The following summary outlines the various provisions related to investments by Non-Resident Indians ('NRI's'), Persons of Indian Origin ('PIO s') and Foreign Institutional Investors ('FII s') in the Schemes of the Mutual Fund and is based on the relevant provisions of the Income-tax Act, 1961 (the 'Act'), regulations issued under the Foreign Exchange Management Act, 1999 and the Wealth-tax Act, 1957 (collectively called 'the relevant provisions'), as they stand on the date of this abridged Offer Document.
The following information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult with his or her own tax advisors / authorized dealers with respect to the specific tax and other implications arising out of his or her participation in the schemes.
Purchase Applications - NRI s and other overseas investors can invest in a Mutual Fund Schemes on Repatriable /Non-Repatriable basis as per the provisions of Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (the 'Regulations') as explained below. A Common Application Form duly completed together with cheques or bank drafts should be remitted through Investor Service Centres ('ISC').
- All Cheque/demand drafts accompanying the application form must be made in favour of "Selected Mutual Fund - Scheme Name" and crossed "A/c payee" only and should be made payable at a city where the application is accepted by the Mutual fund ISC or any Karvy ISC.
- Once an account is opened the investor may purchase additional units by filling-up the Common Application Form or by simply filling in the account number in the application form and mailing the same to a Mutual FUND ISC, along with the cheque or the bank draft.
Repatriable Basis - NRI s, PIO s
In case of NRI's, PIO's seeking to apply for purchase of units on a repatriable basis, payments may be made by way of inward remittances, or by way of cheques drawn on the NRE/FCNR Account of the investor [Clause 3(2) of the Regulations] payable at the city where the application form is accepted by any Mutual Fund ISC.
Non-Repatriable Basis - NRI s, PIO s
In case of NRI s/PIO s seeking to apply for units on a non-repatriable basis, payments may be made by way of inward remittances, or by way of cheques/demand drafts drawn on the NRE/FCNR/NRO account of the investor [Clause 3(3) of the Regulations], payable at the city where the application form is accepted by any Mutual Fund ISC.
FII Investors
FII s may pay for their subscription amounts out of funds held in Foreign Currency Account or Non-resident Rupee Account maintained in a designated branch of an authorized dealer [Clause 3(1) of the Regulations]. Payments may be made by way of cheques payable at a city where the application is accepted by any Mutual Fund ISC.
Similarly, in case of an application made under a Power of Attorney or by an FII, the original Power of Attorney (or a duly notarized certified true copy thereof), or the relevant resolution/authority to make the application, along with a certified copy of the Memorandum and Articles of Association and/or bye laws and Certificate of Registration should be submitted to the nearest ISC. The officials should sign the application under their official designation.
The NRI s/PIO s/FII s shall also be required to furnish such other documents as may be desired by the Fund in connection with the investment in the Schemes.