SAI is common for all schemes of a mutual fund. First, the draft SAI needs to be filed with SEBI. After incorporating the comments / observations, if any, from SEBI, the AMC has to file a soft copy of the final SAI with SEBI in pdf format along with printed copy of the same. Final SAI is also to be uploaded on the AMC’s website and on the AMFI website.
A printed copy of SAI has to be made available to the investor(s) on request. SAI is to be updated within 3 months from the end of financial year and filed with SEBI.
Any material changes in the SAI have to be made on an ongoing basis by way of update on the mutual fund and AMFI websites. SEBI has to be intimated of the changes made in the SAI within 7 days. The effective date for such changes has to be mentioned in the updated SAI.
Some of the key contents of the SAI are given below :
Key Contents of SAI (Statement of Additional Information)
1. Information about Sponsor, AMC and Trustee Companies
Constitution Of the Mutual Fund
ABC (the “Mutual Fund9 has been constituted as a trust on _______ in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) with XYZ, as the Sponsor and DEF as the Trustee. The Trust Deed has been registered under the Indian Registration Act, 1908. The Mutual Fund was registered with SEBI on ___________under Registration Code MF
ABC Mutual Fund is sponsored by XYZ. The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of _______to the Trustee as the initial contribution towards the corpus of the Mutual Fund.
Financial Performance of the Sponsor (past three years) is as follows:
> Net Worth.
> Total Income.
> Profit after Tax.
> Assets Under Management (if applicable).
DEF (the “Trustee”) through its Board of Directors, shall discharge its obligations as trustee of the ABC Mutual Fund. The Trustee ensures that the transactions entered into by the AMC are in accordance with the SEBI Regulations and will also review the activities carried on by the AMC.
Details of Trustee Directors are as follows:
> Name, Age, Qualifications, Brief Experience
> Responsibilities and duties of the Trustee as well as the specific and general due diligence.
Asset Management Company
STP Ltd. is a private limited company incorporated under the Companies Act, 1956 on _______, having its Registered Office at ___________________. STP Ltd. has been appointed as the Asset Management Company of the ________ Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated __________, and executed between DEF and STP.
Details of AMC Directors are as follows:
Name, Age, Qualifications, Brief Experience
State the Duties and obligation of the AMC as specified in the SEBI Mutual Fund Regulations.
Information on Key Personnel is as follows:
Name, Age, Qualifications, Brief Experience of CEO, ClO, Operations Head, Compliance Officer, Sales Head, Risk Manager, Investor Relations Officer.
The AMC may decide on the key personnel it wants to mention in the SAl in addition to the persons mentioned above.
Details of Custodian, Transfer Agent, Statutory Auditor, Legal Counsel, Fund Accountant, Collecting Rankers.
2. Condensed Financial Information
Details to be given for all schemes launched by the mutual fund in last 3 fiscal years (excluding redeemed schemes):
NAV at beginning of year, Dividend, NAV at end of year, Annualised Return, Net Assets at end of period, Ratio of Recurring Expenses to Net Assets.
Dividend details do not need to be provided for liquid schemes.
Details may be given only for the growth option, and justification can be given for not providing details of the other options
3. How to Apply ?
Procedures and KYC Requirements
4. Rights of Unit Holders in Scheme
The rights are to be listed here.
5. Investment Valuation Norms for Securities and Other Assets
6. Tax. Legal and General Information
Applicable tax provisions for Mutual Fund and for investments in Mutual Fund scheme.
Information on Nomination Facility, KYC Requirements, Requirements of Prevention of Money Laundering Act, Transfer and transmission of units, Duration of the scheme/Winding up, Procedure and manner of winding up, etc.
Information on Underwriting, Securities Lending and Borrowing by the Mutual Funds, Inter-scheme transfers, Associate Transactions, etc.
Documents available for inspection
The following documents will be available for inspection at the office of the Mutual Fund at _______________________ during business hours on any day (excluding Saturdays, Sundays and public holidays):
> Memorandum and Articles of Association of the AMC.
> Investment Management Agreement.
> Trust Deed and amendments thereto, if any.
> Mutual Fund Registration Certificate.
> Agreement between the Mutual Fund and the Custodian.
> Agreement with Registrar and Share Transfer Agents.
> Consent of Auditors to act in the said capacity.
> Consent of Legal Advisors to act in the said capacity.
> Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments from time to time thereto.
> Indian Trusts Act, 1882.
Investor Grievances Redressal Mechanism
Brief description of the investors’ complaints history for the last three fiscal years for existing schemes, and the redressal mechanism thereof. The SAl should include data updated every two months on the number of complaints received, redressed and pending with the Mutual Fund.