Securities -Asst Vice President Equity Sales& Dealing 1994-96 Motilal Oswal- Equity Sales

Mr. AmitabhMohanty

35 Head – FixedIncome

MBA, IIMAhmedabad

BE (Electrical),IIT Roorkee

Over 9 years experience in FixedIncome Function1999 – 2005 Alliance CapitalAsset Management (India)Private LimitedHead- Fixed Income1996 – 1999 SBI FundsManagement LimitedManaging Fixed IncomePortfolios

Mr. SunilSinghania

39 FundManager

B.Com. CFA,FCA

Over 11 Years of experience inCapital Markets 1997 -2003Advani Share Brokers PLtdDirector - Institutional Sales &Research, EquityDerivatives1994-97MotisonsSecurities P Ltd.PresidentInstrumental in setting upthe broking business, NSETrading membership,developing the systems.

Mr.VikramDhawan

37 Head – Commodities

B.E. (Mech.),PGD- MaterialsManagement

February 2007 till dateReliance Capital AssetManagement Ltd.,

Heading – Commodities – Involvedin Fund Management and InvestorEducation. Taking New Initiatives inCommodities Investments.September 2005 – January 2007Reliance Capital Limited.,

AVP (Head – Commodities) -Involved in Commodity Trading,Research & Analysis.February 2004 – September 2005

Vedanta Group.,Head - Commodity Hedging -Managing US$ 2.0 Billion p.a.Metals Hedge Book, Also involved inCommodity Derivatives and PhysicalTrading.May 2000 – January 2002N.M. Rothschild & Sons Limited.,

Country Manager- Base & PreciousMetals - Overseeing the US$ 1

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assignments held during thepast 10 years

Billion p.a. Precious Metals Sales &Distribution Portfolio; Providing

Commodity Hedging Services toIndian Companies.January 1998 – May 2000

ScotiaMocatta (The Bank of NovaScotia).,Associate Director - Metals – Providing Commodity HedgingServices to Indian Companies;Precious Metals and Treasury.January 1995 – January 1998Birla Copper.,Manager Hedging - EstablishedCommodity Hedging Desk;Treasury, Physical Commodity

Trading, Project Procurement &Finance

Mr. Amit Tripathi 31 FundManager-Debt

B.Com(H),PGDM

Over 7 years experience1999-2003The New India AssuranceCo. Limited Assistant AdminOfficer - Investment Dept.1998-1999Sun Invest AssociatesLimited Analyst -Equity MarketOperations1997-1998CFSFinancial Services Pvt. LimitedEquity Dealer

Mr. Ashwani

Kumar

38 Fund

Manager-Equity

B.Sc., MBA

Finance

Over 10 years of experience1992

- 2003Zurich Asset managementCo. India P. LtdSenior ResearchAnalyst

Mr. Sailesh RajBhan

34 FundManager-Equity

MB A(Finance)CFA (ICFAI)

Over 9 years experience inEquity Securities research andanalysis 2001-2003Emkay Share& Stock Broker Pvt. Ltd Head -Research1996-2001Shah &Sequeira Invst. Pvt. Ltd Analyst -Equity research 1995-1996ICFAI-Securities Research CenterAnalyst – Equity Research

Mr. PrashantPimple

29 FundManager – Debt

MBA(Finance)CTM (ICFAI)

Over 5 years experience inTreasury2003-2004- ICICI Bank LtdManager- Treasury InvestmentAdvisory Services 2002-2003Bank Of Bahrain andKuwait, B.S.C Asst Manager-Treasury (Dealing Room) 2000-2002 The Saraswat Co-op BankLtd Dealer-Treasury

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assignments held during thepast 10 years

Mr. BalkrishnaKini

50 VicePresident

Head – Legal &Compliance

B.Sc. (Hons.),LL.B., Master of

AdministrativeManagement

April 2006 till date - RelianceCapital Asset Management Ltd.,

Heading the Legal & ComplianceFunction.March 2004 to March 2006Reliance Capital AssetManagement Ltd., as Head -Customer Service of RelianceMutual Fund, monitoring InvestorService / Investor Relations & theactivities of R&T agentsApril 2003 to November 2003UTI AMC Ltd.Head – Central MonitoringCentre for operations and Head -

Vashi Branch.April 2000 to April 2003Unit Trust IndiaHead - Mumbai Main/ JVPDbranches.December 1992 to March 2000Unit Trust IndiaBranch Head, Pune Branch

Ms. GeetaChandran

54 VicePresident -Operations

B.A.(Eco),LL.B. June 2002 till date RelianceCapital Asset Management Ltd.,Heading the Operations Dept;Handling day to day operations

July 1993 to May 2002-RelianceIndustries Ltd. Heading TreasuryOperations September 1973 toJune 1993Bank of America NT &SA Officer in Charge of Treasuryoperations

Mr. PrashanthDominic Pereira

36 InvestorRelationsOfficer

B.Com., DCM April 2006 till date RelianceCapital Asset Management Ltd.,Heading the R&T / BranchOperations, Quality & KnowledgeManagementICICI Bank ( from 20th July 1999to 10th March 2006)

Head Quality Initiatives Loans &Cards – 1st May 2005 RegionalHead – RAOG Operations ( 1stFeb – 1st Jun 2005,Head – PDCManagement ( 12th Sept 04 – 31st Jan 05, Head CentralTransaction Centre (4th Apr 03 – 11th Sept 03), Head – Projects (25th Feb 02 – 3rd Apr 03,Head-Internet & Call Centre back office

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assignments held during thepast 10 years ops (20th Jul 99 – 24th Feb02),IndusInd Bank ltd (11th Dec

95 – 19th Jul 99)Dy. Mgr – OperationsMr. Lav. R.Chaturvedi

30 Head – RiskManagement

B. Com,Master ofBusinessAdministration(MBA).,CharteredFinancialAnalyst (CFA)

January 2007 till dateReliance Capital Asset ManagementLtd., Heading the Risk ManagementDepartment. Managing theEnterprise wide risk managementsystem and ensuring adherence toSEBI Risk Management Guidelinesin various functional areas.March 2004 to December 2006IPS SENDERO – Subsidiary ofFISERV INC. (FISV).Provide expert strategic and tacticalbalance sheet solutions to theClients and assist in the resolutionof advanced analytical and policyissues.July 1999 to March 2004PARTNER’S TRUST (FORMERLYSBU BANK)Responsible for building profitabilitymodel using Fund Transfer PricingMethodology and implemented theEnterprise Wide Level using webplatform

Chief Investment Officer: Mr. K. RajagopalHead – Equity Investments: Mr. Madhusudhan KelaHead – Fixed Income: Mr. Amitabh MohantyHead – Commodities: Mr. Vikram DhawanCompliance Officer: Mr. Balkrishna KiniInvestor Relations Officer: Mr. Prashanth PereiraFund Management Team:

Mr. K. Rajagopal*

Mr. Madhusudhan Kela*

Mr. Amitabh Mohanty *

Fund Managers: Equity - Mr. Sunil Singhania*, Mr. Ashwani Kumar*, Sailesh Raj Bhan*Debt - Mr. Amit Tripathi*, Mr. Prashant Pimple*Commodities – Mr. Vikram Dhawan* Specific details mentioned under Section on Key Personnel above.

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5. AUDITORS:

Statutory Auditors to the SchemeHaribhakti & Co. Chartered Accountants42, Free Press House, Nariman Point, Mumbai - 400 021.

Auditors to the Asset Management CompanyDalal & ShahChartered Accountants‘The Regency’, Office No. 11. 1

s tFloor,

National Library Road, Bandra (W),Mumbai - 400 05 0

Auditors to the Trustee Company M/s. Malpani & Associates Chartered Accountants307, Chartered House, Dr. C.H. Street,Near Marine Lines Church, Mumbai - 400 002.

6. THE CUSTODIAN

The Trustee has appointed Deutsche Bank, who have been approved by SEBI to act as Custodian forMutual Funds including gold exchange traded funds.vide registration no. IN/CUS/003, as the Custodianfor RGETF .

The registration of the Custodian is still valid and effective. The custodian shall hold the custody andpossession of the securities and investment of the Fund and will discharge all the functions as areordinarily discharged by a Custodian. It does not have any power or authority to sell or dispose of ordeal with the securities/investment held by it on behalf of the Fund except as instructed by the AMC. TheTrustee reserves the right to change the custodian, if required.

In terms of Custody Agreement in accordance with SEBI Regulations, entered into with Deutsche Bankas amended from time to time, the Custodian shall, inter alia:

• Provide post-trading and custodial services to the Mutual Fund;

• Keep gold, Gold Related Instruments, securities and other instruments belonging to the Scheme insafe custody;

• Ensure smooth inflow/outflow of gold, Gold Related Instruments, securities and such other instrumentsas and when necessary, in the best interests of the Unit holders;

• Ensure that the benefits due to the holdings of the Mutual Fund are recovered; and

• Be responsible for loss of or damage to the gold, Gold Related Instruments, securities due tonegligence on its part or on the part of its approved agents.

The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of-pocket expenses inaccordance with the terms of the Custody Agreement and as per any modification made thereof fromtime to time.

ROLE OF THE CUSTODIAN:

The Custodian is responsible for safekeeping of the Scheme’s gold deposited with it by AuthorizedParticipants and Investors in connection with the creation of Baskets. The Custodian is responsible for

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allocating specific bars of gold bullion to the scheme Allocated Account. The Custodian will provide theAMC with regular reports detailing with identifying the gold bars held in the scheme Allocated Account.The Custodian may also from time to time act as Authorized Participants or purchase or sell gold orunits for their own account, as agent for their customers and for accounts over which they exerciseinvestment discretion.

CUSTODY OF THE SCHEME’S GOLD

Custody of the gold bullion deposited with and held by the scheme is provided by the custodian at itsVaults in Mumbai and other places.The custodian, as instructed by the AMC, is authorized to accept, on behalf of the AMC, deposits ofgold. On the instructions given by the AMC, the custodian allocates gold by selecting bars of gold bullionfor deposit to the scheme’s allocated account.The AMC and the custodian enter into the custody agreements, which establish the allocated account.The gold deposited with the scheme is held in the scheme allocated account.

Under the agreement entered into by the AMC and the custodian, the custodian is responsible for thesafekeeping of the gold held on behalf of the AMC. The custodian is responsible for any loss or damagesuffered by the scheme as a direct result of any negligence, fraud or willful default in the performance ofits duties. The custodian’s liability is limited to the market value of the gold held in the scheme’sallocated account at the time such negligence, fraud or willful default is discovered by the custodian,provided that the custodian promptly notifies the AMC of its discovery. In the event of a loss caused bythe failure of the custodian to exercise reasonable care, the AMC has the right to seek recovery withrespect to the loss against the custodian in breach.

Allocated Accounts:An allocated account is an account with a Bank or Custodian, to which individually identified gold barsowned by the account holder are credited. The gold bars in an allocated gold account are specific to thataccount and are identified by a list which shows, for each gold bar, the refiner, assay or fineness, serialnumber and fine weight. The account holder has full ownership of the gold bars and, except asinstructed by the account holder, the Bank or Custodian may not trade, lease or lend the bars.

Transfer of Gold

At the end of each business day gold is transferred to the schemes allocated account. The custodianallocates specific bars of gold from its gold stocks, so that allocated gold bars represent the amount ofgold credited to the extent such amount is representable by whole bars. The bars of gold should be helddirectly by the Custodian. The custodian updates its records at the end of each business day to identifythe specific bars of gold allocated to the scheme. The withdrawal of gold from the scheme for thepurpose of redemption will follow the same procedure in the reverse order.

DESCRIPTION OF THE CUSTODY AGREEMENTSReports:

The custodian provides the AMC with reports for each business day, no later than the following businessday, identifying the movements of gold in and out of the scheme’s allocated account.The monthly statement contains sufficient information to identify each bar of gold held in the schemeallocated account and the custodian or subcustodian having possession of such bar.

Sub-Custodians:

The custodian may select Subcustodians to perform any of its duties, including holding gold for it. Thesub-custodians selected by the custodians will have to be informed by the custodians to the AMC. Anyadditions or deletion of subcustodians will have to be reported to the AMC on a periodic basis.Custodian may, with the prior written consent of AMC, entrust Gold held in the Account to a specifiedsubcustodian that is eligible to act as a custodian of Gold under applicable laws and regulations (a “Sub-Custodian”) selected by Custodian with due care. The custodian shall remain responsible in all respectsto its client for safekeeping of the gold kept with such other person, including any associated risks. The

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custodian of securities shall continue to fulfill all duties to the clients relating to the gold so kept with theother person.

Location & Segregation of GoldGold held for scheme’s allocated account by the custodian or subcustodians appointed by thecustodians is held at the custodian’s Vaults in Mumbai. The custodian’s books and records will identifyevery bar of gold held in the scheme’s allocated account in its own vault by refiner, assay or fineness,serial number and gross and fine weight.The AMC may upon reasonable notice, visit the custodian’s premises and examine the scheme’s goldheld there and the custodian’s records concerning the scheme’s allocated account. The AMC’sindependent auditors may also visit the custodians premises in connection with their audit of thefinancial statements of the scheme.

Insurance

The custodian will ensure adequate insurance for its bullion and custody business. The AMC and thesponsor may subject to confidentiality restrictions, review this insurance coverage from time to time.

7. THE REGISTRAR

RCAM has appointed M/s. Karvy Computershare Pvt. Limited (KCPL) having their office at Karvy Plaza,21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034 and who are registered with SEBI videregistration no. INR000000221, to act as the Registrar and Transfer Agent to the Scheme.. RCAM andthe Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that KCPLcan provide the services required and have adequate facilities, including systems facilities and back up,to do so. The Trustee has also laid down broad parameters for supervision of the Registrar. As Registrarto the Scheme, KCPL will accept and process investor's applications, handle communications withinvestors, perform data entry services, despatch Account Statements and also perform such otherfunctions as agreed, on an ongoing basis.

The Registrar is responsible for carrying out diligently the functions of a Registrar and Transfer Agentand will be paid fees as set out in the agreement entered into with it and as per any modification madethereof from time to time.

8. BANKERS TO THE ISSUE

The Bankers to the new fund offer wil l be as under:

Name of the Bank : SEBI Registration No.

ICICI Bank Limited : INBI 00000004

HDFC Bank Limited : INBI 00000063

Applications for the new fund offer will be accepted at the Designated Collection centers of the banksand/or also at all the Designated Investor Service Centers (DISC's), as mentioned in the applicationform.

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V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS

OF THE SCHEME

1. INVESTMENT OBJECTIVE:

The investment objective is to seek to provide returns that closely correspond to returns provided byprice of gold through investment in physical Gold and Gold related securities. However the performanceof the scheme may differ from that of the domestic prices of Gold due to expenses and or other relatedfactors.

However, there can be no assurance that the investment objective of the scheme will be achieved.

2 ASSET ALLOCATION PATTERN:

Each Plan under the scheme, namely, Plan A & Plan B wil l have a separate portfoliosand the asset allocation pattern as follows:

Instruments % Risk Profile

Gold or Gold Related Instruments aspermitted by regulators from time to time

90%- 100% Medium

Money Market instruments, Bonds,Debentures, Government Securitiesincluding T-Bills, Securitised Debt* & otherdebt securities as permitted by regulatorsfrom time to time

0– 10% Low to Medium

*Upto 10% in securitised debt

The above Asset Allocation Pattern is only indicative. The investment manager in line with the

investment objective as may alter the above pattern for short term and on defensive consideration.

3. BENCHMARK INDEX: As there are no indices catering to the gold sector/securities linked toGold, currently GETF shall be benchmarked against the price of Gold.

4. INVESTMENT STRATEGY:

The fund manager shall not try to ‘‘beat’’ the Gold Market, but aims to replicate the returns, whichcommensurate the returns generated, by Gold during that period. It will however endeavor to seektemporary defensive positions when markets decline or appear over valued to the extent of itsinvestment in Money Market or other debt securities.

The fund manager would not make any judgment about the investment merit of a particular security norwill it attempt to apply any economic, financial or market analysis. This style of Passive FundManagement would eliminate the risks involved with active management with regard to over / underperformance vis-à-vis a benchmark.

The Fund will, in general invest a significant part of its corpus in Gold or Gold Related Instruments aspermitted by regulators from time to time (as per the asset allocation mentioned above). However

pending investments, the surplus amount of the Fund shall be invested in securitized debt, other debtsecurities, bonds and money market instruments as permitted by regulators from time to time. Also

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whenever good investment opportunity are not available in the view of the Fund manager, the Fund will

reduce its exposure to gold and Gold Related instruments and during that period the surplus asset of theFund shall be invested in securitized debt, other debt securities, bonds and money market instruments.

However there is no assurance that all such buying and selling activities would necessarily result in

benefit for the Fund. The allocation will be decided based upon the prevailing market conditions, pricesof gold, macro economic environment, and the performance of the corporate sector, the debt market and

other considerations. At times, such churning could lead to higher brokerage and transaction costs.To achieve its primary objective as mentioned above, the Fund would invest in gold and Gold RelatedInstruments as permitted by regulators from time to time. To achieve its secondary objective, the fund

would invest in securitized debt, other debt securities, bonds and money market securities as permittedby regulators from time to time. These securities could include:

- Obligations of Indian Companies (both public and private sector) including term deposits with the

banks as permitted by SEBI/ RBI from time to time and developmental financial institutions

- Certificate of Deposits (CDs)

- Commercial paper (CPs)

- In Securitized Debt upto 10% of the corpus.

- The non-convertible part of convertible securities

- Any other domestic fixed income securities

- Money market instruments permitted by SEBI/ RBI, having maturities upto 1 year in call money marketinstruments as may be provided by the RBI to meet the liquidity requirements

- Any other instruments as allowed by the Regulations from time to time.

- The Fund may also enter into "Repo", or such other transactions as may be allowed to Mutual Funds

from time to time.

Subject to the Regulations, the investments may be in securities which are listed or unlisted, secured or

unsecured, rated or unrated, having variable maturities, and acquired through secondary marketpurchases, RBI auctions, open market sales conducted by RBI etc., Initial Public Offers (IPOs), other

public offers, placements, rights, offers, negotiated deals, etc

The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by

it as per the guidelines and Regulations applicable to such transactions.

No investments shall be made in foreign securitised debt.

5. Investment Process:

The AMC will initially decide the quantity of gold to be imported/procured and kept with the Custodian(who acts as a warehouse/custodian for the Fund ). Against this quantity, AMC issues units to theinvestor. Therefore the entire corpus (except for some portion to meet liquidity) shall be invested upfrontinto Gold

6. Case for investing in Gold:The price of gold is the benchmark. All forms of investments carry some degree of risk. Holding golddirectly also has risks. However, including gold in a well -balanced portfolio can help diversify risk. Gold'sability to serve as a portfolio diversifier is due to its historically low-to-negative correlation with stocksand bonds. The economic forces that determine the price of gold are different from the forces thatdetermine the prices of most financial assets. The price of gold depends upon various factors, includingthe supply and demand for gold, the strength or weakness of major foreign currency especially dollar,the rate of inflation, and interest rates and the current political environment. Gold is not subject to therisk of default or bankruptcy.

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7. Tracking Error

Tracking error means the variance between daily returns of the underlying benchmark (gold in this case)and the NAV of the scheme for any given period.NAV of the Scheme is dependant on valuation of gold. Gold shall be valued based on the formulamentioned in SEBI circular no. SEBI/IMD/CIR No. 2/65348/06 dated April 21, 2006. NAV so computed

may vary from the price of Gold in the domestic market.

Factors such as the fees and expenses of the Scheme, corporate actions, cash balance, changes to theUnderlying assets and regulatory policies may affect AMC’s ability to achieve close correlation with theUnderlying assets of the scheme. The Scheme’s returns may therefore deviate from those of itsUnderlying assets.

Tracking error could be the result of a variety of factors including but not limited to:? Delay in the purchase or sale of gold due to

o Illiquidity of gold,o Delay in realisation of sale proceeds,o Creating a lot size to buy the required amount of gold

? The scheme may buy or sell the gold at different points of time during the trading session at the then

prevailing prices which may not correspond to its closing prices.? The potential for trades to fail, which may result in the Scheme not having acquired gold at a price

necessary to track the benchmark price.? The holding of a cash position and accrued income prior to distribution of income and payment of

accrued expenses.? Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.? Execution of large buy / sell orders? Transaction cost (including taxes and insurance premium) and recurring expenses? Realisation of Unit holders’ funds

The scheme will endeavor to minimise the tracking error by? Setting off of incremental subscriptions against redemptions, during liquidity window? Use of gold related derivative instruments, as and when allowed by regulations? Rebalancing of the portfolio

8. Fundamental Attributes :

For the purposes of this section, "fundamental attributes" of the scheme means:(i) Type of scheme :An open-ended Gold Exchange Traded Fund that tracks the domestic

prices of gold through investments in physical Gold.

(ii) Investment Objectives & Policies : The investment objective is to seek to provide returnsthat closely correspond to returns provided by price of gold through investment in physicalGold and Gold related securities. However the performance of the scheme may differ fromthat of the domestic prices of Gold due to expenses and or other related factors. InvestmentPattern and Investment Objectives is provided hereinabove.

(i ii ) Terms of Issue : Provisions in this Offer Document in respect of redemption, listing, fees and

expenses of the scheme.

Notwithstanding the above, the Trustees, in accordance with Regulation 18(15)(A) of the SEBI (MutualFunds) Regulations, 1996, shall ensure that no change in the fundamental attributes of any Scheme or

the Trust or fees and expenses payable or any other change which would modify the Scheme and affectthe interest of the unit holders, be carried out unless : -

i) A written communication about the proposed change is sent to each unitholder and an advertisementis given in one English daily newspaper having nationwide circulation as well as in the newspaper

published in the language of the region where the Head Office of the Mutual Fund is situated and

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ii) The unit holders are given an option to exit at the prevailing Net Asset Value without any exit load.

Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board ofDirectors of the Asset Management Company, made in order to conduct the business of the Fund, theScheme or the Asset Management Company, where such business is in the nature of discharging theduties and responsibilities with which they have been charged. Nor will it include changes to the Scheme

made in order to comply with changes in Regulations. None of the actions of the Trustees of the MutualFund or the Board of Directors of the Asset Management Company shall amount to a change in thefundamental attributes of the Scheme as described herein.

9. Investment Philosophy and Focus

India today is the world’s largest democracy with a vibrant electorate, active Judiciary and civil societygroups, and a fiercely independent media. For thousand of years, gold has been prized for its parity, itsbeauty, and above all its unique characteristics as a store of value. In today’s uncertain climate, manyinvestors turn to gold because it is an important and secure asset that can be tapped at any time, undervirtually any circumstances.

But there is another side to gold that is equally important, and that is its day-to-day performance as a

stabilizing influence for investment portfolio. These advantages are currently attracting considerableattention from financial professionals and sophisticated investors worldwide. Recent independentstudies have revealed that traditional diversifiers often fall during times of market stress or stability. Onthese occasions most asset classes (including traditional diversifiers such as bonds and alternativeassets) all move together in the same direction. There is no “cushioning” effect of a diversified portfolio – leaving investors disappointed. However, a small allocation of gold has been proven to significantlyimprove the consistency of portfolio performance, during both stable and unstable financial periods.Greater consistency of performance leads to a desirable outcome – an investor whose expectations aremet.

The consumers and public have realized the benefits of liberalization through increase in the choice andquality of products and decrease in prices. The business and industry have also adjusted themselveswith the liberalization and globalization. The unprecedented high level of foreign exchange reserves,upward trend in FDI inflows and the general growth of the economy has given more confidence andencouragement to the policy-makers to further accelerate its economic reforms and liberalizationprocess. Both at the central and state levels and across political parties, in general, there is consensuson further economic liberalization.

The Macro view

? India is a major player in the global gold market, both through ownership and annual flow ofpurchases of gold, and through enormous success in the labour-intensive export-oriented jewellerybusiness.

? Modernisation of the gold market has been a long-standing policy goal in India. A key element ofmodernising any financial market is shifting away from closed clubs of dealers engaging in privatetransactions and bilateral negotiation, to a framework with anonymous trading taking place between

participants from all across the country, all of whom are on a level playing field. An essential featureof modernisation of finance is the removal of entry barriers, so that it is easy for finance companiesto enter and exit any kind of financial activity. The Gold ETF promises to be a step forward for thegold spot market in offering such a trading framework, characterised by nationwide participation byhouseholds and without entry barriers faced by finance companies.

? The Gold ETF is a gold spot instrument, which is distinct from gold futures. However, there aresynergies between both initiatives, since they both strengthen different aspects of the gold market. Astrong Gold ETF market helps to strengthen the gold futures market, and vice versa.

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Annualised yields (as on October 16, 2006) are:

Yrs < 1yr 2-7yrs 7-11yrs11-20 yrs

Central Government

securities/ Treasury Bills

6.61%to 6.91% 7.12%to 7.60% 7.60%to 7.73% 7.73%to 8.13%

Debentures/ Bonds (AAArated)

7.20%to 8.10% 8.25%to 8.65% 8.65%to 8.90% N.A.

The price and yield on various debt instruments fluctuate from time to time depending upon the macro

economic situation, inflation rate, overall liquidity position, foreign exchange scenario, etc. Also, the priceand yield varies according to maturity profile, credit risk etc.

11. PORTFOLIO TURNOVER : Given the nature of the scheme, the portfolio turnover ratio may behigh and AMC may re-allocate the portfolio according to liquidity requirements, commensurate with the

investment objectives of the scheme. The effect of higher portfolio turnover may result in higher

expenses and transaction costs.

12. Investment Limitations/Restrictions: The investment policy of the scheme comply with therules, regulations and guidelines laid out in SEBI (Mutual Funds) Regulations, 1996.

As per the Regulations, gold exchange traded fund scheme shall be subject to the following investment

restrictions:

1. the funds of any such scheme shall be invested only in gold or Gold Related Instruments in

accordance with its investment objective, except to the extent necessary to meet the liquidityrequirements for honouring repurchases or redemptions, as disclosed in the offer document.

2. Pending deployment of funds of the scheme in gold and Gold Related Instruments in terms ofthe investment objectives and policies of the scheme, the Mutual Fund can invest the fund of the

Scheme in short term deposits of scheduled commercial banks.

The investments in short term deposits of scheduled commercial banks will be reported to thetrustees along with the reasons for the investment which, interalia, would include comparison

with the interest rates offered by other scheduled commercial banks.

Further, the RCAM will ensure that the reasons for such investments are recorded in themanner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000.

Further, as per the Seventh Schedule, the following investment limitations are currently applicable to itsinvestments in the Underlying Stock:

1. The Scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer,which are rated not below investment grade by a credit rating agency. This investment limit may be

extended to 20% of the NAV of the Scheme with the approval of the of the Investment Committee based

on the parameter set by the Board of Trustees and the AMC. Provided that this limit shall not beapplicable to investments in money market instruments. 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. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single

issuer and the total of such instruments shall not exceed 25% of the NAV of the Scheme. All suchinvestments will be made with the prior approval of the Investment Committee of RCAM.

Note: Debentures, irrespective of any residual maturity period (above or below one year), shall attract

the investment restrictions as applicable for debt instruments as specified under clause 1 and 2 above.Further, it is clarified that the investment limits mentioned in (1) and (2) above are applicable to all debt

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securities which are issued by public bodies/institutions such as electricity boards, municipal

corporations, state transport corporations etc. guaranteed by either central or state government.Government securities issued by central/state government or on its behalf by RBI are exempt from the

above referred investment limits.

3. The AMC would monitor the tracking error of the scheme on an ongoing basis and would seek to

minimise tracking error to the maximum extent possible. Given the structure of RGETF, the AMCexpects the tracking error to be lower. Under normal circumstances, such tracking errors are notexpected to exceed 2% per annum. However this may vary when the markets are very volatile.

4. RGETF units will be held in dematerialized form, as prescribed under The SEBI (Depositories andParticipants) Regulations, 1996. The service charges payable to the depository will form part of annualrecurring expenses.

5. Transfers of investments from one scheme to another scheme in the Mutual Fund shall be allowedonly if:

a) Such transfers are done at the prevailing market price for quoted instruments on "spot basis";

Explanation: "spot basis" shall have the same meaning as specified by the stock exchange for spot

transactions: andb) The securities so transferred shall be in conformity with the investment objectives & policies of theScheme(s) to which such transfer has been made.

6. The Scheme shall not make any investment in any Fund Of Fund scheme or in foreign securities.

7. The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load inaccordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over &above the entry load amount shall be borne by the AMC.

8. No term loans for any purpose will be advanced by the Scheme.

9. The AMC may invest in the Scheme either in the new fund offer or subsequently. However, it shall not

charge any investment management fee on such amounts invested by it.

10. RCAM shall not undertake any other business except that permitted under the Regulations. RCAMshall meet with the capital adequacy requirements, if any, separately for each of the separate activity, if

any undertaken by the AMC and obtain separate approval, if necessary under the Regulations.

The Scheme’s investment in debt will be in transferable securities (whether in capital markets or money

markets or in privately placed debentures or securitised debts or bank deposits or money at call).

All investment restrictions stated above shall be applicable at the time of making investment.

The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in theencumbering of its assets in any way so as to expose them to unlimited liability.

These investment limitations / parameters as expressed / linked to the net asset / net asset value / capital, shall in the ordinary course, apply as at the date of the most recent transaction or commitment to

invest. Changes do not have to be effected merely because of appreciation or depreciation in value or

by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme ofarrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or

other reason outside the control of the Fund, any such limits would thereby be breached. If these limits

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are exceeded for reasons beyond its control, AMC shall adopt as a priority objective the remedying of

that situation, taking due account of the interests of the Unitholders.

The Trustee Company in consultation with AMC may alter these above stated limitations from time to

time, and also to the extent the Regulations change, so as to permit the Scheme to make itsinvestments in the full spectrum of permitted investments in order to achieve its investment objectives &

policies. As such, all investments of the Scheme will be made in accordance with the Regulations

including Schedule VII thereof and the Fundamental Attributes of this Scheme.

At RMF, to ensure robust risk management and adequate portfolio diversification internal Investment

policy for various debt schemes has been framed. The investment policy at RMF specifies limits both on

overall basis (across all schemes) as well as on individual scheme level. Guidelines for followingparameters for liquid as well as non liquid schemes has been specified in the policy:

1. Eligible Instruments: Defines the eligible instruments where the scheme can invest

2. Minimum Liquidity: Defines the instruments considered as liquid instruments and the minimum

investments in these instruments as a percentage of total net assets

3. Maximum Illiquid component: Defines the instruments considered as illiquid and the maximuminvestment that can be made in these instruments as a percentage of net assets.

4. Rating: Defines minimum and/ or maximum investment in a particular rating as a percentage of totalportfolio.

5. Maturity: Defined the weighted average maturity of a portfolio. Also defines the weighted averagematurity, maximum and maturity for certain asset types like corporate bond, PTCs, Gilts etc

13.Underwriting by the Scheme : The scheme will not accept underwriting and sub underwriting

obligations.

14. Borrowing by the Mutual Fund: To meet the temporary liquidity needs of the Scheme for the

purpose of repurchase, redemption, or payment of income /dividend to the unit holders, the Schememay borrow upto 20% of its net assets for a period of upto six months or as may be permitted by the

pertinent regulations. Loans may be obtained from any entity / organisation which are not specificallydebarred to give loans to Mutual Funds and also loan is available from such entity / organisation atcompetitive terms. However, if loan is obtained from any associates such loans will be obtained only at

extremely competitive terms at equal to or lower than market rates. These loans may be secured by

securities or assets of the Scheme pledged to such entity / organisation. Borrowing by the Mutual Fundon account of the Scheme will tend to increase the impact of investment gains and losses on the NAV of

the Scheme.

There were no borrowings for the financial year ended March 31, 2002, March 31, 2003 and March 31,2004 under any of the schemes of RMF. There were borrowings for the year ended March 31, 2005 and

March 31, 2006.

15.Computation of Net Asset Value: The Net Asset Value (NAV) of the Units will be determined

daily or as prescribed by the Regulations.

The NAV under GETF shall be calculated up to 4 decimals as follows or such otherformula as may be prescribed by SEBI from time to time. :

NAV = Market or Fair Value of Scheme's investments + Current Assets - Current Liabilities and ProvisionNo of Units outstanding under Scheme on the Valuation Date

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NAV Information: The NAV of the Scheme will be calculated and declared by the Fund on every

Working Day by 9.00 p.m. The information on NAV may be obtained by the Unitholders, on any day fromthe office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor

Service Centres.

The NAV shall be published in two daily newspapers on a daily basis as per the Regulations.

Investors may also obtain information on the purchase /sale price for a given day on any Working Day

from the office of the AMC / the office of the Registrar in Hyderabad/ any of the other DesignatedInvestor Service Centres.

For any NAV information, investor may also call our Touchbase customer service centre at 3030 1111,callers outside India, please dial 91-40-30301111.

16. Valuation of Assets:

A. Valuation of GoldSince physical gold and other permitted instruments linked to gold are denominated in gold tonnage, itwill be valued based on the market price of gold in the domestic market and will be marked to market ona daily basis. The market price of gold in the domestic market on any business day would be arrived atas under:

Domestic price of gold = (London Bullion Market Association AM fixing in US$/ounce X conversionfactor for converting ounce into kg for 0.995 fineness X rate for US$ into INR) + custom duty for importof gold + sales tax/octroi and other levies applicable. The Trustees reserve the right to change thesource (centre) for determining the exchange rate. The AMC shall record in writing the reason forchange in the source for determining the exchange rate.

The Fund shall value its investments in the Underlying Stocks according to the valuation norms, as

specified in Schedule VIII of the Regulations, or such norms as may be prescribed by SEBI from time totime.

(1) The gold held by a gold exchange traded fund scheme shall be valued at the AM fixing price of

London Bullion Market Association (LBMA) in US dollars per troy ounce for gold having a fineness of995.0 parts per thousand, subject to the following:(a) adjustment for conversion to metric measures as per standard conversion rates;(b) adjustment for conversion of US dollars into Indian rupees as per the RBI reference rate declared bythe Foreign Exchange Dealers Association of India (FEDAI); and(c) addition of –

(i) transportation and other charges that may be normally incurred in bringing such gold fromLondon to the place where it is actually stored on behalf of the mutual fund; and(ii) notional customs duty and other applicable taxes and levies that may be normally incurred tobring the gold from London to the place where it is actually stored on behalf of the mutual fund:

Provided that the adjustment under clause (c) above may be made on the basis of a notional premiumthat is usually charged for delivery of gold to the place where it is stored on behalf of the mutual fund:Provided further that where the gold held by a gold exchange traded fund scheme has a greaterfineness, the relevant LBMA prices of AM fixing shall be taken as the reference price under this sub-paragraph.

(2) If the gold acquired by the gold exchange traded fund scheme is not in the form of standard bars, itshall be assayed and converted into standard bars which comply with the good delivery norms of theLBMA and thereafter valued in terms of sub-paragraph (1).”

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B. Valuation of Debt Securities

1. Traded Securities:

(i) The securities shall be valued at the last quoted closing price on the stock exchange.

(ii) When the securities are traded on more than one recognised stock exchange, the securities shall be

valued at the last quoted closing price on the stock exchange where the security is principally traded.

(iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange,the value at which it is traded on another stock exchange may be used.

(iv) When a security (other than debt securities) is not traded on any stock exchange on a particularvaluation day, the value at which it was traded on the selected stock exchange, as the case may be, on

the earliest previous day may be used provided such date is not more than thirty days prior to valuationdate.

When a debt security (other than Government Securities) is not traded on any stock exchange on anyparticular valuation day, the value at which it was traded on the principal stock exchange or any other

stock exchange, as the case may be, on the earliest previous day may be used provided such date is

not more than fifteen days prior to valuation date. When a debt security (other than GovernmentSecurities) is purchased by way of private placement, the value at which it was bought may be used for

a period of fifteen days beginning from the date of purchase.

2. Thinly Traded Debt Securities:

A debt security (other than Government Securities) shall be considered as a thinly traded security if on

the valuation date, there are no individual trades in that security in marketable lots (currently Rs 5 crore)on the principal stock exchange or any other stock exchange.

A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt

security.

3. Non Traded Securities:

When a security (other than Government Securities) is not traded on any stock exchange for a period ofthirty days prior to the valuation date, the scrip must be treated as a 'non traded' security.

Valuation Of Non-Traded / Thinly Traded Securities

Non traded/ thinly traded securities shall be valued "in good faith" by the AMC on the basis of the

valuation principles laid down below:

(a) Non Traded /Thinly Traded Debt Securities of Upto 182 Days to Maturity:

As the money market securities are valued on the basis of amortization (cost plus accrued interest tillthe beginning of the day plus the difference between the redemption value and the cost spread uniformly

over the remaining maturity period of the instruments) a similar process should be adopted for non-

traded debt securities with residual maturity of upto 182 days, in the absence of any other standardbenchmarks in the market. Debt securities purchased with residual maturity of upto 182 days are to be

valued at cost (including accrued interest till the beginning of the day) plus the difference between the

redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity period ofthe instrument. In case of a debt security with maturity greater than 182 days at the time of purchase,

the last valuation price plus accrued interest should be used instead of purchase cost. All other non-

traded Non Government debt instruments shall be valued using the method suggested in (ii)(b).(b) Non Traded/ Thinly Traded Debt Securities of Over 182 Days to Maturity.

For the purpose of valuation, all Non Traded Debt Securities would be classified into "Investment grade"and "Non Investment grade" securities based on their credit ratings. The non-investment grade

securities would further be classified as "Performing" and "Non Performing" assets.

• All Non Government investment grade debt securities, classified as not traded, shall be valued on yieldto maturity basis as described in the applicable SEBI circular.

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• All Non Government non-investment grade performing debt securities would be valued at a discount of

25% to the face value.

• All Non Government non-investment grade non-performing debt securities would be valued based on

the provisioning norms.

vi) Expenses and Incomes Accrued

All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV.For this purpose, major expenses like management fees and other periodic expenses would be accrued

on a day-to-day basis. The minor expenses and income will be accrued on a periodic basis, provided the

non-daily accrual does not affect the NAV calculations by more than 1%.

vii) Changes in securities and in number of units:

Any changes in securities and in the number of units will be recorded in the books not later than the first

valuation date following the date of transaction. If this is not possible, given the frequency of NAVdisclosure, the recording may be delayed up to a period of seven days following the date of the

transaction, provided as a result of such non recording, the NAV calculation shall not be affected by

more than 2%.

The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change

from time to time in conformity with changes made by SEBI.

The valuation of the Scheme's assets and calculation of the Scheme's NAV shall be subject to audit onan annual basis and such regulations as may be prescribed by SEBI from time to time.

14. Accounting Policies & Standards

In accordance with the Regulations, the AMC will follow the accounting policies and standards, asdetailed below:

a) The AMC, for each Scheme and its Plans, shall keep and maintain proper books of account, recordsand documents, so as to explain its transactions and to disclose at any point of time the financial

position of the Scheme and, in particular, give a true and fair view of the state of affairs of the Fund.

b) For the purposes of the financial statements, the Scheme and its Plans shall mark all investments tomarket and carry investments in the balance sheet at market value. However, since the unrealized gain

arising out of appreciation on investments cannot be distributed, provision shall be made for exclusion ofthis item when arriving at distributable income.

c) Dividend income earned by the Scheme and its Plans shall be recognized, not on the date thedividend is declared, but on the date the share is quoted on an ex-dividend basis. For investments,

which are not quoted on the stock exchange, dividend income would be recognized on the date of

declaration of dividend.

d) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is

earned. Therefore, when such investments are purchased, interest paid for the period from the last

interest due date up to the date of purchase should not be treated as a cost of purchase but shall bedebited to Interest Recoverable Account. Similarly, interest received at the time of sale for the period

from the last interest due date up to the date of sale must not be treated as an addition to sale value but

shall be credited to Interest Recoverable Account.e) In determining the holding cost of investments and the gains or losses on sale of investments, the

"average cost" method shall be followed for each security.

f) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as

of the settlement date, so that the effect of all investments traded during a financial year are recorded

and reflected in the financial statements for that year. Where investment transactions take place outsidethe stock market, for example, acquisition through private placement or purchases or sales through

private treaty, the transaction would be recorded, in the event of a purchase, as of the date on which the

Scheme obtains an enforceable obligation to pay the price or, in the event of a sale, when the Scheme

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obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to deliver the

instruments sold.

h) Where income receivable on investments has accrued but has not been received for the period

specified in the guidelines issued by the Board, provision shall be made by debiting to the revenueaccount the income so accrued in the manner specified by guidelines issued by the Board.

i) When units are sold in the Scheme, an appropriate part of the sale proceeds shall be credited to an

Equalization Account and when units are repurchased an appropriate amount shall be debited toEqualization Account. The net balance on this account shall be credited or debited to the Revenue

Account. The balance on the Equalization Account debited or credited to the Revenue Account shall not

decrease or increase the net income of the Fund but is only an adjustment to the distributable surplus. Itshall therefore be reflected in the Revenue Account only after the net income of the Fund is determined.

j) When units are sold, after considering the equalization as above, the difference between the sale priceand the face value of the Unit, if positive, shall be credited to reserves and if negative, shall be debited

to reserve, the face value being credited to Capital Account. Similarly, when the Units are repurchased,

after considering the equalization as above, the difference between the purchase price and face value ofthe Unit, if positive, shall be debited to reserves and, if negative, shall be credited to reserves, the face

value being debited to the Capital Account.

k) The cost of investments acquired or purchased shall include brokerage, insurance premium, customsduty, VAT, Octroi, stamp duty charges and any charge customarily included in the broker's bought note

or purchase invoice or any other cost incurred for acquiring the assets. In respect of privately placed

debt instruments any front-end discount offered shall be reduced from the cost of the investment.

l) Underwriting commission shall be recognized as revenue only when there is no devolvement on the

Scheme and its Plans. Where there is devolvement on the Scheme and the Plans thereunder, the fullunderwriting commission received and not merely the portion applicable to the devolvement shall be

reduced from the cost of the investment.

The accounting policies and standards outlined above are as per the existing Regulations and aresubject to change as per changes in the Regulations.

Guidelines for Identification and Provisioning for Non Performing Asse ts (Debt

Securities) For Mutual Funds:

(A) Definition of a Non Performing Asset (NPA) : An 'asset' shall be classified as non

performing, if the interest and/or principal amount have not been received or remained outstanding for

one quarter from the day such income / instalment has fallen due.

(B) Effective date for classification and provisioning of NPAs : The definition of NPA

may be applied after a quarter past due date of the interest. For e.g. if the due date for interest is31.12.2002, it will be classified as NPA from 01.04.2003.

(C) Treatment of income accrued on the NPA and further accruals : After the expiryof the 1st quarter from the date the income has fallen due, there will be no further interest

accrual on the asset i.e. if the due date for interest falls on 31.12.2002 and if the interest is not received,

accrual will continue till 31.03.2003 after which there will be no further accrual of income. In short, taking

the above example, from the beginning of the 2nd quarter there will be no further accrual on income.On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and

recognized in the books of accounts of the Fund till the date, should be provided for. For e.g. if interestincome falls due on 31.12.2002, accrual will continue till 31.03.2003 even if the income as on

31.12.2002 has not been received. Further, no accrual will be done from 01.04.2003 onwards. Full

provision will also be made for interest accrued and outstanding as on 31.12.2002.

(D) Provision for NPAs - Debt Securities : Both secured and unsecured investments once they

are recognized as NPAs call for provisioning in the same manner and where these are related to close

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ended scheme the phasing would be such that to ensure full provisioning prior to the closure of the

scheme or the scheduled phasing which ever is earlier.

The value of the asset must be provided in the following manner or earlier at the discretion of the fund.

Fund will not have discretion to extend the period of provisioning. The provisioning against the principalamount or installments should be made at the following rates irrespective of whether the principal is due

for repayment or not.

• 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e.3 months form the date of classification of the asset as NPA.

• 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e.6 months from the date of classification of the asset as NPA.

• Another 20% of the book value of the assets should be provided for after 12 months past due date of

interest i.e. 9 months form the date of classification of the asset as NPA.

• Another 25% of the book value of the assets should be provided for after 15 months past due date of

interest i.e. 12 months from the date of classification of the asset as NPA.

o The balance 25% of the book value of the asset should be provided for after 18 months past due date

of the interest i.e. 15 months form the date of classification of the assets as NPA.

Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the

prescribed valuation method.

(E) Reclassification of assets:

Upon reclassification of assets as 'performing assets':

1. In case a company has fully cleared all the arrears of interest, the interest provisions can be writtenback in full.

2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt isregularly serviced over the next two quarters.

3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrualbasis would be credited at the time of receipt.

4. The provision made for the principal amount can be written back in the following manner: -

• 100% of the asset provided for in the books will be written back at the end of the 2nd quarter where theprovision of principal was made due to the interest defaults only.

• 50% of the asset provided for in the books will be written back at the end of the 2nd quarter and 25%after every subsequent quarter where both installments and interest were in default earlier.

5. An asset is reclassified, as 'standard asset' only when both overdue interest and overdue installmentsare paid in full and there is satisfactory performance for a subsequent period of 6 months.

(F) Receipt of past dues : When the fund has received income/principal amount after theirclassifications as NPAs;

For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis.The asset will be continued to be classified as NPA for these two quarters.

During this period of two quarters although the asset is classified as NPA no provision needs to be made

for the principal if the same is not due and outstanding. If part payment is received towards principal, theasset continues to be classified as NPA and provisions are continued as per the norms set at (D) above.

Any excess provision will be written back.

Some of the investments made by mutual funds may become non-performing (NPAs) or illiquid at thetime of maturity/ closure of schemes. In due course of time, these NPAs and illiquid securities may be

realised by the mutual funds i.e. after the winding up of the schemes. Such amount would be distributed,if it is substantial and is realised within two years, to the old investors. In case the amount is not

substantial or it is realised after two years, it may be transferred to the Investor Education Fund

maintained by each mutual fund as specified in SEBI circular MFD/CIR/9/120/2000 dated November 24,

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2000. The decision as to the determination of substantial amount shall be taken by the trustees of

mutual funds after considering the relevant factors.

(G) Classification of Deep Discount Bonds as NPAs : Investments in Deep Discount Bonds

can be classified as NPAs, if any two of the following conditions are satisfied:

• If the rating of the Bond comes down to grade 'BB' or below.

• If the company is defaulting in their commitments in respect of other assets, if available.• Full Net worth erosion.

Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA.Full provision can be made if the rating comes down to grade 'D'

(H) Reschedulement of an asset: In case any company defaults either interest or principalamount and the fund has accepted a Reschedulement of the schedule of payments, then the following

practice may be adhered to:

(i) In case it is a first Reschedulement and only interest is in default, the status of the asset namely,'NPA' may be continued and existing provisions should not be written back. This practice should be

continued for two quarters of regular servicing of the debt. Thereafter, this is classified as 'performing

asset' and the interest provided may be written back.

(ii) If the Re-schedulement is done due to default in interest and principal amount, the asset should becontinued as non-performing for a period of 4 quarters, even though the asset is continued to beserviced during these 4 quarters regularly. Thereafter, this can be classified as 'performing asset' and all

the interest provided till such date should be written back.

(iii) If the Reschedulement is done for a second/third time or thereafter, the characteristic of NPA shouldbe continued for eight quarters of regular servicing of the debt. The provision should be written back only

after it is reclassified as 'performing asset'.

(I) Disclosure in the Half Yearly Portfolio Reports: The mutual funds shall make scrip wisedisclosures of NPAs on half yearly basis along with the half yearly portfolio disclosure.

The total amount of provisions made against the NPAs shall be disclosed in addition to the totalquantum of NPAs and their proportion of the assets of the mutual fund scheme.

In the list of investments an asterisk mark shall be given against such investments, which are

recognized as NPAs. Where the date of redemption of an investment has lapsed, the amount not

redeemed shall be shown as 'sundry debtors' and not investment provided that where an investment is

redeemable by installments that will be shown as an investment until all installments have becomeoverdue.

15. INVESTMENT BY THE AMC IN THE FUND: RCAM reserves the right to invest its own fundsin the Scheme upto a maximum extent of its networth. As per SEBI Regulations, such investments are

permitted, subject to disclosure being made in the Offer Document. Further, RCAM shall not charge any

fees on its investment in the Scheme, unless allowed to do so under SEBI Regulations in the future.

16. DEPOSITORY: RGETF units will be held in dematerialized form and hence the SEBI(Depositories and Participants) Regulations, 1996 would apply. The service charges payable to thedepository participant will form part of annual recurring expenses.

17. POLICY FOR INTER-SCHEME TRANSFERS: The Scheme may purchase / sell securities

under the Scheme through the mode of Inter-Scheme Transfers, if such a security is under the buy / selllist of this Scheme and is on the sell / buy list of another Scheme under the Fund. Under such

circumstances, the transactions will be effected based on the prevailing market price on spot basis and

in conformity with Regulations. The valuation of untraded / unquoted securities and debt instrumentsshall be done in accordance with the general valuation policies of the Fund.

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VI. UNITS AND OFFER

The offer is being made for subscription of units of Reliance Gold Exchange Traded Fund, anopen-ended Gold ETF that seeks to provide returns that closely correspond to returns provided by price

of gold through investment in physical Gold and Gold related securities. The Scheme will have twoPlans, namely, Plan A & Plan B with different expense structure and separate portfolios

1. (a) New Fund Offer (NFO) :? New Fund Offer opens on ___________ ? New Fund Offer closes on __________

Extension or Termination of New Fund Offer Period The Trustee reserves the right to extend the closing date, subject to the condition that the New FundOffer shall not be kept open for more than 30 days. The Trustee als o reserves the right to close the NFO

earlier by giving at least one days prior notice. Any such extension shall be notified in one vernaculardaily of Mumbai and one English national daily.

(b) Continuous Offer:? Commencing not later than 30 days after the closing of the New Fund Offer, the Scheme will

become open-ended. An investor can buy/sell units of RGETF on a continuous basis on theNational Stock Exchange and other recognised stock exchanges where units are listed andtraded like any other publicly traded securities at market prices which may be close to the actualNAV of the scheme. The trading lot is one RGETF unit. Investors can purchase units at marketprices, which may be at a premium/discount to the NAV of the scheme depending upon thedemand and supply of units at the exchanges.

? Alternatively Authorised Participant can directly buy /sell in blocks from the fund in ‘CreationUnit’ Size on any business day. The fund at its discretion will also redeem RGETF in lot size of100 units in exchange of Gold or cash subject to applicable load. Mutual fund will alsorepurchase units from Authorised Participants on any business day provided the units offeredfor repurchase is not less than 1000 units in Plan A and 1 unit in Plan B.

? In addition, other investors can subscribe or redeem units from the fund directly on the 2

nd

& 18

th

of every calendar month. In case such a day happens to be a holiday or a non-business day,the subscription / redemption shall be accepted on the next business day.

2. Minimum Target :

The Fund aims to collect a minimum subscription of Rs.1 lakh in Plan A & Rs. 2 crores in Plan B.Any oversubscription will be retained in full and the Fund will make full and firm allotment against allvalid applications.

The Fund will start investing the amount received in NFO immediately after the receipt of minimumtarget amount and may be fully invested prior to the date of allotment of units.

In the event this amount is not raised during the new fund offer period, the AMC shall refund thesubscription money collected under the scheme immediately after the closure of the New Fund Offerperiod, but not later than six weeks from the date of closure of the New Fund Offer period without anyinterest / compensation whatsoever. In the event of the AMC’s failure to refund the amount within theperiod stipulated above, the AMC shall be liable to pay to the applicants concerned interest @15% perannum from the 43rd day of the date of closure of the New Fund Offer to the date of refund.

Refund of subscription amount to applicants whose applications are invalid for any reason whatsoever,will commence after the allotment process is completed.

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3. Minimum number of Investors in Scheme/Plan: As per SEBI Circular dated December 12,2003 and June 14, 2005 each scheme and individual plan(s) under the schemes should have aminimum of 20 investors and no single investor should account for more than 25% of the corpus of suchscheme/ plan(s) at portfolio level within a period of three months or at the end of the succeedingcalendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO andthe 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the schemeshall meet with both the conditions of minimum number of investor and holding as a percentage of thecorpus. Determining the breach of 25% limit - The average net assets of the scheme would becalculated daily and any breach of the 25% holding limit by an investor would be determined. At the endof the quarter, the average of daily holding by each such investor is computed to determine whether thatinvestor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over thequarter, a rebalancing period of one month would be allowed and thereafter the investor who is inbreach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure onthe part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 dayswould lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15thday of the notice period.

4. Purchase of Units :

Minimum Amount

The following are the minimum purchase amounts for the Scheme:(a) For Authorised Participants: Minimum amount Rs.10,00,000/- (Rupees Ten Lakhs) andin multiples of Re.1 thereafter under both the Plans

(b) For other Investors: ? Plan A: Minimum of Rs.5000/- (Rupees Five thousand) and in multiples of Re 1/- thereafter.

? Plan B: Minimum of Rs.10,00,000/- (Rupees Ten Lakhs) and in multiples of Rs.10,00,000/-thereafter.

RCAM may revise the minimum / maximum amounts and the methodology for subscriptions as andwhen necessary for the plans in the Scheme. Such change may be brought about after taking intoaccount the cost structure for a transaction/account and /or market practices etc. and shall be applicableto transactions from the date of such a change, on a prospective basis.

5. Allotment price / Purchase Price:

(a) Allotment price for subscri ption during the New F und Offer Peri od :

The face value of each unit offered under the plans of the scheme shall be Rs.100/-

For subscriptions received during NFO, the units will be issued at a premium/discount equivalent to thedifference between allotment price and the face value of Rs.100/- in both the plans.

Allotment price of units purchased during NFO will be on the basis of the closing value of the gold priceson the allotment date plus applicable load.

? Each unit of Plan A under RGETF will be approximately equal to the closing price of1 (one) gram of gold on the date of initial allotment after the NFO.

? Each unit of Plan B under RGETF will be approximately equal to the closing price of 1000 (onethousand) grams of gold on the date of initial allotment after the NFO.

b) Purchase Price For subscription during the Continuous Offer Period :

The Purchase Price will be calculated on the basis of the entry load as follows:

Purchase Price = Applicable NAV x (1 + Entry Load)

For detailed explanation on loads, please refer the Section on "Loads and Recurring Expenses"

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6. Rounding off of Units:

Based on the Allotment Price, the number of Units allotted will be rounded off to the nearest threedecimal places.

7. Expenses of New Fund offer: The Scheme shall meet the entire expenses incurred during thenew fund offer from the entry load in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC.

8. Consideration for RGETF units during the New Fund Offer Period:

(a) In consideration for issue of RGETF units, the applicants will be required to bring cash against whichsubject to realisation of the instrument, RGETF units will be credited to the investor’s de-mat account onthe date of allotment of units.(b) The AMC may at its own discretion, allow cash purchases (by accepting cash) from the AuthorisedParticipants, against which subject to realisation of the instrument, Gold will be purchased on behalf ofthe Authorised Participants/others and units will be credited to their de-mat account on the date ofallotment of units. Purchase request for creation units shall be made by such AuthorisedParticipants/others to the AMC, whereupon the AMC will arrange to buy the gold of the specified purity.The AMC may levy a fees/load/charges to be announced from time to time, for this facility.

9. Purity of Gold:All gold bullion held in the scheme’s allocated account with the custodian shall be of fineness (or purity)of 995 parts per 1000 (99.5%) or higher.

10. Creation Unit:

Creation unit is a fixed number of RGETF units which is exchanged for a physical gold kept with thecustodian in lieu of which units are allotted to the authorized participants. In case of redemption a fixednumber of RGETF units will be exchanged for either equivalent cash or physical gold.Creation unit size for the Authorised Participants both in the new fund offer Period and on subsequentcreation and redemption of RGETF units is follows:

? for Plan A = 1000 units and in multiples of 1 unit thereafter.? for Plan B = 1 unit and in multiples of 1 unit thereafter.

‘Creation Unit’ is a fixed number of RGETF, which is exchanged for an investment linked to gold & goldrelated instruments called the “Portfolio Deposit” and a “Cash Component”. The facility of creating / redeeming units in Creation Unit size is available to the Authorised Participants. The Authorizedparticipant has the option to deposit at least 1 kilogram of physical gold & in multiples of 1 kilogramthereof in order to create units of the scheme.

The Portfolio Deposit and Cash Component are defined as follows:-

a. Portfolio Deposit: These are LBMA Good Delivery physical gold bars imported by Banksauthorized by RBI to deal in Gold and other securities. The value of gold and other instrumentswill be linked to the domestic prices of gold. Portfolio Deposit can change from time to time.

b. Cash Component for Creation Unit: The Cash Component represents the difference between

the applicable net asset value of a Creation Unit and the market value of the Portfolio deposit.This difference may include accrued dividends, accrued annual charges including managementfees and residual cash in the scheme. In addition the Cash Component may include transactioncost as charged by the Custodian/Depository Participant, equalization of dividend, effect ofrounding-off of number of shares in portfolio Deposit and other incidental expenses for CreatingUnits. The cash component will vary from time to time and will be computed and announced bythe AMC on its website every Business Day.

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c. Cash Component for Redemption in Creation Unit Size: The Cash Component representsthe difference between the applicable net asset value of a creation unit and the market value ofthe Portfolio deposit. This difference may include accrued dividend, accrued annual chargesincluding management fees and residual cash in the scheme. Any transaction cost charged bythe Custodian/DP, equalization of dividend and other incidental expenses for redeeming unitsmay also form part of Cash Component. The cash component for redemption may vary fromtime to time and will be computed and announced by the AMC on its website.

Example of Creation/Redemption of Units:As explained above, the Creation Unit is made up of 2 components i.e. Portfolio Deposit and CashComponent. The Portfolio Deposit will be determined by Fund. The Portfolio Deposit will be physicalGold and will be for 1 kg and in multiple of 1 kg. The value of Portfolio Deposit will change due tochanges in the prices during the day.

Value of Portfolio Deposit (physical Gold of 1 kg ) Rs.978,500Number of units comprising one Creation Unit 10,000NAV per unit Rs. 95.246NAV of One Creation Unit Rs. 952,460Difference between Portfolio Deposit and NAV of CashComponent

Rs. 26,040

Cash Component (Approx.) # Rs. 26,040

# Cash Component will vary depending upon the actual charges incurred like Custodial Charges andother incidental charges for creating units.

11. Dematerialisation:

? RGETF units will be available only in the Dematerialized form.? The applicant under the Scheme will be required to have a beneficiary account with a

Depository Participant of NSDL/CDSL and will be required to indicate in the application the DP’sname, DP ID Number and its beneficiary account number with DP.

? Since RGETF are to be issued / repurchased and traded compulsorily in dematerialized form,no request for rematerialisation of RMF will be accepted.

12. Listing:

The Fund would endeavor to get the units of the Scheme listed on the National Stock Exchange and anyother stock exchange(s) as may be decided by the Reliance AMC within 30 days from the closure of theNew Fund Offer period, subsequent buying or selling by investors can be made from the secondarymarket on the NSE.

The minimum number of units that can be bought or sold through the stock exchange is 1 (one) unit.

13. Who can Invest:

The following persons (subject, wherever relevant, to purchase of units being permitted under theirrespective constitutions and relevant State Regulations) are eligible to subscribe to the units:

? Adult Resident Indian Individuals, either singly or jointly (not exceeding three).? Non – resident Indians and persons of Indian origin residing abroad, on full repatriation basis or on

non-repatriation basis

? Parents / Lawful guardians on behalf of Minors

? A Karta on behalf of / in the name of HUF Hindu Undivided Family (HUF)

? Companies (including Public Sector Undertakings), Bodies Corporate, Trusts (through Trustees)and Co-operative Societies

? Banks (including Regional Rural Banks) and Financial Institutions

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? Religious and Charitable Trusts (through Trustees), Private Trusts authorised to invest in MutualFund schemes under their Trust Deeds

? Foreign Institutional Investors registered with SEBI

? Special Purpose Vehicles (SPVs) approved by appropriate authority (subject to RBI approval)

? International Multilateral Agencies approved by the Government of India

? Army/Navy/Air Force / Para Military Units and other eligible institutions? Unincorporated body of persons as may be accepted by Reliance Capital Trustee Co. Limited

? Partnership Firms

? Scientific and Industrial Research Organisations

? Trustee, AMC or Sponsor or their associates may subscribe to Units under the Schemes.? Authorised Participants

? Such other individuals/institutions/body corporate etc., as may be decided by the AMC from timeto time, so long as wherever applicable they are in conformity with SEBI Regulations.

Note :1. Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad / ForeignInstitutional Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident OutsideIndia) Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions setout in the aforesaid regulations. Allotment of units for subsequent purchases by NRIs / FIIs / SPVs / International Multilateral Agencies / PIOs shall be in accordance with RBI rules in force.

2. In case of application under a Power of Attorney or by a limited company or a corporate body or aneligible institution or a registered society or a trust fund, the original Power of Attorney or a certified truecopy duly notarised or the relevant resolution or authority to make the application as the case may be, orduly notarised copy thereof, alongwith a certified copy of the Memorandum and Articles of Associationand/or bye-laws and / or trust deed and / or partnership deed and Certificate of Registration should besubmitted. The officials should sign the application under their official designation. A list of specimensignatures of the authorised officials, duly certified / attested should also be attached to the ApplicationForm. In case of a Trust / Fund it shall submit a resolution from the Trustee(s) authorising such

purchases and redemptions.

RCAM reserves the right to invest its own funds in the Scheme(s) upto a maximum extent of itsnetworth. As per SEBI Regulations, such investments are permitted, subject to disclosure being made inthe respective Scheme Offer Documents (s). Further, RCAM shall not charge any fees on its investmentin the Scheme (s), unless allowed to do so under SEBI Regulations in the future.

It is expressly understood that at the time of investment, the investor/unitholder has the expressauthority to invest in units of the Scheme and the AMC / Trustee / Mutual Fund will not be responsible ifsuch investment is ultra-vires the relevant constitution.

RCAM reserves the right to include / exclude new / existing categories of investors to invest in thisScheme from time to time, subject to SEBI Regulations, if any.

Right to Review Applications

RCAM reserves the right to scrutinise, review and reject any application received during the new fundoffer period or on an ongoing basis, at its discretion, without assigning any reason, in cases where,according to RCAM, accepting the same would not be in the best interests of the Fund.

14. Joint Applicants: If an Account has more than one holder, the first-named holder (asdetermined by the records of the Registrar) only will receive all notices and correspondence with respectto the Account, as well as the proceeds of any redemption request or dividend or other distributions. In

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addition, such holder will have the voting rights, associated with such Units as permitted. In the case ofdeath of any joint holder, the survivor(s) shall be the only person(s) recognised by RMF as having anytitle to or interest in the units.

In the case of holdings specified as 'jointly', all requests will have to be signed by all the joint holders insequence of their holdings. However, in the case of holdings specified as 'any one or survivor', any oneof the joint holders may sign such requests.

If an Account has more than one holder and the mode of operation is not specified i.e. whether as'Jointly' or 'Either or survivor' or 'Anyone or survivor', then it will be considered as 'Jointly'.

15. Allotment Statement:

Units issued by the AMC under the scheme shall be credited to the investor’s beneficiary account with aDepository Participant (DP) of CDSL or NSDL. The AMC will endeavour to credit the units to thebeneficiary account of the unitholder within five business days from the date of receipt of credit of theCash. The AMC shall issue an intimation about the allotment of units to investors whose beneficiaryaccounts are credited on allotment of units under the scheme within thirty days of allotment eitherthrough physical form or through email as may be decided by the Fund from time to time. The AccountStatement of the Beneficiary Account with the DP will be sent by the respective DPs periodically.

16. Applicable NAV for Purchase / Creation /Redemption Of Units Directly From The

Fund:

(a) Authorised Participants:

The Authorised Participants can directly buy/sell with the funds in Creation Unit Size as definedabove on all working days as follows:The Fund creates / redeems RGETF in large blocks known as “Creation Unit”. The value of the“Creation Unit” is the basket of Underlying Gold called as the “Portfolio Deposit” and a “CashComponent” which will be exchanged for a fixed number of RGETF. The Portfolio Deposit and theCash Component, which defines the Creation Unit are explained separately below. The PortfolioDeposit and Cash Component may change from time to time and will be announced by AMC/Fundthrough its website and other data providers.

i) Creation :

In respect of valid applications received upto 3 p.m. by the Mutual Fund alongwith a localcheque or a demand draft payable at par at the place where the application is received, theclosing NAV of the day on which application is received shall be applicable.

In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a localcheque or a demand draft payable at par at the place where the application is received, theclosing NAV of the next business day shall be applicable.

ii) Redemptions:

In respect of valid applications received upto 3 p.m. by the Mutual Fund, closing NAV of theday of receipt of application, shall be applicable.

In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV ofthe next business day shall be applicable.

(b) Other Investors:

Other investors may purchase or redeem units from the fund directly only on the 2nd

& 18th

ofevery calendar month. The applicable NAV for both purchase and redemption of units shall bethe closing NAV of the day of receipt of application, provided the application is received upto 3p.m. on the aforesaid dates. Applications shall be received, if any, after 3 p.m. on such daysshall be returned / rejected. In case such a day happens to be a holiday or a non-business day,the subscription shall be accepted on the next business day.

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Applications for redemption of RGETF units have to be submitted in the prescribed format dulycompleted and signed alongwith the delivery order duly receipted by the DP stating the number of unitstransferred to the scheme’s DP account . Application for redemption by non-individuals should beaccompanied by certified copy of the board/governing body resolution clearly authorizing the officialconcerned to redeem units and to receive/ collect gold/cash after complying with operational procedureand formalities.The application for redemption in the prescribed form will have to be submitted at the designated ISCof the fund before the cut off time. The expenses associated with taking physical delivery of gold willhave to be borne by the authorized participant / investor

17. How to Apply for RGETF units ?

1. Application Forms will be available at the Designated Investor Service Centers of RelianceMutual Fund, its Distributors and the office of the Registrar.

2. Applications must be completed in block letters in English and duly signed by all the applicants .

3. Applications complete in all respects may be submitted before closure of New Fund Offer Period

at the designated branches of collecting bankers at locations mentioned in the Application Form.

4. During the continuous offer, investors can buy units of RGETF on a continuous basis on theNational Stock Exchange and other recognised stock exchanges where units are listed andtraded like any other publicly traded securities at market prices which may be close to the actualNAV of the scheme. The trading lot is one RGETF unit.

5. Alternatively Authorised Participant can directly buy in blocks from the fund in ‘Creation Unit’Size on any business day, while other investors can subscribe for purchase of units from thefund directly on the 2

nd& 18

thof every calendar month. In case such a day happens to be a

holiday or a non-business day, the subscription shall be accepted on the next business day.

6. Investors may register for SIP during New Fund Offer and during continuous offer by filling in theSIP Registration Form. However the SIP subscription transaction shall be executed only on 2

nd

& 18th of every calendar month or the next working day, if 2nd & 18th happens to be a non-working day in any calendar month).

The Registrars shall allot admissible units to the investor which shall be credited to the investor’sbeneficiary account with a Depository Participant (DP) of CDSL or NSDL under suitable intimation to theinvestor.

18. Settlement of purchase/sale of RGETF units on the stock exchange:

Buying / Selling RGETF units on the stock exchange is similar to buying / selling any other listedsecurities. If an investor has bought units, an investor has to pay the purchase amount to the broker / sub-broker such that the amount paid is realized before the funds pay-in day of the settlement cycle onthe exchange. If an investor has sold units, an investor has to deliver the units to the broker/sub-brokerbefore the securities pay-in day of the settlement cycle on the exchange. The units (in case of unitsbought) and the funds(in the case of units sold) are paid out to the broker on the payout day of thesettlement cycle on the exchange. The exchange regulations stipulate that the trading member shouldpay the money or units to the investor within 24 hours of the payout. (SEBI SMD/POLICY/Cir-/03 datedFebruary 6, 2003) If an investor has bought units, he should give standing instructions for ‘Delivery-In’ tohis/her DP for accepting units in his/her beneficiary account. An investor should give the details ofhis/her beneficiary account and the DP-ID of his/her DP to his/her trading member. The trading memberwill transfer the units directly to his/her beneficiary account on receipt of the same from exchange’sclearing corporation. An investor who has sold units should instruct his/her Depository Participant (DP)

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to give ‘Delivery Out’ instructions to transfer the units from his/her trading member through whom he/shehave sold the units.

The details of the pool A/c of investor’s trading member to which the units are to be transferred, unitquantity etc. should be mentioned in the delivery out instructions given by him/her to the DP. Theinstructions should be given well before the prescribed securities pay-in day. SEBI has advised that thedelivery out instructions should be given atleast 24 hours prior to the cut off time for the prescribedsecurities pay in to avoid any rejection of instructions due to data entry errors, network problems, etc.similar

Rolling Settlement

The Fund intends to follow the same settlement pattern and practices of the Exchange. All theunderlying constituents of RGETF will be on a rolling settlement on T+2 basis. The Pay-in and Pay-outof funds and the Units will take place 2 working days after the trading date. The pay-in and pay-out daysfor funds and securities are prescribed as per the Settlement Cycle. A typical Settlement Cycle of RollingSettlement is given below:

Day ActivityT The day on which the transaction is executed by a trading member. Issue of provisional funds

and delivery obligations in the evening.

T+1 Deadline for custodial settlement, confirmations. Issue of funds and delivery obligationstatement to the trading member

T+2 Pay-in and Pay-out of funds and securitiesT+3 Auction of securities not settled on day T+2T+4 Pay-in and pay-out of auction funds and securities

While calculating the days from the Trading day (Day T), weekend days (i.e. Saturday and Sundays)and bank holidays are not taken into consideration.

19. Transfer / Pledge/ Assignment of units:

(a) Transfer: RGETF units are transferable. Transfers should be only in favour of transferees who areeligible of holding units under the scheme. The AMC shall not be bound to recognize any other transfer.

The AMC will effect the transfer only in electronic form provided that the intended transferee is otherwiseeligible to hold units under the scheme. The delivery instructions for transfer of RGETF units will have tobe lodged with the DP in the requisite form as may be required from time to time and the transfer will beeffected in accordance with such rules / regulations as maybe in force governing transfer of securities indematerialised mode. Under special circumstances, holding of units by a company or other bodycorporate with another company or body corporate or an individual/ individuals, none of whom is aminor, may be considered by the AMC.

Any addition, deletion of name from the folio of the Unit holder is deemed as transfer of Units. In view ofthe same, additions /deletions of names will not be allowed under any folio of the Scheme. The saidprovisions in respect of deletion of names will not be applicable in case of death of a Unit holder (inrespect of joint holdings) as this is treated as transmission of Unit and not transfer.

A transferee approaching the fund for Transfer / Transmission of units will have to have beneficiaryaccount with a Depository Participant of CDSL or NSDL, since the units shall be in electronic mode.

(b) Pledge/Assignment of units permitted only in favour of banks/other financial institutions:i The uniholders may pledge/assign units in favour of banks/other financial institutions as a

security for raising loans.

ii Units can be pledged by completing the requisite forms/formalities as may be required bythe Depository. The pledger may not be allowed to redeem/ transfer the units so pledgeduntil the bank/ financial institution to which the units are pledged provides a writtenauthorization to the Depository that the pledge/charge/lien may be removed.

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iii As the units of the Scheme will be issued and held in Demat form, the rules of Depositoryapplicable for pledge will be applicable for Pledge/Assignment of the units of the Scheme.

iv Pledgor and Pledgee must have a beneficial account with the Depository. These accountscan be with the same DP or with different DPs. Pledgor will instruct its DP to create a pledgerequest by submitting a “Pledge Form” with a tick on “Create Pledge”.

v Pledgor will inform the pledgee about the creation of pledge request by giving a copy of the

pledge report obtained from its DP.vi Pledgee may instruct its DP to confirm the creation of pledge by submitting a “Pledge Form”

with a tick on “Confirm creation of Pledge”. The pledge gets created in favour of the pledgeeonly when the pledgee’s DP confirms the creation of pledge in the system.

vii Pledge does not get created in the System until the Pledgee’s DP confirms the pledge.Pledgee may obtain pledge report from its DP and verify creation of pledge.

viii After the loan is repaid, the pledgor will instruct its DP to close the pledge by submitting the"Pledge Form" with a tick on "Close Pledge". The pledgee will instruct its DP to confirm theclosure of pledge by submitting the "Pledge Form" with a tick on "Confirm Closure ofPledge".

ix The pledge is closed in the system on executing the instruction in the system by both theDPs. A pledgor's DP alone cannot close the pledge.

x If the loan is not repaid, the pledgee, after giving notice to the pledgor as per the terms ofthe agreement, may instruct its DP to invoke the pledge by submitting the "Pledge Form"with a tick on "Invoke Pledge". On execution of this instruction, the securities are transferredinto the pledgee's account. This does not require any confirmation from the pledgor.

xi The pledgor will continue to receive dividend on the pledged securities. The pledgee will getthe benefits only if a pledge is invoked and on record date the shares are in the pledgee'saccount.

20. Transmis sion: In case of death of the unitholder, Units shall be transmitted in favour of thesecond-named joint holder or nominee, as the case may be, on production of a death certificate or anyother document to the satisfaction of the Fund. Since the units of the scheme will be issued in electronic form

in the Demat account of the investor, the nomination as registered with the Depository Participant will be applicable

to the units of the scheme. A Nomineee / legal heir approaching the fund for Transmission of units musthave beneficiary account with a Depository Participant of CDSL or NSDL, since the units shall be inelectronic mode.

21. Dividend Payout Option: Reliance Gold Exchange Traded Fund will have only DividendPayout option available in both Plan A & Plan B.

Dividend declared under the scheme, if any, will be paid to the unit holders within 30 days from thedeclaration of the dividend.

Dividend will be distributed from the available distributable surplus after the deduction of TDS andapplicable surcharge etc, if any. If and when dividends are declared, dividends will be distributed to allunit holders registered on the registers of the depositories on the record date.

? NOTE : For all tax related matters referred above, please read the Section of this offer

document on 'Tax Benefits'. In view of the individual nature of tax benefits, each investor isadvised to consult his or her own tax consultant with respect to the specific tax implicationsarising out of his or her participation in the scheme.

Effect of Dividends: As with the redemption of Units, when dividends are declared and paid withrespect to the Scheme, the net assets will stand reduced by an amount equivalent to the product of thenumber of units outstanding and the dividend amount per unit declared on the record date.

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24. Prevention of Money Laundering:

In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under and theguidelines /circulars issued by SEBI regarding the Anti Money Laundering (AML Laws), allintermediaries, including Mutual Funds, have to formulate and implement a Client Identification Process,commonly referred to as Know Your Customer or KYC, verify and maintain the record of identity andaddress (es) of investors. In order to make the data capture and document submission easy and

convenient for the investors, Mutual Fund Industry has collectively entrusted this responsibility ofcollection of documents relating to identity and address and record keeping to an independent agency(presently CDSL Ventures Limited) that will act as central record keeping agency (‘Central Agency’). Asa token of having verified the identity and address and for efficient retrieval of records, the CentralAgency will issue a Mutual Fund Identification Number (‘MIN’) to each investor who submits anapplication and the prescribed documents to the Central Agency. Where the investor has furnished hisIncome Tax Permanent Account Number (PAN), the PAN itself will be taken as the identificationnumber.

Investors who have obtained the MIN can invest in the schemes of the mutual fund by quoting the MINin lieu of submitting information and documents required under AML Laws.

Presently, it is mandatory for all applications for subscription of value of Rs.50,000/- and above to

undergo the enhanced Client Identification Process or KYC Process by submitting proof of theiridentity and proof of address etc. to the Central agency explained below

Enhanced Customer Identification Process (KYC Process)Investors who wish to invest Rs.50,000/- and above have to submit a prescribed Application Form alongwith all the prescribed documents listed therein, at any of the Point of Service (‘POS’). The said Formis available at our website (www.reliancemutual.com) and AMFI website (www.amfiindia.com).POS are the designated centres appointed by the Central Agency for receiving application forms,processing data and confirming compliance of KYC process. A list of and location of POS is available atwww.reliancemutual.com and www.amfiindia.com. On submission of application, documents andinformation to the satisfaction of the POS, the investor will be issued a provisional confirmation.Subsequently, the Central Agency will scrutinize the information and documents submitted by theinvestor and confirm the KYC process. However, the Central Agency may reject the KYC applicationwithin 15 working days from the date of the provisional confirmation referred to hereinbefore, in case ofany deficiency in the document/information. Intimation on rejection / cancellation of provisionalconfirmation will be dispatched by the Central Agency to the investor immediately. No communicationwill be sent to the investor if the KYC process is completed without any deficiency.

The KYC compliance check shall be validated with the records of the Central Agency before allottingunits. Applications for subscriptions of value of Rs.50,000/- and above which have not complied with theKYC process mentioned above, may be rejected. In the event of any KYC Application Form beingsubsequently rejected for lack of information / deficiency / insufficiency of mandatory documentation, theinvestment transaction will be cancelled and the amount may be redeemed at applicable NAV as on thedate of receipt of intimation of rejection of KYC application form from the Central Agency by theRegistrar, subject to payment of exit load, wherever applicable. Such redemption proceeds will bedespatched within a maximum period of 21 days from date of acceptance of application. In case of aNew Fund Offer, allotment will be done only on confi rmation from the Central Agency that the KYC

Process is final and if the Central Agency informs that the KYC application is rejected, the originalamount invested will be refunded.

The aforesaid enhanced KYC process is compulsory for all investors (both individual and non-individual). In case of investment on behalf of a minor by a Guardian, the guardian should undergo theaforesaid KYC process for the purpose of investing with a Mutual Fund.

Also, applicants / unit holders intending to apply for units / currently holding units and operating theirMutual Fund folios through a Power of Attorney (PoA) must ensure that the issuer of the PoA and the

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holder of the PoA must undergo the aforesaid KYC process at the time of investment above thethreshold. PoA holders are not permitted to apply for KYC Compliance on behalf of the issuer of thePoA.

PAN

Wherever an application is of an amount of Rs. 50,000 or more per transaction, the applicant or in the

case of application in joint names, each of the applicants, should mention his/her Income TaxPermanent Account Number (PAN). Where PAN has not been allotted, a declaration in Form No. 60 (orForm No. 61) will be required to be furnished by the investor in duplicate alongwith a copy of the proof ofaddress. Investors are therefore requested to provide the same, in the absence of which the applicationform will not be accepted.

BANK ACCOUNT DETAILSIn order to safeguard the interest of unitholders from loss or theft of their redemption cheques ordividend warrant, SEBI has made it mandatory for investors to provide their bank account details.Application Forms without bank details are liable to be rejected.

DEMAT ACCOUNT

Further the applicant under the Scheme (including a transferre) will be required tohave a beneficiary account with a Depository Participant of NSDL/CDSL and wil l berequired to indicate in the application the DP’s name, DP ID Number and its beneficiaryaccount number with DP. In absence of the information in respect of DP ID/ Client ID theapplications are l iable to be rejected without any reason.

25. Mode of Payment:

(a) Portfolio deposit: The authorized participant wil l be required to deposit gold of thepre-specified purity with the custodian in the proportion as declared by AMC from time totime.(b) Cash Component : For the cash component all cheques, bank drafts and pay ordershould be drawn in favour of “Reliance Gold Exchange Traded Fund” and be crossed“Account Payee Only”. If the cheque / Draft towards cash component is not honouredfor any reason whatsoever, the application shall be rejected.(c) Allotment of Units against the investment made under the scheme, shall be subjectto realization of instrument thereof.

PAYMENTS BY FOLLOWING MODES WILL NOT BE ACCEPTED

? Stockinvests? Cash? Outstation Cheques

? Post-Dated Cheques (except in the case of Systematic Investment Plan)

RCAM may specify various other modes of payment from time to time.

LIST OF DOCUMENTS REQUIRED TO BE SUBMITTED ALONGWITH THE APPLICATION FORMS:Application under Po wer of Attorney: In the case the application made under a Power ofAttorney (PoA), a duly attested copy of the Power of Attorney must be lodged along with the Application.

The PoA Document must contain the signatures of both the PoA Executor and PoA holder.

Companies/Body Corporate

? Certified copy of the Board Resolution authorising investments/ disinvestments in Mutual FundsSchemes, certified by the Company Secretary / Authorised Signatory

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? List containing names designation and specimen signatures of the signatories, authorised as per theabove referred Board Resolution, duly attested by the bankers/ Company Secretary on theCompany‘s letterhead

? Copy of the Memorandum and Articles of Association of the Company duly attested by theCompany Secretary or any other authorised signatory

? Other relevant documents governing the statute (in case of Body Corporate not covered under theCompanies Act, 1956)

Partnership Firms

? Copy of the Partnership Deed duly attested by any of the partners

? Specimen Signatures of the partners attested by their bankers

? Copy of the Resolution, signed by the partners, authorising investments/ disinvestments in the Fundand corresponding operational procedures

Trusts

? Copy of the Trust Deed attested by the Trustees/ Secretary

? Copy of the Resolution passed by the Trustees authorising investments/ disinvestments in MutualFund Schemes, duly certified by the Trustees/ Secretary

? List of Trustees and the specimen signatures, authorised as per the above resolution, duly attestedby the bankers/ Secretary of the Trust on the Trust‘s letterhead

Co-operative Societies

? Copy of the Registration Certificate attested by the Secretary/ office bearer of the society

? Copy of the Resolution authorising investments/ disinvestments in the Fund and correspondingoperational procedures, duly attested by the Secretary/ office bearer of the society

? List of authorised signatories with designation & their specimen signatures, attested by the bankers

Non Resident Indians & Foreign Institutional Investors:

In the case of NRIs/PIOs and FIIs (subject to RBI/appropriate authority approval) seeking to apply forUnits on a non-repatriation basis, payment shall be made by way of inward remittance or by local

cheques or demand draft payable in the city of the Designated Investor Service Centre drawn out ofbalances in their NRO/NRSR accounts maintained with banks authorised to deal with foreign exchangein India.

Documents required to be submitted by NRIs alongwith the Application Form:

? In case Indian rupee drafts are purchased abroad or from FCNR / NRE A/c., an account debitcertificate from the Bank issuing the draft confirming the debit shall also be enclosed alongwith theApplication Form.

? For subscriptions amounts remitted out of debit to the FCNR / NRE A/c., the Application form mustbe accompanied with a Account Debit Certificate confirming the account type and account number,issued by the Investor’s banker(s).

? As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank accountnumber in the application form. This is to safeguard the interest of Unit holders from loss or theft of

their redemption cheques / DDs. Investors are requested to provide their bank details in theApplication Form failing which the same will be rejected as per current Regulations.

26. Where to submit Application forms:

During New Fund Offer Period: Investors may submit / mail the completed application forms atany of the Designated branches of the Collecting Banks. The addresses of the Designated InvestorService Centers are given at the end of this Offer Document.

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Ongoing Basis: Authorised Participants / Investors may submit / mail the completed application formsat any of the Designated Investor Service Centers of Reliance Mutual Fund. The addresses of the

Designated Investor Service Centers are mentioned in this Offer Document. Investors in cities otherthan where the Designated Investor Service Centers (DISC) are located, may send their applicationforms to any of the nearest DISC, accompanied by Demand Draft/s payable locally at the DISC

27. Systematic Investment Plan (SIP) :Investors applying for units under RGETF can participate in the SIP, which enables investors to saveand invest a fixed amount at regular intervals over a period of time. It is a convenient way to invest ina staggered manner and provides an opportunity to enter the market regularly, thus averaging the costof acquisition of Units. All Unitholder can avail of SIP facil ity, subject to certain terms and conditionscontained in the Application Form. The Fundamental Attributes and other terms and conditionsregarding purchase/redemption, price and related matters are the same as contained in this OfferDocument. Entry load shall be applicable for all SIP subscriptions.

Investors may register for SIP during New Fund Offer and during continuous offer by filling in the SIPRegistration Form. However the SIP subscription transaction shall be executed only on 2

nd& 18

thof

every month or the next working day, if 2nd

& 18th

happens to be a non-working day in any month).

Minimum SIP Installment Amount:? Rs. 100/- & in multiples of Re. 1 thereafter subject to a minimum of 50 installments, where the

subscriptions are paid through ECS Auto Debit or Direct Account Debit? Rs. 500/- & in multiples of Re. 1 thereafter subject to a minimum of 12 installments where

subscriptions are paid through Post Dated Cheques

However, the first investment in SIP through the Direct Debit Facility needs to be made compulsorily byissuance of a cheque from the account from which the Direct Debit is requested.

Auto Debit and Electronic Clearing Service for SIP

Auto Debit facility will be available with the banks as notified by RMF from time to time. The ECS facilitywould be provided at all the locations where RBI or its associate Clearing House offers this facility. Thelist of such banks and centers where this arrangement will be available may undergo changes from time

to time as and when banks/centers are added/ deleted. Investors are advised to contact the nearestDesignated Investor Service Centre for details before investing.

The investor opting for Auto debit/ ECS facility will be required to sign up a mandate form on the basis ofwhich Reliance Mutual Fund will arrange for his account to be debited as per the frequency, amount &date chosen by the investor.

Investors having an account with HDFC Bank and desirous of opting for direct debit of their accountthrough standing instructions should submit a duly completed standing instruction form in the prescribedformat. ECS mandate form should not be used.

There should be a minimum gap of at least 21 working days between the 1st SIP instalment and the 2ndSIP instalment or as specified by RCAM from time to time. Investors should check the same at the

Designated Investor Service Centre of Reliance Mutual Fund before investing. However, subsequentcheques should have a gap of at least a month or a quarter depending upon the frequency chosen. Ifthe date on the cheque/draft is a non-working day for the scheme, then the units shall be allotted on thenext working day.

Operational procedures for SIP may be modified and shall be announced by the Fund from time to time

Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) from the scheme are

currently not available.

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28. Nomination :

? Since the units of the scheme will be issued in electronic form in the depository account of theunit holder, the nomination registered with the Depository will be applicable to the units of thescheme.

? Such nomination including any variation, cancellation or substitution of Nominee(s) shall begoverned by the rules and bye-laws of the Depository.

? Payment to the nominee of the sums shall discharge the Fund of all liability towards the estateof the deceased unit holder and his/her legal successors/legal heirs.

? Nomination can be made only by the individuals holding beneficiary (DP) accounts either singlyor jointly. Non-individuals including society, body corporate, partnership firms, Karta of HUF,holder of power of attorney can not nominate. Only an individual including NRI can be anominee. However nomination of NRI is subject to exchange control regulations in force fromtime to time.

? Society, trust, body corporate, partnership firm, Karta of HUF or Power of Attorney holdercannot be appointed as a Nominee.

? Minor can also be appointed as a nominee. However the guardian will sign on behalf of the

? nominee and in addition to the name and photograph of the nominee, the name and address

and the photograph of the guardian must be submitted to DP. Only one nomination can bemade for each depository account.

? The nomination form duly filled in should be submitted to the Depository Participant (DP) eitherat the time of account opening or later. The account holder, nominee and two witness must signthe form and the name, address and photograph of the nominee must be submitted. If thenomination was not made at the time of account opening, it can be made subsequently bysubmitting the nomination form.

? Nomination can be changed anytime by the account holder(s) by simply filling up the nominationonce again and submitting it to the DP.

? In case nomination has been made for DP account with joint holders, in case of death of any ofthe joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the eventof death of all the joint holders, the securities will be transmitted to the nominee.

? In case nomination is not made by the sole holder of DP account, the securities would betransmitted to the account of legal heir(s), as may be determined by an order of the competentcourt. However in case where the value of securities to be transmitted is less than Rs.1,00,000/-the DP may process the request based on the submissions of necessary letter of indemnity,surety, affidavits and NOC documents.

29. Redemption of Units:

All investors including Authorised Participants and other investors may sell their units in the stockexchange(s) on which these units are listed on all the trading days of the stock exchange.

In addition, mutual fund will provide redemption facility to the investors during the Exit window i.e. on the2nd & 18th of every calendar month in the year or the next working day, if 2

nd& 18

thhappens to be a

non-working day in any month.

Mutual fund will repurchase units from Authorised Participants on any business day provided the unitsoffered for repurchase is not less than 1000 units Under Plan A or 1 unit under Plan B.

The unitholder may opt to take delivery of physical gold instead of redemption proceeds in cash, subjectto a minimum of 100 units. In such a scenario, the investor will have to collect the gold bar(s) from theCustodian at his own cost as per procedure prescribed by the AMC & its Custodian from time to time.Any risk associated with transportation of gold once it has been released by the custodian will be borne

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by the Investor only. The investor will have to bear the incidences of taxes/levies/charges as applicableform time to time while redeeming physical gold bars.

The mode of redemption can be physical gold or cash at the discretion of the AMC, subject toapplicable load.

Redemption ProcedureUnitholder may submit the redemption request to any of the designated Investor Service Centres (ISC)during the exit window. A list of transaction acceptance points is provided at the end of the offerdocument.

Applications for redemption of RGETF units have to be submitted in the prescribed format dulycompleted and signed along with the delivery order duly receipted by the DP stating the number ofRGETF units transferred to the scheme’s DP account .

Application for redemption by non-individuals should be accompanied by certified copy (ies) of theboard/governing body resolution clearly authorizing the official concerned to redeem units and toreceive/collect securities/cash after complying with operational procedure and formalities.

The application for redemption on a prescribed form will have to be submitted at the designated ISC

before the cut off time.

The number of units available for redemption in the account of the unitholder will be confirmed by theRegistrars with the records maintained and downloaded by the depository with which the unitholder isholding the depository account.

Redemption request will be processed further if the records as mentioned above show that thedepository account has adequate number of units.

The time taken for confirmation of redemption of units is dependent upon the download frequency thatdepository may permit.

The registrar will instruct the custodian to sell the number of units to be redeemed.

Redemption proceeds will be sent to the unitholder within 10 working days from the date of confirmationwith the depository records.

30. Procedure for Redeeming RGETF in Creation Unit Size/Lot Size:

The requisite number of units equaling the Creation Unit has to be transferred to the Fund’s DP accountand the Cash Component to be paid to the AMC / Custodian. On confirmation of the same by the AMC,the Custodian will transfer the Portfolio Deposit by handing over the physical Gold of the predefinedpurity and quantity to the investor and pay the Cash Component, if applicable.

The AMC may redeem Creation Unit of RGETF prior to receipt of all or portion of the relevant RGETFin certain circumstances where the purchaser, among other things, posts collateral to secure itsobligation to deliver such outstanding RGETF units. The Portfolio Deposit and Cash Component for the

RGETF may change from time to time due to change in NAV. The Fund may from time to time changethe size of creation unit size in order to equate it with marketable lot of underlying physical gold.

The procedures by which an authorized participant can redeem one or more baskets will be same asthe procedures for the creation of units. On any business day, an authorized participant may send aredemption request to the AMC. The registrar will instruct the custodian to sell the number of units to beredeemed and the mode of redemption (physical gold or cash). The custodian will deliver the gold inphysical form to the nearest Kilogram and the balance amount will be paid in cash.

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The number of Units so redeemed will be subtracted from the unitholder's account balance and a

statement to this effect will be issued to the unitholder.

In case the balance in unitholder's account does not cover the amount of redemption request, the Fundmay close the unitholder's account and send the entire (lesser) balance to the unitholder, provided

further that if the unitholder has made a partial redemption request which results in balance of units tofall below minimum application amount as per the latest NAV, the fund may close the unitholders

account & redeem all units in the folio & remit the entire redemption proceeds to the investors.

If an investor has purchased Units on more than one working day, the Units purchased prior in time (i.e.those Units which have been held for the longest period of time), will be deemed to have beenredeemed first, i.e. on a First In First Out Basis.

Units purchased by cheque or draft will not be redeemed until the realisation of the cheque/DD.

Redemption Price : The Redemption Price will be calculated in the following way :

Redemption Price = Applicable NAVx (1- Exit Load)

Example: If the applicable NAV is Rs. 10.00, sales/entry load is 2 per cent and the exit/repurchase loadis 2 percent then the sales price will be Rs. 10.20 and the repurchase price will be Rs. 9.80.

The Fund will ensure that the Redemption Price is not lower than 93% of the NAV and the PurchasePrice is not higher than 107% of the NAV, provided that the difference between the Redemption Price

and Purchase Price of the Units shall not exceed the permissible limit of 7% of the Purchase Price, asprovided for under the current Regulations.

For detailed explanation on loads, please refer the Section on "Loads an d Recurrin g Expense s-

Section VII".

The Redemption Price will be released to the press daily for being published in the newspaper, asprescribed under the Regulations, from time to time.

Currently, redemptions shall be effected at applicable NAV based prices subject to exit loads. RCAM

may revise the above pricing structure and transaction timings from time to time, subject to an exit loadchargeable in accordance with the Regulations. However, any such revision shall be in accordance with

SEBI Regulations and would be applicable only to units subscribed to after the initial date of suchnotification on a prospective basis.

31. Minimum Account Balance: RCAM reserves the right to close an investor's account if the

value of the unit balance in the account falls below the minimum subscription amount under each of theplans. In such an event, RCAM reserves the right to compulsorily redeem the balance units in the

account completely at the applicable redemption price.

The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when

necessary. Such change may be brought about after taking into account the cost structure for a

transaction / account and / or Market practices and / or the interest of the unit holders. Further such

changes shall be carried out on a prospective basis from the date of notification of such change and

would not, in any manner, be prejudicial to the interests of the investors who have joined the scheme

before such notification. Any changes would be informed to unit holders by way of an advertisement.

32. Payment of Proceeds:

a) Resident Investors

Redemption proceeds will be paid either by direct credit to the investor / Authorized Participants bankaccount (where the Unit holder / Authorized Participants has an account with the bank with whom thefund has a tie up under intimation to Unit holder / Authorized Participants by post/email) or by cheques,marked “A/c. Payee only” and drawn in the name of the sole holder/first-named holder (as determinedby the records of the Registrar). The Bank Name and Bank Account No, as specified in the Registrar’srecords, will be mentioned in the cheque. The cheque will be payable at par at all the cities designated

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by the Fund from time to time. If the Unit holder resides in any other city, he will be paid by a DemandDraft payable at the city of his residence after deducting the Demand Draft charges.

b) Non Resident InvestorsIn case of non-resident investors / Authorized Participants, redemption proceeds will be remitteddepending upon the source of investment as follows:

(i) Repatriation Basis

The proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident(Ordinary) account or NRSR account.When Units have been purchased through remittance in foreign exchange from abroad/by cheque/draftissued from proceeds of the Unit holders FCNR deposit or from funds held in the Unit holders NonResident (External) account kept in India, the proceeds can be remitted to the Unit holder in foreigncurrency (any exchange rate fluctuation will be borne by the Unit holder) if desired by the Unit holder.(ii) Non Repatriation Basisa) When Units have been purchased from funds held in the Unit holders’ non-resident (Ordinary)account, the proceeds will be sent to the Unit holders Indian address for crediting to the Unit holders’non-resident (Ordinary) account / NRSR account.b) When Units have been purchased from funds held in the Unit holders’ NRSR account, the proceedswill be sent to the Indian address for crediting to the Unit holders’ NRSR account.

The Fund may make other arrangements for effecting payment of redemption proceeds in future.

Despatch of Proceeds : As per SEBI Regulations, the Mutual Fund shall despatch the redemption

proceeds within the maximum period allowed, which is currently 10 working days from the date of

receipt of a valid redemption request by the mutual fund. All payments shall be despatched by ordinary

mail (with or without UCP) or Registered Post or by Courier, unless otherwise required under the

Regulations, at the risk of the Unit holder.

Effect of Redemptions

( i) On the Fund : The Unit capital and Reserves of the Scheme will stand reduced by an amount

equivalent to the product of the number of Units redeemed and the Applicable NAV as on the date of

redemption.

(ii) On the unit holders account : The balances in the unit holders account will stand reduced by

the number of Units redeemed.

33. Right to Limit Redemption : The Trustee may, in the general interest of the Unit holders of

the Scheme under this Offer Document and keeping in view the unforeseen circumstances / unusual

market conditions, limit the total number of Units which may be redeemed on any Working Day to 5% of

the total number of Units then issued and outstanding under any Scheme / Plan or such other

percentage as the Trustee may determine.

The Trustee may, at its sole discretion in response to unforeseen circumstances or unusual market

conditions including, but not limited to, extreme volatility of the stock, fixed income and money markets,

extended suspension of trading on the stock exchanges, natural calamities, communication

breakdowns, internal system breakdowns, strikes, bandhs, riots or other situations where the Trustee in

consultation with RCAM, considers that such suspension is necessary, limit the total number of Unitswhich may be redeemed on any working day to 5% of the total number of Units then in issue or such

higher percentage as the Trustee may determine in any particular case.

Any Units, which by virtue of these limitations are not redeemed on a particular Working Day, will be

carried forward for redemption to the next Working Day, in the order of receipt. Redemptions so carried

forward will be priced on the basis of the Redemption Price of the Working Day on which redemption is

made. Under such circumstances, to the extent multiple redemption requests are received at the same

time on a single Working Day, redemption's will be made on pro-rata basis, based on the size of each

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redemption request, the balance amount being carried forward for redemption to the next Working

Day(s).

34. Suspension of Purchase and Redemption of Units:

The purchase and/or redemption of Units may be suspended with prior approval of Trustees and Asset

Management Company giving the details of circumstances and justification for the proposed action shallalso be informed to SEBI in advance, temporarily or indefinitely when any of the following conditions

exist at one/more Designated Investor Service Center's:1. When the bullion markets in London and forex markets which provide basis for valuation are closed

otherwise than for ordinary holidays.2. When, as a result of political, economic or monetary events or any circumstances outside the

control of the Trustee and the AMC, the disposal of the assets of the Scheme is not reasonable,or would not reasonably be practicable without being detrimental to the interests of the Unitholders.

3. In the event of breakdown in the means of communication used for the valuation of investmentsof the Scheme, without which the value of the securities of the Scheme cannot be accuratelycalculated.

4. During periods of extreme volatility of markets, which in the opinion of the AMC are prejudicial to

the interests of the Unit holders of the Scheme.5. In case of natural calamities, strikes, riots and bandhs.6. In the event of any force, majeure or disaster that affects the normal functioning of the AMC or

the Registrar.7. If so directed by SEBI.

The normal time taken to process redemption and/ or purchase requests, as mentioned earlier, may not

be applicable during such extraordinary circumstances.

However, suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual

Fund shall be made applicable only after the approval from the Board of Directors of the Asset

Management Company and the Trustee Company. The approval from the AMC Board and the Trustees

giving details of circumstances and justification for the proposed action shall also be informed to SEBI in

advance.

RMF also reserves the right at its sole discretion to withdraw sale of Units in the Scheme temporarily orindefinitely, if the AMC views that increasing the Scheme's size further may prove detrimental to the

existing unit holders of the Scheme. An order/ request to purchase Units is not binding on and may be

rejected by the Trustee, the AMC or their respective agents, unless it has been confirmed in writing by

the AMC or its agents and (or) payment has been received.

35. Duration of the Scheme: The duration of the Scheme is perpetual. However, the scheme may

be wound up if,

1. There are changes in the capital markets, fiscal laws or legal system, or any event or series of events

occurs which in the opinion of the Trustees, require the scheme/ Plan to be wound up; or

2. 75% of the Unit holders in the Plan pass a resolution that the Plan be wound up; or

3. SEBI directs the Scheme/ Plan to be wound up in the interest of Unit holders.4. If the Plan fails to meet the criteria for minimum number of investors and maximum holding by asingle investor as mentioned above.

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VII. LOADS AND RECURRING EXPENSES

A. LOAD STRUCTURE OF THE SCHEME: The Load structure shall be as indicated in Para B

below on the 'Applicable Load Structure". Under the Scheme, RCAM, in consultation with the Trustees,reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient

functioning of the Scheme on the investment on prospective basis. The same will be notified to the unit

holders. The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be

permissible under the Regulations.

All loads including CDSC for the Scheme shall be maintained in a separate account and may be utilised

towards meeting the selling and distribution expenses as permitted under the Regulations. Any surplus

in this account may be credited to the scheme, whenever felt appropriate by RCAM.

B. APPLICABLE LOAD STRUCTURE: The following Load Structure is applicable during the new

fund offer and continuous offer in the scheme till further notice.

Entry & Exit Load : Maximum load of 7% under both the plans the scheme.

The redemption price shall not be lower than 93% of NAV and the purchase price shall not be higher than 107% ofthe NAV and the difference between the redemption price and purchase price shall not exceed 7% of the purchaseprice.

No entry or exit load will be levied on transactions with Authorised Participants during NFO orcontinuous offer.

Contingent Deferred Sales Charge (CDSC): NIL

Switch-in into the scheme from other schemes will be allowed at the applicable loads during the NewFund Offer period and on 2

nd& 18

thof every month or the next working day, if 2

nd& 18

thhappens to be

a non-working day in any month . However switch out from this scheme will not be available.

The Trustees reserve the right to change the load structure. Any imposition or enhancement of load infuture shall be applicable on prospective investments only. At the time of changing the Load Structure:(i) The addendum detailing the changes will be attached to Offer Document and Abridged OfferDocument. The addendum will be circulated to all the distributors/brokers so that the same can beattached to all Offer Documents and Abridged Offer Documents already in stock. The addendum will besent alongwith the newsletter sent to the Unit holders immediately after the changes.(ii) Arrangements will be made to display the changes/modifications in the Offer Document in the form ofa notice in all the Investor Service Centres and distributors/brokers office.(iii) The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slipissued to the investors on submission of the application form and will also be disclosed in the AccountStatement or in the covering letter issued to the Unit holders after the introduction of such Load.

C. FEES AND EXPENSES OF THE SCHEME: As per the provisions of the Regulations (asamended up to date), the following fees and expenses will be chargeable to the Scheme:

1. New Fund Offer Expenses

(a) Present Scheme (Reliance Gold Exchange Traded Fund): The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load andnot through initial issue expenses in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC.

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Reliance Fixed Horizon Fund – Plan A: The scheme was launched on April 7, 2006. As mentioned inthe Offer Document, actual initial issue expenses were borne by the AMC.Reliance Fixed Horizon Fund – Plan B: The scheme was launched on May 25, 2006. As mentioned inthe Offer Document, actual initial issue expenses were borne by the AMC.

Reliance Equity Fund: The scheme was launched on March 28, 2006. Actual amount mobilized was

approx. 5752crores. Actual Initial Issue Expenses – 4.0664 %. As mentioned in the Offer Document,

actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years.Reliance Fixed Tenor Fund - Plan B: The scheme was launched on December 27, 2005. Actualamount mobilized in Plan B - Rs. 163.15 crores.Actual Initial Issue Expenses - 0.9584 %. As mentionedin the Offer Document, actual initial issue expenses were debited to the scheme and will beamortized ona weekly basis over the period of the scheme.

Reliance Fixed Tenor Fund – Plan A: The scheme was launched on November 25, 2005. Actual

amount mobilized in Plan A - Rs. 506.04 crores. Actual Initial Issue Expenses – 0.9584 %. As mentioned

in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized

on a weekly basis over the period of the scheme.

Reliance Tax Saver (ELSS) Fund: The Scheme was launched on July 25, 2005. Actual amount

mobilized – 670.09 crores. Actual Initial Issue Expenses – 4.7009%. As mentioned in the Offer

Document, actual initial issue expenses were debited to the scheme and will be amortized over a period

of 5 years.Reliance Liquidity Fund: The scheme was launched on June 15, 2005. Actual amount mobilized - Rs.462.68 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in the Offer Document, actualinitial issue expenses were debited to the scheme and will be amortized over a period of 5 years.Reliance Regular Savings Fund: The scheme was launched on May 10, 2005. Actual amountmobilized - Rs. 2.035 lakhs. Actual Initial Issue Expenses– 2.457%. As mentioned in the OfferDocument, actual initial issue expenses were debited to the scheme and will be amortized over a periodof 5 years.Reliance Fixed Maturity Fund – Series II: The scheme was launched on April 25, 2005. Actual amountmobilized –530. 46 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in theOfferDocument, actual initial issue expenses were debited to the scheme and will be amortized over aperiod of 5 years.Reliance Index Fund - The scheme was launched on January 29, 2005. Actual amount mobilizedReliance Index Fund - Nifty Plan – Rs. 15.80 crores and in Sensex Plan – Rs. 3.72 crores. Actual Initial

Issue Expenses –Nifty Plan – 0.79% and Sensex Plan – 0.81% of the amount mobilized in therespective plans. As mentioned in the Offer Document of the Reliance Index Fund, actual initial issueexpenses were debited to the scheme and will be amortized over a period of 5 years.Reliance Fixed Maturity Fund Series I - The scheme was launched on March 29, 2005. Actual amountmobilized - Rs. 201.69 crores. Actual Initial Issue Expenses – Nil.Reliance Equity Opportunities Fund - The scheme was launched on February 14, 2005. Actualamount mobilized - Rs. 1772.68 crores. Actual Initial Issue Expenses - 3.1026% of the amountmobilized. As mentioned in the Offer Document of the Reliance Equity Opportunities Fund, actual initialissue expenses were debited to the scheme and will be amortized over a period of 5 years.

Reliance NRI Equity Fund - The scheme was launched on October 16, 2004. Actual amountmobilized - Rs. 92.96 crores. Actual Initial Issue Expenses - 3.39% of the amount mobilized. As

mentioned in the Offer Document of the Reliance NRI Equity Fund, actual initial issue expenses were

debited to the scheme and will be amortized over a period of 5 years.Reliance NRI Income Fund - The scheme was launched on October 16, 2004. Actual amount

mobilized - Rs. 2.03 crores. Actual Initial Issue Expenses - 2.45% of the amount mobilized. Asmentioned in the Offer Document of the Reliance NRI Income Fund, actual initial issue expenses were

debited to the scheme and will be amortized over a period of 5 years.

Reliance Media & Entertainment Fund - The scheme was launched on September 16,2004.Actual amount mobilized - Rs. 81.32 crores, Actual Initial Issue Expenses - 0.86% of the amount

mobilized. As mentioned in the Offer Document of the scheme, actual initial issue expenses weredebited to the scheme and will be amortized over a period of 5 years.

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Reliance Floating Rate Fund - The scheme was launched on August 23, 2004. Actual amount

mobilized - Rs. 590.59 crores, Actual Initial Issue Expenses - 0.02% of the amount mobilized Asmentioned in the Offer Document of the scheme, initial issue expenses were debited to the scheme and

will be amortized over a period of 5 years.

2. Recurring Expenses of the Scheme: The ongoing fees and expenses of operating theScheme on an annual basis, expressed as a percentage of the amount of the Scheme's average daily

net assets, are estimated as follows:

Items % of average daily net assets(estimated)

Plan A Plan B

Investment Management and AdvisoryFees

0.50 0.50

Cost relating to Investorscommunication

0.25 0.25

Custodial Fees 0.50 0.50Registrars Fees & Processing Charges

including stamp duty, if any

0.10 0.10

Licensing Fees 0.01 0.01Listing Fees 0.01 0.01Marketing & Sales Promotion 1.10 1.00Miscellaneous and other charges 0.03 0.03Total 2.50 2.40

The above expenses are estimates only and are subject to change inter se as per actuals.

Subject to SEBI Regulations, the Trustees reserves the right to modify the above estimate for recurringexpenses on a prospective basis.

The schemes estimated ordinary operating expenses are accrued daily commencing after the first day of

the trading of the units on the NSE/BSE and are reflected in the NAV of the scheme.

Fees are paid to the custodian for its custody services. The custodian is entitled to a fee that is accrued

daily at an annual rate of the average daily aggregate value of the gold held in the scheme allocatedaccount payable in monthly installments in arrears.

The AMC will sell gold held by the scheme on an as -needed basis to pay the scheme’s expenses. As a

result, the amount of gold to be sold will vary from time to time depending on the level of the scheme’sexpenses and the market price of gold.

Impact on Scheme Expenses

Each time the scheme’s gold is sold to pay the scheme’s expenses, the amount of gold represented byeach outstanding unit will be reduced. The following table demonstrates the impact of the scheme’santicipated ordinary operating expenses on the NAV of the scheme over a five-year period base on thefollowing assumptions.

A beginning NAV of 95.78 crores based on 10 lakh units issued in exchange of 1000 Kgs of gold at aprice of

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1. Rs. 957.80 per gram.2. No creations or redemptions of baskets over the five-year period.3. All expenses accrued during the periods presented below have been paid as of the end of suchperiods.

Calculation of NAV: Assuming a constant gold price

Year 1 2 3 4 5Gold price pergram

957.80 957.80 957.80 957.80 957.80

Units 1000000.00 1000000.00 1000000.00 1000000.00 1000000.00Grams 1000000.00 996000.00 992016.00 988047.94 984095.74grams/unit 1.0000 0.9960 0.9920 0.9880 0.9841NAV 957800000 953968800 950152924.80 946352313.10 942566903.85

NAV per unit 957.80 953.97 950.15 946.35 942.57AnnualExpenses

Ordinaryoperating exp 3831200.00 3815875.20 3800611.70 3785409.25 3770267.62

Expenses as a% NAV

0.40% 0.40% 0.40% 0.40% 0.40%

Grams of goldsold

4000.00 3984.00 3968.06 3952.19 3936.38

The above calculations are solely for the purpose of understanding of how the expenses will berecovered. The values taken for consideration may undergo changes depending on the actual expensesincurred. The calculations shown above are made assuming a constant price of gold over a period of 5years. In practice, the actual prices of gold may increase or decrease and the NAV of the fund wouldproportionately increase or decrease as compared to the price of 1 gram of gold depending on the cashrepresented by 1 unit.

As per the Regulations, RCAM can charge Investment Management Fees @ 1.25% of the average dailynet assets for a corpus upto Rs.100 crores and 1% on the balance amount above Rs.100 crores,

calculated on a daily basis. However, no AMC fees can be chargeable on RCAM's investment in the

Scheme.

The Trustee Company, RCTC, shall be entitled to receive a sum computed @ 0.05% of the Unit Capital

of all the Schemes of RMF on 1st April each year or a sum of Rs.5,00,000/- which ever is lower or such

other sum as may be agreed upon between the Settlor (RCL) and the Trustee (RCTC) from time to timein accordance with the SEBI Regulations or any other authority, from time to time.

The above estimates have been made in good faith as per the information available to RCAM and aresubject to change as per actuals. Expenses on an ongoing basis will not exceed the following

percentage of the daily average net assets or such maximum limits as may be specified by SEBI

Regulations from time to time.

Net Assets Maximum Expenses %

Upto Rs.100 crores 2.50%

Next Rs. 300 crores 2.25%

Next Rs.300 crores 2.00%

Balance 1.75%

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VIII. UNITHOLDER'S RIGHTS AND SERVICES

A. UNIT HOLDERS' RIGHTS

1) Unit holders under the Scheme have a proportionate right in the beneficial ownership of the assets of

the Plan of the Scheme in which they have invested in, and to the dividend declared, if any, by the Fundunder the Plan in which they have invested.

2) The Trustee shall be bound to make such disclosures to the unit holders as are essential in order tokeep them informed about any relevant information, especially that which may have an adverse bearing

on their investments.

3) a) If the Mutual Fund declares a dividend under the Scheme, the unit holders are entitled to receivedividend warrants within 30 days of the date of declaration of the dividend.

b) Unit holders / Authorised Participants are entitled to receive Redemption cheques within 10 workingdays from the date of redemption.

4) The appointment of RCAM for the Fund may, with the prior approval of SEBI, be terminated by 75%of the unit holders or by a majority of the Board of Directors of the Trustee.

5) Unitholders shall also have the following rights:

(i) To inspect all the documents listed under the heading "Documents Available for Inspection".

ii) To receive an abridged scheme-wise annual report which shall be mailed to all unitholders not later

than six months from the date of closure of the relevant accounting year and the full annual report shallbe available for inspection at the head office of the fund and a copy shall be made available to the

unitholders on request on payment of nominal fees if any,

iii) Before expiry of one month from the close of each half year that is on 31/3 and 30/9, the Fund shallpublish its un-audited financial results in one national English daily newspaper and in a newspaper in the

language of the region where the Head Office of the fund is situated. These shall also be displayed onthe web site of the Reliance Mutual Fund that is www.reliancemutual.com and that of AMFI. Full portfolio

in the prescribed format shall also be disclosed either by publishing it in the newspapers or by sending

to the unitholders within one month from the end of each half-year and it shall also be displayed on theweb site of mutual fund.

iv) The trustees shall ensure that no change in the fundamental attributes of any scheme or the trust orfees and expenses payable or any other change which would modify the scheme and affects the interest

of the unitholders, shall be carried out unless, (i) a written communication about the proposed change is

sent to each unitholder and an advertisement is given in one English daily newspaper having nationwidecirculation as well as in a newspaper published in the language of the region where the Head Office of

the mutual fund is situated; and (ii) the unitholders are given an option to exit at the prevailing Net Asset

Value without any exit load.

(v) Suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund

shall be made applicable only after the approval from the Board of Directors of the Asset Management

Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details

of circumstances and justification for the proposed action shall also be informed to SEBI in advance.vi) Policy for Unclaimed Redemption and Dividend Amount.

As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call

money market or money market instruments only or such other instruments, as permitted under

Regulations. The investors who claim such amounts during the period of three years from the due dateshall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be

transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the

third year. The income earned on such funds shall be used for the purpose of investor education.

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The Fund will make continuous efforts to remind the investors through letters to take their unclaimed

amounts. Further, the investment management fee charged by RCAM for managing unclaimed amountsshall not exceed 50 basis points.

vii) The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and theunitholders approval would be obtained where it affects the interest of unitholders

6) 75% of the unit holders can pass a resolution to wind-up the Scheme

7) The Trustee is obliged to convene a meeting on a requisition of 75% of the unit holders of a Scheme

8) The Trustee is obliged to obtain the consent of the unit holders -

(a) Whenever required to do so by SEBI in the interest of the unit-holders; or

(b) Whenever required to do so on the requisition made by three-fourths of the unit holders of theScheme; or

(c) When the majority of the Board of Directors of the Trustee decides to wind up or prematurely

redeem the units.

B. Register of Unit holders : A Register of Unit holders shall be maintained at the office of RCAM

and / or at the office of the Registrars and at such other places as the Trustee may decide and theregister shall contain particulars as follows:

a) The names and addresses of Unit holdersb) The number of units held by each such holder

C. VOTING RIGHTS OF THE UNIT HOLDERS: Subject to the provisions of the Regulations asamended from time to time, the consent of the unit holders shall be obtained, entirely at the option of theTrustee, either at the meeting of the unit holders or through postal ballot. Only one Unit holder in respect

of each folio or account representing a holding shall vote and he shall have one vote per unit in respectof each resolution to be passed.

D. Dispatch of Account Statement / Unit Certificate: All the applicants whose subscriptionproceeds have been realised will receive full and firm allotment of Units, provided their applications arevalid in all other respects. RCAM retains the discretion to reject any application.? For subscriptions received during New Fund Offer:

The process of allotment of units and mailing of account statement will be completed within

30 days from the date of closure of the new fund offer period.

? For Regular Transactions during continuous offer:An Account Statement will be despatched to each Unitholder stating the number of Unitsheld, etc. within a maximum of thirty days from the date of Allotment or as prescribed underSEBI regulations. Also, an Account Statement reflecting the net balance and value of unitsshall be despatched to the unitholders who have not transacted during the last six monthsprior to the date of generation of account statement, alongwith the Annual Report.

? For Systematic Investment Plan(SIP) transactions :The first Account Statement will be despatched to each Unitholder stating the number ofUnits held, etc. within a maximum of ten working days from the date of allotment. For furthertransactions, account statements will be despatched to the unitholders within 10 working

days of the end of calendar quarter. The unitholders can get the account statement (withoutany charges) within 5 working days, by sending a specific request. However, a soft copy ofthe account statement will be mailed to the investors on a monthly basis, in lieu of physicalstatement, if mandated by the unitholder.

? RefundsNo interest will be payable on any subscription money refunded within six weeks from the date of closure of

the New Fund Offer. . In the event of the AMC’s failure to refund within the period stipulated above, interest @15% p.a. will be paid to the applicant from the 43rd day of the date of closure of the New Fund Offer to the date

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of refund and borne by the AMC. Refund orders will be marked "A/c. payee only" and drawn in the nameof the applicant in the case of a sole applicant and in the name of the first applicant in all other cases. Inboth cases, the bank account number and bank name, as specified in the application, will be mentionedin the refund order. The bank and/ or collection charges, if any, will be borne by the applicant. All therefund payments will be mailed by registered post or as required under Regulations.

In the case of holdings specified as 'jointly', all requests will have to be signed by all the joint holders.However, in the case of holdings specified as 'any one or survivor', any one of the joint holders may signsuch requests.

E. NAV INFORMATION: The NAV of the Scheme will be calculated and declared by the Fund on

every Working Day by 9.00 p.m.. The information on NAV may be obtained by the Unitholders, on anyday from the office of the AMC / the office of the Registrar in Hyderabad or any of the other DesignatedInvestor Service Centres.

The NAV shall be published in two daily newspapers on a daily basis. The NAV shall be calculated up tofour decimals.

Investors may also obtain information on the purchase /sale price for a given day on any Working Dayfrom the office of the AMC / the office of the Registrar in Hyderabad/ any of the other DesignatedInvestor Service Centres.

For any NAV information, investor may also call Reliance Mutual Fund’s Call centre at 022 -3030 1111,

callers outside India, please dial +(91) 22-30301111.

F. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS: The Scheme-wise

Annual Report of RMF will be prepared and an abridged summary of the Annual Report will bepublished through an advertisement and mailed to all unitholders as soon as may be but not later thansix months from the date of the closure of the relevant financial year.

The Unaudited financial results will be published through an advertisement in one English daily

newspaper circulating in the whole of India and in a newspaper published in the language of the regionwhere the Head Office of the Mutual Fund is situated before the expiry of one months from the close of

each half year, that is on 31st March and on 30th September or as may required by the Regulationsfrom time to time. The scheme’s portfolio in the prescribed format as per SEBI guidelines, will bepublished through an advertisement in one English daily newspaper circulating in the whole of India andin a newspaper published in the language of the region where the H.O. of Mutual Fund is situated beforethe expiry of one month from the close of each half year i.e. 31st March and 30th September or send acopy of the same to all eligible unitholders.

Investor may also call our Touchbase customer service centre at 3030 1111, callers outside India,

please dial 91-022-30301111.

G. SERVICES TO UNIT HOLDERS:

1. Investor Services: It is the endeavour of the Fund to provide consistently high quality service to

its investors. This would encompass all interactions by the unitholder / Investor with the Fund. The Fundwill strive to upgrade the quality of services through implementation of technology, through ensuring

quality consciousness amongst its service personnel and agencies associated with it.

The Fund will endeavour to provide a high degree of convenience for the investors' dealings with itself.The Fund will strive to constantly increase this level of convenience.

2. Facilitating Enquiries and Transactions: Unitholders' enquiries and transactions duringbusiness hours will be entertained at the office of the AMC / the office of the Registrar in Hyderabad orany of the other Designated Investor Service Centre.

3. Finding Solutions to Problems: The Fund will follow up with the Registrar on complaints andenquiries received from investors. The Fund will strive to speedily resolve investor complaints.

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4. Unitholder Grievances Redressal Mechanism: Investor grievances will normally bereceived at the Corporate Office of the AMC or at the head office of the Registrar. All grievancesreceived at the AMC, will then be forwarded to the Registrar, if required, for necessary action. Thecomplaints will be closely followed up with the Registrar to ensure timely redressal and prompt investorservice.Mr. Prashanth Pereira is the Investor Relations Officer for the Fund. All related queries should beaddressed to him at the following address:

Mr. Prashanth PereiraReliance Capital Asset Management LimitedExpress building, 4

thfloor, Opp. Churchgate Station, Mumbai - 400020

Tel: 022-30414800 ; Fax: 022-30414818Email: [email protected]

5. Correspondence : All correspondence, including change in the name, address, designated bankaccount number and bank branch, loss of Account Statement / Unit Certificates, etc. should be

addressed to M/s. Karvy Computershare Private Limited - UNIT RMF , Karvy Plaza, 21, Road No. 4,Street No.1, Banjara Hills, Hyderabad 500 034. (Tel No. 040- 23394828). For any further information,you may send us an E-mail to : [email protected] or contact Touchbase ourcustomer service centre at 30301111, callers outside India, Please dial 91-40-30301111.

6. Investors' Complaints History : Reliance Mutual Fund mails to its Investors their AccountStatement not later than one month from the date of the closure of the New Fund Offer period and withinten working days or within SEBI prescribed limits on an ongoing basis. Since then RMF has received,either directly or through its Registrars, some complaints / requests, the bulk of which pertain to non-receipt of Account Statement or correction of Name or Address etc. RMF works closely with its Registrarto provide prompt service to its Investors and has been able to attend to most standard complaintswithin normal response times. The status of complaints relating to RMF Schemes received upto October16, 2006 is given below:

Schemes Period Complaints

Received

Complaints

Redressed

Complaints

Pending

RelianceGrowth Fund

2003-20042004-2005

2005-2006April 1, 06 – Oct 16, 06

118693

19702090

118693

19702090

NilNil

NilNil

RelianceVision Fund

2003-20042004-20052005-2006April 1, 06 – 16 Oct, 06

283103314051506

283103314051506

NilNilNilNil

RelianceIncome Fund

2003-20042004-20052005-2006April 1, 06 – 16 Oct, 06

20339215773

20339215773

NilNilNilNil

RelianceLiquid Fund

2003-20042004-20052005-2006

April 1, 06 – 16 Oct, 06

2611059

57

2611056

57

NilNilNil

NilRelianceMedium TermFund

2003-20042004-20052005-2006April 1, 06 – 16 Oct, 06

513226833

513226833

NilNilNilNil

Reliance ShortTerm Fund

2003-20042004-20052005-2006April 1, 06 – 16 Oct, 06

7441718

7441718

NilNilNilNil

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Reliance FixedTerm scheme

2003-20042004-20052005-2006April 1, 06 – 16 Oct, 06

11113516

11113516

NilNilNilNil

RelianceBanking Fund

May 03- 31 March, 20042004-2005

2005-2006April 1, 06 – 16 Oct, 06

123

372365

123

372365

NilNil

NilNilReliance GiltSecuritiesFund

June 03- 31 March, 20042004-20052005-2006April 1, 06 – 16 Oct, 06

44Nil1

44Nil1

NilNilNilNil

RelianceMonthlyIncome Plan

Jan 04 - 31 March, 20042004-20052005-2006April 1, 06 – 16 Oct, 06

475815422282

475815422282

NilNilNilNil

RelianceDiversifiedPower SectorFund

March 04 - 20052005-2006April 1, 06 – 16 Oct, 06

9171285806

9171285806

NilNilNil

ReliancePharma Fund

May 04 – 31 March, 20052005-2006April 1, 06 – 16 Oct, 06

352305112

352305112

NilNilNil

RelianceFloating RateFund

August 04 – 31 March, 20052005-2006April 1, 06 – 16 Oct, 06

114074

114074

NilNilNil

RelianceMedia &EntertainmentFund

September 04 – 31 March, 20052005-2006April 1, 06 – 16 Oct, 06

505145

505145

NilNilNil

RelianceEquity

OpportunitiesFund

Feb05 – 31,March, 2005

2005-2006April 1, 06 – 16 Oct, 06

Nil

49151815

Nil

49151815

Nil

NilNil

Reliance NRIEquity Fund

November 04 – 31 March, 20052005-2006April 1, 06 – 16 Oct, 06

11035769

11035769

NilNilNil

Reliance NRIIncome Fund

November 04 – 31 March, 20052005-2006April 1, 06 – 16 Oct, 06

16NilNil

16NilNil

NilNilNil

Reliance IndexFund – NiftyPlan

Jan2005 – 31,March20052005-2006April 1, 06 – 16 Oct, 06

124

124

NilNilNil

Reliance IndexFund – Sensex

Plan

April 1, 06 – 16 Oct, 06 1 1 1

Reliance FixedMaturity Fund – Series I

Feb05 – 31,March, 20052005-2006April 1, 06 – 16 Oct, 06

Nil2Nil

Nil2Nil

NilNilNil

Reliance FixedMaturity Fund – Series II

2005-2006April 1, 06 – 16 Oct, 06

312

312

NilNil

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Reliance TaxSaver Fund

2005-2006April 1, 06 – 16 Oct, 06

24301709

24301709

NilNil

RelianceRegularSaving EquityFund

2005-2006April 1, 06 – 16 Oct, 06

122310

122310

NilNil

RelianceLiquidity Fund

2005-2006April 1, 06 – 16 Oct, 06

NilNil

NilNil

NilNil

RelianceRegularSaving DebtFund

2005-2006April 1, 06 – 16 Oct, 06

13

13

NilNil

RelianceRegularSaving HybridFund

2005-2006April 1, 06 – 16 Oct, 06

616

616

NilNil

Reliance Fixed

Tenor Fund – Plan A

2005-2006

April 1, 06 – 16 Oct, 06

10

10

10

10

Nil

Nil

Reliance FixedTenor Fund-Plan B

2005-2006April 1, 06 – 16 Oct, 06

11

11

NilNil

RelianceEquity Fund

2005-2006April 1, 06 – 16 Oct, 06

Nil9539

Nil9539

NilNil

Please note that 210 complaints were received through SEBI from April 1, 2003 to October 16, 2006 andthe same were duly resolved.

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IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND:

The certain tax benefits are available to the Mutual Fund and the Unit holders as mentioned hereinafter.

It may however be noted that the information given herein is only for general information

purposes, as per the Tax laws currently in force in India. As is the case with any interpretation ofany law, there can be no guarantee that the tax position or the proposed tax position prevailing

at the time of an investment in the Scheme will be accepted by the tax authorities or will continue

to be accepted by them indefinitely.

Further statements with regard to tax benefits mentioned herein below are mere expressions of

opinion and are not representations of the Mutual Fund to induce any investor to acquire units

whether directly from the Mutual Fund or indirectly from any other persons by the secondary

market operations. In view of the above, and since the individual nature of tax consequences

may differ in each case on its merits and facts, each Investor / Unit holder is advised to consult

his / her or its own professional tax advisor with respect to the specific tax implications arising

out of its participation in the Scheme, as a unit holder.

In view of the above, it is advised that the unit holders appropriately consult their investment /

tax advisors in this regard.

Tax Benefits to the Mutual Fund :

Reliance Mutual Fund is a Mutual Fund registered with the Securities & Exchange Board of India and

hence the entire income of the Mutual Fund will be exempt from income tax in accordance with theprovisions of Section 10(23D) of the Income-tax Act, 1961, (the Act). The Mutual Fund will receive all

income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.

An exemption has been granted under the Finance (No.2) Act, 2004 to open ended equity orientedmutual funds from paying distribution tax on income distributed without any time limit, effective from 1

April 2004.However, as per the taxation laws in force, read with Chapter VII of the Finance (No. 2) Act, 2004

pertaining to Dividend Distribution Tax, it is provided that on income distribution, if any, made by theFund, on or after 1 April, 2004, to its Unitholders, being Individuals and Hindu Undivided Family,Dividend Distribution tax will be payable under Section 115R of the Act, at the rate of 14.025 %(inclusive of surcharge and additional surcharge called Education Cess on income-tax), and to otherUnitholders at the rate of 22.44% (inclusive of surcharge and additional surcharge called EducationCess on income-tax), except, inter alia, in the case of equity-oriented funds (including close endedequity funds)(i.e. such fund where the investible funds are invested by way of equity shares in domesticcompanies to the extent of more than 65% of the total proceeds of such Fund), where no such tax willbe payable.

The RGETF is categorized as a scheme other than equity oriented mutual fund scheme.

"Equity oriented fund" is defined as -

• a fund where the investible funds are invested by way of equity shares in domestic companies to theextent of more than sixty five percent of the total proceeds of such fund; and• which has been set up under a scheme of a Mutual Fund specified in Section 10 (23D) of the Act.RGETF is classified as a Scheme other than Equity Oriented Mutual Fund Scheme. Hence, SecuritiesTransaction Tax is not applicable in respect of RGETF.

By virtue of section 45 of the Wealth Tax Act, 1957, wealth tax is not chargeable in respect of net wealthof a Mutual Fund registered under section 10(23D) of the Income Tax Act, 1961, hence Reliance MutualFund is not liable to pay Wealth Tax under the provisions of the Wealth Tax Act, 1957.

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TAX BENEFITS TO THE UNITHOLDERS:

(i). Income-tax

Tax on Income distributed by the Mutual Fund

All Unit holders

Income received by unit holders in respect of the units of the Mutual Fund, is exempt from tax underSection 10(35) of the Act.

Tax Deduction at Source

All Unit holders

In view of the exemption of income in the hands of the Unit holders, no income tax is deductible atsource, on income distribution by the Mutual Fund on or after April 1, 2003, under the provisions of

Sections 194K and 196A of the Act.

As per section 196B of the Act, tax is required to be deducted at the rate of 11.22 per cent (inclusive of

surcharge on income-tax at the rate of 10 per cent and an additional surcharge by way of education

cess at the rate of 2 per cent on the amount of tax inclusive of surcharge) from income payable in

respect of units purchased in foreign currency to approved overseas financial organizations.

(ii) Tax on Capital Gains

Long-term Capital Gains on redemption of units: Long-term capital gains in respect of units, held fora period of more than 12 months, will be chargeable under Sec. 112 of the Act, at the rate of 20 per

cent. However, where the tax payable on such long-term capital gains, computed before indexation,

exceeds 10% of the amount of capital gains, such excess tax shall not be payable by the unit holder.

In case of resident individuals and HUFs, where the total income as reduced by long-term capital gains,

is below the basic exemption limit, the long-term capital gains will be reduced to the extent of theshortfall and only the balance long-term capital gains will be subjected to the 20 per cent tax or the 10

per cent as the case may be.

The said tax rate would be increased by a surcharge of 10 per cent in case of non-corporate unit holdersexcluding firms, where the total income exceeds Rs. 10,00,000. In the case of firms and corporate unit

holders, the 10 per cent surcharge is payable irrespective of the amount of taxable income. Further, an

additional surcharge of 2 per cent by way of education cess would be charged on amount of taxinclusive of surcharge.

Short-term Capital Gains on redemption of units: : Short-term capital gains in respect of units held fornot more than 12 months is added to the total income of the assessee and taxed at the applicable slab

rates specified by the Act.

Foreign Institutional Investors: Long-term capital gains arising on sale/repurchase of units, held for aperiod of more than twelve months, would be taxed at the rate of 10 per cent under Section 115AD of

the Act (subject to the exemption of tax on long-term capital gains provided for in Sec. 10(38) of the Act,discussed elsewhere in this document) . The said tax rate would be increased by a surcharge of 2.5 per

cent. Further, an additional surcharge of 2 per cent by way of education cess would be charged onamount of tax inclusive of surcharge. Such gains would be calculated without inflation index andcurrency fluctuations.

Short-term capital gains arising on sale/repurchase of units would be taxed at 30 per cent (10% if such

short term capital gains is of the nature referred in section 111A of the Act, discussed elsewhere in thisdocument). The said applicable tax rate would be increased by 2.5 per cent surcharge. Further, an

additional surcharge of 2 per cent by way of education cess would be charged on amount of tax

inclusive of surcharge.

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Specified overseas financial organizations: As per the provisions of section 115AB of the Act, long-

term capital gains arising on sale/repurchase of units purchased in foreign currency shall be liable to taxat the rate of 10 per cent. The said tax rate would be increased by 10% per cent surcharge. Further,

an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax

inclusive of surcharge. However, such gains shall be computed without the benefit of cost indexation.

Short-term capital gains arising on sale/repurchase of units would be taxed at 40 per cent in case of

foreign companies and 30 per cent in case of others. The said tax rate would be increased by applicablesurcharge of 10 per cent in case of non-corporate Unit holders excluding firms, where the total income

exceeds Rs. 10,00,000 . The 10 per cent surcharge is payable in the case of domestic corporate Unit

holders irrespective and firms of the amount of taxable income. In the case of foreign corporates the rateof surcharge would be 2.5% Further, an additional surcharge of 2 per cent by way of education cess

would be charged on amount of tax inclusive of surcharge.

Tax Treaty : In the case of a non-resident unit holder who is resident of a country with which India has

signed a Double Taxation Avoidance Agreement (DTAA), (which is in force), income tax is payable atthe rate provided in the Act or at the rate provided in the such agreement, whichever is more beneficial

to such non resident unit holder.

In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required toprovide a certificate from his Assessing Officer stating his eligibility for the lower rate.

Dividend Stripping

All Unit holders : As per Section 94(7) of the Act, loss arising on sale of Units, which are bought within

3 months prior to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlementof the Unit holders to receive the income) and sold within 9 months after the record date, shall be

ignored for the purpose of computing income chargeable to tax to the extent of exempt income received

or receivable on such Units.

Tax Deduction at Source on Capital Gains

Domestic Unit holders: No income tax is deductible at source from income by way of capital gainsunder the provisions of the Act.

Foreign Institutional Investors : Under Section 196D of the Act, no deduction shall be made from any

income by way of capital gains, in respect of transfer of units referred to in Section 115AD of the Act.

Specified overseas financial organizations : As per section 196B of the Act, income tax is deductible

on long-term capital gains on units of debt oriented mutual funds arising on repurchase of unitspurchased in foreign currency, at the rate of 10 per cent. The said tax rate would be increased by

applicable surcharge of 2.5% per cent in case of corporate Unit holders irrespective of the amount of

taxable income. Further, an additional surcharge of 2 per cent by way of education cess would becharged on amount of tax inclusive of surcharge.

Income tax is deductible on short-term capital gains arising on sale / repurchase of units at the rate of 40per cent plus applicable surcharge at the rate of 2.5 per cent in case of foreign companies. Further, an

additional surcharge of 2 per cent by way of education cess would be deducted on amount of tax

inclusive of surcharge

Other Non-resident Unit holders :In the case of a non-resident other than a company:

Income tax is deductible on long-term capital gains arising on sale / repurchase of units of debt oriented

mutual funds at the rate of 20 per cent.

Income tax is deductible on short-term capital gains arising on sale / repurchase of units of debt oriented


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The above tax rates would be increased by a surcharge of 10 per cent, where the total income exceeds

Rs. 10,00,000. Further, an additional surcharge of 2 per cent by way of education cess would becharged on amount of tax inclusive of surcharge.

In the case of a foreign company: Income tax is deductible on long-term capital gains arising onrepurchase of units of debt oriented mutual funds at the rate of 20 per cent.

Income tax is deductible on short -term capital gains arising on sale / repurchase of units debt oriented


The above tax rates would be increased by a surcharge of 2.5 per cent. Further, an additional surcharge

of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge.

Tax Treaty: In accordance with the provisions of Circular no.728 dated October 30, 1995 issued by theCentral Board of Direct Taxes ('CBDT'), in case of a non resident unit holder who is a resident of a

country with which India has signed a Double Taxation Avoidance Agreement (DTAA) which is in force,

the tax should be deducted at source under section 195 of the Act at the rate provided in the FinanceAct of the relevant year or the rate provided in the said agreement, whichever is more beneficial to such

non-resident unit holder.

In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required to

provide a certificate from his Assessing Officer stating his eligibility for the lower rate.

Exemptions from long-term capital gains

I. As per the provisions of section 54EC of the Act, long-term capital gains on units of non –equity

oriented mutual funds shall be exempt from tax to the extent such capital gains are invested,within a period of six months of such transfer, in acquiring notified bonds. However, if the said

bonds are transferred within a period of 3 years from the date of their acquisition, the amount of

capital gains exempted earlier would become chargeable to tax as long-term capital gains in theyear in which the bonds are transferred.

II. As per the provisions of Sec 54F of the Act in the case of an individual or a HUF, long-term

capital gains on non-equity oriented mutual funds are not chargeable to tax if the entire netconsideration received on such transfer is invested within the prescribed period in a residential

house. If part of such net consideration is invested within the prescribed period in a residentialhouse, then proportionate exemption is available.

Other Benefits : Investments in Units of the Mutual Fund will rank as an eligible form of investment

under Section 11 (5) of the Act read with Rule 17C of the Income-tax Rules, 1962, for Religious and

Charitable Trusts.(ii). Wealth-tax: Units held under the respective Plans are not treated as assets as defined under

Section 2(ea) of the Wealth-tax Act, 1957 and thereof would not liable to wealth-tax. However,converting RGETF units to Gold may attract Wealth tax. The investor will have to bear the incidences oftaxes/levies/charges as applicable form time to time while redeeming physical gold bars.

(iii). Gift-tax: The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998.Gifts of Units, purchased under the respective Plans, would therefore, be exempt from gift-tax. The tax

benefits to the Mutual Fund and Unit Holders is in accordance with the prevailing tax laws.

EACH INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX CONSULTANT

WITH RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISING OUT OF HIS OR HER

PARTICIPATION IN THE SCHEME.

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X. CONDENSED FINANCIAL INFORMATION

Historical Per UnitStatistic Reliance Monthly Income Plan Reliance Floating Rate Fund

Date of allotment 13-Jan-04 02-Sep-04

2004-2005

2005-2006

April

01,2006 toOctober

16,2006

Sept 2,

2004 toMar. 31,

2005

2005-2006

April

01,2006 toOctober

16,2006

NAV At The Beginningof the period

Growth Plan 10.1318 10.6687 12.6023 10.0044 10.2963 10.8775

Bonus Plan N.A N.A N.A 10.0044 N.A N.A

Dividend Plan N.A N.A N.A 10.0044 N.A N.A

Daily Dividend Plan N.A N.A N.A N.A 10.0447 10.0635

Weekly Dividend Plan N.A N.A N.A N.A 10.0668 10.0782

Monthly Dividend Plan 10.1318 10.2073 11.1954 N.A 10.0687 10.1138

Quarterly Dividend Plan 10.1318 10.1692 11.4266 N.A N.A. N.A.

Net Income Per Unit 1.13 0.81 0.71 0.45 1.34 0.24

Dividends:

Monthly Dividend plan 0.32 0.80 0.37 0.15 0.51 0.30

Quarterly Dividend Plan 0.24 0.55 0.50 N.A N.A N.A

Daily Dividend Plan N.A N.A N.A N.A 0.53 0.36

Weekly Dividend Plan N.A N.A N.A N.A 0.52 0.35

Dividend (Re Investment)Plan N.A N.A N.A N.A N.A N.A

Institutional MonthlyDividend Plan N.A N.A N.A N.A N.A N.A

Transfer To Reserve (ifAny) Nil Nil Nil Nil Nil Nil

NAV at the End of thePeriod

Growth Plan 10.6687 12.6013 13.4905 10.2963 10.8757 11.2681

Monthly Dividend plan 10.2073 11.1945 11.6038 10.0687 10.1121 10.1691

Quarterly Dividend Plan 10.1692 11.4256 11.7227N.A N.A N.A

Bonus Plan N.A N.A N.A N.A N.A N.ADividend Re-InvestmentPlan N.A N.A N.A N.A N.A N.A

Daily Dividend Plan N.A N.A N.A 10.0447 10.0636 10.0618

Weekly Dividend Plan N.A N.A N.A 10.0668 10.0894 10.0830

Dividend Plan N.A N.A N.AN.A N.A N.A

Institutional – Dividend N.A N.A N.AN.A N.A N.A

Institutional – Growth N.A N.A N.AN.A N.A N.A

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Returns in (%) 5.51% 11.75% 12.65% 2.96% 5.56% 5.98%

Benchmark Returns in(%) 1.64% 2.39%

Crisil MIP Blended Index Crisil Liquid Fund Index

Net Assets at the end of

the period (Rs. In Crs.) 250.91 345.82 454.08 557.96 306.69 753.67Ratio of Recurringexpenses to Net Assets(%) 1.79% 2.00% 2.00% 0.53% 0.55% 0.55%

Historical Cost PerUnit Statistic RELIANCE REGULAR

SAVING FUND - DEBT

RELIANCE REGULARSAVING FUND -

EQUITY

RELIANCEREGULAR SAVING

FUND - HYBRID

Date of allotment 09-Jun-05

2005-2006

April

01,2006 to

October16,2006

2005-

2006

April

01,2006 to

October16,2006

2005-2006

April

01,2006to

October16,2006

NAV At TheBeginning of the

period

Growth Option 10.0275 10.2799 10.0242 11.8612 10.0269 10.3049


Dividend:

Dividend Plan NIL NIL NIL NIL NIL NIL

Transfer to Reserve (ifany) NIL NIL NIL NIL NIL NIL

NAV at the End ofperiod

Growth Option 10.2787 10.4201 11.8619 14.5564 10.3040 11.3098

Returns in (%) 2.79% 3.10% 18.62% 33.67% 3.04% 9.68%

Benchmark Returnsin (%)

Net Assets at the endof the period (Rs in

Crs.) 0.57 1.27 30.20 109.78 1.82 2.11

Ratio of Recurringexpenses to NetAssets (%) 1.75% 1.75% 2.50% 2.50% 2.25% 2.25%

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Historical Per Unit Statistic RELIANCE LIQUIDITY FUND

Date of allotment 16-Jun-05

June 16, 2005 to March

31,2006

April 01,2006 to October

16,2006

NAV At The Beginning of theperiod

Growth Plan 10.0014 10.4599

Bonus Plan NA NA

Daily Dividend Plan 10.0000 10.0049

Weekly Dividend Plan 10.0014 10.0037

Monthly Dividend Plan

Net Income Per Unit 0.28 0.37

Dividends:



Monthly Dividend Plan 0.17 0.15

Transfer To Reserve (if Any) Nil Nil

NAV at the End of the Period

Growth Plan 10.4581 10.8417

Bonus Plan NA NA



Monthly Dividend Plan - 10.6901

Returns in (%) 4.58% 6.31%

Benchmark Returns in (%)

Crisil Liquid Fund IndexNet Assets at the end of theperiod (Rs. In Crs.) 3,003.41 5,253.95

Ratio of Recurring expenses toNet Assets (%) 0.40% 0.40%

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Historical Cost Per

Unit Statistic

Reliance Diversified Power Sector

Fund

Reliance Pharma Fund

Date of allotment 30-Apr-04 06-Jun-04

April 2004-2005

2005-2006

April

01,2006 toOctober

16,2006

Jun 2004to Mar 31,

2005

2005-2006

April01,2006

to

October16,2006

NAV At TheBeginning of the

period

Growth Option 10.0404 14.3074 30.0713 10.0048 12.1514 19.9698

Bonus Option 10.0404 14.3079 30.0713 10.0048 12.1513 19.9698

Dividend Plan 10.0404 14.3085 24.8703 10.0048 12.1515 18.7890


Dividend:

Dividend Plan NIL 4.00 NIL NIL 1.00 NIL

Transfer to Reserve(if any) NIL NIL NIL NIL NIL NIL


Growth Option 14.3074 30.0716 30.4986 12.1514 19.9708 19.3768

Bonus Option 14.3079 30.0716 30.4986 12.1513 19.9708 19.3768

Dividend Plan 14.3085 24.8706 25.2386 12.1515 18.7899 18.2328

Returns in (%) 43.07% 104.66% 83.23% 21.51% 54.89% 39.70%

BenchmarkReturns in (%) 9.54%

India Power Index BSE Health CareIndex

Net Assets at theend of the period

(Rs in Crs.) 317.15 702.14 678.09 145.48 146.19 118.19


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Historical Cost Per Unit Statistic Reliance Media & Entertainment Fund

Date of allotment 07-Oct-04

Oct 2004 to Mar 31,2005 2005-2006

April 01,2006 to

October 16,2006

NAV At The Beginning of the

period

Growth Option 10.008 10.3457 18.9787

Bonus Option 10.008 10.2461 18.9787

Dividend Plan 10.008 10.3469 17.7748

Net Income Per Unit 0.4 6.82 1.65

Dividend:

Dividend Plan NIL 1.00 NIL

Transfer to Reserve (if any) NIL NIL NIL

NAV at the End of period

Growth Option 10.3457 18.9796 20.0178

Bonus Option 10.2461 18.9796 20.0178

Dividend Plan 10.3469 17.7756 18.7384

Returns in (%) 3.46% 60.70% 49.48%


S&P CNX Media & Entertainment Index

Net Assets at the end of the

period (Rs in Crs.) 20.44 38.00 37.83

Ratio of Recurring expenses toNet Assets (%) 2.26% 2.23% 2.23%

Historical Cost PerUnit Statistic Reliance NRI Equity Fund Reliance NRI Income Fund

Date of allotment 16-Nov-04 16-Nov-04

Nov 2004to Mar 31,

2005

2005-2006

April

01,2006to

October16,2006

Nov 2004to Mar 31,

2005

2005-2006

April

01,2006to

October16,2006

NAV At The Beginning

of the period

Growth Option 10.0295 11.3381 18.7857 10.0234 10.1701 10.6211

Bonus Option 10.0295 11.3381 18.7857 10.0234 N.A N.A

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Dividend Plan 10.0295 11.3381 18.7857 10.0234 10.1942 10.6211


Dividend:

Dividend Plan NIL NIL 1.00 NIL NIL NIL



Growth Option 11.3381 18.7868 23.4989 10.1701 10.6196 10.9919

Bonus Option 11.3381 18.7868 23.4989 N.A N.A N.A

Dividend Plan 11.3381 18.7868 22.2733 10.1942 10.6196 10.9919

Returns in (%) 13.38% 64.14% 70.49% 1.94% 4.52% 5.18%

Benchmark Returnsin (%) 9.23% 3.12%

BSE 200 Index Composite Bond Fund

IndexNet Assets at the end

of the period (Rs inCrs.) 88.88 104.80 113.80 2.29 1.35 1.06

Ratio of Recurringexpenses to Net

Assets (%) 2.50% 2.47% 2.47% 1.53% 1.49% 1.49%

Historical Cost PerUnit Statistic

Reliance Index Fund – SensexPlan

Reliance Index Fund – Nifty Plan

Date of allotment 08-Feb-05 08-Feb-05

Feb2005 to

Mar 31,2005

2005-

2006

April01,2006 to

October16,2006

Feb 2005to Mar 31,

20052005-2006

April01,2006 to

October16,2006

NAV At The Beginningof the period

Growth Option 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658

Bonus Option 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658

Dividend Plan 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658


Dividend:

Dividend Plan NIL NIL NIL NIL NIL NIL


NAV at the End of period

Growth Option 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

Bonus Option 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

Dividend Plan 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

Returns in (%) -1.99% 62.33% 54.27% -1.17% 38.32% 31.28%

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Benchmark Returns in(%) -0.0156 -1.93%

BSE Index NSE Index

Net Assets at the endof the period (Rs in

Crs.) 0.85 1.57 3.71 2.15 1.20 1.15


Historical Cost PerUnit Statistic

Reliance Equity OpportunityFund

Reliance Tax Saver(ELSS) Fund

RelianceEquity Fund

Date of allotment 31-Mar-05 22-Sep-05 28-Mar-06

Mar-052005-2006

April01,2006 to

October

16,2006

Sep22,2005

to March

31,2006

April01,2006 to

October

16,2006

Mar28,2006

to March

31,2006

April01,2006

toOctober

16,2006NAV At The

Beginning of theperiod

Growth Option 9.9382 9.9382 18.4769 9.95 13.34 10.10 10.16

Bonus Option 9.9382 9.9382 18.4769 NA NA 10.10 10.16

Dividend Plan 9.9382 9.9382 18.4769 9.95 13.34 10.10 10.16

Net Income PerUnit 0.02 2.83 2.45 0.86 0.59 0.02 -0.03

Dividend:

Dividend Plan NIL NIL 1.00 NIL NIL NIL NILTransfer to Reserve(if any) NIL NIL NIL NIL NIL NIL NIL


Growth Option 9.9382 18.4779 19.2547 13.34 13.08 10.16 10.91

Bonus Option 9.9382 18.4779 19.2547 NA NA 10.16 10.91

Dividend Plan 9.9382 18.4779 18.0687 13.34 13.08 10.16 10.91

Returns in (%) -2.53% 84.78% 59.89% 33.40% 28.81% 1.60% 9.10%

Benchmark

Returns in (%)

BSE 200 IndexNet Assets at theend of the period

(Rs in Crs.) 1761.59 2,338.80 2,056.63 1,196.31 1,280.04 5,820.10 5,390.07

Ratio of Recurringexpenses to NetAssets (%) 1.92% 1.89% 1.88% 2.06% 1.99% 1.76% 1.76%

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- Institutional Growth 1.21%


Net Assets at end of the period (Rs.

Cr.) 547.00 321.84

Ratio of Recurring

Expenses to Net Assets (%) 0.10% 0.10%

Historical Cost Per UnitStatistic

RELIANCE FXDHORIZON QP 1 -SR 1

RELIANCE FIXEDHORIZON FUND 1 AP

SER 2

RELIANCE FIXEDHORIZON FUND 1 MP

SER 1

Date of allotment 25-Sep-06 27-Sep-06 09-Oct-06

September 25,2006 toOctober 16,2006

September 27,2006 toOctober 16,2006

October 09,2006 toOctober 16,2006

NAV at the beginning ofthe period (Rs.)

Growth Plan 10.0018 N.A 10.0019

Dividend Plan 10.0018 N.A 10.0019

Retail Growth Plan N.A 9.9912 N.A

Retail Dividend Plan N.A 9.9912 N.A

Institutional Growth N.A 9.9912 N.A

Institutional Dividend N.A N.A N.A

Transfer to Reserve (If Any)

Net Income Per Unit 0.04 0.04 0.02

Total Dividends paid perunit during the period *(Rs.)

Dividend Plan N.A N.A N.A

Retail Dividend Plan N.A N.A N.A


NAV at the end of the

period

Growth Plan 10.0448 N.A 10.0153

Dividend Plan 10.0448 N.A 10.0153

Retail Growth Plan N.A 10.0345 N.A

Retail Dividend Plan N.A 10.0345 N.A

Institutional Growth N.A 10.0345 N.A


Returns in (%) - Growth 0.45% 0.15%

- Retail Growth 0.34%

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- Institutional Growth 0.34%

Benchmark Returns in(%)

Net Assets at end of theperiod (Rs. Cr.) 555.50 331.85 939.49

Ratio of RecurringExpenses to Net Assets

(%) 0.02% 0.07% 0.10%

Note : The details of Historical Per Unit Statistics of Reliance Fixed Maturity Fund, the close-endedincome schemes have been published for only those plans which are in operation as on October 16,2006 (Yet to be redeemed/matured)

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3. Brokerage, Commission Paid.

The Mutual Fund has paid the following brokerage to the associate Companies of the AMC.

Year

Business Given

(Rs. in lacs)

Brokerage paid

(Rs. in lacs)

% of Brokerage

Commission

2001 – 2002 5.32 0.005 0.01

2002 - 2003 27,842.63 1.01 0.0036

2003 - 2004 37,249.65 1.50 0.0040

2004 - 2005 NIL NIL NIL

2005 - 2006 NIL NIL NIL

April 1, 2006 to

October 16, 2006NIL NIL NIL

4. Distribution of Units : Mutual Fund has availed services of associate companies of theSponsor/AMC and paid the following brokerage for distribution of Units.

Name of the Entity Year Business Given

(Rs.)

Brokerage paid

(Rs.)

Reliance SecuritiesLimited

April 1, 2006 toOctober 16, 2006

166,604,296,986.37 15,063,016

5. Investments in Group Companies : The total investment in securities of Group companies

under all the Schemes is disclosed below. Most of the equity shares, debentures, etc. were purchasedfrom the open secondary market at relevant market prices over a period of time, based on the approved

investment strategy

(At cost) (Rs. in lakhs)

Name of Scheme 2003-04 2004-052005 -

2006

April 01, 2006

to October

16, 2006

Reliance Growth Fund (RGF) 1889.35 1301.20 6584.81 733.69

Reliance Vision Fund (RVF) 12082.71 5545.49 8074.15 3,729.40

Reliance Income Fund (RIF) NIL 2153.29 Nil NilReliance Liquid Fund (RLF) NIL 1047.23 137.59 Nil

Reliance Medium Term Fund (RMTF) NIL NIL Nil Nil

Reliance Short Term Fund (RSTF) NIL 6295.93 Nil Nil

Reliance Banking Fund (RBF) NIL NIL 380.78 -

Reliance Gilt Securities Fund (RGSF) NIL NIL NIL NIL

Reliance Monthly Income Plan (RMIP) NIL 7251.31 Nil 1,256.24

Reliance Diversified Power Sector Fund N.A. 3488.32 4,495.02 5,467.11

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(RDPSF)

Reliance Pharma Fund (RPF) N.A. NIL NIL Nil

Reliance Floating Rate Fund (RFRF) N.A. 4057.47 Nil Nil

Reliance Media & Entertainment Fund

(RMEF)

N.A. NIL 299.20 -

Reliance NRI Income Fund (RNIF) N.A. NIL Nil Nil

Reliance Index Fund (RInF) N.A. 141.47 3.69 23.60

Reliance NRI Equity Fund (RNEF) N.A. 873.82 733.98 669.09

Reliance Equity Opportunities Fund

(REOF)

N.A. 11,648.9

6

10,294.30 Nil

Reliance Liquidity Fund (RLiF) N.A. N.A. NIL Nil

Reliance Tax Saver (ELSS) Fund

(RTSF)

N.A. N.A. 2,478.83 Nil

Reliance Fixed Tenor Fund (RFTF) N.A. N.A. NIL Nil

Reliance Regular Savings Fund Nil Nil NIL Nil

Reliance Equity Fund N.A. N.A. 22,709.63 18705.31

Reliance Fixed Horizon Fund N.A. N.A. NIL Nil

As on October 16, 2006, the aggregate market value of the holding in group companies of the Sponsor/ AMC by schemes of Reliance Mutual Fund was as follows

Name of Scheme Value of Holding (At

cost) (Rs.in lakhs)

% of Net Assets

Reliance Growth Fund (RGF) 2,604.35 1.07%

Reliance Vision Fund (RVF) 12235.23 5.70%

Reliance Income Fund (RIF) Nil Nil

Reliance Liquid Fund (RLF) Nil Nil

Reliance Medium Term Fund (RMTF) Nil Nil

Reliance Short Term Fund (RSTF) Nil Nil

Reliance Fixed Term Scheme (RFTS) Nil Nil

Reliance Banking Fund (RBF) Nil Nil

Reliance Gilt Securities Fund (RGSF) Nil Nil

Reliance Monthly Income Plan (RMIP) Nil Nil

Reliance Diversified Power Sector Fund (RDPSF) 7177.67 10.59%

Reliance Pharma Fund (RPF) Nil Nil

Reliance Floating Rate Fund (RFRF) Nil Nil

Reliance Media & Entertainment Fund (RMEF) 356.70 9.43%

Reliance NRI Income Fund (RNIF) Nil Nil

Reliance Index Fund (RInF) 17.69 3.64%

Reliance NRI Equity Fund (RNEF) Nil Nil

Reliance Equity Opportunities Fund (REOF) 4,278.58 2.08%

Reliance Liquidity Fund (RLiF) Nil Nil

Reliance Tax Saver (ELSS) Fund (RTSF) Nil Nil

Reliance Fixed Tenor Fund (RFTF) Nil Nil

Reliance Fixed Horizon Fund Nil Nil

Reliance Regular Savings Fund Nil Nil

Reliance Equity Fund 36655.95 6.80%

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LIQUID FUNDTREASURYPLAN

DEPOSIT

0

RELIANCEFLOATING

RATE FUND

CERTIFICATEOF

DEPOSIT

1150 1,101.27 -

RELIANCEFLOATINGRATE FUND

FIXEDDEPOSIT

7500 7,500.00 5000 5,000

RELIANCEFIXEDMATURITYFUND SERIESI ANNUALPLAN

CERTIFICATEOFDEPOSIT

1500 1,412.96 -

RELIANCEFIXEDMATURITYFUND SERIESII ANNUALPLAN I

CERTIFICATE

OFDEPOSIT

3000 2,825.92 -

RELIANCELIQUIDITYFUND


8400081,063.7

3-


FIXEDDEPOSIT

2950029,500.0

07000 7,000

RELIANCE

TAX SAVER(ELSS) FUND

CERTIFICATE

OFDEPOSIT

2500 2,465.05 -

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLYPLAN VII


2500 2,465.58 -

RELIANCEFIXEDMATURITYFUND SERIES

II MONTHLYPLAN VIII


7250 7,159.36 -

RELIANCEFIXED TENORFUND PLAN A


1000 974.83 -

RELIANCEFIXED

CERTIFICATE

6250 6,192.05 -

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108

MATURITYFUND SERIESII MONTHLYPLAN IX

OFDEPOSIT

RELIANCE

FIXED TENORFUND PLAN B

CERTIFICATE

OFDEPOSIT

1300 1,295.31 -

RELIANCEFIXEDMATURITYFUND SERIESII QUARTERLYPLAN III


2000 1,961.41 -

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLYPLAN X

CERTIFICATEOFDEPOSI

T

3750 3,722.95 -

RELIANCEEQUITY FUND


500 498.42 -

RELIANCEEQUITY FUND

FIXEDDEPOSIT

3500 3,500.00 -


II MONTHLYPLAN XI

CERTIFICATEOF

DEPOSIT

6000 5,882.65 -

RELIANCEFIXEDHORIZONFUND PLAN ASERIES 1


6000 5,926.53 -

RELIANCEFIXEDHORIZONFUND PLAN BSERIES 2


8000 7,927.11 -

RELIANCE

FIXEDHORIZONFUND PLAN BSERIES 2

FIXEDDEPOSIT

2500025,000.0

0-



10000 9,947.39 -

8/8/2019 Rel Gold


109



500 494.91 -

RELIANCE


CERTIFI

CATEOFDEPOSIT

5000 4,964.04 -


FIXEDDEPOSIT

4700 4,700.00 4700 4,700



3800 3,778.00 -


FIXEDDEPOSIT

1050010,500.0

010500 10,500

BANK OF BARODARELIANCELIQUIDITYFUND

RELIANCEGROWTHFUND

EQUITY 3009664 7,030.54 2500000 6,963

RELIANCESHORT TERMFUND

RELIANCEVISION FUND

EQUITY 1502109 3,688.89 1203400 3,352

RELIANCEBANKINGFUND

EQUITY 550000 1,309.45 360000 1,002

RELIANCEMONTHLYINCOME PLAN

DEBT 1000 1,023.58 -

RELIANCE NRIEQUITY FUND

EQUITY 316224 869.90 -

RELIANCEEQUITYOPPORTUNITIES FUND

EQUITY 2323601 5,350.69 -

RELIANCEREGULARSAVING FUNDEQUITYOPTION

EQUITY 50000 117.92 -

RELIANCETAX SAVER(ELSS) FUND

EQUITY 149354 343.51 -

RELIANCEEQUITY FUND

EQUITY 526881312,114.8

54489534 12,505

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BANK OF INDIARELIANCEFLOATINGRATE FUND

RELIANCEBANKINGFUND

EQUITY 100000 139.05 -

RELIANCE

LIQUIDITYFUND

RELIANCE

MONTHLYINCOME PLAN

FIXED

DEPOSIT

2500 2,500.00 -

RELIANCELIQUID FUNDTREASURYPLAN

FIXEDDEPOSIT

5000 5,000.00 -


FIXEDDEPOSIT

2000 2,000.00 -


FIXEDDEPOSIT

4300043,000.0

0-

RELIANCE


EQUITY 500000 658.81 -

RELIANCEEQUITY FUND

FIXEDDEPOSIT

2750027,500.0

0-


FIXEDDEPOSIT

2000020,000.0

0-

BHARTI AIRTEL

LIMITED

RELIANCESHORT TERM

FUND

RELIANCEMONTHLY

INCOME PLAN

EQUITY 200000 734.65 -

RELIANCEINDEX FUNDSENSEX PLAN

EQUITY 5234 21.02 2928 14

RELIANCEINDEX FUNDNIFTY PLAN

EQUITY 2987 10.74 797 3

RELIANCEEQUITY FUND

EQUITY 1251000 5,137.00 1000000 4,861

CANARA BANK

RELIANCELIQUID FUND -TREASURY

PLAN

RELIANCEBANKINGFUND

EQUITY 200000 485.81 -

CHAMBALFERTILISERS &

CHEMICALSLIMITED

RELIANCELIQUID FUND -CASH PLAN

RELIANCELIQUID FUNDCASH PLAN

DEBT 1230012,300.0

0-

RELIANCELIQUID FUNDTREASURY

DEBT 1100011,000.0

0-

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111

PLAN


DEBT 2800028,000.0

05000 5,000

RELIANCEFIXED

HORIZONFUND PLAN BSERIES 2

DEBT 1700 1,700.00 -

CORPORATION

BANK


RELIANCEBANKINGFUND

EQUITY 70382 257.14 50000 195


EQUITY 85941 292.98 -

RELIANCELIQUID FUND

TREASURYPLAN

CERTIFICATE

OFDEPOSIT

2500 2,371.18 -



10000 9,845.16 -

RELIANCEFIXEDMATURITYFUND SERIESII ANNUALPLAN III


4100 4,040.08 -


EQUITY 551863 1,760.16 -

RELIANCEEQUITY FUND

EQUITY 1212999 4,748.89 -



2000 1,970.42 -



4000 3,946.42 -

DSP ML CAPITALLTD


RELIANCEGROWTHFUND

DEBT 4000 4,000.00 -

RELIANCEMEDIUMTERM FUND

DEBT 100 100.06 100 100

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112

RELIANCEINCOMEFUND

DEBT 1600 1,600.36 -


DEBT 7400 7,396.21 -


DEBT 1750 1,750.42 1150 1,150


DEBT 3500 3,500.00 -


DEBT 5900058,830.5

311000 10,998


DEBT 4000 3,994.96 3000 3,000


DEBT 139500 138,509.22

-


DEBT 2850 2,851.49 2710 2,710

RELIANCEFIXED TENORFUND PLAN B

DEBT 1640 1,641.01 1640 1,640


DEBT 10000 9,968.34 -

RELIANCEEQUITY FUND

DEBT 2250022,500.0

036000 35,827


DEBT 1250012,339.8

5-


DEBT 5000 4,931.18 -


DEBT 1400013,895.3

3-

RELIANCEFIXEDHORIZONFUND PLAN A

DEBT 1250012,441.4

9-

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113

SERIES 3


SERIES 4

DEBT 1500014,744.7

8-


DEBT 6000 5,927.13 1000 994


DEBT 3350033,192.5

8-

RELIANCEFIXED

HORIZONFUND PLAN CSERIES 1

DEBT 5100 5,100.05 100 100

RELIANCEFIXEDHORIZONFUND - 1ANNUAL PLANSERIES 1

DEBT 5150 5,150.07 1750 1,750


DEBT 2600025,848.3

6-

RELIANCEFIXEDHORIZONFUND - 1ANNUAL PLANSERIES 2

DEBT 3550 3,551.62 3550 3,551

RELIANCEFIXEDHORIZONFUND 1MONTHLYPLAN 1SERIES 1

DEBT 5000 5,000.00 5000 5,000

GRASIM

INDUSTRIESLIMITED

RELIANCEFIXED HORIZONFUND ANNUALPLAN 1 SERIES1

RELIANCEVISION FUND

EQUITY 475681 8,872.32 368228 9,850

RELIANCEFIXED HORIZONFUND


DEBT 5800 5,800.00 -

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116



2880027,727.6

5500 475

RELIANCE

LIQUIDITYFUND

FIXED

DEPOSIT 20470

20,470.0

0 1490 1,490



700 689.42 -


FIXEDDEPOSIT

500 500.00 -



2500 2,399.99 -

RELIANCEEQUITY FUND


5000 4,954.71 -

RELIANCEEQUITY FUND

FIXEDDEPOSIT

1990 1,990.00 -

RELIANCEFIXEDHORIZON

FUND PLAN BSERIES 3

CERTIFICATEOF

DEPOSIT

1600 1,574.95 -



500 497.15 -

HDFC LTD

RELIANCEREGULARSAVING DEBTFUND

RELIANCEVISION FUND

EQUITY 100000 1,173.98 -

RELIANCE

REGULARSAVING EQUITYFUND


DEBT 300 297.65 -

RELIANCEREGULARSAVING HYBRIDFUND

RELIANCEINCOMEFUND

DEBT 2200 2,183.02 -

RELIANCESHORT TERM

DEBT 1360013,396.1

47900 7,710

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117

FUND


DEBT 1405013,901.6

91100 1,053

RELIANCE NRIINCOME

FUND

DEBT 100 98.68 -


EQUITY 1743 22.13 992 15


EQUITY 367 4.46 104 1


DEBT 1405014,006.3

01000 1,000

RELIANCEFLOATING

RATE FUND

DEBT 3900 3,904.54 -


DEBT 8835087,992.5

55000 5,001

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLYPLAN VI

DEBT 1000 993.71 -

RELIANCEFIXEDMATURITYFUND SERIESII QUARTERLYPLAN II

DEBT 1500014,897.3

3-


DEBT 3500 3,460.31 -

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLY

PLAN VIII

DEBT 6000 5,971.51 -


DEBT 2500 2,485.82 -


DEBT 4700 4,655.29 -

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PLAN IX


II QUARTERLYPLAN III

DEBT 8300 8,270.73 -


DEBT 2200 2,176.85 -

RELIANCEEQUITY FUND

DEBT 5200 5,191.52 -

RELIANCEFIXEDMATURITY

FUND SERIESII MONTHLYPLAN XI

DEBT 4200 4,182.21 -


DEBT 4200 4,193.41 -


DEBT 1450014,470.9

6-


DEBT 2000 2,000.94 -


DEBT 2000 2,000.35 -


DEBT 500 500.28 -

RELIANCEFIXEDHORIZONFUND PLAN CSERIES 1

DEBT 5000 4,992.22 -


DEBT 2500 2,496.20 -

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FUND PLAN ASERIES 6

HERO HONDA

MOTORS LTD

RELIANCEFIXED HORIZONFUND PLAN A

SERIES 2

RELIANCEVISION FUND

EQUITY 126786710,585.8

2503000 3,760

RELIANCEFIXED HORIZONFUND PLAN ASERIES 3


EQUITY 100000 844.52 -



EQUITY 761 5.84 439 3



EQUITY 333 2.77 83 0

RELIANCEFIXED HORIZONFUNDQUATERLYPLAN B SERIES1


EQUITY 875447 7,303.69 17600 131



EQUITY 37000 319.41 -

RELIANCE

FIXED HORIZONFUNDQUATERLYPLAN B SERIES3


EQUITY 1020000 8,739.54 486627 3,638

RELIANCEFIXEDMATURITYFUND - ANNUALPLAN - 1 (Series2)

RELIANCEEQUITY FUND

EQUITY 140880012,214.2

8610000 4,560

RELIANCEFIXEDMATURITYFUND -QUARTERLYPLAN - 1SERIES 2RELIANCEFIXEDMATURITYFUND -QUARTERLY

8/8/2019 Rel Gold


120

PLAN - 2SERIES 2

RELIANCEFIXEDMATURITYFUND -

QUARTERLYPLAN - 3SERIES 2RELIANCEFIXED TENORFUNDRELIANCEINCOME FUNDRELIANCELIQUID FUND -CASH PLANRELIANCEMEDIUM TERM

FUNDRELIANCESHORT TERMFUND

HEXAWARE

TECHNOLOGIESLTD


RELIANCEGROWTHFUND

EQUITY 903795 1,254.51 1950007 3,337

RELIANCEFIXED HORIZON

FUNDQUATERLYPLAN B SERIES3

RELIANCE

MONTHLYINCOME PLAN

EQUITY 300000 473.72 -

RELIANCEFIXED HORIZONFUNDQUATERLYPLAN B SERIES4RELIANCEFIXED HORIZONFUND1QUARTERLYPLAN SERIES 1

HINDALCO

INDUSTRIESLIMITED


RELIANCEVISION FUND

EQUITY 4000000 6,436.93 -

8/8/2019 Rel Gold


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122

RELIANCEFIXEDMATURITYFUND - ANNUALPLAN - 1RELIANCE

FIXEDMATURITYFUND - ANNUALPLAN - 1 (Series2)RELIANCEFIXEDMATURITYFUND - ANNUALPLAN - 3 (Series2)RELIANCEFLOATINGRATE FUNDRELIANCELIQUID FUND -CASH PLANRELIANCESHORT TERMFUNDRELIANCEFIXED HORIZONFUND- 1 -MONTHLY PLAN-SERIES 1

ICICI BANK LTD RELIANCEBANKING FUND

RELIANCEGROWTHFUND

EQUITY 1100000 6,157.34 -

RELIANCELIQUID FUND -TREASURYPLAN

RELIANCEGROWTHFUND

FIXEDDEPOSIT

9002 9,002.00 2000 2,000


RELIANCEVISION FUND

EQUITY 188560010,564.6

9-

RELIANCEVISION FUND

FIXEDDEPOSIT

1099410,994.0

02500 2,500



250 242.69 -

RELIANCEINCOMEFUND


2450 2,296.18 -

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123

RELIANCEINCOMEFUND

FIXEDDEPOSIT

1200 1,200.00 -

RELIANCESHORT TERM

FUND

CERTIFICATEOF

DEPOSIT

1310012,383.4

8-

RELIANCEGILTSECURITIESFUND LONGTERM GILTPLAN


2000 1,994.15 -

RELIANCEBANKINGFUND

EQUITY 150000 873.00 155000 1,116



3950 3,847.60 -


DEBT 80 81.17 80 80


EQUITY 219651 1,202.58 -


FIXEDDEPOSIT

2002 2,002.00 500 500

RELIANCEDIVERSIFIED

POWERSECTORFUND

FIXED

DEPOSIT

1500 1,500.00 500 500


EQUITY 292574 1,698.69 -


FIXEDDEPOSIT

1202 1,202.00 300 300

RELIANCE NRIINCOMEFUND


50 48.17 -


EQUITY 7045 41.46 3940 28


EQUITY 1566 9.01 370 2

RELIANCEEQUITYOPPORTUNITI

EQUITY 403820 2,120.06 -

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ES FUND


FIXEDDEPOSIT

5000 5,000.00 2000 2,000

RELIANCE

LIQUID FUNDTREASURYPLAN

CERTIFI

CATEOFDEPOSIT

73300 71,546.81

5000 4,767


FIXEDDEPOSIT

1760017,600.0

0-



1850017,771.8

27000 6,767



900 839.61 -



2650 2,462.10 -


EQUITY 10000 58.25 -


FIXEDDEPOSIT

1300 1,300.00 300 300



181850176,793.

6830900 29,820


FIXEDDEPOSIT

6000060,000.0

0-



2500 2,323.95 -

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EQUITY 561169 3,017.57 -


FIXEDDEPOSIT

1100011,000.0

03500 3,500



5000 4,982.71 -

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLYPLAN VIII


5500 5,424.85 -



50 49.86 -

RELIANCEFIXEDMATURITYFUND SERIESII MONTHLYPLAN IX


500 495.20 -


II QUARTERLYPLAN III

CERTIFICATEOF

DEPOSIT

1500014,481.2

8-



500 498.11 -


PLAN X

FIXEDDEPOSIT

5000 5,000.00 -

RELIANCEEQUITY FUND

EQUITY 981354 6,079.81 -

RELIANCEEQUITY FUND

FIXEDDEPOSIT

170501170,501.

0036000 36,000


FIXEDDEPOSIT

1000010,000.0

0-

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FUND PLAN ASERIES 1

RELIANCEFIXEDHORIZONFUND PLAN B

SERIES 2

CERTIFICATEOFDEPOSI

T

5260051,748.4

0-



5000 4,876.83 -



1660016,464.7

3-

RELIANCEFIXED


CERTIFICATE

OFDEPOSIT

5000 4,910.66 -



4600 4,543.54 -



3500 3,463.93 3100 3,080



4500 4,471.49 -



3100 3,058.00 -


SERIES 6

CERTIFICATEOFDEPOSI

T

1400 1,383.98 -

RELIANCEFIXEDHORIZONFUND 1QUARTERLYPLAN 1SERIES 1


10000 9,798.68 10000 9,842

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INDIABULLSFINANCIAL

COMPANY LIMITED


RELIANCEEQUITY FUND

DEBT 2500025,000.0

0-

INDIABULLS

FINANCIAL

SERVICES LIMITED

RELIANCELIQUIDITY

FUND

RELIANCEEQUITY

OPPORTUNITIES FUND

EQUITY 1100000 2,693.58 -


DEBT 2500 2,323.31 -

RELIANCEFIXEDMATURITYFUND SERIESII ANNUAL

PLAN I

DEBT 2500 2,451.92 -


EQUITY 31101 66.94 -


DEBT 2650025,754.8

12500 2,446


DEBT 2500 2,370.56 -


DEBT 2500 2,408.96 -


DEBT 1150011,333.3

7-

RELIANCE


DEBT 5000 4,930.09 -


DEBT 1500 1,472.38 -

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DEBT 1500 1,475.73 -

RELIANCE


DEBT 9500 9,364.47 2500 2,447


DEBT 1500 1,486.48 -


DEBT 4500 4,346.31 4500 4,396


DEBT 1500 1,497.23 -

INFOSYS

TECHNOLOGIESLTD


RELIANCEGROWTHFUND

EQUITY 26272 850.07 -


RELIANCEVISION FUND

EQUITY 75000014,243.4

6500000 10,501


EQUITY 40000 799.53 40000 840


EQUITY 75000 1,455.64 50000 1,050


EQUITY 3283 56.47 1956 41


EQUITY 599 12.88 230 4


EQUITY 400000 6,691.85 400000 8,401


EQUITY 24000 388.40 24000 504

RELIANCEREGULAR

EQUITY 730 13.21 500 10

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SAVING FUNDHYBRIDOPTIONRELIANCEEQUITY FUND

EQUITY 150000023,182.3

91500000 31,504

INFRASTRUCTUREDEVELOPMENTFINANCE

COMPANY LIMITED



DEBT 100 100.00 -

RELIANCEINCOME FUND

RELIANCEINCOMEFUND

DEBT 1700 1,623.97 -



DEBT 5900 5,621.50 -


DEBT 6150 6,084.47 450 451

RELIANCEDIVERSIFIEDPOWERSECTORFUND

EQUITY 2582112 1,851.43 -


DEBT 5800 5,621.93 -


DEBT 500 500.74 350 350


DEBT 1320012,736.0

47500 7,236


DEBT 2500 2,462.78 -


DEBT 200 200.00 -

RELIANCEFIXED TENORFUND PLAN B

DEBT 100 100.00 -

RELIANCEEQUITY FUND

EQUITY 885923 491.80 -

RELIANCEFIXEDHORIZONFUND - 1

DEBT 3500 3,499.62 3500 3,510

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ANNUAL PLANSERIES 1

RELIANCEFIXEDHORIZONFUND - 1

ANNUAL PLANSERIES 2

DEBT 500 500.97 200 200

J M FINANCIALPRODUCTS

PRIVATE LIMITED



DEBT 500 500.00 -


DEBT 1200012,000.0

08000 8,000

RELIANCEFIXEDHORIZONFUND PLAN B

SERIES 2

DEBT 1500 1,500.00 -

JET AIRWAYS I

LIMITED


RELIANCEVISION FUND

EQUITY 218600 2,567.33 -


DEBT 7367 7,844.16 2095 1,653


EQUITY 201 2.04 38 0

LARSEN &TOUBRO LIMITED

RELIANCE

FIXED HORIZONFUND- 1 -MONTHLY PLAN-SERIES 1

RELIANCEVISION FUND

EQUITY 424055 5,816.82 226600 2,968


EQUITY 25000 316.06 25000 327


EQUITY 30000 711.75 -


EQUITY 1618 22.28 1216 15

RELIANCE

INDEX FUNDNIFTY PLAN

EQUITY 289 4.59 118 1


EQUITY 28741 387.97 -

RELIANCELIQUID FUNDTREASURY

DEBT 1000 1,014.97 -

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PLAN


EQUITY 58696 847.20 50000 655

RELIANCEREGULARSAVING FUNDHYBRIDOPTION

EQUITY 654 10.53 467 6


EQUITY 10000 272.78 -

RELIANCEEQUITY FUND

EQUITY 309348 7,990.95 -


FUND PLAN ASERIES 6

DEBT 1000 1,009.97 -

RELIANCEFIXEDHORIZONFUND 1MONTHLYPLAN 1SERIES 1

DEBT 1000 1,009.73 1000 1,008

MARUTI UDYOG

LIMITED


RELIANCEGROWTH

FUND

EQUITY 492036 3,432.39 342036 3,286


RELIANCEVISION FUND

EQUITY 243780218,831.3

7628126 6,035



EQUITY 175000 1,212.93 -



EQUITY 375000 2,910.37 -


EQUITY 904 7.46 511 4


EQUITY 439 3.23 120 1


EQUITY 115000 960.22 -

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RELIANCEREGULARSAVING FUNDHYBRIDOPTION

EQUITY 521 4.64 -

RELIANCE

TAX SAVER(ELSS) FUND EQUITY 300000 2,629.65 -

RELIANCEEQUITY FUND

EQUITY 171792614,347.9

31667526 16,024

PUNJAB NATIONALBANK

RELIANCEBANKING FUND

RELIANCEINCOMEFUND

DEBT 800 799.97 500 501

RELIANCEBANKINGFUND

EQUITY 200000 949.01 190000 998

RELIANCEMONTHLY

INCOME PLAN

DEBT 1400 1,400.00 500 501


FIXEDDEPOSIT

3000 3,000.00 -


EQUITY 601 2.67 132 0



6000 5,928.25 -


FIXED

DEPOSIT

1200012,000.0

0 5000 5,000



10000 9,862.97 2500 2,477


FIXEDDEPOSIT

3000 3,000.00 -


EQUITY 25000 117.11 -


CERTIFICATEOFDEPOSI

5600055,132.7

41000 991

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T


FIXEDDEPOSIT

5550055,500.0

015000 15,000

RELIANCE


EQUITY 986200 4,453.30 -


FIXEDDEPOSIT

5000 5,000.00 -

RELIANCEEQUITY FUND

EQUITY 255820611,859.6

82225000 11,691

RELIANCEEQUITY FUND

FIXEDDEPOSIT

1950019,500.0

0-



5000 4,924.70 -


FIXEDDEPOSIT

7000 7,000.00 -



5000 4,993.00 -



4000 3,952.95 4000 3,967



500 495.53 -



1500014,753.5

1-

RELIANCEFIXEDHORIZONFUND 1

FIXEDDEPOSIT

3500 3,500.00 3500 3,500

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QUARTERLYPLAN 1SERIES 1RELIANCEFIXEDHORIZON

FUND 1MONTHLYPLAN 1SERIES 1

CERTIFICATE

OFDEPOSIT

15000

14,842.2

0 15000 14,864

RAYMOND LIMITED


RELIANCEINCOMEFUND

DEBT 1100 1,100.00 -

RELIANCEMONTHLY

INCOME PLAN

EQUITY 50000 152.96 -


DEBT 300 300.00 -


DEBT 7295072,950.0

0-


EQUITY 521527 2,164.33 -


DEBT 3352533,525.0

0-


DEBT 5450 5,450.00 -


DEBT 1500 1,500.00 -


DEBT 6880068,800.0

0800 800


DEBT 100 100.00 -


DEBT 500 500.00 -

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DEBT 500 500.00 -


DEBT 2225 2,225.00 -


DEBT 500 500.00 -


DEBT 1400 1,400.00 -


DEBT 100 100.00 -


DEBT 1850 1,850.00 -


DEBT 900 900.00 -

RELIANCEEQUITY FUND

DEBT 2900 2,900.00 -

RELIANCECAPITAL LIMITED

RELIANCEBANKING FUND

RELIANCEGROWTHFUND

EQUITY 150000 733.69 -


RELIANCE

EQUITYOPPORTUNITIES FUND

EQUITY 200666 983.53 -

RELIANCEPHARMA FUND

RELIANCE

COMMUNICATIONSLIMITED


RELIANCEGROWTHFUND

EQUITY 700000 2,361.94 700000 2,604

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RELIANCEVISION FUND

EQUITY 2500000 6,926.26 2500000 9,301


EQUITY 600000 1,256.24 -

RELIANCE NRI

EQUITY FUND

EQUITY 300000 669.09 -


EQUITY 6312 17.50 3448 12


EQUITY 594 1.80 501 1


EQUITY 1800000 4,180.90 1150000 4,278


EQUITY 500000 1,517.28 -

RELIANCEEQUITY FUND

EQUITY 746405323,152.1

37464053 27,770

-

RELIANCE ENERGY

LIMITED

RELIANCEFIXED HORIZONFUND1 ANNUALPLAN SERIES 2


EQUITY 1035 5.12 558 2



EQUITY 385 2.31 89 0

RELIANCE GILTSECURITIES

FUND - LONGTERM GILTPLANRELIANCEINCOME FUNDRELIANCELIQUID FUND -CASH PLANRELIANCELIQUID FUND -TREASURYPLANRELIANCELIQUIDITYFUND

RELIANCENATURALRESOURCES LTD


RELIANCEGROWTHFUND

EQUITY 700000 42.72 -


RELIANCEVISION FUND

EQUITY 800000 33.46 -

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RELIANCEDIVERSIFIEDPOWERSECTORFUND

EQUITY1400000

04,390.63 14000000 3,150

RELIANCE

EQUITYOPPORTUNITIES FUND

EQUITY 1800000 75.62 -


EQUITY 200000 10.63 -

SESA GOA LIMITED



EQUITY 80000 828.07 -

RELIANCEFIXED HORIZON

FUND PLAN ASERIES 2

RELIANCETAX SAVER

(ELSS) FUND

EQUITY 376485 4,811.52 -


RELIANCEFIXED HORIZONFUND PLAN ASERIES 4RELIANCE

FIXED HORIZONFUND PLAN ASERIES 5RELIANCEFIXED HORIZONFUND PLAN ASERIES 6RELIANCEFIXEDMATURITYFUND -MONTHLY PLAN- 10 SERIES 2

RELIANCEFIXEDMATURITYFUND -MONTHLY PLAN- 11 SERIES 2RELIANCEFIXEDMATURITYFUND -

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MONTHLY PLAN- 7 SERIES 2

RELIANCEFIXEDMATURITYFUND -

MONTHLY PLAN- 8 SERIES 2RELIANCEFIXEDMATURITYFUND -MONTHLY PLAN- 9 SERIES 2RELIANCEFIXED HORIZONFUND- 1 -MONTHLY PLAN-SERIES 1

STERLITEINDUSTRIES INDIA

LTD


RELIANCEVISION FUND

EQUITY 691389 18.09 800000 3,824



DEBT 4720047,200.0

0-

RELIANCEFIXEDMATURITYFUND - ANNUAL

PLAN - 3 (Series2)

RELIANCEEQUITYOPPORTUNITI

ES FUND

EQUITY 875375 0.00 1500000 7,171

RELIANCEFIXEDMATURITYFUND -MONTHLY PLAN- 7 SERIES 2


DEBT 2060020,600.0

0-



DEBT 1500 1,500.00 -



EQUITY 10000 143.59 -

RELIANCEFIXEDMATURITY


DEBT 7630076,300.0

0-

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FUND -QUARTERLYPLAN - 1SERIES 2RELIANCEFIXED

MATURITYFUND -QUARTERLYPLAN - 2SERIES 2

RELIANCEFIXED

MATURITYFUND SERIESII MONTHLYPLAN VI

DEBT 2500 2,500.00 -



DEBT 2000 2,000.00 -



DEBT 1000 1,000.00 -


RELIANCEEQUITY FUND

EQUITY 1027866 5,532.77 -

RELIANCEEQUITY FUND

DEBT 6000 6,000.00 -


DEBT 6100 6,100.00 -


DEBT 4500 4,500.00 -


DEBT 5000 5,000.00 -

TATA CHEMICALS

LTD

RELIANCELIQUID FUND -

TREASURYPLAN

RELIANCE

GROWTHFUND EQUITY 100000 202.77 1000000 2,289


EQUITY 365 0.89 -

RELIANCEEQUITY FUND

EQUITY 2000000 5,198.29 2000000 4,579

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TATACONSULTANCY

SERVICES LTD


RELIANCEVISION FUND

EQUITY 230000 4,095.29 -

RELIANCE NRIEQUITY FUND EQUITY 95000 1,634.25 -


EQUITY 1367 13.85 866 9


EQUITY 1270 15.66 402 4


EQUITY 475000 4,352.64 400000 4,518


EQUITY 70000 687.53 70000 790


EQUITY 375000 4,622.80 200000 2,259

RELIANCEEQUITY FUND

EQUITY 87822110,400.5

9640000 7,230

TECH MAHINDRA

LIMITED


RELIANCEVISION FUND

EQUITY 8000004449.289

54400000 2,841

RELIANCEEQUITY FUND EQUITY 134754 491.85 -

ULTRATECHCEMENT LIMITED



EQUITY 35075 191.67 -


EQUITY 50000 214.17 -


EQUITY 767955 4,113.01 -


EQUITY 40000 217.85 -


EQUITY 391251 2,437.17 -

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WIPRO LIMITED

RELIANCEFIXED HORIZONFUNDQUATERLYPLAN B SERIES

3

RELIANCEVISION FUND

EQUITY 900000 4,755.29 -



EQUITY 150000 787.59 -



EQUITY 2219 11.14 1269 7



EQUITY 2298 11.29 609 3

RELIANCEFIXEDMATURITYFUND -MONTHLY PLAN

- 8 SERIES 2


EQUITY 237687 1,106.53 -


RELIANCEEQUITY FUND

EQUITY 574023 3,051.63 -

RELIANCEFLOATINGRATE FUNDRELIANCELIQUID FUND -CASH PLANRELIANCELIQUIDITYFUND

YES BANK LTDRELIANCELIQUID FUND -CASH PLAN

RELIANCEINCOMEFUND


2000 1,987.70 -

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1000 995.92 -

RELIANCE

LIQUID FUNDCASH PLAN

FIXED

DEPOSIT 4802 4,802.00 1802 1,802



1470014,457.7

91200 1,189


FIXEDDEPOSIT

7200 7,200.00 -



3500 3,454.26 1000 990


FIXEDDEPOSIT

300 300.00 -

RELIANCEFIXEDMATURITYFUND SERIESII ANNUAL

PLAN I

FIXEDDEPOSIT

700 700.00 -



2110020,666.9

9100 99


FIXEDDEPOSIT

2200622,006.0

03200 3,200


II ANNUALPLAN III


2500 2,462.79 -


EQUITY 2305178 1,649.50 3000000 3,004


CERTIFICATEOFDEPOSI

1000 987.47 -

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T


II QUARTERLYPLAN II

CERTIFICATEOFDEPOSI

T

5500 5,385.21 -


FIXEDDEPOSIT

7400 7,400.00 -


PLAN VII


500 495.75 -



2500 2,480.72 -


FIXEDDEPOSIT

4100 4,100.00 -



2000 1,990.82 -



7500 7,340.53 -

RELIANCEEQUITY FUND

CERTIFICATE

OFDEPOSIT

5000 4,964.04 -

RELIANCEEQUITY FUND

FIXEDDEPOSIT

2002 2,002.00 -


CERTIFICATEOF

10000 9,859.29 -

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FUND PLAN BSERIES 2

DEPOSIT


SERIES 2

CERTIFICATEOFDEPOSI

T

5000 4,917.25 -



5000 4,943.32 -



10000 9,884.22 -

RELIANCEFIXED


CERTIFICATE

OFDEPOSIT

7600 7,522.23 100 99



5000 4,999.08 -



5000 4,913.04 5000 4,964



4500 4,456.67 -

RELIANCEFIXEDHORIZONFUND 1QUARTERLYPLAN 1SERIES 1


100 98.99 100 99

RELIANCEFIXED

HORIZONFUND 1MONTHLYPLAN 1SERIES 1

CERTIFI

CATEOFDEPOSIT

2500 2,472.95 2500 2,476

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7. Investments by associates in the Schemes

The value of unit holding by associates and group companies in the schemes of Reliance MutualFund as on October 16, 2006 is as follows.

Rs. (In Lacs)

Reliance Income Fund 28.17

Reliance Liquid Fund 93.61Reliance Short Term Fund NIL

Reliance Medium Term Fund -Reliance Growth Fund NIL

Reliance Gilt Securities Fund 4.59

Reliance Monthly Income Plan -Reliance Vision Fund NIL

Reliance Banking Fund NIL

Reliance Diversified Power Sector Fund -

Reliance Pharma Fund -

Reliance Floating Rate Fund -

Reliance Media & Entertainment Fund -

Reliance NRI Income Fund -

Reliance NRI Equity Fund -

Reliance Equity Opportunities Fund NILReliance Index Fund - Nifty Plan NIL

Reliance Tax Saver (ELSS) Fund NIL

Reliance Liquidity Fund 78159.32Reliance Regular Savings Fund -

Reliance Fixed Tenor Fund -

Reliance Fixed Horizon Fund - I – Annual Plan – Sr. II 12543.13Reliance Fixed Horizon Fund – Plan C – Sr. I NIL

Reliance Fixed Horizon Fund – I – Monthly Plan – Sr I 2591.25

Reliance Equity Fund NIL

F. PROCEDURE AND MANNER OF WINDING UP: Where a Scheme is to be wound up pursuant to theabove Regulations, the Trustee shall give notice of the circumstances leading to the winding up of theScheme:-

To SEBI; and in two daily newspapers having circulation all over India and also in a vernacularnewspaper circulating at the place where the Mutual Fund is established.

The Trustee shall call a meeting of the unit holders to consider and pass necessary resolutions bysimple majority of the unit holders present and voting at the meeting for authorising the Trustee or anyother person to take steps for winding up the Scheme.

i) The Trustee or the person authorised as above, shall dispose of the assets of the Scheme concernedin the best interest of the unit holders of that Scheme.

The proceeds of the Sale made in pursuance of the above, shall, in the first instance be utilised towards

discharge of such liabilities as are properly due under the Scheme and after making appropriateprovision for meeting the expenses connected with such winding up, the balance shall be paid to the unitholders in proportion to their respective interest in the assets of the Scheme as on the date when thedecision for the winding up was taken.

ii) On the completion of the winding up, the Trustee shall forward to the Board and the unit holders, areport on the winding up containing particulars such as circumstances leading to the winding up, thesteps taken for disposal of assets of the Fund before winding up, expenses of the Fund for winding up,net assets available for distribution to the unit holders and a certificate from the Auditors of the Scheme.

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iii) Notwithstanding anything contained herein, the application of the provisions of the Mutual FundRegulations in respect of disclosures of half-yearly reports and annual reports shall continue to apply.

After the receipt of the report referred to above under 'Procedure and Manner of Winding Up', if SEBI issatisfied that all measures for winding up of the Scheme have been completed, the Scheme shall ceaseto exist.

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XII. PENALTIES & PENDING LITIGATION

Penalties, pending litigation's or proceedings, findings of inspection or investigation for which action mayhave been taken or is in process of being taken by any regulatory authority.

1.Cases of penalties awarded by SEBI under the SEBI Act or any of its regulations against the Sponsor

of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC,Trustee Company/ Board of Trustees, or any of the directors or key personnel (specifically the FundManagers) of the AMC and Trustee Company. Cases of penalties awarded by any financial regulatorybody, including stock exchanges, for defaults in respect of shareholders, debenture holders anddepositors and penalties awarded for any economic offence and violation of any securities laws, againstthe Sponsors and its associates.

Reliance Mutual Fund:

SEBI had issued a show cause notice to Reliance Mutual Fund on February 12, 2003 regarding violationof investment restrictions for exceeding the investment limit in unrated debt securities (9.80% UTI BankBonds, 2007) beyond the permissible limit of 10% specified under the Regulations in one of theSchemes namely Reliance Medium Term Fund.

(a) Reliance Mutual Fund had submitted reply on February 26, 2003 in this regard and also attended the

adjudication proceedings held by SEBI on March 11, 2003 and a total fine of Rs.6 lacs was imposed bySEBI on both Reliance Capital Asset Management Limited and Reliance Mutual Fund. The said fine wasborne by the AMC.

(b) The Clearing Corporation of (I) Ltd. had levied penal charges to Reliance Mutual Fund on account ofmargin default on 14.03.03 of Rs. 35,996, on 17.03.03 of Rs. 26,030, on 6.11.03 of Rs. 5,000 the saidcharges were borne by the AMC.

For details of other penalties besides the above please refer below.

2.Pending material litigation proceedings incidental to the business of the Mutual Fund to which theSponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including theAMC, Board of Trustees/ Trustee Company or any of the directors or key personnel is a party.

NIL

3.Pending criminal cases against the Sponsor or any company associated with the Sponsor in any

capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or keypersonnel.Reliance Capital Limited: There are 42 cases pertaining to equity shares of Reliance Capital Limitedpending in various Civil/ Criminal courts and other forums. The total amount involved in the abovementioned cases is approximately Rs.40,20,140/-. Similarly, 2 cases are pending in the High Court ofMumbai amounting to Rs.5,82,41,649/ -, in relation to business operations of the company.Reliance Share & Stock Brokers Private LimitedSEBI vide order dated 11.12.2006 had imposed penalty of Suspension of Registration of Reliance Share& Stock Brokers Private Limited (RSSBPL), a group Company of RCAM for a period of 4 months.Thereafter RSSBPL filed an Appeal with Securities Appellate Tribunal (SAT) and the SAT vide its orderdated 27.12.2006 has stayed the order of SEBI till such time the matter is disposed off.

H. JURISDICTION: Any dispute arising out of this issue shall be subject to the exclusive jurisdiction ofthe Courts in India.

Statements in this Offer Document are, except where otherwise stated, based on the law, practicecurrently in force in India, and are subject to changes therein.

I. OMNIBUS CLAUSE: Subject to the Regulation permitting:

Besides the AMC, the Trustee or Sponsor may also absorb expenditures in addition to the limits laiddown under the Regulations.

Further, any amendment/clarification and guidelines in the form of notes or circulars issued from time totime by SEBI for the operation and management of mutual fund shall be applicable.

AMC confirms that there are no deviations from the regulation and no subjective interpretations havebeen applied to the provisions of the Regulations

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J. AMENDMENTS TO THE OFFER DOCUMENT: Necessary amendments shall be made to the OfferDocument of the Scheme by RCAM, subject (if and as required) to approval of SEBI / Unitholder.Further, RCAM reserves the right to issue operational procedures for implementing marketing / serviceplans from time to time.

K. DOCUMENTS AVAILABLE FOR INSPECTION: Copies of the following documents will be availablefor inspection by the unitholders between 11.00 a.m. and 1.00 p.m. on any working day at the head

office of the Mutual Fund: -1. Memorandum and Articles of Association of RCAM and RCTC.

2. The Custodial Agreement between RMF and Deutsche Bank

3. Trust Deed and subsequent amendments thereto

4. Mutual Fund Registration Certificate from SEBI

5. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

6. Registrar's consent letter

7. Investment Management Agreement.

8. Auditor's consent letter

9. Indian Trusts Act, 1882.

10. Offer Document of this Scheme and subsequent amendments thereto

Notwithstanding anything contained in the Offer Document, the provisions of the SEBI (MutualFunds) Regulations, 1996 and the guidelines thereunder, shall be applicable.

For and behalf of the Board of Directors ofRELIANCE CAPITAL ASSET MANAGEMENT LIMITED [Asset Management Company for Reliance Mutual Fund]

Place : Mumbai (Vikrant Gugnani)

Date : ___________, 2007 President