Scheme Informa� on Document

IDBI FIXED MATURITY PLAN � SERIES IVA closed-ended debt scheme off ering 8 Plans (Plan A to H) of tenor from 30 Days to 120 Months (inclusive)

Present Off er : IDBI FMP - Series IV – 91 Days (March 2014) – H

Off er for Units of Rs. 10 per units for cash (at par) during the New Fund Off er period for each plan

NFO opens on 6th March, 2014 & closes on 10th March, 2014

Product LabelThis product is suitable for investors who are seeking*:

• Regular fi xed income for short term/ medium term/ long term• Investments in Debt/ Money market instruments/ Government securi� es

• Low risk (BLUE)*Investors should consult their fi nancial advisors if in doubt about whether the product is suitable for them.Note- Risk may be represented as:

(BLUE) Investors understand that their principal will be at low risk

(YELLOW) Investors understand that their principal will be at medium risk

(BROWN) Investors understand that their principal will be at high risk

Name of Mutual Fund IDBI Mutual Fund

Name of Asset Management Company IDBI Asset Management Limited

Name of Trustee Company IDBI MF Trustee Company Limited

Name of Sponsor IDBI Bank Limited

Registered Offi ce IDBI Tower, WTC Complex, Cuff e Parade, Colaba Mumbai 400005

Corporate Offi ce IDBI Asset Management Ltd 5th Floor Mafatlal Center, Nariman Point, Mumbai -21

Website www.idbimutual.co.in

The par� culars of the Scheme have been prepared in accordance with the Securi� es and Exchange Board of India (Mutual Funds) Regula� ons 1996, (hereina� er referred to as SEBI (MF) Regula� ons) as amended � ll date, and fi led with SEBI, along with a Due Diligence Cer� fi cate from the AMC. The units being off ered for public subscrip� on have not been approved or recommended by SEBI nor has SEBI cer� fi ed the accuracy or adequacy of the Scheme Informa� on Document.

The investors are advised to refer to the Statement of Addi� onal Informa� on (SAI) for details of IDBI Mutual Fund, Tax and Legal issues and general informa� on on www.idbimutual.co.in. SAI is incorporated by reference (is legally a part of the Scheme Informa� on Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.

The Scheme Informa� on Document should be read in conjunc� on with the SAI and not in isola� on.

This Scheme Informa� on Document is dated February 24, 2014.___________________________________________________________________________________________________

Interpreta� onFor all purposes of the SID, except as otherwise expressly provided or unless the context otherwise requires:• All references to the masculine shall include the feminine and all references, to the singular shall include the plural and vice-versa.• All references to “Rs” refer to Indian Rupees. A “crore” means “ten million” and a “lakh” means a “hundred thousand”.• All references to � mings relate to Indian Standard Time (IST).• References to a day are to a calendar day including non Business Day unless otherwise specifi ed.

2

Disclaimer of NSEIL

As required, a copy of this Scheme Informa� on Document has been submi� ed to Na� onal Stock Exchange of India Limited (hereina� er referred to as NSE). NSE has given vide its le� er Ref: NSE/LIST/215640-Z dated September 10, 2013 permission to the Mutual Fund to use the Exchange’s name in this Scheme Informa� on Document as one of the stock exchanges on which the Mutual Fund’s units are proposed to be listed subject to, the Mutual Fund fulfi lling the various criteria for lis� ng. The Exchange has scru� nized this Scheme Informa� on Document for its limited internal purpose of deciding on the ma� er of gran� ng the aforesaid permission to the Mutual Fund. It is to be dis� nctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Informa� on Document has been cleared or approved by NSE; nor does it in any manner warrant, cer� fy or endorse the correctness or completeness of any of the contents of this Scheme Informa� on Document; nor does it warrant that the Mutual Fund’s units will be listed or will con� nue to be listed on the Exchange; nor does it take any responsibility for the fi nancial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund.

Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, inves� ga� on and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suff ered by such person consequent to or in connec� on with such subscrip� on / acquisi� on whether by reason of anything stated or omi� ed to be stated herein or any other reason whatsoever.

3

CONTENTS

Page No.

HIGHLIGHTS OF THE SCHEME 4

I. INTRODUCTION 5

A. RISK FACTORS 5

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME 7

C. SPECIAL CONSIDERATIONS 7

D. DEFINITIONS 8

E. DUE DILIGENCE CERTIFICATE 11

II. INFORMATION ABOUT THE SCHEME 12

A. TYPE OF THE SCHEME 12

B. INVESTMENT OBJECTIVE OF THE SCHEME 12

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? 12

D. WHERE WILL THE SCHEME INVEST? 16

E. WHAT ARE THE INVESTMENT STRATEGIES? 20

F. FUNDAMENTAL ATTRIBUTES 22

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 23

H. WHO MANAGES THE SCHEME? 23

I. WHAT ARE THE INVESTMENT RESTRICTIONS? 23

J. HOW HAS THE SCHEME PERFORMED? 25

III. UNITS AND OFFER 26

A. NEW FUND OFFER (NFO) 26

B. ONGOING OFFER DETAILS 32

C. PERIODIC DISCLOSURES 35

D. COMPUTATION OF NAV 37

IV. FEES AND EXPENSES 38

A. NEW FUND OFFER (NFO) EXPENSES 38

B. ANNUAL SCHEME RECURRING EXPENSES 38

C. LOAD STRUCTURE 40

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS 40

E. TRANSACTION CHARGES 40

V. RIGHTS OF UNITHOLDERS 41

VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

41

4

HIGHLIGHTS OF THE SCHEME

1. Name of the Scheme: IDBI Fixed Maturity Plan – Series IV

Present off er: IDBI FMP - Series IV – 91 Days (March 2014) – H

2. Type of Scheme: A closed-ended debt scheme.

3. The present off er under this SID is for 91 days tenor. The Scheme will provide investors with 8 Plans of tenor from 30 Days to 120 Months (inclusive) for investment. The tenor for each Plan under the Scheme shall be decided by the AMC at the � me of launch of the respec� ve Plan and will be disclosed in the SID/KIM issued prior to the launch of that Plan. The AMC will under no circumstance off er a tenor outside the maturity range indicated above.

4. Units will be available at par (Rs. 10/-) during the New Fund Off er (NFO). The Scheme will not be open for subscrip� on on an ongoing basis.

5. Investment objec� ve – The investment objec� ve for each Plan(s) under the Scheme will be to generate income through investments in Debt and Money Market Instruments. In accordance with SEBI Circular No SEBI/IMD/ CIR No. 12/147132/08 dated December 11, 2008 each Plan shall invest only in such securi� es which mature on or before the maturity date of the respec� ve plan.

6. Liquidity – The Scheme will not off er any redemp� on facility except at maturity of each of the Plans. Units of each Plan will be listed on the Na� onal Stock Exchange (NSE).

7. Op� ons for investment – Dividend Op� on (Payout) and Growth Op� on.

8. Benchmark –

a. For Plans with maturity up to 91 Days – CRISIL Liquid Fund Index

b. For Plans with maturity above 91 Days and up to 36 Months – CRISIL Short Term Bond Fund Index

c. For Plans with maturity above 36 Months – CRISIL Composite Bond Fund Index

9. Transparency/NAV Disclosure – NAV of the Scheme will be computed on all business days. The NAV will be published in two daily newspapers on all business days.

The AMC shall update the NAVs on the website of IDBI Mutual Fund (www.idbimutual.co.in) and on the website of Associa� on of Mutual Funds in India - hereina� er referred to as AMFI (www.amfi india.com) by 9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI in wri� ng. If the NAVs are not available before commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAVs.

As presently required by the SEBI (MF) Regula� ons, a complete statement of the Scheme por� olio would be published by the Mutual Fund as an adver� sement in one English daily Newspaper circula� ng in the whole of India and in a newspaper published in the language of the region where the Head Offi ce of the Mutual Fund is situated within one month from the close of each half year (i.e. March 31 & September 30). The Por� olio Statement will also be made available on the website of the Mutual Fund and AMFI.

10. Loads

i. For investments made during the New Fund Off er (NFO) period

a. Entry Load – Not applicable

b. Exit load – Nil

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. The upfront commission, if any, to the distributor on the investment made by the investor will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor

11. Minimum Applica� on Amount - Rs. 5000 and in mul� ples of Re. 1 therea� er

5

I. INTRODUCTIONA. RISK FACTORS

a. Standard Risk Factors

1. Investment in Mutual Fund Units involves investment risks such as trading volumes, se� lement risk, liquidity risk, default risk including the possible loss of principal.

2. As the price / value / interest rates of the securi� es in which the scheme invests fl uctuates, the value of your investment in the scheme may go up or down

3. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme.

4. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns.

5. The sponsor is not responsible or liable for any loss resul� ng from the opera� on of the scheme beyond the ini� al contribu� on of Rs. 10 lakhs made by it towards se� ng up the Fund and/or such other accre� ons / addi� ons to the same made from � me to � me.

6. The present scheme is not a guaranteed or assured return scheme.b. Scheme Specifi c Risk Factors

1. The Trustees, AMC, Fund, their directors or their employees shall not be liable for any tax consequences that may arise in the event that the scheme is wound up for the reasons and in the manner provided under the Scheme Informa� on Document & Statement of Addi� onal Informa� on.

2. All Plans launched under IDBI Fixed Maturity Plan – Series IV will seek to invest in credit instruments, Government Securi� es, securi� zed debt, debt deriva� ves and money market instruments. Trading volumes and se� lement periods may inherently restrict the liquidity of the scheme’s investments which may impact the Scheme’s ability to capitalize on investment opportuni� es resul� ng in lower than an� cipated performance for the Scheme.

3. Diff erent types of securi� es in which the Scheme/Plans would invest as given in the SID carry diff erent levels of risk. Accordingly the Scheme’s/Plan’s risk may increase or decrease depending upon the investment pa� ern. For e.g. corporate bonds carry a higher amount of risk than Government Securi� es. Further even among corporate bonds, bonds, which are AAA rated, are compara� vely less risk than bonds, which are AA rated.

4. The Mutual Fund is not assuring any dividend nor is it assuring that it will make any dividend distribu� ons. All dividend distribu� ons are subject to the availability of distributable surplus and would depend on the performance of the scheme and will be at the discre� on of the AMC.

5. Since the scheme is a closed ended scheme, investors will have to necessarily trade in the stock Exchange pla� orm, in case they wish to liquidate their units before maturity date of the respec� ve maturity plans. Transac� ons in close ended units of mutual funds in the stock Exchange pla� orm are subject to illiquidity risk.

6. Risks associated with investments in debt and money market securi� es (including government securi� es, and fl oa� ng/fi xed rate debt instruments)

i. Credit risk: This risk arises due to any uncertainty in counterparty’s ability or willingness to meet its contractual obliga� ons. This risk pertains to the risk of default of payment of principal and interest. Government Securi� es have zero credit risk while other debt instruments are rated according to the issuer’s ability to meet the obliga� ons.

The AMC seek to manage credit risk by restric� ng investments only to investment grade securi� es. Regular review of the issuer profi le to monitor and evaluate the credit quality of the issuer will be carried out.

ii. Interest Rate risk: This risk is associated with movements in interest rate, which depend on various factors such as government borrowing, infl a� on, economic performance etc. The values of investments will appreciate/depreciate if the interest rates fall/rise. In the Scheme securi� es invested in will mature on or before maturity of the scheme. As the securi� es are expected to be held � ll maturity, the interest rate risk is mi� gated.

Interest rate risk mi� ga� on will be through ac� ve dura� on management at the por� olio level through regular monitoring of the interest rate environment in the economy.

6

iii. Liquidity risk: The liquidity of a bond may change depending on market condi� ons leading to changes in the liquidity premium linked to the price of the bond. At the � me of selling the security, the security can become illiquid leading to loss in the value of the por� olio.

Since no intermediate repurchases are permi� ed during the tenor of the Scheme but only at maturity and since the maturity of the instruments in the underlying por� olio cannot exceed the maturity date of the Scheme, liquidity risk is not likely to impact the Scheme.

iv. Reinvestment risk: This risk arises from uncertainty in the rate at which cash fl ows from an investment may be reinvested. This is because the bond will pay coupons, which will have to be reinvested. The rate at which the coupons will be reinvested will depend upon prevailing market rates at the � me the coupons are received.

The AMC will endeavor to manage this risk by diversifying the investments in instruments with appropriate maturity baskets.

7. Risks associated with Inves� ng in Deriva� ves

Deriva� ve products are leveraged instruments and can provide dispropor� onate gains as well as dispropor� onate losses to the investor. Execu� on of such strategies depends upon the ability of the fund manager to iden� fy such opportuni� es. Iden� fi ca� on and execu� on of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profi table. No assurance can be given that the fund manager will be able to iden� fy or execute such strategies.

The risks associated with the use of deriva� ves are diff erent from or possibly greater than, the risks associated with inves� ng directly in securi� es and other tradi� onal investments.

There are certain risks inherent in deriva� ves. These are :i. Price Risk: Despite the risk mi� ga� on provided by various deriva� ve instruments, there remains an inherent

price risk which may result in losses exceeding actual underlying. ii. Default Risk: This is the risk that losses will be incurred due to default by counter party. This is also known as

credit risk or counterparty risk. iii. Basis Risk – This risk arises when the deriva� ve instrument used to hedge the underlying asset does not match

the movement of the underlying being hedged for e.g. mismatch between the maturity date of the futures and the actual selling date of the asset.

iv. Limita� ons on upside: Deriva� ves when used as hedging tool can also limit the profi ts from a genuine investment transac� on.

v. Liquidity risk pertains to how saleable a security is in the market. All securi� es/instruments irrespec� ve of whether they are equity, bonds or derivates may be exposed to liquidity risk (when the sellers outnumber buyers) which may impact returns while exi� ng opportuni� es.

The AMC will monitor the overall economic and credit environment including the systemic liquidity on a regular basis and the outlook will be integrated into the risk control and monitoring of the Scheme to control the risk emana� ng from deriva� ve investments.

8. Risks associated with inves� ng in Securi� zed Debt Securi� zed Debt is a fi nancial instrument (bond) whose interest and principal payments are backed by an underlying

cash fl ow from another asset. The risks associated with inves� ng in such instruments are: Limited Recourse: The instruments represent an undivided benefi cial interest in the underlying receivables and do

not represent an obliga� on of either the Issuer or the Seller or the originator, or the parent or any affi liate of the Seller, Issuer and Originator. No fi nancial recourse is available to the buyer of the security against the Investors’ Representa� ve.

Delinquency and Credit Risk: Delinquencies and credit losses may cause deple� on of the amount available under the Credit Enhancement and thereby the Monthly Investor Payouts to the Holders may get aff ected if the amount available in the Credit Enhancement facility is not enough to cover the shor� all. On persistent default of an Obligor to repay his obliga� on, the Servicer may repossess and sell the Vehicle/ Asset. However many factors may aff ect, delay or prevent the repossession of such Vehicle/Asset or the length of � me required to realize the sale proceeds on such sales. In addi� on, the price at which such Vehicle/Asset may be sold may be lower than the amount due from that Obligor.

7

Risks due to possible prepayments: Full prepayment of a contract may lead to an event in which investors may be exposed to changes in tenor and yield.

Bankruptcy of the Originator or Seller: If the service provider becomes subject to bankruptcy proceedings and the court in the bankruptcy proceedings concludes that either the sale from each Originator was not a sale then an Investor could experience losses or delays in the payments due under the instrument.

Liquidity risk: There is no assurance that a deep secondary market will develop for the instrument. This could limit the ability of the investor to resell them.

Risk mi� ga� ng mechanisms for securi� zed debts are explained in detail in the later pages of this document.

9. Risks associated with Short Selling and Securi� es Lending

The scheme does not propose to engage in Short Selling and Securi� es Lending

10. Risks associated with inves� ng in unrated securi� es

Inves� ng in unrated securi� es will be riskier compared to investment in rated instruments due to non availability of third party assessment on the repaying capability of the issuer. Any investment in unrated securi� es will be carried out only a� er obtaining the general approval from Board of Trustees and Board of AMC. The Mutual Fund will carry out internal ra� ng exercise for all unrated instruments in which the Fund Manger plans to make investments and assign a proxy ra� ng. Investments in unrated instruments will only be made in instruments with proxy ra� ng of A1/AA- or above.

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

Each Plan under the Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Plan(s). These condi� ons will be complied with immediately a� er the close of the NFO itself i.e. at the � me of allotment. In case the Plan(s) does not have a minimum of 20 investors in the s� pulated period, the provisions of Regula� on 39(2) (c) of the SEBI (MF) Regula� ons would become applicable automa� cally without any reference from SEBI. In case of non-fulfi llment with the condi� on of 25% holding by a single investor on the date of allotment, the applica� on to the extent of exposure in excess of the s� pulated 25% limit would be liable to be rejected and the allotment would be eff ec� ve only to the extent of 25% of the corpus collected. Consequently, such exposure over 25% limits will lead to refund within 5 business days from the date of closure of the New Fund Off er of the respec� ve Plan. The Fund shall adhere to the requirements prescribed by SEBI from � me to � me in this regard. The 25% exposure to the corpus of the scheme shall be calculated at the por� olio level for each Plan.

C. SPECIAL CONSIDERATIONS

Investors should study the Scheme Informa� on Document carefully in its en� rety and should not construe the contents thereof as advice rela� ng to legal, taxa� on, investment or any other ma� ers. Investors are advised to consult their legal, tax, investment and other professional advisors to determine possible legal, tax, fi nancial or other considera� ons of subscribing to or redeeming Units, before making a decision to invest/redeem Units.

The tax benefi ts described in this Scheme Informa� on Document and Statement of Addi� onal Informa� on are as available under the present taxa� on laws and are available subject to relevant condi� ons. The informa� on given is included only for general purpose and is based on advice received by the AMC regarding the law and prac� ce currently in force in India and the Unit holders should be aware that the relevant fi scal rules or their interpreta� on may change. As is the case with any investment, there can be no guarantee that the tax posi� on or the proposed tax posi� on prevailing at the � me of an investment in the Scheme will endure indefi nitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

Redemp� on by the Unit holder due to change in the fundamental a� ributes of the Scheme(s) or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise.

Mutual Fund or AMC and its empanelled Brokers have not given and shall not give any indica� ve por� olio and indica� ve yield in any communica� on, in any manner whatsoever. Investors are advised not to rely on any communica� on regarding indica� ve yield/por� olio with regard to the scheme.

8

D. DEFINITIONS

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

IDBI Asset Management Limited incorporated under the provisions of the Companies Act, 1956 and approved by Securi� es and Exchange Board of India to act as the Asset Management Company for the scheme(s) of IDBI Mutual Fund.

Applicable NAV The NAV applicable for subscrip� on or redemp� on or switching/Transfer based on the Business Day and relevant cut-off � mes on which the applica� on is accepted at Offi cial Point of Acceptance of Transac� on.

Applica� on Supported by Blocked Amount or ASBA

ASBA is an applica� on containing an authoriza� on to a Self Cer� fi ed Syndicate Bank (SCSB) to block the applica� on money in the bank account maintained with the SCSB, for subscribing to an issue.

ASBA Applica� on Form The form, whether physical or electronic, used by a applicant to make a NFO applica� on through ASBA process, which will be considered as the applica� on for allotment.

Business Day A day other than• Saturday or Sunday; or, • a day on which both the Na� onal Stock Exchange of India Limited and the Bombay

Stock Exchange Limited are closed; or,• a day on which the Purchase/ Redemp� on/Switching/Transfer of Units is suspended;

or,• a day on which in Mumbai, Banks and / RBI are closed for business/clearing; or,• a day which is a public and /or bank holiday at the Investor Service Centres of the

AMC/Points of Acceptance where the applica� on is received; or,• a day on which normal business cannot be transacted due to storms, fl oods, natural

calami� es, bandhs, strikes or such other events as the AMC may specify from � me to � me.

“Business Day” does not include a day on which the Money Markets are closed or otherwise not accessible. The AMC reserves the right to declare any day as a Business day or otherwise at any of the Investor Service Centers of the AMC/Offi cial Points of Acceptance.

Business Hours Presently 10.00 a.m. to 5.00 p.m. on any Business Day or such other � me as may be applicable from � me to � me.

Custodian A person who has been granted a cer� fi cate of registra� on to carry on the business of custodian of securi� es under the Securi� es and Exchange Board of India (Custodian of Securi� es) Regula� ons 1996, which for the � me being is Stock Holding Corpora� on of India Ltd, Mumbai.

Cut-off � me ‘Cut-off Timing’, in rela� on to a prospec� ve investor making an applica� on to the Mutual Fund for sale or repurchase of units, shall mean, the outer limit of � ming within a par� cular day which is relevant for determina� on of the NAV applicable for his transac� on

Consolidated Account Statement Consolidated Account Statement is a statement containing details rela� ng to all the transac� ons across all mutual funds viz. purchase, redemp� on, dividend payout etc.

Date of Allotment The date of issue/transfer/credit of mutual fund units to investors pursuant to the NFO or ongoing purchase of units a� er the NFO period in the manner as specifi ed in this document.

Date of Applica� on The date of receipt of a valid applica� on complete in all respect for subscrip� on / redemp� on of Units of this scheme by IDBI Mutual Fund at its various offi ces/branches or the designated centers of the Registrar.

Debt Instruments Government securi� es, corporate debentures, bonds, promissory notes, pass-through cer� fi cates, asset backed securi� es/securi� zed debt and other possible similar securi� es.

9

Deriva� ve Financial contracts of pre-determined fi xed dura� on like futures and op� ons whose values are derived from the value of underlying primary fi nancial instruments/factors such as: interest rates, exchange rates, commodi� es, and equi� es.

Dividend Income distributed by the Mutual Fund on the UnitsEntry Load Entry Load means a one-� me charge that the investor pays at the � me of entry into the

scheme.Presently, entry load cannot be charged by mutual fund schemes.

Exit Load A charge paid by the investor at the � me of exit from the scheme.FII or Foreign Ins� tu� onal Investor Foreign Ins� tu� onal Investor, registered with SEBI under the Securi� es and Exchange

Board of India (Foreign Ins� tu� onal Investors) Regula� ons, 1995, as amended from � me to � me.

Forward Rate Agreement or FRA A FRA is an agreement to pay or receive the diff erence between the agreed fi xed rate and actual interest prevailing at a s� pulated future date. The interest rate is fi xed now for a future agreed period wherein only the interest is se� led between the counter par� es.

Gilts / Govt. Securi� es Securi� es created and issued by the Central Government and/or State Government, as defi ned under Sec� on 2 of Public Debt Act 1944 as amended or re-enacted from � me to � me.

Interest Rate Swap or IRS IRS is a fi nancial contract between two par� es exchanging a stream of interest payments for a no� onal principal amount on mul� ple occasions � ll maturity. Typically, one party receives a pre-determined fi xed rate of interest while the other party receives a fl oa� ng rate, which is linked to a mutually agreed benchmark with provision for mutually agreed periodic resets.

Interest Rate Futures or IRF An IRF contract is a standardized, legally binding agreement to buy or sell a debt instrument at a specifi ed date at a price that is fi xed today.

Investment Management Agreement

Investment Management Agreement dated 20th February 2010, entered into between the Fund (ac� ng through the Trustee) and the AMC and as amended up to date, or as may be amended from � me to � me.

Investor Investor means an Individual or a non-Individual, as permi� ed under SEBI (MF) Regula� ons to invest in mutual fund schemes, making an applica� on for subscrip� on or redemp� on of units in the Schemes of the Mutual Fund

Maturity Date The date on which all the units under the Scheme would be redeemed compulsorily by the Mutual Fund at the Applicable NAV of that day. If this date falls on a Non-Business Day then the immediately succeeding Business Day will be deemed the Maturity Date.

MIBOR Means Mumbai Inter-Bank Off er Rate, the interest rate at which Banks can borrow from other Banks in the market

Minor ‘Minor’ means a person who has not completed the age of eighteen years under the provisions of the Indian Majority Act 1875 as amended from � me to � me

Money Market Instruments Includes Commercial Papers, Commercial Bills, Treasury Bills, Government Securi� es having an unexpired maturity up to one year, call or no� ce money, cer� fi cate of deposit, usance bills and any other like instruments as specifi ed by the Reserve Bank of India from � me to � me.

The Fund or Mutual Fund IDBI Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882.Mutual Fund Regula� ons / Regula� ons

Securi� es and Exchange Board of India (Mutual Funds) Regula� ons, 1996, as amended up to date, and such other regula� ons as may be in force from � me to � me.

Na� onal Stock Exchange or NSE Stock Exchange established under the Securi� es Contracts (Regula� on) Act, 1956

10

NAV Net Asset Value of the Units of the Scheme (including Op� ons thereunder) calculated in the manner provided in this Document and as prescribed by the SEBI (Mutual Funds) Regula� ons, 1996 from � me to � me.

NAV related price The Sale/Repurchase Price calculated on the basis of NAV and is known as the NAV related price. The Repurchase Price is calculated by deduc� ng the exit load factor (if any) from the NAV

NRI or Non-Resident Indian Person resident outside India who is either a ci� zen of India or a Person of Indian OriginOffi cial Points of Acceptance Places, as specifi ed by AMC from � me to � me where applica� on for subscrip� on /

redemp� on / switch will be accepted on ongoing basis.Person of Indian Origin A ci� zen of any country other than Bangladesh or Pakistan, if (a) he at any � me held an

Indian passport; or (b) he or either of his parents or any of his grandparents was a ci� zen of India by virtue of Cons� tu� on of India or the Ci� zenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian ci� zen or person referred to in sub-clause (a) or (b).

Reserve Bank of India [RBI] Reserve Bank of India established under the Reserve Bank of India Act, 1934.Registrar & Transfer Agent or RTA or R&T

Karvy Computershare Pvt. Ltd (Karvy) Hyderabad, currently appointed as Registrar to the Scheme, or any other registrar appointed by the AMC from � me to � me.

Repo Sale of Government Securi� es/corporate debt securi� es with simultaneous agreement to repurchase them at a later date.

Repurchase/Redemp� on Redemp� on of Units of the Scheme in the manner as specifi ed in this document.Reverse Repo Purchase of government securi� es/corporate debt securi� es with simultaneous agreement

to sell them at a later date.Scheme IDBI Fixed Maturity Plan - Series IV Plan A to HSAI or Statement of Addi� onal Informa� on

The document issued by IDBI Mutual Fund containing details of IDBI Mutual Fund, its cons� tu� on, and certain tax, legal and general informa� on. SAI is legally a part of the SID.

Sale or Subscrip� on Purchase of units in the Scheme in the manner as specifi ed in this document.SID or Scheme Informa� on Document

This document issued by IDBI Mutual Fund se� ng forth concisely the informa� on about off ering of Units by the Scheme and terms of off er for subscrip� on/redemp� on that a prospec� ve investor ought to know before inves� ng.

SEBI/ Board Securi� es and Exchange Board of India established under Securi� es and Exchange Board of India Act, 1992.

SEBI (MF) Regula� ons Securi� es and Exchange Board of India (Mutual Funds) Regula� ons, 1996 for the � me being in force and as amended from � me to � me.

Sponsor or Se� lor IDBI Bank Limited.Switch Redemp� on of a unit in any scheme (including the op� ons therein) of the Mutual Fund

against purchase of a unit in any other open-ended scheme (including op� ons therein) of the Mutual Fund, subject to comple� on of lock-in period, if any, of the units of the scheme(s) from where the units are being switched.

Trust Deed The Trust Deed entered into on 19th February 2010 between the Sponsor and the Trustee, as amended up to date, or as may be amended from � me to � me.

Trustee Company IDBI MF Trustee Company Limited.Unit The interest of the Unit holder which consists of each Unit represen� ng one undivided

share in the assets of the Scheme.Unit Capital The aggregate face value of the Units issued and outstanding under the Scheme.Unit holder A person holding Unit(s) in the Scheme off ered under this document.

11

IDBI Asset Management Limited confi rms that a Due Diligence Cer� fi cate duly signed by the Compliance Offi cer of the Asset Management Company has been submi� ed to SEBI on September 12, 2013, which reads as follows:

E. DUE DILIGENCE CERTIFICATE

It is confi rmed that:

1. The dra� Scheme Informa� on Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regula� ons, 1996 and the guidelines and direc� ves issued by SEBI from � me to � me.

2. All legal requirements connected with the launching of the scheme as also the guidelines, instruc� ons, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

3. The disclosures made in the Scheme Informa� on Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the proposed scheme.

4. The intermediaries named in the Scheme Informa� on Document and Statement of Addi� onal Informa� on is registered with SEBI and their registra� on is valid, as on date.

For IDBI Asset Management Limited Asset Management Company for IDBI Mutual Fund

Sd/-

Place: Mumbai A.JayadevanDate: 12th September, 2013 Compliance Offi cer IDBI Asset Management Limited

12

II. INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

A closed-ended debt scheme off ering 8 Plans of tenor from 30 Days to 120 Months (inclusive)

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?

Each Plan under the Scheme will endeavour to generate income through investments in Debt and Money Market Instruments. In accordance with SEBI Circular No SEBI/IMD/ CIR No. 12/147132/08 dated December 11, 2008 each Plan shall invest only in such securi� es which mature on or before the maturity date of the respec� ve plan.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?

a. Asset Alloca� on Pa� ern

Under normal circumstances the asset alloca� on pa� ern for each of the 8 Plans will be:

S No Maturity of the Plan

Instrument Minimum Maximum

1 Up to and including 400 days

Money Market instruments 0% 100%Debt instruments (including government securi� es, fl oa� ng rate debt instruments and securi� zed debt*)

0% 100%

2 Above 400 days and Up to and including 3 Years

Money Market instruments 0% 30%Debt instruments (including government securi� es, fl oa� ng rate debt instruments and securi� zed debt*)

70% 100%

3 Above 3 years and Up to and including 10 Years

Money Market instruments 0% 20%Debt instruments (including government securi� es, fl oa� ng rate debt instruments and securi� zed debt*)

80% 100%

Asset alloca� on of each plan under the scheme would be chosen according to the maturity profi le of each plan as men� oned above in the table.

*Investment in Securi� zed Debt not to exceed 50% of the net assets of the Scheme.

The mutual fund shall comply with the applicable provisions of SEBI Circular dated January 7, 2014 and all other guidelines issued by SEBI, Exchanges and other Governmental authori� es with respect to transac� ons in securi� zed debt instruments.

Investment in Deriva� ves will be up to 50% of the net assets of the Scheme. Investment in deriva� ves shall be for hedging, por� olio balancing and such other purposes as maybe permi� ed from � me to � me. The cumula� ve gross exposure through money market instruments, debt instruments ((including government securi� es, fl oa� ng rate debt instruments and securi� zed debt*) and deriva� ve posi� ons should not exceed 100% of the net assets of the scheme. All investments in deriva� ve instruments shall be subject to the limits men� oned in SEBI circular ref. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010.

The Scheme does not propose to invest in ADRs/GDRs and foreign securi� es.

The scheme does not propose to engage in Short Selling and Securi� es Lending

Pending deployment of funds as per the investment objec� ve of the Scheme, the funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specifi ed by SEBI from � me to � me.

Subject to the Regula� ons, the asset alloca� on pa� ern indicated above may change from � me to � me, keeping in view market condi� ons, market opportuni� es, applicable regula� ons and poli� cal and economic factors. It must be clearly understood that the percentages stated above are only indica� ve and not absolute and that they can vary substan� ally depending upon the percep� on of the AMC, the inten� on being at all � mes to seek to protect the interests of the Unit holders. Such changes in the asset alloca� on pa� ern will be for short term and defensive considera� ons.

In the event of asset alloca� on falling outside the limits specifi ed in the asset alloca� on table, the fund manager will review and rebalance the same as follows:

Within 5 days (for schemes having tenor of 30 days or more but up to 3 months)

Within 15 days (for schemes having tenor of more than 3 months but up to 6 months)

Within 30 days (for schemes having tenor above 6 months)

13

There is no rebalancing period for schemes having maturity of less than 30 days.

In the event of failure to rebalance the asset alloca� on within the periods men� oned above, the details of such instances will be reported to the Trustees for taking necessary remedial measures. Though every endeavor will be made to achieve the objec� ves of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objec� ves of the Scheme will be achieved.

b. Specifi c disclosures for close-ended debt oriented schemes

i. Credit evalua� on policy for investment in debt securi� es

The in-house credit evalua� on policy to evaluate the credit quality of an issuer follows the ‘bo� om-up’ procedure outlined below -

The credit analyst carries out an in-depth analysis of the fi nancial statements (annual reports and quarterly earnings statements) of the issuer, for the last 2-3 years evalua� ng amongst other metrics, relevant ra� os of profi tability, capital adequacy, gearing, turnover, and liquidity/asset-liability management. Qualita� ve factors like management track record, group companies, resource-raising ability, extent of availability of banking lines, internal control systems, etc are evaluated in addi� on to the business model and industry within which the issuer operates as regards industry/model-specifi c risks, working capital requirements, cash genera� on, seasonality, regulatory environment, compe� � on, bargaining power, etc. The analyst also reviews secondary sources like ra� ng ra� onales/ perspec� ves of credit ra� ng agencies, research reports of broking fi rms while also relying on primary sources such analyst conference calls with company management and direct interac� on with the management on need based specifi c clarifi ca� ons. On an ongoing basis, the credit analyst keeps track of credit profi le of the issuer, possible credit risks refl ected in change in outlook of ra� ng agencies, external developments aff ec� ng the issuer etc. Investments in issuers will be subject to ceiling limits (for long-term and short-term separately) based on net worth and rated quantum by ra� ng agencies. All the credit analysis/ opinions are formally documented in a pre-defi ned format and preserved for future reference.

ii. List of sectors that the AMC would not be inves� ng in for this Scheme –

a. Real Estate

b. Gems & Jewellery

c. Avia� on Sector

iii. Type of instruments in which the Plans propose to invest in

Please refer to subsec� on II (D)

iv. Sector wise exposure limit: -

The scheme would not invest more than 30% of net assets of the scheme in a par� cular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills and AAA rated securi� es issued by Public Financial Ins� tu� ons and Public Sector Banks). For the purpose of iden� fying sector, we would use AMFI sector defi ni� ons.

Provided that the scheme may take an addi� onal exposure to fi nancial services sector (over and above the limit of 30% men� oned above) not exceeding 10% of the net assets of the scheme by way of increase in exposure to Housing Finance Companies (HFCs) only;

Provided further that the addi� onal exposure to such securi� es issued by HFCs are rated AA and above and these HFCs are registered with Na� onal Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 30% of the net assets of the scheme

v. Floors and ceilings within a range of 5% of the intended alloca� on (in %) against each sub asset class/ra� ng.

credit ra� ngInstruments AAA A1 AA A2 A A3 BBB NACD 75-100%CP 0-25%NCDSecuri� zed Debt (SD)CBLO/T-Bills/ G-Sec 0-5%

14

Defi ni� on of ra� ng symbols as per SEBI Circular CIR/MIRSD/4/2011 dated June 15, 2011 is as follows. Long term debt instruments are instruments with original maturity exceeding one year and short term debt instruments are instruments with original maturity of up to one year.

Sr. No

Long Term

Ra� ng

Long Term Ra� ng-Defi ni� on Short Term

Ra� ng

Short Term Ra� ng Defi ni� on

1 AAA Instruments with this ra� ng are considered to have the highest degree of safety regarding � mely servicing of fi nancial obliga� ons. Such instruments carry lowestcredit risk.

A1 Instruments with this ra� ng are considered to have very strong degree of safety regarding � mely payment of fi nancial obliga� ons. Such instruments carry lowest credit risk.

2 AA Instruments with this ra� ng are considered to have high degree of safety regarding � mely servicing of fi nancial obliga� ons. Such instruments carry very low credit risk.

A2 Instruments with this ra� ng are considered to have strong degree of safety regarding � mely payment of fi nancial obliga� ons. Such instruments carry low credit risk.

3 A Instruments with this ra� ng are considered to have adequate degree of safety regarding � mely servicing of fi nancial obliga� ons. Such instruments carry low credit risk.

A3 Instruments with this ra� ng are considered to have moderate degree of safety regarding � mely payment of fi nancial obliga� ons. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.

4 BBB Instruments with this ra� ng are considered to have moderate degree of safety regarding � mely servicing of fi nancial obliga� ons. Such instruments carry moderate credit risk.

NA Not Applicable

No investment proposed below A3 ra� ng.

The above table refl ects the intended alloca� on against each sub asset class/credit ra� ng and there will not be any varia� ons between the alloca� on indicated above and the fi nal por� olio except in the following instances.

1) In case of non availability of and taking in to account the risk reward analysis of CPs, NCDs including Securi� zed Debts, the scheme may invest in CDs with highest credit ra� ng (A1+ ) and CBLO/T-Bills/ G-Sec. Such devia� on may exist � ll suitable NCD/CP/securi� zed debt of desired credit quality is available.

2) Posi� ve varia� on in investment towards higher credit ra� ng in the same instrument may be allowed. In view of the same, the fund manager will have the op� on to replace a AA rated instrument of CPs/ CDs/ NCDs/ SDs etc with a AAA rated instrument of the respec� ve CPs/ CDs/ NCDs/ SDs etc.

3) The Modifi ers {“+” (plus) / “-”(minus)} used with the ra� ng symbols for the categories AA to C will refl ect the compara� ve standing within the category and intended alloca� on men� oned against a ra� ng will include its modifi ers also.

4) At the � me of building up the por� olio post NFO as per the investment objec� ve of the scheme and also towards the maturity of the scheme there may be a higher alloca� on to cash and cash equivalent including units of IDBI Liquid Fund.

All the investment will be made on the basis of credit ra� ng prevalent at the � me of investments. If two or more credit ra� ngs are available for a single instrument, most conserva� ve publicly available ra� ng will be considered.

In the event of asset alloca� on falling outside the limits specifi ed in the asset alloca� on table, the fund manager will review and rebalance the same as follows:

Within 5 days (for schemes having tenor of 30 days or more but up to 3 months)

Within 15 days (for schemes having tenor of more than 3 months but up to 6 months)

Within 30 days (for schemes having tenor above 6 months)

There is no rebalancing period for schemes having maturity of less than 30 days.

15

c. Debt Market in India

The debt market is ac� ve since the mid 1990s with the introduc� on of major reforms in the debt market such as the auc� on system for sale of dated government securi� es, establishing the system of primary dealers to name a few reforms. This market is predominantly gilt oriented and corporate papers became a part of it since late 1990s. Even today, the Government Securi� es segment is the dominant segment in the debt market with a market capitaliza� on of Rs. 28,42,335 Crores comprising over 56% of the total market capitaliza� on of the debt market (as on 31 May 2013, Source: Na� onal Stock Exchange). The money market in India consists of the following instruments; treasury bills, commercial papers, cer� fi cates of deposits, short Non-Conver� ble Debentures-fi xed and fl oaters and term lending instruments. The debt market consists of gilts, corporate debt papers and other approved securi� es (government guaranteed papers). The nature of instruments is in the form of plain vanilla bonds, fl oaters, zero coupon bonds-deep discounted bonds, securi� zed papers and structured debt papers. The Wholesale Debt Market segment is available both at Na� onal Stock Exchange (NSE) and The Stock Exchange, Mumbai (BSE). The players in Indian debt market are commercial banks, mutual funds, fi nancial ins� tu� ons, insurance companies and others.

Money Market in India

The money market is a key component of the fi nancial system as it is the fulcrum of monetary opera� ons conducted by the central bank in its pursuit of monetary policy objec� ves. It is a market for short-term funds with maturity ranging from overnight to one year and includes fi nancial instruments that are deemed to be close subs� tutes of money. Money market instruments facilitate transfer of large sums of money quickly and at a low cost from one economic unit (business, government, banks, non-banks and others) to another for rela� vely short periods of � me. RBI has been taking ac� ve steps to develop the money market in India with the objec� ve to improve the signaling mechanism for monetary policy while ensuring fi nancial stability. Various reform measures have resulted in a rela� vely deep, liquid and vibrant money market with a shi� from administered and direct to indirect market based instruments of monetary management. For e.g. the call money market was transformed into a pure interbank market, while other money market instruments such as market repo and CBLO were developed to provide avenues to non-banks, including mutual funds, for managing their short-term liquidity mismatches. The money market in India consists of the following instruments; treasury bills, commercial papers, cer� fi cates of deposits, call money, term money, CBLO, bill rediscoun� ng etc. For the fortnight ended 30th April 2013, the total amount outstanding of commercial papers (at face value) issued was Rs. 1574.9 billion whereas the total amount outstanding of cer� fi cates of deposits issued by Banks was Rs. 3729.9 billion for the fortnight ended 17th May 2013.

The current yield / Yield Ranges (as on 24th February 2014) of various instruments men� oned above are given hereunder:

Instrument Current Yield/Yield ranges (% p.a.) SourceCBLO 7.95-8.08 CBLO91 Days Treasury Bills 8.95-9.05 NDS-OM364 Days Treasury Bills 8.95-9.05 NDS-OMP1+ Commercial Paper-90 days 9.90-10.25 FIMMDAP1+ Commercial Paper-364 days 9.80-10.25 FIMMDACer� fi cate of Deposit-90 days (2/3 months) 9.70-9.85 FIMMDACer� fi cate of Deposit-364 days 9.70-9.85 FIMMDA1 Year corporate Bond 9.70-9.85 FIMMDA3 Year corporate Bond 9.45-9.80 FIMMDA5 year corporate bond 9.60-9.80 FIMMDA5 Year G-Sec 8.90-9.00 NDS-OM10 Year G-Sec 8.75-8.85 NDS-OM30 Year G-Sec 9.20-9.35 NDS-OMREC/PFC-3 year 9.45-9.80 FIMMDAREC/PFC-5 year 9.60-9.80 FIMMDA

16

D. WHERE WILL THE SCHEME INVEST?

The corpus of the Scheme will be invested in money market instruments & debt instruments which shall include but shall not be limited to:

a) Collateralized Borrowing and Lending Obliga� ons (CBLO)

Collateralized Borrowing and Lending Obliga� ons (CBLO) is a money market instrument that enables en� � es to borrow and lend against sovereign collateral security. The maturity ranges from 1 day to 90 days and can also be made available up to 1 year. Central Government securi� es including Treasury Bills are eligible securi� es that can be used as collateral for borrowing through CBLO.

b) IDBI Liquid Fund

At the � me of building up the por� olio post NFO as per the investment objec� ve of the scheme and also towards the maturity of the scheme there may be a higher alloca� on to cash and cash equivalent. The scheme may deploy such cash in IDBI Liquid Fund at the prevailing NAV. The aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund (excluding FOF schemes). No asset management fees will be charged on investments made in IDBI Liquid Fund or other schemes by IDBI FMP Series IV and its sub plans.

Investment in IDBI Liquid Fund is envisaged to make up for maturity mismatch between the Plan’s tenor and the maturity of the underlying por� olio. For e.g. a 370 day fund inves� ng exclusively in money market instruments may need to invest in IDBI Liquid Fund for 5 days (either immediately a� er allotment/closer to maturity) since maturity of money market instruments do not exceed 365 days. Under no circumstance, will the maturity of the instruments in the Plan’s por� olio exceed that of the maturity of the Plan.

c) Repo/Reverse Repo

Reverse Repo is a transac� on in which two par� es agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transac� on results in collateralized borrowing or lending of funds. At present repo and reverse repo transac� ons are permi� ed in Central Government Securi� es, State Government securi� es, T-Bills and corporate bonds. However, the scheme does not intend to enter into repo/reverse repo in corporate debt securi� es.

d) Cer� fi cate of Deposit (CD) of scheduled commercial banks and development fi nancial Ins� tu� ons

Cer� fi cate of Deposit (CD) is a nego� able money market instrument issued by scheduled commercial banks and select all-India Financial Ins� tu� ons that have been permi� ed by the RBI to mobilize bulk deposits from the market at compe� � ve interest rates. The maturity period of CDs issued by scheduled commercial banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue.

e) Commercial Paper (CP)

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note, generally issued by the corporate, primary dealers and All India Financial Ins� tu� ons as an alterna� ve source of short term borrowings to fund their opera� ons. CP is traded in secondary market and can be freely bought and sold before maturity. CP can be issued for maturi� es between a minimum of 15 days and a maximum up to one year from the date of issue.

f) Treasury bill (T-Bill)

Treasury Bills (T-Bills) are instruments of short term borrowing issued by the Government of India or State Governments to meet their short term borrowing requirements. T Bills are promissory notes issued at a discount and for a fi xed period. T-Bills are issued for maturi� es of 91 days, 182 days and 364 days.

g) Securi� es created and issued by the Central and State Governments

Securi� es created and issued by the Central and State Governments as may be permi� ed by RBI, securi� es guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securi� es (popularly known as State Development Loans or SDLs) are issued by the respec� ve State Government in co-ordina� on with the RBI.

h) Non conver� ble debentures and bonds

Non conver� ble debentures as well as bonds are securi� es issued by companies /Ins� tu� ons promoted/ owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee,

17

Public and private sector banks, all India Financial Ins� tu� ons and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. The Scheme may also invest in the non conver� ble part of conver� ble debt securi� es.

i) Floa� ng rate debt instruments

Floa� ng rate debt instruments are instruments issued by Central / state governments, Corporates, PSUs, etc. with interest rates that are reset periodically.

j) Pass through Cer� fi cate (PTC)

A PTC is a loan that is issued by a bank to a borrower, usually a company. Since it will take some � me to get the money back, the bank sells this loan to investors at a lower interest rate in the form of PTC. A PTC, therefore, represents benefi cial interest in an underlying pool of cash fl ows. PTCs may be backed, but not exclusively, by receivables of personal loans, car loans, two wheeler loans and other assets subject to applicable regula� ons.

k) Short Term Deposits

Pending deployment of funds as per the investment objec� ve of the Scheme, the Funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specifi ed by SEBI.

l) Securi� zed Debt

Securi� zed Debt such as Mortgage Backed Securi� es (“MBS”) or Asset Backed Securi� es (“ABS”) is a fi nancial instrument (bond) whose interest and principal payments are backed by an underlying cash fl ow from another asset. Asset Securi� za� on is a process whereby commercial or consumer credits are packaged and sold in the form of fi nancial instruments. A typical process of asset securi� za� on involves sale of specifi c receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues fi nancial instruments (promissory notes, par� cipa� on cer� fi cates or other debt instruments) also referred to as “Securi� zed Debt” to the investors evidencing the benefi cial ownership of the investors in the receivables. The fi nancial instruments are rated by an independent credit ra� ng agency.

On the recommenda� on of the credit ra� ng agency, addi� onal credit support is provided in order that the instrument may receive the desired level of ra� ng. Typically the servicing of the receivables is con� nued by the seller. Cash fl ows as and when they are received are passed onto the investors. Features of securi� za� on transac� ons include:

• Absolute and Legal true sale of assets to an SPV (with defi ned purposes and ac� vi� es) in trust for the investors

• Reliance by the investors on the performance of the assets for repayment - rather than the credit of their Originator (the seller) or the Issuer (the SPV)

• Remoteness from the Originator

• Support for � mely payments, inter-alia, in the form of suitable credit enhancements.

• Securi� zed debt paper usually achieves a high investment grade credit ra� ng.

• There is a diversifi ca� on of economic risks as credit risk is spread over a diversifi ed group of obligors.

The diff erent classes of underlying assets may include receivables under Auto loans, Consumer loans, Mortgage loans, Corporate Loans etc. For details of risk factors rela� ng to investment in Securi� zed Debt, prospec� ve investors are advised to refer to Scheme Specifi c Risk Factors

Scheme specifi c outlook to Securi� zed debt instruments

How the risk profi le of securi� zed debt fi ts into the risk appe� te of the scheme:

Securi� zed Debt is a fi nancial instrument (bond) whose interest and principal payments are backed by an underlying cash fl ow from another asset. In line with the investment strategy of the Scheme and considering that there would be no intermediate redemp� on pressures for the Fund Manager, the Scheme may take exposure to rated Securi� zed Debt with the intent to enhance por� olio yield without compromising on credit quality. Exposure to Securi� zed Debt in the Scheme/Plan will be limited to papers with maturity not exceeding the maturity of the Scheme/Plan. Further as a prudent measure of risk control, Investment in Securi� zed Debt will not exceed 50% of the net assets of the Scheme.

Policy rela� ng to originators based on nature of originator, track record, NPAs, losses in earlier securi� zed debt, etc:

The scheme will invest in instruments of the originator only if the originator has an investment grade ra� ng. Over and above the credit ra� ng assigned by credit ra� ng agencies to the originator, the Asset Management Company, on need basis

18

may conduct an addi� onal evalua� on to determine previous track record in origina� on and performance of exis� ng asset pools. Such review may also include the originator’s lending & credit appraisal systems, credit enhancement provisions, seasoning policy of the originator, NPAs and securi� zed debt issuances in the last three fi nancial years. The ability to pay for an originator may be judged via internal credit appraisal process and on the basis of its ra� ng.

The AMC has a top down research process which evaluates business risk of an originator in context of the general outlook for the economy, current status and outlook of a specifi c industries and fi nally risks specifi c to an individual company or business group. In addi� on a detailed review and assessment of ra� ng ra� onale is done including interac� ons with the company as well as agency.

The following evalua� on parameters are used to assess originator:

• Default track record/ frequent altera� on of redemp� on condi� ons / covenants

• Propor� on of reschedulement of underlying assets of the pool

• Higher propor� on of overdue assets of the pool

• Reputa� on in market

For single loan PTC, in addi� on to the above evalua� ons (where ever applicable) the credit evalua� on of the underling corporate is carried out as with any other debt instruments

Risk mi� ga� on strategies for investments with each kind of originator:

The originators are to be classifi ed on the basis of Size and reach of the originator, Size and reach of the originator, Collec� on process, infrastructure and follow-up mechanism, quality of MIS and the credit enhancement off ered.

The level of diversifi ca� on with respect to the underlying assets, and risk mi� ga� on measures for less diversifi ed investments:

Framework that will be applied while evalua� ng investment decision rela� ng to a pool securi� za� on transac� on:

Characteristics/Type of Pool

Mortgage Loan

Commercial Vehicle and

Construc� on Equipment

CAR 2 wheelers Micro Finance

Pools

Personal Loans

Single Sell

Downs

Others

Approximate Average maturity (in Months)

9 years 18 months 12 months 10 months 12 months 10 months NA NA

Collateral margin (including cash ,guarantees, excess interest spread, subordinate tranche)

10-20% 10%-20% 5%-15% 15-20% 10-30% 20-30% NA NA

Average Loan to Value Ra� o

90% 90% 90% 90% NA NA NA NA

Average seasoning of the Pool

6-8 months

2-3 months 2-3 months

2-3 months 1-2 months 2-3 months

NA NA

Maximum single exposure range

Rs 2-2.5 crores

Rs 40-60 lakhs Rs 25-30 lakhs

Rs 0.75-0.95 lakhs

Rs 0.20-0.25 lakhs

Rs 10-25 lakhs

NA NA

Average single exposure range %

1-1.5% 1.50-2% 1.50-2% 1.50-2% 0.05-0.10%- 1.50-2% NA NA

The above table is prepared a� er considering the risk mi� ga� ng measures such as Size of the loan, Average original maturity of the pool, Average seasoning of the pool, Loan to Value Ra� o, Geographical Distribu� on and Structure of the pool.

Default rate distribu� on & credit enhancement facility are considered as relevant parameters for short lis� ng the originator.

19

Minimum reten� on period of the debt by originator prior to securi� za� on: In order to ensure due diligence by the originator, we will invest in securi� zed debts of originators who are sa� sfying the

following minimum reten� on period criteria prior to securi� za� on. The minimum holding period by the originator would be nine months, in the case of loans with periodic repayment

schedules up to 24 months. In the case of loans with repayment schedules more than 24 months, the minimum reten� on period shall be 12 months. The period of reten� on will be applicable from the date of full reimbursement of loans for the specifi ed ac� vity/ date of acquisi� on of asset by the borrower/date of comple� on of project or date of fi rst installment of interest/principal/EMI whichever is later. The AMC reserves the right to modify the policy regarding minimum reten� on period subject to the change in the policy of RBI or other regulatory authori� es in this regard or on the basis of internal assessment.

Minimum reten� on percentage by originator of debts to be securi� zed: The minimum owned fund shall be an amount not less than 15% of the total fi nancial assets acquired or to be acquired

by the Securi� za� on Company or Reconstruc� on Company on an aggregate basis or Rs.100 crore whichever is lower, irrespec� ve of whether the assets are transferred to a trust set up for the purpose of securi� za� on or not. Further the Securi� za� on Company or Reconstruc� on Company should con� nue to hold this owned fund level un� l the realiza� on of the assets and redemp� on of security receipts issued against such assets. Further the Securi� za� on Company or Reconstruc� on Company shall invest in the Security Receipts issued by the trust set up for the purpose of securi� za� on, an amount not less than 5% of the book value of the loan under each scheme if the loan is with original maturity of 24 months or less and 10% of the book value of the loan the loan is with original maturity of above 24 months. The AMC reserves the right to modify the policy regarding minimum reten� on percentage subject to the change in the policy of RBI or other regulatory authori� es in this regard or on the basis of internal assessment.

The mechanism to tackle confl ict of interest when the mutual fund invests in securi� zed debt of an originator and the originator in turn makes investments in that par� cular scheme of the fund:

If an originator of any securi� zed debt instruments invests in the scheme of the mutual fund, all investments made by the scheme in the securi� zed debt instruments including investments made prior to the investment by the originator in the scheme will be placed before the trustees along with bimonthly CTR for their review. The Fund will adhere to any advice of the Trustees in this regard.

The resources and mechanism of individual risk assessment with the AMC for monitoring investment in securi� zed debt:

The Fixed Income team will adopt a combina� on of top-down and bo� om-up credit research to evaluate investment opportuni� es in the securi� zed debt segment. As a fi rst level of risk mi� ga� on, investments in securi� zed debt will only be in investment grade papers and the exposure to securi� zed debt will be well diversifi ed across originators as well as underlying asset classes. While the in-house credit research will conduct a rigorous research into the sector/industry and issuers on a general basis regardless of the type of instrument (CP, NCD, Securi� zed Debt etc), a detailed credit evalua� on of a specifi c originator or securi� zed debt issuance will be carried out on a need-to basis depending on the assessment of the investment team.

m) Debt deriva� ve instruments: Interest Rate Swap - An Interest Rate Swap (“IRS”) is a fi nancial contract between two par� es exchanging or swapping

a stream of interest payments for a “no� onal principal” amount on mul� ple occasions during a specifi ed period. Such contracts generally involve exchange of a “fi xed to fl oa� ng” or “fl oa� ng to fi xed” rate of interest. Accordingly, on each payment date that occurs during the swap period, cash payments based on fi xed/ fl oa� ng and fl oa� ng rates are made by the par� es to one another.

Forward Rate Agreement - A Forward Rate Agreement (“FRA”) is a fi nancial contract between two par� es to exchange interest payments for a ‘no� onal principal’ amount on se� lement date, for a specifi ed period from start date to maturity date. Accordingly, on the se� lement date, cash payments based on contract (fi xed) and the se� lement rate, are made by the par� es to one another. The se� lement rate is the agreed benchmark/ reference rate prevailing on the se� lement date.

Interest Rate Futures - An Interest Rate Futures (IRF) contract is a standardized, legally binding agreement to buy or sell a debt instrument at a

specifi ed date at a price that is fi xed today. The contracts are traded on a futures exchange minimizing counterparty risk of default.

20

The above list is only indica� ve and the Scheme may also invest in other debt or money market instruments including deriva� ves as permi� ed under the investment objec� ves of the Scheme and by SEBI from � me and � me. The securi� es/instruments men� oned above and such other securi� es the Scheme is permi� ed to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or unrated.

The securi� es may be acquired through the primary market, secondary market, private placement, rights off ers, nego� ated deals. Further investments in debentures, bonds and other fi xed income securi� es will be in instruments which have been assigned investment grade ra� ng by the Credit Ra� ng Agency. Investment in unrated debt instruments shall be subject to complying with the provisions of the regula� ons and within the limit as specifi ed in Schedule VII to the Regula� ons.

The Fund Manager has the discre� on to invest in such securi� es as maybe permi� ed from � me to � me and which are in line with the investment objec� ves of the Scheme. However, the scheme does not intend to invest in Credit Default Swaps (CDS).

All investments in deriva� ve instruments shall be subject to the limits men� oned in SEBI circular ref. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010

E. WHAT ARE THE INVESTMENT STRATEGIES?

The Fund shall be managed according to the Investment Objec� ve - Provide investors with income for their investment. Each Plan in the Scheme will invest only in money market instruments & debt instruments maturing on or before the maturity date of the Plan and is normally expected to hold the securi� es � ll maturity with the intent to minimize interest rate risk. Within this universe, the Fund Manager will iden� fy and invest in securi� es with high credit quality and those that generate a higher risk-reward ra� o on a rela� ve basis.

Deriva� ves Strategy:

In order to achieve the investment objec� ves of the scheme, the Scheme may take exposure to debt deriva� ves in accordance with SEBI Regula� ons as amended from � me to � me. The Scheme may use deriva� ves instruments like interest rate swaps (Overnight Indexed Swaps (“OIS”)), forward rate agreements, interest rate futures or such other deriva� ve instruments as may be permi� ed under the extant regula� ons. Further, the Mutual Fund will adhere to the extant guidelines issued by RBI and as may be amended from � me to � me, for undertaking transac� ons in forward rate agreements and interest rate swaps and other deriva� ve products. Deriva� ves will be used for the purpose of hedging, and por� olio balancing or such other purpose as may be permi� ed under the SEBI Regula� ons from � me to � me. For example, a Scheme with a large exposure to fi xed income instruments would look to hedge exis� ng fi xed rate posi� ons if the view on interest rates is that it would likely rise in the future. The Scheme shall fully cover its posi� on in the deriva� ves market by holding underlying securi� es/cash or cash equivalents.

In the light of SEBI Circular Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010 Mutual fund will disclose swaps transac� ons separately as two no� onal posi� ons in the underlying security with relevant maturi� es. For example, an interest rate swap under which a mutual fund is receiving fl oa� ng rate interest and paying fi xed rate will be treated as a long posi� on in a fl oa� ng rate instrument of maturity equivalent to the period un� l the next interest fi xing and a short posi� on in a fi xed rate instrument of maturity equivalent to the residual life of the swap. The mutual fund shall disclose the details of deriva� ves posi� on taken by them such as posi� on though swaps in the half yearly por� olio disclosure and, annual report.

The following paragraphs details the various deriva� ve instruments and strategies available to the Fund to hedge against adverse interest rate movements. The examples provided along with the descrip� on of the instruments are given for illustra� on purposes only.

Using Overnight Indexed Swaps (OIS)

An OIS is an interest rate swap involving the overnight rate being exchanged for some fi xed interest rate. In a rising interest rate scenario, a por� olio with a predominantly fi xed rate exposure may enter into an OIS contract (pay fi xed, receive fl oa� ng) where the Scheme agrees to pay a fi xed interest rate on a specifi ed no� onal amount, for a predetermined tenor and receives fl oa� ng interest rate payments on the same no� onal amount. The returns from the por� olio’s fi xed income assets and the fi xed interest payments to be made by the por� olio on account of the OIS contract off set each other and the por� olio benefi ts on the fl oa� ng interest payments that it receives (since prevailing fl oa� ng rate is higher than the fi xed rate). Similarly, in a falling interest rate scenario, a por� olio with a fl oa� ng rate exposure may enter into an opposite posi� on (pay fl oa� ng, receive fi xed), i.e. to hedge the fl oa� ng rate assets in its por� olio. The Scheme enters into an OIS contract wherein it receives a fi xed interest rate on a specifi ed no� onal amount for a specifi ed � me period and pays a fl oa� ng interest rate on the same no� onal amount. The fl oa� ng interest payments that the por� olio receives on its fl oa� ng rate securi� es and the fl oa� ng interest

21

payments that it has to pay on account of the OIS contract off set each other and the Scheme benefi ts on the fi xed interest payments that it receives in such a scenario. In prac� ce, the fi xed rate and fl oa� ng rate is ne� ed out and only the diff erence is paid out to the benefi ciary.

Swap

IRS is a widely used deriva� ve product in the fi nancial markets to manage interest rate risk. An IRS is a fi nancial contract between two par� es to exchange a stream of interest payments for a no� onal principal amount on mul� ple occasions during a specifi ed period. Typically, one party receives a pre-determined fi xed rate of interest while the other party a fl oa� ng rate which is linked to a mutually agreed benchmark with provision for mutually agreed periodic resets. IRS can be explained by means of an example as given below:

Assume that the Scheme has a Rs. 10 crore fl oa� ng rate investment linked to MIBOR (Mumbai Inter Bank Off ered Rate). The Scheme is currently exposed to an interest rate risk in a falling interest rate scenario. To hedge this interest rate risk, the Scheme can enter into a 6 month MIBOR swap (pay fl oa� ng, receive fi xed) whereby the Scheme will receive a fi xed predetermined rate (assume 9%) and pays the “benchmark rate” (MIBOR). This swap would eff ec� vely lock-in the rate of 9% for the next 6 months, protec� ng the Scheme from falling interest rates. The transac� on will be as follows:

Assuming the swap is entered into for a no� onal amount of Rs. 10 Crores on May 1, 2010 for a six month period. The Scheme is a fi xed rate receiver at 9% and the counterparty is a fl oa� ng rate receiver at the overnight rate on a compounded basis (say MIBOR).

On termina� on of the swap contract on maturity (November 1, 2010), exchange of cash fl ows will be as follows -

The Scheme is en� tled to receive interest on Rs. 10 Crores at 9% for 184 days i.e. Rs. 45.37 lakhs, (this amount will be known at the � me the swap was concluded) and will pay the compounded benchmark rate. The counterparty is en� tled to receive daily compounded call rate for 184 days and pay a fi xed rate of 9%.

On November 1, 2010, if the total interest on the daily overnight compounded benchmark rate is higher than Rs. 45.37 lakhs, the Scheme will pay the diff erence to the counterparty. If the daily compounded benchmark rate is lower, then the counterparty will pay the Scheme the diff erence.

Forward Rate Agreement

A forward rate agreement (FRA) is a forward contract in which one party pays a fi xed interest rate, and receives a fl oa� ng interest rate equal to a reference rate (the underlying rate). The payments are calculated over a no� onal amount over a certain period, and ne� ed out i.e. only the diff erence is paid. An IRS is a combina� on of FRAs.

Assume that on April 30, 2010, the 30 day commercial paper (CP) rate is 4% and the Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on May 31, 2010. If the interest rates are likely to remain stable or decline a� er May 31, 2010, and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month does not want to take the risk of interest rates going down, he can enter into a following Forward Rate Agreement (FRA) on April 30, 2010.

He can receive 1 X 2 FRA on April 30, 2009 at 4.00% (an agreement to lend for 1 month in 1 months � me) on the no� onal amount of Rs. 50 Crores, with a reference rate of 30 day CP benchmark. If the CP benchmark on the se� lement dates i.e. May 30, 2009 falls to 3.75%, then the Scheme receives the diff erence 4.00 – 3.75 i.e. 25 basis points on the no� onal amount Rs. 50 Crores. FRA will allow the fund manager to hedge his por� olio from adverse interest rate movements.

Interest Rate Futures (IRF)

An Interest Rate Futures (IRF) contract is an agreement to buy or sell a debt instrument at a specifi ed date at a price that is fi xed today. The underlying for the IRF in India is the 10-Year No� onal 7% Coupon-bearing Government of India (GOI) security and is currently traded on the Na� onal Stock Exchange (NSE). Assume that the Fund holds 10-year GOI and the fund manager has a view that the yields will go up in the near future (say over the next 45 days) leading to decrease in value of the investment and subsequent decrease in Net Asset Value (NAV) of the fund. In such cases, Interest Rate Futures may be used to mi� gate the risk of a decline of Net Asset Value (NAV) of the fund. The Scheme can hedge its GOI exposure by taking a short posi� on in the nearest calendar quarter ending interest rate futures contract. The contract cycle consist of four fi xed quarterly contracts for en� re year, expiring in March, June, September and December. Over the 45 days if the yield on the ten-year benchmark increases, this will result in a decrease in the price of the benchmark security. This will benefi t the short posi� on (the Scheme) as any loss in the underlying security is off set by a gain in the futures posi� on. On the contrary, if the interest goes down, the Scheme will not benefi t because of the hedge since any gain in the underlying security (if yield goes down, price increases) will be off set by a loss in the futures posi� on.

22

IRS and FRA do also have inherent credit (where the Scheme is the recipient and the counterparty defaults on payment) and se� lement risks. However, these risks are substan� ally reduced as they are limited to the interest streams (ne� ng the fi xed and fl oa� ng streams) and not the no� onal principal amounts. For details of risk factors rela� ng to investment in Deriva� ves, prospec� ve investors are advised to refer to Scheme Specifi c Risk Factors.

Por� olio Turnover

Por� olio Turnover is defi ned as the lower of the value of purchases or sales as a percentage of the average corpus of the Scheme during a specifi ed period of � me. The Scheme will invest only in such instruments that mature on or before the maturity date of individual Plans. Since the Scheme is not open for subscrip� ons/redemp� ons on an ongoing basis, it is expected that the por� olio turnover in the Scheme will low. Por� olio turnover may arise due to reinvestment of coupons/matured principal amounts or due to trading opportuni� es that may present themselves from � me to � me which the Fund Manager may seek to benefi t from. These trading opportuni� es may be due to events in the debt markets such as changes in interest rate policy by the Reserve Bank of India, shi� s in the yield curve, credit ra� ng changes or any other factors where in the opinion of the fund manager there is an opportunity to enhance the total return of the por� olio. In view of the above, it will diffi cult to provide an es� mate/range with a reasonable measure of accuracy for the an� cipated por� olio turnover in the Scheme, but it will be the endeavour of the fund manager to maintain an op� mal por� olio turnover rate commensurate with the investment objec� ve of the scheme.

Risk Control

The Mutual Fund has built adequate internal risk management controls and safeguards to ensure that the Scheme is managed in line with the defi ned investment objec� ves and in compliance with SEBI (MF) Regula� ons with respect to issuer exposures and limits. As a primary measure of risk control, the por� olio will be adequately diversifi ed. The AMC will manage credit risk by restric� ng investments only to investment grade securi� es and constantly monitoring the credit ra� ngs of the invested en� � es for any ra� ng migra� ons. The AMC will monitor the overall economic and credit environment including the systemic liquidity on a regular basis and the outlook will be integrated into the risk control and monitoring of the Scheme.

F. FUNDAMENTAL ATTRIBUTES

The following are the Fundamental A� ributes of the scheme, in terms of Regula� on 18 (15A) of the SEBI (MF) Regula� ons:

(i) Type of the scheme

A closed-ended debt scheme off ering 8 Plans of tenor from 30 Days to 120 Months (inclusive)

(ii) Investment Objec� ve

Main Objec� ve

Each Plan under the Scheme will endeavour to generate income through investments in Debt and Money Market Instruments. In accordance with SEBI Circular No SEBI/IMD/ CIR No. 12/147132/08 dated December 11, 2008 each Plan shall invest only in such securi� es which mature on or before the maturity date of the respec� ve plan.

Investment pa� ern

The indica� ve asset alloca� on pa� ern with minimum and maximum limits for instruments is detailed in the sec� on under asset alloca� on pa� ern. The Fund Manager, reserves the right to alter the asset alloca� on for a short term period on defensive considera� ons.

(iii) Terms of Issue

i. Liquidity provisions such as lis� ng, repurchase, redemp� on.

Being a closed-ended scheme, individual Plans in the Scheme will not off er any repurchase facility on an ongoing basis except at maturity of each of the Plans. Units of each Plan will be listed on the Na� onal Stock Exchange (NSE) for providing investors a window for liquidity. The Mutual Fund will endeavor to dispatch the redemp� on proceeds not later than 10 business days from the date of maturity. In case the redemp� on proceeds are not dispatched within 10 business days of the date of maturity, the AMC will pay interest @ 15% p.a. or such other rate as may be prescribed from � me to � me.

ii. Aggregate fees and expenses charged to the scheme.

The aggregate fee and expenses charged to the Scheme will be in line with the limits defi ned under Regula� on 52 of SEBI (MF) Regula� ons. The aggregate fee and expenses to be charged to the Scheme is detailed in Sec� on IV of this document.

23

iii. Any safety net or guarantee provided.

The Scheme does not provide any safety net or guarantee nor does it provide any assurance regarding the realiza� on of the investment objec� ve of the scheme or in respect of declara� on of dividend.

In accordance with Regula� on 18(15A) of the SEBI (MF) Regula� ons, the Trustees shall ensure that no change in the fundamental a� ributes of the Scheme(s) and the Plan(s) / Op� on(s) there under or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Op� on(s) there under and aff ect the interests of Unit holders is carried out unless:

i. A wri� en communica� on about the proposed change is sent to each Unit holder and an adver� sement is given in one English daily newspaper having na� onwide circula� on as well as in a newspaper published in the language of the region where the Head Offi ce of the Mutual Fund is situated; and

ii. The Unitholders are given an op� on to exit within 30 days at the prevailing Net Asset Value without charging any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

Each Plan in the Scheme will benchmark its performance to one of the following indices –

a. For Plans with maturity less than and including 91 Days – CRISIL Liquid Fund Index

b. For Plans with maturity above 91 Days and up to 36 Months – CRISIL Short Term Bond Fund Index

c. For Plans with maturity above 36 Months – CRISIL Composite Bond Fund Index

The AMC believes that the above Indices will be the most appropriate indices to track the performance the three Plans a� er due considera� on for their tenors as well as the risk return profi le of the instruments in which these Plans intend to invest in.

H. WHO MANAGES THE SCHEME?

Name Designa� on Age Qualifi ca� ons Schemes under Management Brief Experience including assignments held over past 10

yearsMr. Gan� Murthy

Senior Vice President and Head Fixed Income

46 B.Sc (Hons), Masters in Financial

Management

• IDBI Liquid Fund• IDBI Ultra Short Term Fund• IDBI Fixed Maturity Plan

Mr.Gan� Murthy has 20 years of experience in the mutual fund industry having earlier worked with SBI Funds Management Co. Ltd., UTI AMC and Cholamandalam AMC in various capaci� es in Funds Management Department. Mr. Murthy was Head-Fixed Income with Peerless Funds Management Co. Ltd., immediately prior to joining IDBI Asset Management Ltd.

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

i. Investment restric� ons

Investment restric� ons as contained in the Seventh Schedule to SEBI (Mutual Funds) Regula� ons, 1996 and applicable to the Scheme is provided below – 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 ra� ng agency authorized to carry out such ac� vity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of the AMC:

Provided that such limit shall not be applicable for investments in Government securi� es: Provided further that investment within such limit can be made in mortgaged backed securi� zed debt which are rated not below investment grade by a credit ra� ng agency registered with the SEBI

24

2. The scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of the AMC.

3. The Scheme shall not invest more than 30% of its net assets in money market instruments of an issuer: Provided that such limit shall not be applicable for investments in Government securi� es, treasury bills and collateralized borrowing and lending obliga� ons.

4. Transfers of investments from one scheme to another scheme in the same mutual fund shall be allowed only if,—

(a) Such transfers are done at the prevailing market price for quoted instruments on spot basis. In the absence of a traded price, price derived from the last valua� on yield shall be used.

[Explana� on.—“Spot basis” shall have same meaning as specifi ed by stock exchange for spot transac� ons;]

(b) The securi� es so transferred shall be in conformity with the investment objec� ve of the scheme to which such transfer has been made.

5. Debentures, irrespec� ve of any residual maturity period (above or below one year), shall a� ract the investment restric� ons as applicable for debt instruments as specifi ed under Clause 1 and 1 A of Seventh Schedule to the Regula� ons.

6. The Mutual Fund shall buy and sell securi� es on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securi� es and in all cases of sale, deliver the securi� es:

Provided further that the Mutual Fund may enter into deriva� ves transac� ons in a recognized stock exchange, subject to the framework specifi ed by the Board

7. The Mutual Fund shall get the securi� es purchased or transferred in the name of the Mutual Fund on account of the concerned scheme, wherever investments are intended to be of long-term nature.

8. Pending deployment of funds of a scheme in terms of investment objec� ves of the scheme, the Mutual Fund may invest them in short term deposits of schedule commercial banks, subject to such Guidelines as may be specifi ed by the Board.

The Scheme shall abide by the following guidelines for parking of funds in short term deposits:

i. “Short Term” for parking of funds shall be treated as a period not exceeding 91 days.

ii. Such short-term deposits shall be held in the name of the Scheme.

iii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee.

iv. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits.

v. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries.

vi. The Scheme shall not park funds in short-term deposit of a bank, which has invested in the Scheme.

The aforesaid limits shall not be applicable to term deposits placed as margins for trading in cash and deriva� ves market.

9. The Scheme shall not make any investment in,—

(a) Any unlisted security of an associate or group company of the sponsor; or

(b) Any security issued by way of private placement by an associate or group company of the sponsor; or

(c) The listed securi� es of group companies of the sponsor which is in excess of 25% of the net assets.

10. The Scheme shall not make any investment in any fund of funds scheme or extend loans.

11. All investments in deriva� ve instruments shall be subject to the limits men� oned in SEBI circular ref. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010.

25

ii. Investments in other schemes

According to the Clause 4 of Schedule 7 read with Regula� on 44(1), of the SEBI (MF) Regula� ons, 1996:

“A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter-scheme investments made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.”

iii. AMC’s investments in the Scheme

The AMC may invest in the scheme, such amount, as they deem appropriate. But the AMC shall not be en� tled to charge any management fees on this investment in the scheme. Investments by the AMC will be in accordance with Regula� on 25(17) of the SEBI (MF) Regula� ons, 1996 which states that:

“The asset management company shall not invest in any of its schemes unless full disclosure of its inten� on to invest has been made in the off er document, provided that the asset management company shall not be en� tled to charge any fees on its investment in the scheme.”

The AMC may alter these above stated restric� ons from � me to � me to the extent the SEBI (MF) Regula� ons change, so as to permit the Scheme to make its investments in the full spectrum of permi� ed investments for mutual funds to achieve its respec� ve investment objec� ve. The Trustee may from � me to � me alter these restric� ons in conformity with the SEBI (MF) Regula� ons. All investment restric� ons shall be applicable at the � me of making investment.

J. HOW HAS THE SCHEME PERFORMED?

IDBI Fixed Maturity Plan-Series IV is a new scheme and does not have any performance track record

26

III. UNITS AND OFFERThis sec� on provides details you need to know for inves� ng in the scheme.

A. NEW FUND OFFER (NFO)

New Fund Off er PeriodThis is the period during which a new scheme sells its units to the investors.

NFO opens on: 6th March, 2014NFO closes on: 10th March, 2014The AMC/Trustee reserves the right to close the NFO of the Scheme before the above men� oned date.The AMC/Trustee reserves the right to extend the closing date of the NFO Period, subject to the condi� on that the NFO shall not be kept open for more than 15 days

Launch ScheduleThe Scheme will provide investors with off ering 8 Plans (Plan A to Plan H) of tenor from 30 Days to 120 Months (both inclusive). The tenor for each Plan under the Scheme shall be decided by the AMC at the � me of launch of the respec� ve Plan. The AMC will under no circumstance off er a Plan with a tenor outside the maturity range indicated above. The present off er under this SID is for 91 days tenor.

Name of the Scheme Number of plans proposed in this SID Tenor of Plan Maturity Date

IDBI FMP –Series IV Plan A up to IDBI FMP –Series IV Plan H

8 (Plan A to H) From 30 Days to 120 Months (both inclusive)

Date of maturity of individual plan will calculated from the date of allotment of that plan.

Present off er: IDBI FMP - Series IV – 91 Days (March 2014) – HThe Schedule is for informa� on purpose only and the AMC retains the discre� on not to launch any or all of the Plans. The above Schedule will be valid for a period of six months from the date of no observa� on le� er received from SEBI. Each Plan will be maintained as a separate por� olio. If the maturity date for a par� cular Plan falls on a non-business day, then the immediately succeeding business day will be the maturity date for the Plan.New Fund Off er PriceThis is the price per unit that the investors have to pay to invest during the NFO.

Rs. 10 for cash at par

Minimum Amount for Applica� on in the NFO

New Purchase – Rs. 5000 and in mul� ples of Re. 1If investors apply for subscrip� on of units under both Op� ons (Growth Op� on and Dividend Op� on), the minimum subscrip� on limits for new purchase will apply to each Op� on. The AMC reserves the discre� on to accept subscrip� ons less than the minimum subscrip� on amounts detailed above.

Minimum Target amountThis is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. If applica� on is rejected, full amount will be refunded within 5 business days of closure of NFO. If refunded later than 5 business days, interest @ 15% p.a. for delay period will be paid and charged to the AMC.

The Fund seeks to collect a minimum subscrip� on amount of Rs. 20 crore [Rupees Twenty Crores only] in the New Fund Off er for each Plan.

27

Maximum Amount to be raised (if any)This is the maximum amount which can be collected during the NFO period, as decided by the AMC.

There is no upper limit on the total amount that may be collected. A� er the minimum subscrip� on amount has been collected, allotment will be made to all valid applica� ons.

Plans off eredThe scheme will have a direct plan and a plan for applica� on received through distributors. Investors making investments directly with the mutual fund under the direct plan will be benefi � ed with a lower expense ra� o excluding distribu� on expenses, commission, etc.Such separate plan shall have a lower expense ra� o excluding distribu� on expenses, commission, etc., and no commission shall be paid from such plans. The plan shall also have a separate NAV.

The Scheme off ers the following Plans for investments• Regular Plan• Direct PlanAs per SEBI circular no CIR/IMD/DF/21/2012 dated September 13, 2012, a separate plan (Direct Plan) is provided to the investors for direct investments, i.e., investments not routed through a distributor.The Direct Plan shall have a lower expense ra� o excluding distribu� on expenses, commission, etc., and no commission shall be paid from such plan.The Scheme off ers the following Op� ons for investment• Dividend Op� on – Payout only• Growth Op� onBoth dividend and growth op� ons are available under Direct plan and Regular plan. In case where investors do not opt for a par� cular plan at the � me of investment and the applica� on is not routed through a distributor, Direct plan shall be considered as the default plan. Dividend op� on off ers payout facility only. The frequency of dividend payment for Plans with maturity less than and including 365 Days will be on a monthly basis and/or at maturity while the frequency of dividend payment for Plans with maturity above 365 Days will be on a quarterly basis and/or at maturity subject to the availability of distributable surplus and at the discre� on of the Fund Manager. The Dividend Op� on and the Growth Op� on of each Plan will be maintained under a common por� olio. In cases where investors do not opt for a par� cular Op� on at the � me of investment, the default Op� on will be the Growth Op� on.If investors apply for subscrip� on of units under any Plans / Op� ons, the minimum subscrip� on limits for new purchases will apply to each Plan / Op� on.Please note that the Scheme does not assure any dividend under any op� on in the Scheme. Declara� on of dividend is subject to the availability of distributable surplus, if any, in the scheme and at the discre� on of the Fund Manager/AMC.

Dividend Policy The Dividend Policy for the scheme will be in line with the guidelines laid down by SEBI through its circular SEBI/IMD/CIR No.1 /64057 /06 dated April 4, 2006, the procedure for which will be as follows – I. Quantum of dividend and the record date shall be fi xed by the trustees in their mee� ng.

Dividend so decided shall be paid, subject to availability of distributable surplus and at the discre� on of the AMC.

II. Record date shall be the date which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of unit holders for receiving dividends. Further, the NAV shall be adjusted to the extent of dividend distribu� on and statutory levy, if any, at the close of business hours on record date.

III. Within one calendar day of the decision by the trustees, AMC shall issue no� ce to the public communica� ng the decision including the record date. The record date shall be 5 calendar days from the issue of no� ce.

IV. Such no� ce shall be given in one English daily newspaper having na� onwide circula� on as well as in a newspaper published in the language of the region where the head offi ce of the mutual fund is situated.

28

V. The no� ce shall, in font size 10, bold, categorically state that pursuant to payment of dividend, the NAV of the scheme would fall to the extent of payout and statutory levy (if applicable).

VI. Before the issue of such no� ce, no communica� on indica� ng the probable date of dividend declara� on in any manner whatsoever may be issued by any mutual fund or distributors of its products.

The requirement of giving no� ce shall not be applicable for Dividend op� ons having frequency of dividend distribu� on from daily up to monthly dividend. There is no assurance or guarantee to the Unit holders as to the rate of Dividend nor that will the Dividend be paid regularly.Listed scheme(s)/ plan(s) shall follow the requirements s� pulated in the Lis� ng Agreement for dividend declara� on and distribu� on. In the case of dividend plan, the en� re surplus available as on the date of maturity of the scheme will be distributed as dividend.

Allotment For all valid applica� ons received by the Mutual Fund on or before the date of closure of the NFO of the scheme, full allotment will be made. AMCs shall allot the units to the applicant whose applica� on has been accepted and also send confi rma� on specifying the number of units allo� ed to the applicant by way of email and/or SMS’s to the applicant’s registered email address and/or mobile number as soon as possible but not later than fi ve working days from the date of closure of the ini� al subscrip� on list. AMCs shall issue consolidated account statement for each calendar month to the investors in whose folios transac� on(s) has/have taken place during that month.Where investor desires to hold units in dematerialized form, demat statement given by depository par� cipant would be deemed to be adequate compliance with requirements prescribed under regula� on 36 of SEBI (Mutual Fund) Regula� ons, 1996, and SEBI Circulars MFD/CIR/9/120/2000 dated November 24, 2000 and IMD/CIR/12/80083/2006 dated November 20, 2006 regarding dispatch of statements of account.

Refund If applica� on is rejected, full amount will be refunded within 5 business days of closure of NFO. If refunded later than 5 business days, interest @ 15% p.a. for delay period will be paid and charged to the AMC.

Who can investThis is an indica� ve list and you are requested to consult your fi nancial advisor to ascertain whether the scheme is suitable to your risk profi le.

1. Resident adult individuals either singly or jointly (not exceeding three) or on an Anyone or Survivor basis;

2. Hindu Undivided Family (HUF) through Karta;3. Minor through parent / legal guardian;4. Partnership Firms;5. Proprietorship in the name of the sole proprietor;6. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.), Associa� on of

Persons (AOP) or Bodies of Individuals (BOI) and socie� es registered under the Socie� es Registra� on Act, 1860(so long as the purchase of Unit is permi� ed under the respec� ve cons� tu� ons;

7. Banks (including Co-opera� ve Banks and Regional Rural Banks), Insurance Companies and Financial Ins� tu� ons;

8. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as “Public Securi� es” as required) and Private trusts authorized to invest in mutual fund schemes under their trust deeds;

9. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) residing abroad on repatria� on basis or on non-repatria� on basis;

10. Qualifi ed Foreign Investors (QFIs) who meet KYC requirements and are resident in a country that is compliant with Financial Ac� on Task Force (FATF) standards and that is a signatory to Interna� onal Organiza� on of Securi� es Commission’s (IOSCO’s) Mul� lateral Memorandum of Understanding.

29

11. Foreign Ins� tu� onal Investors (FIIs) and their subaccounts registered with SEBI on repatria� on basis;

12. Army, Air Force, Navy and other para-military units and bodies created by such ins� tu� ons;

13. Scien� fi c and Industrial Research Organiza� ons; 14. Mul� lateral Funding Agencies / Bodies Corporate incorporated outside India with the

permission of Government of India / RBI15. Provident/ Pension/ Gratuity Fund to the extent they are permi� ed;16. Other schemes of IDBI Mutual Fund or any other Mutual Fund subject to the condi� ons

and limits prescribed by SEBI Regula� ons;17. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme.The list given above is indica� ve and the applicable law, if any, shall supersede the list.Minor Unit Holder on becoming Major may inform the Registrar about a� aining Majority Age and provide his specimen signature duly authen� cated by his banker as well as his details of bank account and PAN (if required) to enable the Registrar to update their records and allow him to operate the Account in his own right.Note :1. Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad

/ Foreign Ins� tu� onal Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regula� ons, 2000 for inves� ng in / redeeming units of the mutual funds subject to condi� ons set out in the aforesaid regula� ons.

2. In case of applica� on under a Power of A� orney or by a limited company or a corporate body or an eligible ins� tu� on or a registered society or a trust fund, the original Power of A� orney or a cer� fi ed true copy duly notarized or the relevant resolu� on or authority to make the applica� on as the case may be, or duly notarized copy thereof, along with a cer� fi ed copy of the Memorandum and Ar� cles of Associa� on and/or bye-laws and / or trust deed and / or partnership deed and Cer� fi cate of Registra� on should be submi� ed. The offi cials should sign the applica� on under their offi cial designa� on. A list of specimen signatures of the authorized offi cials, duly cer� fi ed / a� ested should also be a� ached to the Applica� on Form. In case of a Trust / Fund it shall submit a resolu� on from the Trustee(s) authorizing such purchases and redemp� ons. Applica� ons not complying with the above are liable to be rejected.

3. Returned cheques are liable not to be presented again for collec� on, and the accompanying applica� on forms are liable to be rejected. In case the returned cheques are presented again, the necessary charges are liable to be debited to the investor.

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

5. Subject to the SEBI (MF) Regula� ons, any applica� on for Units may be accepted or rejected in the sole and absolute discre� on of the Trustee. The Trustee may inter-alia reject any applica� on for the purchase of Units if the applica� on is invalid or incomplete or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its Unit holders to accept such an applica� on.

Who cannot invest i. Pursuant to RBI A.P. (DIR Series) Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.

ii. NRIs and PIOs who are residents of the United States of America/defi ned as United States Persons under applicable laws/ statutes and the residents of Canada.

iii. Such other persons as may be specifi ed by Mutual Fund from � me to � me.The Mutual Fund reserves the right to include / exclude new / exis� ng categories of investors to invest in the Scheme from � me to � me, subject to SEBI Regula� ons and other prevailing statutory regula� ons, if any.

30

Where can you submit the fi lled up applica� ons

Applica� ons can be made either by way of a “Regular Applica� on or Transac� on slip” along with a cheque/DD or fund transfer instruc� on. Cheque/DD should be drawn in the name of the Scheme e.g. “IDBI FMP - Series IV – 91 Days (March 2014) – H XXXXX (PAN)”. The cheque/DD shall be crossed “A/c payee”. Where an investor subscribes for units vide a DD issued by way of debit to his / her bank account, a proof of debit to the investor’s bank account in the form of a bank manager’s cer� fi cate with details of account holder’s Name ,bank account number and PAN as per bank records, OR a copy of the acknowledgement from the bank, wherein the instruc� ons to debit carry the bank account details and name of the investor as an account holder are available OR a copy of the passbook/bank statement evidencing the debit for issuance of a DD shall be provided. If the DD is purchased against Cash, a banker’s cer� fi cate for issuance of a DD against cash that also states the investor’s Name, bank account number and PAN as per bank record, is a must. No third party cheques will be accepted except in the following cases :a) Payment by Parents / Grand-Parents / Related persons on behalf of a minor (other

than registered guardian) for a value not exceeding Rs. 50,000 (each purchase or each SIP installment) in considera� on of natural love and aff ec� on or as gi� . However this restric� on will not be applicable for payment made by a guardian whose name is registered in the records of Mutual Fund in that folio.

b) Payment by an Employer on behalf of Employee under Systema� c Investment Plans or lump sum / one-� me subscrip� on through Payroll deduc� ons.

c) Custodian on behalf of an FII or a Client. Investments made through the excep� onal cases men� oned above, are required to comply with the following.� Mandatory KYC Acknowledgement Le� er of the Investor as well as of the person

making the payment (i.e. the third party) should accompany the applica� on form.� Declara� on from the Investor and the person making the payment i.e. the third party,

giving the details of the bank account from which the payment is made and the rela� onship with the benefi ciary.

The scheme may at its absolute discre� on accept cash transac� on up to the extent of Rs.20,000/- per investor, per mutual fund, per fi nancial year. However, repayment in the form of redemp� ons, dividend, etc. with respect to aforemen� oned investments shall be paid only through banking channel. The Fund may introduce other newer methods of applica� on which will be no� fi ed as and when introduced. Investors should complete the Applica� on Form and deliver it along with a cheque/dra� (i.e. in case of “Regular Applica� on”) or fund transfer instruc� ons at any of the offi cial points of acceptance of transac� ons listed below :(1) At the Offi cial points of acceptance of transac� ons as given on the back cover of this

document.(2) For investments through switch transac� ons, transac� on slip with applica� on forms

can be submi� ed at the AMC’s Investor Service Centres, R&T’s Investor Service Centres and branches, given in the last page.

ASBA: In addi� on to the above the all the applicants can par� cipate in the NFO through the ASBA process. For using ASBA facility investors should approach self cer� fi ed syndicate banks (SCSBs) providing ASBA facility and submit ASBA applica� on to them. The NFO applica� on money will be blocked from the respec� ve bank account of the investor and will be debited only on allotment of units in his/her name. The list of SCSBs is available in the website of SEBI/NSE and BSE.Notwithstanding any of the above condi� ons, any applica� on may be accepted or rejected at the sole and absolute discre� on of the Trustee.

31

How to Apply Applica� on form and Key Informa� on Memorandum may be obtained from the offi ces of AMC or Investor Services Centers of the Registrar or distributors or downloaded from www.idbimutual.co.in. Please refer to the SAI and Applica� on form for the instruc� ons.ASBA: Investors have the addi� onal op� on to par� cipate in the NFO through the ASBA process. For using ASBA facility investors should approach Self Cer� fi ed Syndicate Banks (SCSBs) providing ASBA facility and submit the ASBA applica� on form authorizing blocking of funds from the bank account specifi ed in the ASBA Applica� on Form. ASBA facility is available only for investors desirous of subscribing units in the dematerialized form. When investor desires to hold units in dematerialized form, KYC performed by Depository Par� cipant (DP) will be considered compliance with applicable requirements specifi ed in this regard in terms of SEBI circular ISD/AML/CIR-1/2008.ASBA forms for making investments in the units of IDBI FMP - Series IV – 91 Days (March 2014) – H is available with all SCSB and in the website of the Mutual Fund. The acknowledgement for receiving the applica� on by the designated Branches of the SCSBs does not guarantee that the Mutual Fund units shall be allo� ed either by the SCSB or the Mutual Fund. The Applica� on shall be further processed by the Registrar & Transfer agent appointed by the Mutual Fund and units shall be allo� ed a� er deduc� ng the blocked amount, only if the applica� on is complete in all respect. The ASBA Applicant’s shall specify the bank account number and the Depository account number in the ASBA Applica� on Form and the SCSB shall block an amount equivalent to the Applica� on Amount in the bank account specifi ed in the ASBA Applica� on Form. The SCSB shall keep the Applica� on Amount in the relevant bank account blocked un� l withdrawal/ rejec� on of the ASBA Applica� on or receipt of instruc� ons from the Registrar to unblock the Applica� on Amount. In the event of withdrawal or rejec� on of the ASBA Applica� on Form or for unsuccessful ASBA Applica� on Forms, the Registrar shall give instruc� ons to the SCSB to unblock the applica� on money in the relevant bank account. The SCSB will then unblock the applica� on money within one day of receipt of such instruc� on. The Applica� on Amount shall remain blocked in the ASBA Account un� l scru� ny of the documents by the registrar of the Mutual Fund and consequent transfer of the Applica� on Amount to the Account of the Mutual Fund, or un� l withdrawal/ failure of the NFO or un� l rejec� on of the ASBA Bid, as the case may be. All successful applicants will be allo� ed with units in dematerialized form to the depository account of the applicant.

Lis� ng Since the scheme is closed-ended, the Mutual Fund will not be providing redemp� on facility except on the maturity date. It is the intent of the scheme to list the units in Na� onal Stock Exchange of India Ltd. The concerned stock Exchange will issue a circular for the no� ce of the public once the lis� ng process is completed.

Dematerializa� on and Transferability of units

The scheme intends to list its units in the Capital Market Segment of Na� onal Stock Exchange of India Ltd and will be available for trading subject to liquidity. The Exchange will issue a circular upon lis� ng of units. An applicant in a close ended scheme whose applica� on has been accepted shall have the op� on either to receive the statement of accounts or to hold units in dematerialized form. Successful applicants will receive a statement of accounts specifying the number of units allo� ed to the applicant within 10 days from the end of the month in which units are allo� ed. In case the applicant has opted for dematerialized units the units will be credited to the depository account of the unit holders within fi ve business days from the date of closure of the ini� al subscrip� on list. If the investor request for dematerializa� on of physical units under this scheme, dematerialized units will be issued within two business days of the receipt of request from the unit holder. A unit holder, in a close ended scheme listed on a recognized stock exchange, who desires to trade in units, shall hold units in dematerialized form. If the units are with the depository such units will be transferable in accordance with the provisions of the Securi� es and Exchange Board of India (Depositories and Par� cipants) Regula� ons, 1996.Where investor desires to hold units in dematerialized form, the KYC performed by DP in terms of SEBI Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 and this would be considered compliance with applicable requirements specifi ed in this regard in terms of SEBI Circular ISD/AML/CIR-1/2008 dated December 19, 2008 by mutual funds /AMCs.Where investor desires to hold units in dematerialized form, demat statement given by depository par� cipant would be deemed to be adequate compliance with requirements prescribed under regula� on 36 of SEBI (Mutual Fund) Regula� ons, 1996, and SEBI Circulars MFD/CIR/9/120/2000 dated November 24, 2000 and IMD/CIR/12/80083/2006 dated November 20, 2006 regarding despatch of statements of account.

32

Special Products / facili� es available during the NFO

The Scheme does not off er Systema� c Investment Plan, Systema� c Withdrawal Plan and Systema� c Transfer Plan during the NFO.

The policy regarding reissue of repurchased units, including the maximum extent, the manner of reissue, the en� ty (the scheme or the AMC) involved in the same.

Units once redeemed will be ex� nguished and will not be reissued.

Restric� ons, if any, on the right to freely retain or dispose of units being off ered.

A unit holder, who desires to trade in units in the Stock Exchange pla� orm, shall hold units in dematerialized form. The Units of the Scheme(s) in demat form are freely transferable. Addi� ons / dele� ons of names will not be allowed under any folio of the Scheme(s) in the case of physical units. However, the said provisions will not be applicable in case a person (i.e. a transferee) becomes a holder of the Units by opera� on of law or upon enforcement of pledge, then the AMC shall, subject to produc� on of such sa� sfactory evidence and submission of such documents, proceed to eff ect the transfer, if the intended transferee is otherwise eligible to hold the Units of the Scheme(s).The said provisions in respect of dele� on of names will not be applicable in case of death of a Unit holder (in respect of joint holdings) as this is treated as transmission of Units and not transfer.Pledging/lien marking unitsThe Units under the Scheme may be off ered as security by way of a pledge/charge in favour of scheduled banks, fi nancial ins� tu� ons, non-banking fi nance companies (NBFCs), or any other body. The AMC and / or the Registrar will note and record such pledge of Units. The AMC shall mark a lien only upon receiving the duly completed form and documents as it may require. Disbursement of such loans will be at the en� re discre� on of the bank / fi nancial ins� tu� on / NBFC or any other body concerned and the Mutual Fund/AMC assumes no responsibility thereof.The Pledgor (Unitholder) will not be able to redeem Units that are pledged un� l the en� ty (Pledgee) to which the Units are pledged provides wri� en authoriza� on to the Mutual Fund that the pledge/lien charge may be removed. As long as the Units are pledged, the Pledgee will have complete authority to redeem such Units.

B. ONGOING OFFER DETAILSOngoing Off er PeriodThis is the date from which the scheme will reopen for subscriptions/redemptions a� er the closure of the NFO period.

The Scheme is closed-ended and will not be available for subscrip� on on an ongoing basis. However, the units of the Scheme can be traded on the NSE a� er the lis� ng of the units.

Ongoing price for subscrip� on (purchase)/ switch-in (from other schemes/op� ons of the mutual fund) by investors. This is the price you need to pay for purchase/switch-in.Example: If the applicable NAV is Rs. 10, then sales price will be:Rs. 10* (1) = Rs. 10

Not applicable as the Scheme is closed-ended

33

Ongoing price for redemp� on (sale) /switch outs (to other schemes/op� ons of the Mutual Fund) by investors. This is the price you will receive for redemp� ons/switch-outs.Example: If the applicable NAV is Rs. 10, then redemp� on price will be:Rs. 10* (1) = Rs. 10

The Scheme is not available for repurchase on an ongoing basis. Redemp� on facility is provided only on the maturity date and the redemp� on will be at the applicable NAV.

Cut off � ming for subscrip� ons/ redemp� ons/switchesThis is the � me before which your applica� on (complete in all respects) should reach the offi cial points of acceptance.

Not applicableAll units of the scheme shall be redeemed only on maturity.Switches:Switch in transac� ons (from other Schemes of the Mutual Fund) are permi� ed only during the NFO and not on an ongoing basis. Applica� on for Switch in transac� ons shall be submi� ed before 3.00 pm on the last date of NFO. Switch-out transac� ons from the Scheme to other Schemes of the Mutual Fund are permi� ed on the date of maturity provided such requests are received by the Mutual Fund up to 3:00 pm.

Where can the applica� ons for purchase/redemp� on/ switches be submi� ed?

Not applicable

Minimum amount for purchase/redemp� on/ switches

Not applicable

Minimum balance to be maintained and consequences of non maintenance

Not applicable

Transac� ons through electronic mode

The Mutual Fund may redemp� ons (only at maturity for the Scheme) of Units by electronic mode through the various web sites with whom the AMC would have an arrangement from � me to � me. Normally, the subscrip� on proceeds, when invested through this mode, are by way of direct credits to the designated bank collec� on account of the Scheme. The intermediary will aggregate the data and forward the same to the Mutual Fund for processing. The investor is required to send the signature card with the specimen signatures of all the applicants, to the Mutual Fund. In the case of signatures not being made available, any request received, whether fi nancial/nonfi nancial, including request for Redemp� on of Units shall not be processed � ll such � me that the specimen signature cards duly signed by the applicants are received by the Mutual Fund. As and when regulatory authori� es permit the use of digital signatures, the Mutual Fund may implement the same in lieu of the physical signature cards.The Applicable NAV for redemp� ons of Units through Electronic Mode will be in accordance with the SEBI (MF) guidelines for Time Stamping and Cut-off Timings for redemp� ons made on ongoing basis.

34

The Redemp� on proceeds, (subject to deduc� on of tax at source, if any) through this mode, are directly credited to the bank account of the Unitholders who have an account at the designated banks with whom the AMC has arrangements from � me to � me. The Mutual Fund, the AMC, the Trustee, along with its directors, employees and representa� ves shall not be liable for any damages or injuries arising out of or in connec� on with the use of the web-site or its non-use including non-availability or failure of performance, loss or corrup� on of data, loss of or damage to property (including profi t and goodwill), work stoppage, computer failure or malfunc� oning or interrup� on of business; error, omission, interrup� on, dele� on, defect, delay in opera� on or transmission, computer virus, communica� on line failure, unauthorized access or use of informa� on.The Mutual Fund may introduce a facility for distributors to transact on the web on behalf of their clients, provided the client has authorized the distributors to do so by execu� ng a Power of A� orney in favour of the distributor for this purpose. In such event, the Power of A� orney should be submi� ed to the Mutual Fund. It shall be the responsibility of the distributor, to ensure that the Power of A� orney is valid and subsis� ng to carry out the transac� on.

Special Products available The Scheme does not off er Systema� c Investment Plan, Systema� c Withdrawal Plan and Systema� c Transfer Plan during the NFO and on an ongoing basis.

Accounts Statements For NFO transac� ons and repurchase:For all applicants whose applica� on has been accepted, the AMC shall send a confi rma� on specifying the number of units allo� ed to the applicant by way of email and/or text SMS’s to the applicant’s registered email address and/or mobile number as soon as possible but not later than 5 working days from the date of closure of the Ini� al Subscrip� on list and/or from the date of receipt of the request from the unit holders.A consolidated account statement detailing the allotment of units will be issued, on or before tenth day of succeeding month of allotment. The said statement will also contain details all the transac� ons and holding at the end of the month including transac� on charges paid to the distributor, across all schemes of all mutual funds. Please note that no subsequent monthly statements will be issued for FMP schemes � ll the maturity of the scheme unless a dividend payout is declared during the interim period.Further the holding details of FMP schemes will be refl ected in the consolidated account statement issued every half year (September/ March), on or before tenth day of succeeding month along with the holding details at the end of the six month, across all schemes of all mutual funds, to all such investors in whose folios no transac� on has taken place during that period:The Units of the Plan(s) of the Scheme will not be available for subscrip� ons / switch-in a� er the closure of NFO Period. For redemp� on/switch-out on redemp� on, a Statement of Account refl ec� ng redemp� on / switch-out of Units shall be dispatched to the Unit holder within 10 days from the date of Maturity. For those Unit holders who have provided an e-mail address, the AMC will send the account statement, annual report or abridged annual report by e-mail and no separate Physical account statement, annual report or abridged annual report will be issued. Investors who have not provided an email id and investors who have specifi cally requested for physical documents despite providing the email id to the Mutual Fund will con� nue to receive the documents men� oned above in physical form. Should the Unit holder experience any diffi culty in accessing the electronically delivered documents, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party intercep� on of the documents and contents of the documents becoming known to third par� es.The Unitholder may request for a physical account statement by wri� ng/calling the AMC/ISC/R&T.

35

Dividend The dividend warrants shall be dispatched to the Unit holders within 30 days of the date of declara� on of the dividend.In case of Unit holders having a bank account with certain banks with whom the Mutual Fund would have an arrangement from � me to � me, the dividend proceeds shall be directly credited to their account.The dividend proceeds will be paid by way of ECS/ EFT/NEFT/RTGS/Direct credits/any other electronic manner if suffi cient numbers of investors opt for a par� cular transfer facility. The dividend will be paid by warrant and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the fi rst registered holder) with bank account number furnished to the Mutual Fund (please note that it is mandatory for the Unit holders to provide the Bank account details as per the direc� ves of SEBI).In case of specifi c request for dividend by warrants or unavailability of suffi cient details with the Mutual Fund, the dividend will be paid by way of warrants or any other mode preferred by AMC from � me to � me.

Redemp� on In case of Unit holders having a bank account with certain banks with whom the Mutual Fund would have an arrangement from � me to � me, the redemp� on proceeds shall be directly credited to their account. In case of any units jointly held by more than one unit holder the payment of the income and redemp� on proceeds will be made in the name of fi rst named joint unit holder. In case of redemp� on request by FIIs, the income and redemp� on proceeds will be made to FII by credi� ng the same in accounts in India.The redemp� on or repurchase proceeds shall be dispatched to the Unitholders within 10 business days from the date of maturity of each Plan.

Delay in payment of redemp� on / repurchase proceeds

The Asset Management Company shall be liable to pay interest to the Unitholders at such rate as may be specifi ed by SEBI for the period of such delay (presently @ 15% per annum)

Delay in payment of dividend proceeds

As per modifi ca� ons to SEBI Circular SEBI/ MFD/CIR/2/266/2000 dated May 19, 2000 vide another circular no. SEBI/IMD/CIR No 14/187175/ 2009 dated December 15, 2009 - The Asset Management Company shall be liable to pay interest to the Unit holders at such rate as may be specifi ed by SEBI for the period of such delay (presently @ 15% per annum)

Bank Account details In order to protect the interest of the Unit Holders from fraudulent encashment of cheques, SEBI has made it mandatory for investors in mutual funds to state their bank account numbers in their applica� on forms (during NFO and on an ongoing basis) and redemp� on request. Investors should provide these details in the space provided in the applica� on form. This measure is intended to avoid fraud / misuse or the� of warrants in transit. Kindly note that applica� ons not containing these details may be rejected.

C. PERIODIC DISCLOSURES

Net Asset ValueThis is the value per unit of the scheme on a par� cular day. You can ascertain the value of your investments by mul� plying the NAV with your unit balance.The NAV shall be disclosed separately for direct investments and investments routed through a distributor. The NAV under the direct plan will have a lower expense ra� o excluding distribu� on expenses, commission, etc., and no commission shall be paid from such plans.

The Mutual Fund shall disclose the Net asset Value of the scheme on every business day on AMFI’s website www.amfi india.com by 9:00 pm (� me limit for uploading NAV as per applicable guidelines) and also on its website www.idbimutual.co.in. In case of any delay, the reasons for such delay would be explained to AMFI in wri� ng. If the NAVs are not available before commencement of business hours on the following day due to any reason, Mutual Fund shall issue a press release providing reasons and explaining when the Mutual Fund would be able to publish the NAVs.The NAV shall be calculated for all business days for both the Op� ons for all Plan launched in the Scheme and shall be published in at least in two daily newspapers on all business days. NAVs will also be displayed on the Website of the Mutual Fund on www.idbimutual.co.in.

36

Monthly Disclosure - Por� olio Mutual funds/AMCs will disclose por� olio (along with ISIN) as on the last day of the month in the format prescribed by SEBI in its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format.

Half yearly Disclosures: Por� olioThis is a list of securi� es where the corpus of the scheme is currently invested. The market value of these investments is also stated in por� olio disclosures.

The Mutual Fund shall publish a complete statement of the scheme por� olio, within one month from the close of each half year (i.e. 31st March and 30th September), by way of an adver� sement at least, in one Na� onal English daily and one regional newspaper in the language of the region where the head offi ce of the Mutual Fund is located as per the new format prescribed by SEBI vide their Circular No. MFD/CIR/1/200/2001 dated April 20, 2001The Mutual Fund shall send a complete statement of Scheme Por� olio to the unit holders before the expiry of one month from the closure of each Half Year (i.e. March 31 and September 30), if such statement is not published by way of adver� sementThe por� olio statements will also be displayed on the website of Mutual Fund and AMFI before the expiry of one month from the closure of each half year.

Half Yearly Results The Mutual Fund and the AMC shall before the expiry of one month from the close of each half year that is on 31st March and on 30th September, publish its unaudited fi nancial results in its website in a user friendly and downloadable format as per the format prescribed by SEBI vide their Circular No. MFD/CIR/1/200/2001 dated April 20, 2001.The unaudited fi nancial results will also be displayed on the website of AMFI. Mutual Fund shall publish an adver� sement disclosing the hos� ng of such fi nancial results on their website, in one English daily newspaper having na� onwide circula� on and in a newspaper having a wide circula� on published in the language of the region where the head offi ce of the mutual fund is situated.

Annual Report or Abridged Annual Report

The Scheme wise Annual Report or an abridged summary thereof shall be mailed to all Unitholders within four months from the date of closure of the relevant accounts year i.e. 31st March each year. The annual report or Abridged Scheme wise Annual Report may be sent in electronic form on their registered email address in the manner specifi ed by the Board.The AMC shall also display the link of the full scheme wise annual report prominently in its website and also in the website of AMFI.The full Annual Report shall be available for inspec� on at the Head Offi ce of the mutual fund and a copy thereof shall be made available to unit holder on payment of such nominal fees as may be specifi ed by the mutual fund.The audited fi nancial statements of the schemes shall form part of the Annual Report. The statutory auditors appointed by the Trustees for the audit of Mutual Fund are M/s MP Chitale & Co, Chartered Accountants, Mumbai.

Associate Transac� ons Please refer to Statement of Addi� onal Informa� on (SAI).

37

Taxa� onThe informa� on is provided for general informa� on only. However, in view of the individual nature of the implica� ons, each investor is advised to consult his or her own tax advisors/authorized dealers with respect to the specifi c amount of tax and other implica� ons arising out of his or her par� cipa� on in the schemes.

IDBI Fixed Maturity Plan - Series IV

Resident Investors** Mutual Fund**

Tax on Dividend Nil Dividend Distribu� on Tax (DDT)• Individual / HUF investors

- 25%p.a (plus applicable surcharge and cess)

• Others - 30%p.a. (plus applicable surcharge and cess)

Capital Gains• Long Term 10% p.a without indexa� on

/20% p.a with indexa� on whichever is lower (plus applicable surcharge & cess)

Nil

• Short Term Rates applicable to Unit holders as per their income slabs (plus applicable surcharge & cess)

Nil

**For further details on taxa� on please refer to the Sec� on on Taxa� on in the SAIJurisdic� on The jurisdic� on for any ma� ers or disputes arising out of the scheme shall reside with the

Courts in India.

Investor servicesName, address and telephone number and e-mail of the contact person/grievances offi cer who would take care of investor queries and complaints.

Any complaints should be addressed to the Investor Rela� ons Offi cer who can be contacted at the under men� oned address: Mr. S.V. Durga PrasadInvestor Rela� ons Offi cerIDBI Asset Management Ltd., 5th Floor, Mafatlal Centre, Nariman Point, Mumbai- 400021Phone: 022-66442800; Fax: 022-66442801Email: contactus@idbimutual.co.in

D. COMPUTATION OF NAV

The Mutual Fund shall compute the Net Asset Value (NAV) of each scheme in accordance with SEBI (Mutual Funds) Regula� ons, 1996. The NAV of the Scheme shall be calculated on all business days. Separate NAV will be calculated for each Op� on. The NAV of the Scheme shall be published in atleast two daily newspapers on all business days. The NAV of the Scheme will be rounded off to four decimal places. Units in the Scheme will be rounded off to three decimals.

The NAV of the Scheme shall be updated on AMFI’s website (www.amfi india.com) and the Mutual Fund’s website (www.idbimutual.co.in) by 9 p.m. of the same day.

The Net Asset Value per Unit shall be calculated by dividing the Net Assets of the scheme by the total number of Units outstanding on the valua� on date, as follows:

NAV = [Market or Fair Value of the Scheme’s Investments + Current Assets including accrued income - Current Liabili� es and Provisions including accrued expenses] / No. of Units outstanding under the Scheme / Plan.

38

IV. FEES AND EXPENSESThis sec� on outlines the expenses that will be charged to the schemes. The informa� on provided under this Sec� on seeks to assist the investor in understanding the expense structure of the Scheme and types of diff erent fees / expenses and their percentage the investor is likely to incur on purchasing and selling the Units of the Scheme.A. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various ac� vi� es related to the NFO like sales and distribu� on fees paid

marke� ng and adver� sing, registrar expenses, prin� ng and sta� onary, bank charges etc. In accordance with the provisions of SEBI Circulars - SEBI/ IMD/CIR No.1/64057/06 dated April 04, 2006 and SEBI/IMD/CIR No.

4/ 168230/09 dated June 30, 2009 - the NFO expenses shall be borne by the AMC/Trustee/Sponsor.B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for opera� ng the scheme. These expenses include Investment Management and Advisory

Fee charged by the AMC, Registrar and Transfer Agents’ fee, marke� ng and selling costs etc. The AMC has es� mated that the following % per annum of daily net assets of the scheme may be charged to Regular Plan of

the Scheme and on the daily net assets of the scheme. If the expenses exceed the limits stated below, expenses incurred in excess of the limits stated below shall be borne by the AMC.

Expense Head / Nature of Expense % of Daily Net Assets (p.a)Investment Management & Advisor Fees Up to 2.25%Trustees FeesAudit FeesCustodial FeeRegistrar & Transfer Agent Fees including cost related to providing accounts statement, dividend/ redemp� on cheques / warrants etc.Cost related to investor communica� onsCost of fund transfer from loca� on to loca� onMarke� ng & Selling Expenses including Agents Commission and statutory adver� sementCost towards investor educa� on & awareness (minimum 2 bps)Brokerage & transac� on cost over and above 12 bps (0.12%) and 5 bps (0.05%) for cash and deriva� ve transac� ons respec� velyService tax on expenses other than investment and advisory feesService tax on brokerage and transac� on costOther Expenses as permi� ed by SEBI regula� onsMaximum total expense ra� o (TER) permissible under Regula� on 52 (6) (c) (i) and (6) (a) Up to 2.25% Addi� onal expenses under regula� on 52 (6A) ( C ) Up to 0.20%Addi� onal expenses for gross new infl ows from specifi ed ci� es i.e. beyond top 15 ci� es Up to 0.30%

The purpose of the above table is to assist the investor in understanding the various costs and expenses that the investor in the Scheme will bear directly or indirectly.

These es� mates have been made in good faith as per the informa� on available to the Investment Manager based on the past experience and are subject to change inter-se within the overall limit of total recurring expenses permi� ed by SEBI(MF) Regula� ons.

At least 5 bps (annualised) of the TER is charged towards distribu� on expenses/ commission in the Regular Plan. The TER of the Direct Plan will be lower to the extent of the above men� oned distribu� on expenses / commission (at least 5 bps) which is charged in the Regular Plan.

As per regula� on 52(6)(C) the total expenses of the scheme excluding issue or redemp� on expenses, whether ini� ally borne by the Mutual Fund or by the AMC, but including the investment management and advisory fee shall be subject to the following limits :—(i) On the fi rst Rs.100 crores of the daily net assets 2.25%;

39

(ii) On the next Rs.300 crores of the daily net assets 2.00%;(iii) On the next Rs.300 crores of the daily net assets 1.75%;(iv) On the balance of the assets 1.50%:

The AMC may charge the mutual fund with investment and advisory fees which shall not exceed the total recurring expense as stated above and the addi� onal expenses men� oned below.

Addi� onal Expense As per regula� on 52(6A) of SEBI (MF) Regula� ons, 1996, the AMC may charge the scheme with following addi� onal expense.

a) brokerage and transac� on costs which are incurred for the purpose of execu� on of trade and is included in the cost of investment, not exceeding 0.12% in case of cash market transac� ons and 0.05% in case of deriva� ves transac� ons;

b) expenses not exceeding of 0.30% of daily net assets, if the new infl ows from beyond top 15 ci� es (or such ci� es as specifi ed by the Board from � me to � me) are at least -(i) 30% of gross new infl ows in the scheme, or;(ii) 15% of the average assets under management (year to date) of the scheme, Whichever is higher: Provided that if infl ows from such ci� es is less than the higher of sub-clause (i) or sub- clause (ii), such expenses on

daily net assets of the scheme shall be charged on propor� onate basis by using the following formula. Daily net assets X 30 basis points X New infl ows from beyond top 15 ci� es

------------------------------------------------------------------------------------------------------------------------------------------------------- 365* X Higher of (i) or (ii) above * 366, wherever applicable. Provided further that expenses charged under this clause shall be u� lized for distribu� on expenses incurred for

bringing infl ows from such ci� es: Further that amount incurred as expense on account of infl ows from such ci� es shall be credited back to the scheme

in case the said infl ows are redeemed within a period of one year from the date of investment; The top 15 ci� es shall mean top 15 ci� es based on Associa� on of Mutual Funds in India (AMFI) data on ‘AUM by

Geography – Consolidated Data for Mutual Fund Industry’ as at the end of the previous fi nancial year.c) Addi� onal expenses, incurred towards diff erent heads men� oned under sub-regula� ons (2) and (4) of regula� on 52 of

SEBI (Mutual Fund) (Second Amendment) Regula� ons, 2012, not exceeding 0.20% of daily net assets of the scheme.” The AMC has es� mated that annual recurring expenses of up to 2.45% p.a. of the daily net assets may be charged to

the Scheme (under each Plan) without including the addi� onal expense incurred towards distribu� on of assets to ci� es beyond Top 15 ci� es. The maximum expense including addi� onal expense towards distribu� on of assets to ci� es beyond Top 15 ci� es, if any, will not exceed 2.75% p.a of the daily net assets may be charged to the Scheme. If the expenses exceed the limits stated above, expenses incurred in excess of the limits stated above shall be borne by the AMC.

Service Tax• The AMCs may charge service tax on investment and advisory fees to the scheme in addi� on to the maximum limit of TER

as prescribed in regula� on 52 of the Regula� ons.• Service tax on other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of

TER as per regula� on 52 of the Regula� ons• Service tax on brokerage and transac� on cost paid for asset purchases, if any, shall be within the limit prescribed under

regula� on 52 of the Regula� ons. Investors making investments directly with the mutual fund under the direct plan will be benefi � ed with a lower expense ra� o

excluding distribu� on expenses, commission, etc and no commission shall be paid from such plans. Investor Educa� on and Awareness Mutual Funds/AMCs shall annually set apart at least 2 basis points (0.02%) on daily net assets within the maximum limit of

TER as per regula� on 52 of the Regula� ons for investor educa� on and awareness ini� a� ves.

40

The recurring expense par� culars provided above are as permi� ed under the Regula� on 52 of SEBI (MF) Regula� ons and are es� mates. Types of expenses charged shall be as prescribed under the SEBI (MF) Regula� ons. The fees and expenses men� oned above are the maximum limits allowed under the regula� ons and the AMC may at its absolute discre� on adopt any fees/expense structure within the regulatory limits men� oned above.

For the actual current expenses being charged, the investor should refer to the website of the Mutual Fund. The Mutual Fund would update the current expense ra� os including the investment and advisory fees on the website within two working days men� oning the eff ec� ve date of the change.

C. LOAD STRUCTURE Load is an amount which is paid by the investor to subscribe to the units or to redeem the units from the scheme. This amount

is used by the AMC to pay commissions to the distributor and to take care of other marke� ng and selling expenses. Load amounts are variable and are subject to change from � me to � me. For the current applicable structure, please refer to the website of the AMC (www.idbimutual.co.in) or may call at (toll free no.) or your distributor.

Type of Load Load chargeable (as %age of NAV)Entry load Not applicable

(For normal transac� ons/switch-in and SIP transac� ons).In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry load will be charged on purchase / addi� onal purchase / switch-in. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor.

Exit Load Nil The investor is requested to check the prevailing load structure of the scheme before inves� ng. For any change in load

structure, AMC will inter alia issue an addendum and display it on the website/ Investor Service Centres. AMc shall not charge any load on issue of bonus units and units allo� ed on reinvestment of dividend for exis� ng as well as

prospec� ve investorsD. WAIVER OF LOAD FOR DIRECT APPLICATIONS - Not applicableE. TRANSACTION CHARGES As per SEBI circular Cir/ IMD/ DF/13/ 2011 dated August 22, 2011 the distributor is en� tled to charge a transac� on charge per

subscrip� on of Rs.10, 000/- and above be allowed to be paid to the distributors of the Mutual Fund products. However, there shall be no transac� on charges on direct investments. The transac� on charge shall be subject to the following: i. For exis� ng investors in a Mutual Fund, the distributor may be paid Rs.100/- as transac� on charge per subscrip� on of

Rs. 10,000/- and above. ii. The distributor may be paid Rs.150/- as transac� on charge for a fi rst � me investor in Mutual Funds. iii. The transac� on charge, if any, shall be deducted by the AMC from the subscrip� on amount and paid to the distributor;

and the balance shall be invested. iv. The AMCs shall be responsible for any malprac� ce/mis-selling by the distributor while charging transac� on costs. v. There shall be no transac� on charge on subscrip� on below Rs.10, 000/- vi. In case of SIPs, the transac� on charge shall be applicable only if the total commitment through SIPs amounts to Rs.

10,000/- and above. In such cases the transac� on charge shall be recovered in 3-4 installments. vii. There shall be no transac� on charge on transac� ons other than purchases/ subscrip� ons rela� ng to new infl ows. viii. The statement of account shall clearly state that the net investment as gross subscrip� on less transac� on charge and

the number of units allo� ed against the net investment.ix. Distributors shall be able to choose to opt out of charging the transac� on charge. However, the ‘opt-out’ shall be at

distributor level and not investor level i.e. a distributor shall not charge one investor and choose not to charge another investor. Further, Distributors shall have also the op� on to either opt in or opt out of levying transac� on charge based on type of the product.

It is also clarifi ed that as per SEBI circular no. SEBI/IMD/CIR No. 4/ 168230/09, dated June 30, 2009, upfront commission to distributors shall con� nue to be paid by the investor directly to the distributor by a separate cheque based on his assessment of various factors including the service rendered by the distributor.

41

V. RIGHTS OF UNITHOLDERSPlease refer to the Statement of Addi� onal Informa� on (SAI) for details.

VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN

THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY1. All disclosures regarding penal� es and ac� on(s) taken against foreign Sponsor(s) may be limited to the jurisdic� on of the country

where the principal ac� vi� es (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penal� es during the last three years shall be disclosed.

Not Applicable

2. In case of Indian Sponsor(s), details of all monetary penal� es imposed and/ or ac� on taken during the last three years or pending with any fi nancial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregulari� es or for viola� ons in the fi nancial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic off ences, or for viola� on of securi� es law. Details of se� lement, if any, arrived at with the aforesaid authori� es during the last three years shall also be disclosed.

IDBI Bank Ltd

• Issues inherited from erstwhile IDBI Ltd., since merged with IDBI Bank Ltd. (formerly Industrial Development Bank of India Ltd.)

During the period 2003-05, SEBI inves� gated into the irregulari� es in the IPOs of IDFC & Yes Bank, which revealed that certain market players played a major role in cornering the shares by opening fi c� � ous/benami accounts. SEBI held that the en� re scheme for cornering the retail por� on could not have been successful but for the ac� ve role by depositories and depository par� cipants (DPs). In the ma� er of inves� ga� on into IPOs, SEBI under Sec� on 11 and 11B of SEBI Act, 1992 passed an ex-parte interim order dated 27-04-2006 and issued direc� ons prohibi� ng them from dealing in the securi� es market � ll further orders and not to open fresh demat accounts. IDBI Bank made wri� en submissions and requested SEBI to vacate the Show Cause No� ce (SCN). Based on submissions, SEBI on 28-06-2006 vacated the SCN and permi� ed IDBI Bank to open fresh demat accounts and also held that all issues and conten� ons rela� ng to breach of extant KYC norms are le� open to be decided by the Enquiry Offi cer (EO) in subsequent enquiry proceedings pursuant to his report. IDBI Bank made its wri� en submission in the enquiry proceedings and the order of EO is awaited. Pending enquiry proceedings, SEBI vide order dated November 21, 2006 directed NSDL and its Depository Par� cipants including IDBI Bank to jointly and severally disgorge an amount to the tune of Rs. 90,02,18,451.80 (IDBI Bank’s share was to the extent of Rs. 85,88,825.28). IDBI Bank preferred an appeal under sec� on 15T of SEBI Act, 1992 with Securi� es Appellate Tribunal (SAT) for quashing and se� ng aside the same, which was ini� ally heard on 11-01- 2007 when SAT stayed the opera� on. Final hearing took place on 22-11-2007, when SAT set aside the ex-parte disgorgement order on the ground that principles of natural jus� ce were not followed by SEBI.

Current status: The enquiry proceedings are s� ll pending and no orders have been passed as on date.

• On 13-12-2004, eUWB received a SCN from SEBI with respect to its Vile Parle branch proposing the issuance of a warning for the alleged viola� on of SEBI (Banks to Issue) Regula� ons, 1994. The viola� on occurred in the course of the public issue of M/s Anik Ship Breaking Company Ltd and consisted of the alleged debit of certain stockinvests into an account other than to the specifi c deposit a/c indicated in the stockinvests. The said SCN has been duly replied on 30-12-2004 and eUWB has sought exonera� on on the grounds that the account to which the stockinvests were debited were related to the deposit account which was indicated and there was no mala-fi de inten� on on the part of the Bank.

Current Status – SEBI has not yet passed fi nal order.

3. Details of all enforcement ac� ons taken by SEBI in the last three years and/ or pending with SEBI for the viola� on of SEBI Act, 1992 and Rules and Regula� ons framed there under including debarment and/ or suspension and/ or cancella� on and/ or imposi� on of monetary penalty/adjudica� on/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the viola� on shall also be disclosed.

Nil

42

4. Any pending material civil or criminal li� ga� on incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately.

Nil

5. Any defi ciency in the systems and opera� ons of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company which SEBI has specifi cally advised to be disclosed in the SID, or which has been no� fi ed by any other regulatory agency, shall be disclosed.

Nil

The Trustees have ensured that the IDBI Fixed Maturity Plan – Series IV is a new product off ered by IDBI Mutual Fund and is not a minor modifi ca� on of the exis� ng scheme.

Notwithstanding anything contained in this Scheme Informa� on Document, the provisions of the SEBI (Mutual Funds) Regula� ons, 1996 and the guidelines there under shall be applicable.

Date of approval of the Scheme by the Trustees – 28th August 2013

For and behalf of IDBI Asset Management Limited,

Sd/-

Place: Mumbai Mr. Debasish MallickDate: 24th February, 2014 Managing Director& Chief Execu� ve Offi cer IDBI Asset Management Limited

POINTS OF ACCEPTANCE FOR APPLICATION FORM

OUR BRANCHES (INVESTOR SERVICE CENTRES)

Ahmedabad: IDBI Mutual Fund, IDBI Complex, 1st Floor, Near Lal Bunglow, Off CG Road, Ahmedabad- 380 006. Bengaluru: IDBI Mutual Fund, IDBI House, 3rd Floor, No.58, Mission Road, Bengaluru- 560 027. Chennai: IDBI Mutual Fund, No: 6/11, Pa� ery Square, 1st fl oor, Balfour Road, Kellys Kilpauk, Chennai- 600 010. Chandigarh: IDBI Mutual Fund, IDBI Bank Ltd., 3rd fl oor, SCO 72/73 Bank Square, sector -17B, Chandigarh -160017. Delhi: IDBI Mutual Fund, IDBI Bank, 5th Floor, Red Cross Building, Red Cross Road, Parliament Street, New Delhi-110 001. Hyderabad: IDBI Mutual Fund, 3rd Floor 5-9-89/1 Chapel Road, Hyderabad-500001. Indore: IDBI Mutual Fund, IDBI Bank Ltd., Ground Floor, Alankar Chambers, Ratlam kothi, A. B. Road, Indore-452001. Kolka� a: IDBI Mutual Fund, IDBI House,6th fl oor, 44, Shakespeare Sarani, Kolkata 700 017. Kochi: IDBI Mutual Fund, IDBI Bank Corporate Offi ce, Near Passport Offi ce, Panampally Nagar, P. B. No. 4253, Kochi-680 366. Lucknow: IDBI Mutual Fund, IDBI Bank, 2 M G Marg, Kisan sekhari bhawan, Hazratganj, Lucknow -226001. Mumbai: IDBI Mutual Fund, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021. Pune: IDBI Mutual Fund, IDBI House, 4th Floor, Dnayaneshwar Paduka Chowk, SC Road, Shivaji Nagar, Pune-411 004.

KARVY INVESTOR SERVICE CENTRES

Agra: 1st Floor, Deepak Wasan Plaza, Behind Holiday Inn, Opp Megdoot Furnitures, Sanjay Place, Agra-282002, U� ar Pradesh. Ahmedabad: 201/202 Shail, Opp: Madhusudan House, Navrangpura, Ahmedabad-380006, Gujarat. Aurangabad: Ramkunj Niwas, Railway Sta� on Road, Near Osmanpura Circle, Aurangabad-431005, Maharashthra. Bangalore: No 51/25, 1st Floor, Rathna Avenue, Richmond Road, Near Hosmat Hospital, Bangalore-560025, Karnataka. Baroda: Sb-5, Mangaldeep Complex, Opp. Masonic Hall, Produc� vity Road, Alkapuri, Baroda-390007, Gujarat. Belgaum: Cts No 3939/ A2 A1, Above Raymonds Show Room, Beside Harsha Appliances, Club Road, Belgaum-590001, Karnataka. Bhopal: Kay Kay Business Centre, 133, Zone I, Mp Nagar, Above City Bank, Bhopal-462011, Madhya Pradesh. Chandigarh: Sco 371-372S, Above HDFC Bank, Sector 35-B, Chandigarh-160036, Union Territory. Chennai: F-11, Akshaya Plaza, 1st Floor, 108, Adhithanar Salai, Egmore, Opp To Chief Metropolitan Courier, Chennai-600002, Tamil Nadu. Cochin: Ali Arcade, 1st Floor, Kizhavana Road, Panampilly Nagar, Near Atlan� s Junc� on, Ernakualm-682036, Kerala. Coimbatore: 1057/1058 Jaya Enclave, 2nd Floor, Avinashi Road, Coimbatore-641018, Tamil Nadu. Durgapur: 1st Floor, Old Du� a Automobile Bldg, Nachan Road, Benachity, Durgapur-713213, West Bengal. Guntur: D No 6-10-27, Srinilayam, Arundelpet, 10/1, Guntur-522002, Andhra Pradesh. Guwaha� : 54 Sagarika Bhawan 2nd Floor, R G Barooah Road, Aidc, Near Baskin Robbins, Guwaha� -781024, Assam. Gwalior: 37/38, Lashkar, Mlb Road shinde Ki Chhawani, Near Nadi Gate Pul, Gwalior-474001, Madhya Pradesh. Hyderabad: 4-1-898 Oasis Plaza, Tilak Road, Abids, Hyderabad-500001, Andhra Pradesh. Indore: 213 B City Center, M.G. Road, Opp. High Court, Indore-452001, Madhya Pradesh. Jabalpur: Grover Chamber, 43 Naya Bazar Malviya Chowk, Opp Shyam Market, Jabalpur-482002, Madhya Pradesh. Jaipur: S16/A IIIrd Floor, Land Mark Building Opp Jai Club, Mahaver Marg C Scheme, Jaipur-302001, Rajasthan. Jamshedpur: Kanchan Tower, 3rd Floor, Main Road, Bistupur, Near Traffi c Signal, Jamshedpur-831001, Jharkhand. Kanpur: 15/46, B, Ground Floor, Opp : Muir Mills, Civil Lines, Kanpur-208001, U� ar Pradesh. Kolkata: 166 A Rashbihari Avenue 2nd Floor, Opp- For� sh Hospital, Kolkata-700029, West Bengal. Lucknow: 24, Prem Nagar, Ashok Marg, Lucknow-226001, U� ar Pradesh. Ludhiana: Sco - 136, 1st Floor Above Airtel Showroom, Feroze Gandhi Market , Ludhiana-141001, Punjab. Madurai: Rakesh towers, 30-C, Ist fl oor, Bye pass Road, Opp Nagappa motors, Madurai-625010, Tamil Nadu. Mangalore: Mahendra Arcade Opp Court Road, Karangal Padi, Mangalore-575003, Karnataka. Mumbai: 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind BSE Bldg, Fort-400001, Maharashthra. Mysore: L-350,Silver Tower, Ashoka Road, Opp.Clock Tower, Mysore-570001, Karnataka. Nagpur: Plot No 2/1 House No 102/1, Mata Mandir Road, Mangaldeep Appartment Opp Khandelwal Jewelers, Dharampeth, Nagpur-440010, Maharashthra. Nasik: S-12, Suyojit Sankul, Sharanpur Road, Near Rajiv Gandhi Bhavan, Nasik-422002, Maharashthra. New Delhi: 305 New Delhi House, 27 Barakhamba Road, New Delhi -110001, New Delhi. Pune: Offi ce # 16, Ground Floor, Shrinath Plaza, Near Dyaneshwar Paduka Chowk, F C Road, Pune-411005, Maharashthra. Raipur: 2 & 3 Lower Level, Millenium Plaza, Room No. Ll 2& 3, Behind Indian Coff ee House, Raipur-492001, Cha� sgarh. Ranchi: Room No 307 3rd Floor, Commerce Tower, Beside Mahabir Tower, Ranchi-834001, Jharkhand. Trivandrum: 2nd Floor, Akshaya Tower, Sasthamangalam, Trivandrum-695010, Kerala. Varanasi: D-64/132 1st Floor, Anant Complex, Sigra, Varanashi-221010, U� ar Pradesh. Visakhapatnam: Door No 47-14-5/1, Eswar Paradise, Dwarakanagar Main Road, Visakhapatnam-530016, Andhra Pradesh.

IDBI ASSET MANAGEMENT LIMITED

Corporate Offi ceIDBI Asset Management Ltd.

5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021.

Registered Offi ceIDBI Tower, WTC Complex, Cuff e Parade, Mumbai - 400 005.

SMS ‘IDBIMF’ to 09220092200 • Tollfree : 1800-22-4324 • www.idbimutual.co.in

Prin

ted

by: w

ww

.wes

tern

pres

s.in