Standard Chartered Enterprise Equity Fund fund.pdf · Standard Chartered Enterprise Equity Fund 2...

Standard CharteredEnterprise Equity FundA close ended equity scheme with no assured returns from Standard Chartered Mutual Fund

INVESTORS SHOULD NOTE THATThis Offer Document sets forth concisely the information that a prospective investor ought to know before investing. Investors shouldcarefully read the Offer Document before making an investment decision.This Offer Document remains effective until a 'material change' (other than a change in Fundamental Attributes and within the purviewof the offer document) occurs. Material changes will be filed with Securities Exchange Board of India (SEBI) and circulated to theUnit holders or as may be publicly notified by advertisements in the newspapers subject to the applicable Regulations.The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds)Regulations, 1996, as amended till date and filed with SEBI. The Units being offered for public subscription have neither been approvednor disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this Offer Document.

Please retain this Offer Document for future reference

Offer of Units of face value of Rs.10 each during the New Fund Offer period

New Fund Offer OpensApril 19, 2006

Offer Document

New Fund Offer ClosesMay 16, 2006

Cov. (1)

Cov. (2) Blank

Printed on March 31, 2006

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Highlights, Risk Factorsand Due Diligence

Highlights 2

Risk Factors 2

Scheme Specific Risks Factors& Special Considerations 2

Due Diligence Certificate 4

Definitions and Abbrevations 6

Constitution and Managementof the Fund

The Fund 8

Sponsor 8

The Trustee 8

Directors 8

Rights, Obligations,Responsibilities andDuties of the Trusteeunder the Trust Deed andRegulations 9

Trusteeship Fees 10

Asset Management Company 11

Directors 11

Powers, Duties andResponsibilities of the AMC 12

AMC Fee 12

Key Personnel of the AMC 12

Auditors 14

The Registrar 14

The Custodian 14

Collecting Bankers 14

Investment of the Fund

Investment Objective 15

Investment Pattern 15

Asset Allocation 15

Change in Investment Pattern 15

Investment Strategies andRisk Control 16

Debt Market & MoneyMarket in India 17

Portfolio Turnover 18

Trading in Derivatives 18

Fundamental Attributes 20

Investment of Subscription Money 20

Investment by the AMCin the Scheme 20

Investment in OverseasFinancial Assets 20

Investment Restrictionsfor the Scheme 21

Underwriting by the Fund 22

Computation of the NAV 22

Accounting Policies andStandards 25

Units on offer

Type of Scheme 27

Minimum SubscriptionAmount / Target Amount 27

Minimum Application Amount 27

New Fund Offer Period 27

Face Value of the Units 27

Extension of theNew Fund Offer Period 27

Options offered underthe Scheme 27

Pledge of Units for Loans 27

Switch Facility 27

Who can invest ? 29

How to Apply ? 29

Mode of Payment 29

Application under Power ofAttorney Body Corporate /Registered Society / Trust /Partnership 30

Joint Applications 30

Nomination Facility 30

Issuance of Units 31

Account Statements 31

Unit Certificates 31

Refunds 31

Repurchase Facility 31

Applicable NAV 32

Listing and Transfer of Units 32

How to Redeem ? 32

Payment of Proceeds 32

Redemption by NRIs / FII 32

Effect of Repurchase 32

Fractional Units 32

Suspension of Redemption /Repurchase of Units and DividendDistribution 33

Mandatory Quoting of the BankMandate and PAN numberby investors 33

Official Points of Acceptanceof Transactions 33

Phone Transact 33

Loads and Recurring Expenses

New Fund Offer Price 35

Repurchase Price 35

Load Structure 35

Entry Load 35

Exit Load 35

Fees and Expensesof the Scheme 35

New Fund Offer Expenses 35

Estimated RecurringExpenses 40

Condensed Financialinformation 41

Unitholders’ Rights and Services

Unitholders’ Rights and Services 63

Investor Services 63

Ease of Transactions 63

Problem Resolution 63

NAV Information 63

Disclosure of informationunder the Regulations 63

Rights of the Unitholdersof the Scheme 63

Termination of the Scheme 64

Taxation - Tax Benefits ofinvesting in the Mutual Fund 64

Other Matters

Unitholder GrievancesRedressal Mechanism 68

Associate Transactions 68

Details of Investment inCompanies that holds morethan 5% of the NAV of anyScheme of the StandardChartered Mutual Fund 71

Penalties and PendingLitigations 74

Borrowing by theMutual Fund 75

Inter-Schemes Transfers 75

Stock Lending 75

Dividends and Distribution 76

General Information 76

Power to make Rules 76

Power to remove Difficulties 76

Scheme to be bindingon Unitholders 76

Documents availablefor inspection 76

Index

Particulars Page Nos. Particulars Page Nos. Particulars Page Nos.

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Standard CharteredEnterprise Equity Fund

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HighlightsSPONSORThe Sponsor of Standard CharteredMutual Fund is Standard Chartered Bank(SCB) (belongs to Standard CharteredGroup), a multinational banking andfinancial services group. SCB operatesthrough more than 500 offices in over 50countries and has over 30,000 peoplemanaging assets over US$ 120 billion.

NAME OF THE SCHEMEStandard Chartered Enterprise EquityFund.

STRUCTUREA close ended equity scheme with noassured returns from Standard CharteredMutual Fund. The tenor of the Scheme is36 months with automatic conversion intoan open ended equity scheme, oncompletion of 36 months.

INVESTMENT OBJECTIVEThe investment objective of the Schemeis to seek to generate capital growth froma portfolio of predominantly equity andequity-related instruments (includingequity derivatives). The scheme may alsoinvest in debt and money marketinstruments to generate reasonableincome.

There can be no assurance that theinvestment objective of the Scheme willbe realised.

DETAILS OF SCHEMEThe Scheme will have a duration of 36months.

LiquidityUnits of the Scheme may be redeemedon last day of the calendar half year (nextworking day in case of a holiday) at NAVbased prices subject to the prevailing loadstructure till the time the fund is notconverted into open ended Scheme.

The units of the Scheme will presently notbe listed on any exchange. Investorshaving a bank account with StandardChartered Bank or such other Banks withwhom the Fund would have anarrangement from time to time, can availof the facility of direct credit to their accountfor sale of their units. The Fund shall undernormal circumstances, endeavour todespatch the redemption proceeds within3 Business Days from the applicableredemption date but as per Regulationsunder no circumstances later than 10 (ten)Business Days from the date of suchacceptance. After the conversion ofScheme into an open -ended scheme uponmaturity, the Scheme will offer for Sale /Switch in and redemption / switch outs ofUnits at NAV based prices on everyBusiness Day on an ongoing basis.

OptionsDividend Option :This option is suitable for investors seekingincome through dividend declared by theScheme.

Under this Option, the Fund will endeavourto declare dividends from time to time.The dividend shall be dependent on theavailability of distributable surplus.

Growth Option :This option is suitable for investors whoare not seeking dividend

Minimum Application AmountMinimum of Rs. 5000/- and in multiples ofRe. 1/- thereafter.

Target Amount to be raisedRs. 1,00,00,000/-. New Fund Offerexpenses may be charged to the Schemeto the extent permitted under the SEBIRegulations. Any excess shall be borneby the AMC. The details of New FundOffer expenses are provided in the OfferDocument.

New Fund Offer PriceRs. 10/- per Unit subject to applicableload.

Minimum Redemption AmountIn multiples of Re. 1/-.

Minimum Balance to be maintainedRs. 500/-.

NAV DeclarationNAV calculated up to two decimal placesand declared on a weekly basis.

Repatriation FacilityNRIs, FIIs and PIOs may invest in theScheme on a full repatriation basis.(Investment will be governed by rules laiddown by RBI/SEBI in this regard).

Taxation (As per Tax laws)As per the present tax laws, the incomedistributed by the Scheme is exempt inthe hands of investors. Units of theScheme are not subject to Wealth Taxand Gift Tax.

Benchmark IndexBSE 200 Index. The fund reserves theright to change the benchmark forevaluation of the performance of theScheme from time to time, subject to SEBIRegulations and other prevailingguidelines, if any.

Risk Factorsl Mutual Funds and securities

investments are subject to marketrisks and there is no assurance orguarantee that the objectives of theScheme will be achieved.

l As with any investment in securities,the NAV of the Units issued underthe Scheme can go up or downdepending on the factors and forcesaffecting the capital markets.

l Past performance of the mutual fundsmanaged by the Sponsors and itsaffiliates is not necessarily indicativeof the future performance of theScheme.

l Standard Chartered Enterprise EquityFund is the name of the Scheme anddoes not in any manner indicate eitherthe quality of the Scheme, its futureprospects or returns.

l The Sponsor or any of its associatesis not responsible or liable for anyloss resulting from the operation ofthe Scheme, and the Sponsor's initialcontribution towards setting up theMutual Fund is limited to Rs. 20,000/-.

l The NAV of the Scheme's Units willbe affected by changes in the generallevel of interest rates. When interestrates decline, the value of securitiescan be expected to rise. Conversely,when interest rates rise, the value ofthe securities can be expected todecline.

l Investors in the Scheme are not beingoffered any guaranteed or assuredrate of return.

SCHEME SPECIFIC RISKFACTORS & SPECIALCONSIDERATIONSScheme Specific Risk Factors:The Scheme proposes to invest in equityand equity related instruments. Equityinstruments by nature are volatile andprone to price fluctuations on a daily basisdue to both macro and micro factors.Trading volumes, settlement periods andtransfer procedures may restrict theliquidity of these investments. Differentsegments of financial markets havedifferent settlement periods and suchperiods may be extended significantly byunforeseen circumstances. The inabilityof the Scheme to make intended securities'purchases due to settlement problemscould cause the Scheme to miss certaininvestment opportunities.

Price-Risk or Interest-Rate Risk : Fixedincome securities such as bonds,debentures and money marketinstruments run price-risk or interest-raterisk. Generally, when interest rates rise,prices of existing fixed income securitiesfall and when interest rates drop, suchprices increase. The extent of fall or risein the prices is a function of the existingcoupon, days to maturity and the increaseor decrease in the level of interest rates.

Credit Risk : In simple terms this riskmeans that the issuer of a debenture/bond or a money market instrument maydefault on interest payment or even in

I. Highlights, Risk Factors, Due Diligence & Schedule

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paying back the principal amount onmaturity. Even where no default occurs,the price of a security may go downbecause the credit rating of an issuer goesdown. It must, however, be noted thatwhere the Scheme has invested inGovernment Securities, there is no creditrisk to that extent.

Different types of securities in which theScheme would invest as given in the OfferDocument carry different levels and typesof risk. Accordingly the scheme's risk mayincrease or decrease depending upon itsinvestment pattern. e.g. corporate bondscarry a higher amount of risk thanGovernment securities. Further evenamong corporate bonds, bonds which areAAA rated are comparatively less riskythan bonds which are AA rated.

Re-investment Risk : Investments in fixedincome securities may carry re-investmentrisk as interest rates prevailing on theinterest or maturity due dates may differfrom the original coupon of the bond.Consequently, the proceeds may getinvested at a lower rate.

Repurchase Risk: The Scheme is a closeended Equity Scheme. However to provideliquidity to the investors, the Fundproposes to provide repurchase facility inthe Scheme on a half yearly basis, asprovided in the repurchase schedule inthe Offer Document. Thus the investorswill be able to redeem their investmentsonly at the end of the relevant calendarHalf-year at the applicable NAV, subjectto applicable exit load. The exactrepurchase schedule will be announcedat the time of launching the scheme.

Subsequent to conversion of Scheme intoan open ended Scheme, the Scheme willoffer redemption facility on every BusinessDay.

The Fund may close a unitholder'saccount, if as a consequence ofredemption / repurchase, the balance fallsbelow Rs. 500. In such a case, entire unitsto the unitholders account will beredeemed at the applicable NAV with theapplicable load, if any, and the accountwill be closed.

Minimum Number of Investors in theScheme / sub plans : The Scheme / subplans under the schemes seeks to havea minimum of 20 investors with no singleinvestor accounting for more than 25% ofthe corpus of the scheme / sub plans. Incase of non-fulfillment with either of theabove two conditions, the investor's moneywould be refunded, in full, immediatelyafter the close of the NFO. The Schemewill comply with relevant SEBIRegulations.

On conversion of Scheme into an openended scheme, in each quarter, on anaverage basis, the scheme shallendeavour to meet with both the conditionsof minimum number of 20 investors andholding (no single investor accounting formore than 25% of corpus of the scheme)as a percentage of the corpus. The

average net assets of the Scheme wouldbe calculated daily and any breach of the25% holding limit by an investor would bedetermined. At the end of the quarter, theaverage of daily holding by each suchinvestor is computed to determine whetherthat investor has breached the 25% limitover the quarter. If there is a breach oflimit by any investor over the quarter, arebalancing period of one month wouldbe allowed and thereafter the investor whois in breach of the rule shall be given 15days notice to redeem his exposure overthe 25% limit. Failure on the part of thesaid investor to redeem his exposure overthe 25% limit within the aforesaid 15 dayswould lead to automatic redemption bythe Mutual Fund on the applicable NetAsset Value on the 15th day of the noticeperiod. In the event, the Scheme is unableto comply with the afore said conditions,the Scheme shall be wound up as perSEBI Regulations.

Risks in Foreign SecuritiesThe Scheme may also invest in overseasfinancial assets as permitted under theapplicable regulations. To the extent thatthe assets of the Scheme will be investedin securities denominated in foreigncurrencies, the Indian Rupee equivalentof the net assets, distributions and incomemay be adversely affected by changes inthe value of certain foreign currenciesrelative to the Indian Rupee. Therepatriation of capital to India may also behampered by changes in regulationsconcerning exchange controls or politicalcircumstances as well as the applicationto it of other restrictions on investment.

Risk Associated with Securitised DebtThe Scheme may invest in domesticsecuritized debt such as asset backedsecurities (ABS) or mortgage backedsecurities (MBS). Asset Backed Securities(ABS) are securitized debts where theunderlying assets are receivables arisingfrom various loans including automobileloans, personal loans, loans againstconsumer durables, etc. Mortgage backedsecurities (MBS) are securitized debtswhere the underlying assets arereceivables arising from loans backed bymortgage of residential / commercialproperties. ABS / MBS instruments reflectthe undivided interest in the underlyingpool of assets and do not represent theobligation of the issuer of ABS / MBS orthe originator of the underlying receivables.The ABS / MBS holders have a limitedrecourse to the extent of creditenhancement provided. If thedelinquencies and credit losses in theunderlying pool exceed the creditenhancement provided, ABS / MBSholders will suffer credit losses. ABS /MBS are also normally exposed to a higherlevel of reinvestment risk as compared tothe normal corporate or sovereign debt.

At present in Indian market, following typesof loans are securitised:Auto Loans (cars / commercial vehicles /two wheelers)

Residential Mortgages or Housing LoansConsumer Durable LoansPersonal LoansCorporates Loans

The main risks pertaining to each of theasset classes above are described below:

Auto Loans (cars / commercialvehicles / two wheelers)The underlying assets (cars etc.) aresusceptible to depreciation in valuewhereas the loans are given at high loanto value ratios. Thus, after a few months,the value of asset becomes lower thanthe loan outstanding. The borrowers,therefore, may sometimes tend to defaulton loans and allow the vehicle to berepossessed. These loans are also subjectto model risk. i.e. if a particular automobilemodel does not become popular, loansgiven for financing that model have a muchhigher likelihood of turning bad. In suchcases, loss on sale of repossessionvehicles is higher than usual.

Commercial vehicle loans are susceptibleto the cyclicality in the economy. In adownturn in economy, freight rates dropleading to higher defaults in commercialvehicle loans. Further, the second handprices of these vehicles also decline insuch economic environment.

Housing LoansHousing loans in India have shown verylow default rates historically. However, inrecent years, loans have been given athigh loan to value ratios and to a muchyounger borrower classes. The loans havenot yet gone through the full economiccycle and have not yet seen a period ofdeclining property prices. Thus theperformance of these housing loans is yetto be tested and it need not conform to thehistorical experience of low default rates.

Consumer Durable LoansThe underlying security for such loans iseasily transferable without the bank'sknowledge and hence repossession isdifficult. The underlying security for suchloans is also susceptible to quickdepreciation in value. This gives theborrowers a high incentive to default.

Personal LoansThese are unsecured loans. In case of adefault, the bank has no security to fallback on.

The lender has no control over how theborrower has used the borrowed money.

Further, all the above categories of loanshave the following common risks:

All the above loans are retail, relativelysmall value loans. There is a possibilitythat the borrower takes different loansusing the same income proof and thus theincome is not sufficient to meet the debtservice obligations of all these loans.

In India, there is no ready databaseavailable regarding past credit record ofborrowers. Thus, loans may be given toborrowers with poor credit record.

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In retail loans, the risks due to frauds arehigh.

Corporate LoansThese are loans given to single or multiplecorporates. The receivables from a poolof loans to corporates are assigned to atrust that issues Pass through certificatesin turn. The credit risk in such PTCs is onthe underlying pool of loans to corporates.The credit risk of the underlying loans tothe corporates would in turn depend ofeconomic cycles.

Risk factors for DerivativesTransactions:1. Credit Risk : The credit risk is the

risk that the counter party will defaultobligations and is generally negligible,as there is no exchange of principalamounts in a derivative transaction.

2. Market Risk : Derivatives carry therisk of adverse changes in the marketprice.

3. Illiquidity Risk : The risk that aderivative cannot be sold orpurchased quickly enough at a fairprice, due to lack of liquidity in themarket.

4. The fund pays the daily compoundedrate. In practice however there canbe a difference in the actual rate atwhich money is lent in the call marketand the benchmark, which appearsand is used.

It may be mentioned here that theguidelines issued by the Reserve Bank ofIndia from time to time for forward rateagreements and interest rate swaps andother derivative products would beadhered to.

Special Considerations:All the above factors not only affect theprices of securities but may also affect thetime taken by the Fund for redemption ofUnits, which could be significant in theevent of receipt of a very large number ofredemption requests or very large valueof redemption requests. The liquidity ofthe assets may be affected by other factorssuch as general market conditions, politicalevents, bank holidays and civil strife. Inview of this, the Trustee has the right inits sole discretion to limit redemption(including suspension of redemption)under certain circumstances. Please referto the para "Suspension of Redemption/Repurchase of Units & DividendDistribution" under section V titled "Unitson Offer".

The liquidity of the Scheme's investmentsmay be restricted by trading volumes,settlement periods and transferprocedures. In the event of an inordinatelylarge number of redemption requests orof a restructuring of the Scheme'sportfolios, the time taken by the Schemefor redemption of Units may becomesignificant. In view of this, the Trustee hasthe right in its sole discretion to limitredemption (including suspension ofredemption) under certain circumstances.

Please refer to the para "Suspension ofRedemption / Repurchase of Units &Dividend Distribution" under section Vtitled "Units on Offer".

In case the Scheme undertakes stocklending under the Regulations, theScheme may, at times, be exposed tocounter party risk.

The Scheme may trade in derivatives aspermitted under the Regulations subjectto guidelines issued by SEBI and RBIfrom time to time. Trading in derivativesinvolves risks. Please refer to "Trading inderivatives" under section IV titled"Investment of the Fund".

Redemption due to change in thefundamental attributes of the Scheme ordue to any other reasons may entail taxconsequences. The Trustee, AMC, MutualFund, their directors or their employeesshall not be liable for any such taxconsequences that may arise.

The tax benefits described in this OfferDocument are as available under thepresent taxation laws and are availablesubject to conditions. The informationgiven is included for general purpose onlyand is based on advice received by theAMC regarding the law and practice inforce in India and the Unitholders shouldbe aware that the relevant fiscal rules ortheir interpretation may change. As is thecase with any investment, there can be noguarantee that the tax position or theproposed tax position prevailing at thetime of an investment in the Scheme willendure indefinitely. In view of the individualnature of tax consequences, eachUnitholder is advised to consult his / herown professional tax advisor.

No person has been authorised to giveany information or to make anyrepresentation not confirmed in this OfferDocument in connection with the OfferDocument or the issue of Units, and anyinformation or representation notcontained herein must not be relied uponas having been authorised by the MutualFund or the Asset Management Company.

DUE DILIGENCE CERTIFICATEIt is confirmed that:

i. The draft Offer Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelinesand directives issued by SEBI from time to time.

ii. All legal requirements connected with the launching of the Scheme and also the guidelines, instructions, etc. issued by theGovernment of India and any other competent authority in this behalf, have been duly complied with.

iii. The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well-informed decisionregarding investment in the proposed Scheme.

iv. According to the information given to us, Deutsche Bank AG, the custodian to the scheme, is registered with SEBI and till date,such registration is valid.

v. According to the information given to us, Standard Chartered Bank, the collecting banker for the New Fund Offer, is registeredwith SEBI and till date, such registration is valid.

vi. According to the information given to us, Computer Age Management Services Pvt. Limited, the Registrar and Transfer Agentto the scheme, is registered with SEBI and till date, such registration is valid.

For Standard Chartered Asset Management Company Private Limited (Asset Management Company for Standard Chartered Mutual Fund)

Sd/-Place : Mumbai, Gopal MenonDate: December 23, 2005 AVP- Risk & Compliance

The aforesaid Due Diligence Certificate was filed with SEBI on December 23, 2005.

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ScheduleSchedule / Details of Launch of Scheme

1. The AMC proposes to launch the Scheme as per detailsgiven hereunder:

Options available under Maturity / Redemptionthe sub plans

Growth & Dividend 36 months

The Scheme has duration of 36 months to enable investorsto avail of long term capital gains and indexation tax benefit(as per current tax laws).

2. In case the repurchase date and/or maturity date being aholiday / non business day, the deemed date will be the nextBusiness Day.

3. The trustee reserves the right to postpone or cancel theScheme mentioned in the schedule.

4. Units of the Scheme may be redeemed on last day of thehalf year (next working day in case of a holiday) at NAVbased prices subject to the prevailing load structure till thetime the fund is not converted into open ended Scheme.

To provide liquidity to investors, the Fund proposes to providerepurchase facility in the Scheme on a calendar half yearlybasis. The investors can mail their repurchase requests atany official points of acceptance of transactions on any dateafter the allotment. The repurchase requests, subject tobeing complete in all respects and received on or beforebusiness hours of the stipulated repurchase date will bedeemed to have been received for the Stipulated RepurchasePeriod. All such valid repurchase requests will be processedfor redemption at the Applicable NAV on the ScheduledRepurchase Date, subject to payment of the applicable exitload and the same is as under:

During the term the Scheme remains close ended

Stipulated repurchase Stipulated Applicableperiod for repurchase / repurchase date / Exitredemption request applicable NAV Load %received between date*

From the date of allotment December 31, 2006 3.00to June 30, 2007 June 30, 2007

From July 1, 2007 December 31, 2007 2.00to June 30, 2008 June 30, 2008

From July 1, 2008 December 31, 2008 1.00to December 31, 2008

Between January 1, 2009 June 9, 2009 Nil& June 9, 2009

* If the given date falls on holiday, the date will be next workingday.

The AMC in consultation with the Trustee, reserves the rightto change the load structure, if it so deems fit, in the interestof smooth & efficient functioning of the Scheme.

Load Structure after the conversion of the Scheme intoopen- ended Scheme is as follows:

During the Ongoing Offer PeriodEntry Load: For Purchases

Of less than Rs. 5 Crores 2.25%

Of Rs. 5 Crores or more Nil

By an FOF (irrespective of the amount of Purchase) Nil

By way of Dividend Re-investment Nil

Through SIP/STP where single instalment is less Nilthan or equal to Rs. 10 Lakhs or equal to or more thanRs. 5 Crores

Through SIP/STP where single instalment is more than 2.25%Rs. 10 Lakhs and less than Rs. 5 Crores

A switch-in may also attract an Entry Load like any Purchasehowever no load shall be chargeable on investments switchedby investors between Equity Scheme(s) of Standard CharteredMutual Fund.

Exit Load: For Redemption

Load (% of Applicable NAV)

Within 2 years from the dateof allotment or Purchaseapplying First in First Outbasis if the purchase is madethrough SIP/STP in caseswhere single instalment is lessthan or equal to Rs. 10 Lakhsand the Entry Load applicableat the time of the SIP/STPpurchase was NIL : 2.00%

No Entry / Exit Loads / CDSC will be chargeable in case ofswitches made between different options of the Scheme. If theSIP/STP is discontinued prior to minimum six months aftercommencement of SIP/STP, an exit load of 2% will be chargedon such investments irrespective of the date of redemption.

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In this Offer Document, the following words and expressions shall have the meaning specified herein, unless the context otherwiserequires:

AMC Standard Chartered Asset Management Company Private Limited, a company set upunder the Companies Act, 1956, and approved by SEBI to act as the Asset ManagementCompany for the Schemes of Standard Chartered Mutual Fund.

Applicable NAV Unless stated otherwise in the Offer Document, Applicable NAV is the Net Asset Valueas of the Day as of which the purchase or redemption is sought by the investor anddetermined by the Fund. (For details, please refer to the paragraph "Applicable NAV"in Section No.V named "Units on Offer").

Business Day A day other than (i) Saturday or Sunday or (ii) a day on which the Reserve Bank of India&/or Banks in Mumbai are closed for business or clearing or (iii) a day on which thereis no RBI clearing / settlement of securities or (iv) a day on which the Bombay StockExchange and/or National Stock Exchange are closed or (v) a day on which theRedemption of Units is suspended by the Trustee / AMC or (vi) a day on which normalbusiness could not be transacted due to storms, floods, other natural calamities, bandhs,strikes or such other events or as the AMC may specify from time to time. The AMCreserves the right to declare any day as a Business Day or otherwise at any or allcollection &/or Official points of acceptance of transactions.

Custodian Deutsche Bank, Mumbai, acting as Custodian to the Scheme, or any other custodianwho is approved by the Trustee.

Distributor Such persons/firms/ companies/ corporates who fulfil the criteria laid down by SEBI/AMFI from time to time and as may be appointed by the AMC to distribute/sell/marketthe Schemes of the Fund.

FIIs Foreign Institutional Investors, registered with SEBI under the Securities and ExchangeBoard of India (Foreign Institutional Investors) Regulations, 1995.

Fixed Income Securities Debt Securities created and issued by, inter alia, Central Government, State Government,Local Authorities, Municipal Corporations, PSUs, Public Companies, Private Companies,Bodies Corporate, Unincorporated SPVs and any other entities which may be recognised/permitted which yield at fixed or variable rate by way of interest, premium, discount ora combination of any of them.

Fund or Mutual Fund Standard Chartered Mutual Fund (formerly ANZ Grindlays Mutual Fund), a trust set upunder the provisions of the Indian Trusts Act, 1882. The Fund is registered with SEBIvide Registration No.MF/042/00/3 dated March 13, 2000 as ANZ Grindlays Mutual Fundand has obtained approval from SEBI for change in name to Standard Chartered MutualFund vide SEBI's letter No. MFD / PM / 017 / 2001 dated February 26, 2001.

The Scheme Standard Chartered Enterprise Equity Fund.

Gilt or Govt. Securities Securities created and issued by the Central Government and/or a State Government(including Treasury Bills).

New Fund Offer Offer of the Units of Standard Chartered Enterprise Equity Fund during the New FundOffer Period.

New Fund Offer Period The dates on or the period during which the initial subscription to Units of the Schemecan be made. New Fund Offer Period for the scheme will be announced at the time ofthe launch subject to the earlier closure, if any; such offer period not being more than30 days.

Investment Management Agreement The Agreement dated January 3, 2000 entered into between Standard CharteredTrustee Company Private Limited (formerly ANZ Grindlays Trustee Company PrivateLimited) and Standard Chartered Asset Management Company Private Limited (formerlyANZ Grindlays Asset Management Company Private Limited) as amended from timeto time.

Official Points of acceptance All applications for purchase/redemption of units should be submitted by investors atof transaction the official point of acceptance of transactions at the office of the registrar and/or AMC

as may be notified from time to time. For details please refer to the application form and/or website of the Mutual Fund at www.standardcharteredmf.com

Load A charge that may be levied as a percentage of NAV at the time of entry into the Schemeor at the time of exiting from the Scheme.

Money Market Instruments Commercial papers, Commercial bills, Treasury bills, Government Securities having anunexpired maturity upto one year, call or notice money, certificates of deposit, usancebills and any other like instruments as specified by the Reserve Bank of India from timeto time including MIBOR linked securities and call products having unexpired maturityupto one year.

II. Definitions and Abbreviations

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NAV Net Asset Value of the Units of the Scheme and Options therein, shall be calculatedat intervals not exceeding one week in the manner provided in this Offer Document oras may be prescribed by Regulations from time to time.

NRIs Non-Resident Indians

Offer Document This document is issued by Standard Chartered Mutual Fund, offering Units of StandardChartered Enterprise Equity Fund.

Person of Indian Origin A citizen of any country other than Bangladesh or Pakistan, if- a) he at any time heldan Indian passport, or b) he or either of his parents or any of his grand-parents wasa citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57of 1955) or c) the person is a spouse of an Indian citizen or a person referred to in subclause (a) or (b).

RBI Reserve Bank of India, established under the Reserve Bank of India Act, 1934, asamended from time to time.

Repo / Reverse Repo Sale / Purchase of Government Securities as may be allowed by RBI from time to timewith simultaneous agreement to repurchase / resell them at a later date.

SEBI Securities and Exchange Board of India established under Securities and ExchangeBoard of India Act, 1992, as amended from time to time.

Sponsor Standard Chartered Bank (SCB)

The Regulations Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amendedfrom time to time.

Trustee Standard Chartered Trustee Company Private Limited (formerly ANZ Grindlays TrusteeCompany Private Limited), a company set up under the Companies Act, 1956, andapproved by SEBI to act as the Trustee for the Scheme/s of Standard Chartered MutualFund.

Trust Deed The Trust Deed dated December 29, 1999 establishing ANZ Grindlays Mutual Fund(subsequently renamed as Standard Chartered Mutual Fund) as amended from timeto time.

Trust Fund Amounts settled/contributed by the Sponsor towards the corpus of the Standard CharteredMutual Fund and additions/accretions thereto.

Unit The interest of an investor that consists of one undivided share in the Net Assets of theScheme.

Unitholder A holder of Units in the Scheme of Standard Chartered Enterprise Equity Fund ascontained in this Offer Document.

InterpretationFor all purposes of this Offer Document, except as otherwise expressly provided or unless the context otherwise requires:

l the terms defined in this Offer Document include the plural as well as the singular.

l pronouns having a masculine or feminine gender shall be deemed to include the other.

l all references to "Sterling Pounds" refer to United Kingdom Sterling Pounds , "dollars" or "$" refer to United States Dollars and"Rs" refer to Indian Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand".

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A. THE FUNDStandard Chartered Mutual FundANZ Grindlays Mutual Fund, which hasbeen renamed as Standard CharteredMutual Fund ("the Mutual Fund" or "theFund") had been constituted as a Trust inaccordance with the provisions of theIndian Trusts Act, 1882 (2 of 1882) videa Trust Deed dated December 29, 1999.The office of the Sub-Registrar ofAssurances at Mumbai has registered theTrust Deed establishing the Fund underthe Registration Act, 1908. The Fund wasregistered with SEBI vide registrationnumber MF/042/00/3 dated March 13,2000.

Standard Chartered Bank (SCB) hadacquired the interest of ANZ BankingGroup in the ANZ Grindlays AssetManagement Company Private Limitedand ANZ Grindlays Trustee CompanyPrivate Limited and subsequently theseentities were renamed as StandardChartered Asset Management CompanyPrivate Limited and Standard CharteredTrustee Company Private Limited. SCBhas contributed an amount of Rs.10,000/-to the corpus of the Fund. SEBI hasapproved the change in the name of theFund to Standard Chartered Mutual Fundvide letter no. MFD/PM/017/2001 datedFebruary 26, 2001. A deed of amendmentto the Trust Deed dated March 2, 2001has been executed and registered.

The Trust has been formed for the purposeof pooling of capital from the public forcollective investment in securities / anyother property for the purpose of providingfacilities for participation by persons asbeneficiaries in such properties/investments and in the profits / incomearising therefrom.

B. SPONSORStandard Chartered BankThe Sponsor of Standard CharteredMutual Fund is Standard Chartered Bank(SCB). SCB (belongs to StandardChartered Group), is a multinationalbanking and financial service group witha unique international network. StandardChartered is the world's leading emergingmarkets bank. It employs over 30,000people in over 500 offices in more than 50countries in the Asia Pacific Region, SouthAsia, the Middle East, Africa, UnitedKingdom and the Americas managingassets over $ 120 billion. Through theyears SCB has grown its operations andis now a truly international bank offeringa wide array of financial products andservices. As an organisation, SCB iscommitted to delivering consistentlysuperior performance and to buildingshareholder value.

SCB is regulated by the Financial ServicesAuthority and is a clearing bank in theUnited Kingdom.

The Bank serves both Consumer andWholesale banking customers. TheConsumer Bank provides credit cards,personal loans, mortgages, deposit takingactivity and wealth management servicesto individuals and medium sizedbusinesses. The Wholesale Bank providesservices to multinational, regional anddomestic corporate and institutional clientsin trade finance, cash management,custody, lending, foreign exchange,interest rate management and debt capitalmarkets.

With over 150 years in the emergingmarkets the Bank has unmatchedknowledge and understanding of itscustomers in its markets.

Standard Chartered recognises itsresponsibilities lie to its staff and to thecommunities in which it operates.

A brief summary of the Sponsor's financialis as follows:

Year endedDecember 31 2004 2003 2002

PROFIT& LOSS

Total Income 2829 3164 3555

OperatingProfit Beforeprovisions 703 912 1032

Profit AfterTaxation 547 500 558

BALANCESHEET

Total Assets 51485 61232 62746

Shareholders'Funds 4432 4276 4526

Networth 4390 4176 4404

RetainedProfits 1867 1869 2001

EarningPer Share 17.73 16.20p 19.96p

Book ValuePer Share(in SterlingPounds) 1.42 1.35 1.43

DividendPer Share 11.14 9.55p 27.34p

SCB operates in India through 77 brancheswhich are spread over 29 cities and offera complete range of banking and financialproducts. It is the largest foreign bank inIndia. The current customer base is over2.3 million.

The Sponsor or any of its associates whichoperates as a scheduled commercial bankin India, does not in any way guaranteethe performance or return of the Fund andan investment in this Fund does not in anyway represent a deposit or other liabilityof the Sponsor or any of its associates.

Shareholding pattern Percentageof the AMC

Standard Chartered Bank 74.99995

Propycon Trading &Investments Private Limited 14.17623

Trivikram Investments &Trading Company Limited 10.82374

Others 0.00008

Propycon Trading & Investments PrivateLimited and Trivikram Investments &Trading Company Limited belong to theAtul Choksey Group of Companies. Theycarry on the business of an investmentcompany and invest/hold/sell/buy orotherwise deal in shares, stocks, units,debentures, debenture-stock, bonds,mortgages, obligations and securities ofany kind issued, real estates, etc.

C. THE TRUSTEEThe Trustee Company (The Trustee)Standard Chartered Trustee CompanyPrivate Limited (The Trustee), a companyincorporated under the Companies Act,1956 is the Trustee to the Fund vide TrustDeed dated December 29, 1999 asamended from time to time. SCB holds100% of the shares of the TrusteeCompany.

1. DirectorsThe details of the Directors of the TrusteeCompany in brief:

Mr. Sanjeev Agrawal*(Chairman)16A Manek, L. D. Ruparel Marg,Malabar Hill, Mumbai 400 026

He is a Chartered Accountant and theChief Operating Officer - India Region ofStandard Chartered Bank withresponsibilities for Service Delivery &Technology, Finance, Legal & Complianceand Strategic Sourcing & PropertyManagement. He has successfullymanaged the integration process ofStandard Chartered Bank and StandardChartered Grindlays Bank. His efforts havebeen recognized by Indian ManagementAssociation (IMA) and was awarded theCFO of the year award in the "Mergersand Acquisitions" category for the year2002. Prior to this assignment he wasassociated with Tata Steel, Mumbai andwith Price Waterhouse-New Delhi.

Other Directorships :1. Standard Chartered Finance Limited

- Chairman

2. Standard Chartered UTI SecuritiesIndia Private Limited - Director

3. Standard Chartered Bank NepalLimited - Director

4. Special Asset ReconstructionCompany Private Limited - Director

III. Constitution and Management of the Fund

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Mr. Dattatraya M. Sukthankar5 'Priya', 9 Abdul Gaffar Khan Road,Worli, Mumbai 400 018

In his career spanning over 34 years till1990 as an IAS Officer, he had held veryimportant portfolios in the Govt. ofMaharashtra including that of Secretary,Education Department, Secretary,Industries Dept, MetropolitanCommissioner, Municipal Commissioner,Greater Mumbai, and finally as ChiefSecretary to the Govt. of Maharashtra. Hewas also the Secretary, Ministry of UrbanDevelopment, Govt. of India for two years.

Other Directorships :1. Housing Development Finance

Corporation Limited

2. Tata Housing Development Co.Limited

3. Phoenix Township Limited

4. Indoco Remedies Limited

5. HDFC Developers Limited

6. Sangit Mahabharati, Mumbai - ViceChairman

7. The Society for Recycling of Wasteof Recoverable Disposal (REWARD),Mumbai - Board of Trustees/Management

8. The Electoral Trust, Mumbai- Boardof Trustees/Management

9. Jeevan Bima Sahayog AssetManagement Co. Limited

Mr. Jamsheed G. Kanga182, Buena Vista,General Bhosale Marg,Cuffe Parade, Mumbai 400 021

In his career as an I A S officer, he heldvarious important positions including thatof Managing Director, Maharashtra StateAgro Industries Development Corporationand Maharashtra State TourismDevelopment Corporation, JointSecretary, Finance Department,Maharashtra State, Joint Secretary(Projects & Finance), Department ofAtomic Energy, Secretary to Governmentof Maharashtra, Municipal Commissioner,Bombay Municipal Corporation, Chairmanand Managing Director, Export CreditGuarantee Corporation of India in the rankof Secretary to Government of India. Afterretirement, he had been the Vice-Chairman and Managing Director of TataHousing Development Co. Limited andnow is a Senior Corporate Advisor to TataHousing Development Co. Limited fromApril 1997. He is also a Consultant toForbes Gokak Limited.

Other Directorships :1. Forbes Campbell Holdings Limited

2. The Associated Building CompanyLimited

Mr. Sukant S. KelkarNo. 1, Sindhula, N. Gamadia Road,Mumbai 400 026

He was initially associated with Bank ofIndia. He is associated with BombayDyeing & Mfg. Co. Ltd. since 1972. He

was the Executive Director (Finance) inBombay Dyeing & Mfg. Co. Ltd. for aperiod of 7 years and still continues to bea Non - Executive Director, Member ofAudit Committee and Investors GrievanceCommittee of the Board of Bombay Dyeing& Mfg. Co. Ltd.

Other Directorships:1. The Bombay Dyeing & Mfg. Co. Ltd.

2. Nowrosjee Wadia & Sons Ltd.

3. Go Airlines (India) Pvt. Ltd.

4. Kotak Mahindra Asset ManagementCo. Ltd.

5. Placid Plantations Ltd.

6. Wadia BSN Ltd.

7. Harvard Plantation Ltd.

8. Macrofil Investment Ltd.

9. Napoleon Investments Ltd.

10. Britannia Industries Ltd.

11. Associated Biscuits International Ltd.,London - Alternate Director

12. ABI Holdings Limited, London -Alternate Director

He is associated with P.T. Five Star TextileIndonesia, Bandung as Commissioner.

l Associate Director

2. Rights, Obligations,Responsibilities and Duties ofthe Trustee under the TrustDeed and the Regulations :

Pursuant to the Trust Deed datedDecember 29, 1999 constituting the MutualFund and in terms of the Regulations, therights, obligations, responsibilities andduties of the Trustee are as follows:

1. The Trustee shall have a right toobtain from the AMC such informationas is considered necessary by it.

2. The Trustee shall ensure before thelaunch of any Scheme that the AssetManagement Company has:

a. Systems in place for its back office,dealing room and accounting;

b. Appointed all key personnel includingfund manager(s) for the Scheme(s)and that the trustees are satisfiedwith the adequacy of number of keypersonnel considering the size of themutual fund and the proposedScheme;

c. Appointed auditors to audit theaccounts of the Schemes;

d. Appointed a compliance officer whoshall be responsible for monitoringthe compliance of the act, rules andregulations, notification, Guidelines,instructions etc. issued by the Boardor the Central Government and forredressal of investors grievances.

e. Appointed registrars and laid downparameters for their supervision andperiodical inspections;

f. Prepared a compliance manual whichis updated by including all the

provisions of regulations andguidelines issued by SEBI from timeto time and designed internal controlmechanisms including internal auditsystems commensurate with the sizeof the mutual fund;

g. Specified norms for empanelment ofbrokers and marketing agents.

3. The Trustee shall ensure that theAMC has been diligent in empanellingthe brokers, in monitoring securitiestransactions with brokers andavoiding undue concentration ofbusiness with any broker.

4. The Trustee is required to ensurethat the AMC has not given any undueor unfair advantage to any associateor dealt with any of the associates ofthe AMC in any manner detrimentalto the interests of the Unitholders.

5. The Trustee is required to ensurethat the transactions entered into bythe AMC are in accordance with theRegulations and the Scheme.

6. The Trustee is required to ensurethat the AMC has been managing theScheme(s) independently of otheractivities and has taken adequatesteps to ensure that the interest ofinvestors of one Scheme are notcompromised with those of any otherScheme or of other activities of theAMC.

7. The Trustee is required to ensurethat all the activities of the AMC arein accordance with the provisions ofthe Regulations.

8. Where the Trustee has reason tobelieve that the conduct of thebusiness of the Fund is not inaccordance with these Regulationsand the Scheme it is required to takesuch remedial steps as are necessaryby it and to immediately inform SEBIof the violation and the action takenby it.

9. Each Director of the Trustee isrequired to file with the Trust thedetails of his transactions of dealingsin securities on a quarterly basis.

10. The Trustee is accountable for and isrequired to be the custodian of theFund's property of the respectiveScheme and to hold the same in trustfor the benefit of the Unitholders inaccordance with the Regulations andthe provisions of the Trust Deed.

11. The Trustee is required to take stepsto ensure that the transactions of theFund are in accordance with theprovisions of the Trust Deed.

12. The Trustee is responsible for thecalculation of any income due to bepaid to the Fund and also of anyincome received in the Mutual Fundfor the holders of the Units of anyScheme in accordance with theRegulations and the Trust Deed.

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13. The Trustee is required to obtain theconsent of the Unitholders of aScheme:

a. When the Trustee is required to doso by SEBI in the interest of theUnitholders of that Scheme, or

b. Upon a requisition made by three-fourths of the Unitholders of anyScheme under the Fund for thatScheme, or

c. If a majority of the Trustees decide towind up the Scheme or prematurelyredeem the Units.

14. The Trustee is required to ensurethat no change in the fundamentalattributes of any Scheme or the trustor fees and expenses payable or anyother change which would modify theScheme and affect the interest ofUnitholders, shall be carried outunless,

a. a written communication about theproposed change is sent to eachUnitholder and an advertisement isgiven in one English daily newspaperhaving nationwide circulation as wellas in a newspaper published in thelanguage of the region where thehead office of the mutual fund issituated; and

b. the Unitholders are given an option toexit at the prevailing net asset valuewithout any exit load.

15. The Trustee is required to call for thedetails of transactions in securitiesby the directors and key personnel ofthe AMC in their own names or onbehalf of the AMC and report thesame to SEBI as and when called for.

16. The Trustee is required to reviewquarterly, all transactions carried outbetween the Fund, the AMC and itsassociates.

17. The Trustee is required to reviewquarterly, the net worth of the AMCand in case of any shortfall ensurethat the AMC makes up for theshortfall as per clause (f) of subregulation (1) of Regulation 21 of theRegulations.

18. The Trustee is required to periodicallyreview all service contracts such ascustody arrangements and transferagency, and satisfy itself that suchcontracts are executed in the interestof the Unitholders.

19. The Trustee is required to ensurethat there is no conflict of interestbetween the manner of deploymentof its net worth by the AMC and theinterest of the Unitholders.

20. The Trustee is required to periodicallyreview the investor complaintsreceived and the redressal of thesame by the AMC.

21. The Trustee is required to abide bythe Code of Conduct as specified inthe Fifth Schedule of the Regulations.

22. No amendment to the trust deed shallbe carried out without the priorapproval of SEBI and unitholdersapproval would be obtained where itaffects the interest of the unitholders.

23. The Trustee has to furnish to SEBIon a half yearly basis:

a. a report on the activities of the Fund;

b. a certificate stating that the Trusteeshave satisfied themselves that therehave been no instances of self dealingor front running by any of the directorsof the Trustee Company, directors andkey personnel of the AMC;

c. a certificate to the effect that the AMChas been managing the Schemesindependently of any other activitiesand in case any activities of the naturereferred to in Regulations 24, subregulation (2) of the Regulations havebeen undertaken, the AMC has takenadequate steps to ensure that theinterest of the Unitholders isprotected.

24. The independent Directors of theTrustee are required to give theircomments on the report received fromthe AMC regarding the investmentsby the Mutual Fund in the securitiesof the group companies of theSponsors.

General Due Diligence:

25. The Trustee shall be discerning inthe appointment of the directors ofthe Asset Management Company.

26. The Trustee shall review thedesirability of continuance of the AMCif substantial irregularities areobserved in any of the Schemes andshall not allow the AMC to float anynew Schemes.

27. The Trustee shall ensure that allservice providers are holdingappropriate registrations from SEBIor the concerned regulatory authority.

28. The Trustee shall arrange for testchecks of service contracts.

29. The Trustee shall immediately reportto SEBI of any special developmentsin the mutual fund.

Specific Due Diligence:

30. The Trustee shall:

a. Obtain internal / concurrent auditreports at regular intervals fromindependent auditors appointed bythe Trustee.

b. Obtain compliance certificates atregular intervals from the AMC.

c. Hold meeting of Trustees morefrequently and at least six suchmeetings shall be held in every year.

d. Consider the reports of theindependent auditor and compliancereports of the AMC at the meetings ofthe Trustee for appropriate action.

e. Maintain records of the decisions ofthe Trustees at their meetings and ofthe minutes of the meetings.

f. Prescribe and adhere to the code ofethics by the Trustees, AMC and itspersonnel.

g. Communicate in writing to the AMCof the deficiencies and checking onthe rectification of deficiencies.Notwithstanding anything containedin sub- regulations (1) to (25), thetrustees shall not be held liable foracts done in good faith if they haveexercised adequate due diligencehonestly.

31. The independent directors of theTrustee or AMC shall pay specificattention to the following, as may beapplicable, namely :

a. The Investment ManagementAgreement and the compensationpaid under the agreement.

b. Service contracts with affiliates;whether the AMC has charged higherfees than most contractors for thesame services.

c. Selection of the AMC's independentDirectors.

d. Securities transactions involvingaffiliates to the extent suchtransactions are permitted.

e. Selecting and nominating individualsto fill independent directors'vacancies.

f. Ensure that the Code of Ethics isdesigned to prevent fraudulent,deceptive or manipulative practicesby insiders in connection withpersonal securities transactions.

g. Ensure the reasonableness of feespaid to Sponsor, the AMC and anyothers for services provided.

h. Review principal underwritingcontracts and their renewals.

i. Review any service contract with theassociates of the AMC.

Notwithstanding anything contained in theRegulations, the Trustee and its Directorsshall not be held liable for acts done ingood faith if they have exercised adequatedue diligence honestly.

During the period from April 1, 2004 tilldate, fourteen meetings of the Directorsof the Trustee were held. The Trustee'ssupervisory role is discharged by reviewingthe Half-Yearly and Annual Accounts ofthe Fund and the Bi-monthly, Quarterlyand Half-Yearly compliance reports.Further, the Audit Committee of theTrustee has been set up which reviewsreports being submitted by the ConcurrentAuditors of the Fund.

3. Trusteeship FeesPursuant to the Deed of Trust constitutingthe Fund, the Scheme is authorised topay the Trustee a fee for its services in

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such capacity of a sum, computed at arate up to 0.05% per annum payableannually. The Trustee may charge furtherfees as permitted from time to time underthe Trust Deed and the Regulations inaddition to the reimbursement of all costs,charges and expenses.

D. ASSET MANAGEMENTCOMPANY

Standard Chartered Asset ManagementCompany Private LimitedANZ Grindlays Asset ManagementCompany Private Limited, a companyregistered under the Companies Act, 1956,was established by Australia and NewZealand Banking Group (ANZ), and hasbeen appointed by the Trustee to act asthe Investment Manager of the ANZGrindlays Mutual Fund vide the InvestmentManagement Agreement dated January3, 2000. Consequent to sale of businessby ANZ to Standard Chartered Bank(SCB), 75% stake in the equity sharecapital of the AMC and 100% stake in thePreference Share Capital of the AMC havebeen transferred to SCB. Consequent tothe transfer of shareholding as statedabove, SEBI vide its letter No.MFD/PM/017/2001 dated February 26, 2001accorded its approval for the induction ofSCB as a shareholder of the AMC.

The balance 25% of the equity sharecapital is held by a well-known Indianindustrialist, Mr. Atul C. Choksey (throughhis Group Companies). Mr. Atul C.Choksey is a Director of the AMC and hisbio data is given below with those of otherDirectors.

Propycon Trading & Investments PrivateLimited and Trivikram Investments &Trading Company Limited belong to theAtul Choksey Group of Companies. Theycarry on the business of an investmentcompany and invest / hold / sell / buy orotherwise deal in shares, stocks, Units,debentures, debenture-stock, bonds,mortgages, obligations and securities ofany kind issued, real estates, etc.

Shareholding pattern ofthe AMC Percentage

StandardChartered Bank 74.99995

Propycon Trading &InvestmentsPrivate Limited 14.17623

TrivikramInvestments &Trading CompanyLimited 10.82374

Others 0.00008

The AMC will manage the Scheme(s) ofthe Fund, including the Scheme mentionedin this Offer Document, in accordance withthe provisions of Investment ManagementAgreement, the Trust Deed, theRegulations and the objectives of each ofthe Scheme(s).

1. DirectorsThe details of the Directors of the AssetManagement Company in brief:

Mr. Paul Jebson*(Chairman)15, Cheltenham Road,Orpington, Kent BRL 9HL

He is the Head Funds Management,Global Markets with Standard CharteredBank. He has been associated withStandard Chartered Bank since June 1977with responsibilities of institutional andcommercial bank sales and marketing andtreasury functions. He was the GroupHead of Institutional and Commercial BankSales and Marketing from 1999 to 2001and the Global Head of Treasury Bankrelationships from 1998 to 1999.

Other Directorships :1. Standard Chartered Global Liquidity

Funds plc

2. Standard Chartered UK Trustee Ltd

Dr. A. C. ShahC 1/2 Lloyds Garden,Appa Saheb Marathe Marg,Prabhadevi, Mumbai 400 025.

He is an M.A., Ph.D. (Economics) fromthe University of Bombay. He retired asthe Chairman and Managing Director ofBank of Baroda after a meritorious serviceof over 30 years during which he heldmany responsible positions in the bank.He was advisor to UTI for setting up UTIBank.

He is a Guest Faculty at :

1. Indian Institute of Management,Ahmedabad

2. National Institute of BankManagement, Pune

3. Bankers Training College

Other Directorships :1. S. Kumars Nationwide Limited

2. Elecon Engineering

3. Adani Exports Limited

4. Gujarat Petro Synthesis

5. Kopran Limited

6. Benchmark Mutual Fund - TrusteeCompany

Mr. Atul C. Choksey*4B, Geetanjali,9, N. Gamadia Road,Mumbai 400 026.

He is a Chemical Engineer from IllinoisInstitute of Technology, Chicago, USA.He has also completed courses inmanagement disciplines like Finance,Personnel, Micro and Macro Economicsetc. during his stay abroad.

He is the Chairman of Apcotex LatticesLimited, Apcotex Financial ServicesLimited and Apcotex Infoway PrivateLimited as well as other group companies.He was the Managing Director of AsianPaints (India) Limited from 1984 to 1997.

Other Directorships:1. Apcon Enterprises Limited

2. Apcotex Lattices Limited

3. Trustee-Baif Development ResearchFoundation

4. Cricket Club of India

5. Ceat Limited

6. Finolex Cables Limited

7. Mazda Colours Limited

8. Nurture Finance Limited

9. Priyam Investment ConsultantsLimited

10. Shyamal Finvest (India) Limited

11. Titan Trading & Agencies Limited

12. Trivikram Investments & TradingCompany Limited

13. Apcosoft Pvt. Limited

14. Choksey Chemicals Pvt. Limited

15. Marico Industries Ltd.

16. Shree Mahalaxmi Temple Charity -Trustee

Mr. Pradip Madhavji1 Aashiana,5 Altamount Road,Mumbai 400 026

He was the Chairman of Thomas Cook(India) Limited and was responsible forenhancing its position externally, throughfurther strengthening the company'srelationships with business partners, tradebodies and associates. He had been withThomas Cook since 1977 and had heldsenior positions as Managing Director in1979, Deputy Chairman & ManagingDirector in 1982, Executive Chairman in1993 and now as Chairman since 1995.Prior to this he was with Dena Bank forover 18 years.

Other Directorships :1. Kishco Cutlery Limited

2. United Phosphorus Limited

3. Parmananddas Jivandas HinduGymkhana - Trustee

4. TT Enterprises Pvt. Ltd.

Mrs. Bakul PatelP1 & P2 Eden Hall,Rajni Patel Chowk,Dr. Annie Besant Road,Worli, Mumbai 400 018.

She is a Chartered Secretary from theChartered Institute of CompaniesSecretary, U.K. She was the Sheriff ofMumbai from 1992 - 1993. She is aMember of Zonal Advisory Board, WesternZone, Life Insurance Corporation of Indiaand Western Regional AdvisoryCommittee, Industrial Development Bankof India. She was a member on the IndianAdvisory Board, Standard CharteredGrindlays Bank Limited and theChairperson of Maharashtra StateFinancial Corporation from 1992 to 1995.

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Other Directorships :1. Neo Indcom Consultancy Pvt. Limited

2. Bay Petroplast Pvt. Limited

3. M/s. Merchant Media Pvt. Limited

4. Dynamic Advertising & ResearchTeam Pvt. Limited

Mr. Naval Bir Kumar*B-1, Breach Candy Apartment,Bhulabhai Desai Road,Mumbai 400 026.

He is the Managing Director of StandardChartered Asset Management CompanyPrivate Limited. Prior to this he wasDirector & Head Originations of GlobalCapital Markets for ANZ Investment Bank.In this role he has handled debt and equitycapital market transactions for a numberof leading Indian corporates and wassuccessful in improving the Bank's positionin the domestic capital markets from 193to number 6. He joined the Bank in 1990in the Merchant Banking Division and wasappointed Head of the Merchant Bank forWest India in 1994 and subsequently Headof the Investment Bank for West India in1996. In these roles he has worked on across-section of investment bankingproducts such as: Infrastructure financing,Corporate finance, Cross-border debtfinancing and Domestic capital markettransactions. He worked briefly withColgate Palmolive (India) Limited as aBrand Manager prior to joining StandardChartered Grindlays Bank. He is a rankholder in Mathematics from MumbaiUniversity and holds an MBA from theIndian Institute of Management, Kolkata.

Other Directorships :1. Standard Chartered Global Liquidity

Funds plc

2. Association of Mutual Fund of India* Associate Director

2. Powers, Duties andResponsibilities of the AMC

The Regulations and the InvestmentManagement Agreement shall govern theduties and responsibilities of the AMC.The AMC, in the course of managing theaffairs of the Mutual Fund, has the power,inter-alia:

a. to invest in, acquire, hold, manage ordispose of all or any securities and todeal with, engage in and carry out allother functions and to transact allbusiness pertaining to the Fund;

b. to keep the moneys belonging to theTrust with scheduled banks andCustodians as it may deem fit;

c. to issue, sell and purchase Unitsunder any Scheme;

d. to repurchase the Units that areoffered for repurchase and hold,reissue or cancel them;

e. to formulate strategies, lay downpolicies for deployment of funds undervarious Schemes and set limitscollectively or separately for privatelyplaced debentures, unquoted debtinstruments, securitised debts andother forms of variable securitieswhich are to form part of theinvestments of the Trust Funds;

f. to arrange for investments, depositsor other deployment as well asdisinvestments or refund out of theTrust Funds as per the set strategiesand policies;

g. to make and give receipts, releasesand other discharges for moneypayable to the Trust and for the claimsand demands of the Trust;

h. to get the Units under any Schemelisted on any one or more stockexchanges in India or abroad;

i. to open one or more bank accountsfor the purposes of the Fund, todeposit and withdraw money and fullyoperate the same;

j. to pay for all costs, charges andexpenses, incidental to theadministration of the Trust and themanagement and maintenance of theTrust property, Custodian and/or anyother entities entitled for the benefitof the Fund, audit fee, managementfee and other fees;

k. to provide or cause to provideinformation to SEBI and theUnitholders as may be specified bySEBI; to generally do all acts, deeds,matters and things, which arenecessary for any object, purpose orin relation to the Standard CharteredMutual Fund in any manner or inrelation to any Scheme of theStandard Chartered Mutual Fund.

3. AMC FeeIn terms of the Investment ManagementAgreement and the Regulations, the AMCis entitled to an investment managementfee at 1.25% per annum of the averagenet assets for a corpus up to Rs.100 croreand at 1.00% per annum for the corpusamount in excess of Rs.100 crore. ForSchemes launched on a No-Load basis,the AMC is entitled to collect an additionalmanagement fee up to 1% per annum ofthe average net assets outstanding in eachfinancial year and the total managementfee shall not exceed the limit stated underthe Regulations. The AMC reserves theright to charge such additionalmanagement fees till the New Fund OfferExpenses (to a maximum extent of 6%)incurred under the Scheme are recoveredor as may be permitted from time to timeunder the Regulations.

4. Key Personnel of AMCEmployee Designation Qualifications Experience

Mr. Naval Bir Kumar Managing Director PGDM (IIM, Kolkata), Over 14 years of experience inBA-Mathematics capital markets(Mumbai University).

Last assignments held: Was a Director & Head Origination of Global Capital Markets for ANZ Investment Bank. In this role, he has handled debtand equity capital market transactions for a number of leading Indian corporates. He joined the Bank in 1990 in the Merchant Banking Division andwas appointed Head of the Merchant Bank for West India in 1994 and subsequently Head of the Investment Bank for West India in 1996. Age : 39 years

Mr. Rajiv Anand Head-Investments B.Com, ACA. Over 14 years experience infixed income markets

Last assignments held: Worked in treasury of HSBC for 4 years and Standard Chartered Grindlays Bank for 3 years. In last assignment, was partof the bank's Treasury team managing balance sheet portfolios like SLR, daily funding as well as the foreign currency loan / deposit book. It wasin this job that he was exposed to the cutting edge techniques of interest rate and liquidity risk management. It is this experience that he bringsto managing investments in a manner that will meet the stated investment philosophy of each scheme. Age : 38 years

Mr. Debashis Roy Head - Operations & M.Sc., MBA Over 15 years experience inBusiness Development Capital Market Operations

Last assignment held : Was Senior Manager, Projects & Domestic Custody for Standard Chartered Bank. In this role, he handled a special projectteam to provide comprehensive one stop services to domestic mutual funds. He joined the Standard Chartered Grindlays Bank in 1995 in CustodialServices and was later appointed as Head of Custody in 2001. Prior to joining the bank he worked for ICICI Limited and SHCIL. Age : 41 years

Mr. Emron Samuel Head - Sales B.Com., ACA. Over 11 years experience incapital markets

Last assignments held: Previously was with ANZ Grindlays Bank (now Standard Chartered Grindlays Bank) in Treasury- Sales for two years.Age : 36 years

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Mr. Gopal Menon AVP - Risk & Compliance A.C.A., L.L.B. (Hons), B.Com. He has over 8 years ofexperience in compliance,operations, finance, legal, audit,consultancy & secretarial functions

Last assignments held: In his last assignment with HSBC Asset Management (India) Pvt. Ltd. he was designated as Manager - Compliance &Legal for 2 years. (2003-2005). Prior to this he was with Zurich Asset Management Company Private Limited as Manager Compliance for 2 years.(2001-2003). He practiced as a Chartered Accountant during 2000-2001. He was also employed with JM Capital Management Company PrivateLimited as Manager (1999-2000) where he was involved in Compliance, Operations and Finance. He had worked with M/s. N. M Raiji & Co., CAsfor a period of two years (1997-1999). Age: 31 years.

Mr. K. Muhund Sr. Fund Manager B.E, M.B.A. Over 10 years' experience infunds management in mutualfunds

Last assignments held: Research and Fund Management in SBI Funds Management from 1994-2000. Age : 36 years

Mr. Bobby Surendranath Sr. Fund Manager PGDM (IIM-Lucknow), Around 13 years experience inB. Tech (IIT- Chennai) fund management in mutualC.F.A. (A.I.M.R., U.S.A.) funds

Last assignments held : Head - Fund Management, Aviva Life Insurance (Nov. 2001 to April 2005), managed the equity and debt portfolios ofthe unit linked and shareholder funds and coordinated the stock research process. Zurich (India) Asset Management Company (Jan.1996 to Nov.2001), managing portfolio of an equity scheme. SBI Funds Management Ltd. (June 1993 to December 1995) - Managed the investment portfolioof a growth scheme. Age: 36 years

Mr. Kenneth Andrade Sr. Fund Manager Graduate (B.Com.) Around 14 years experience inEquity Research & fundmanagement

Last assignments held : Fund Manager (Equity) Kotak Mahindra Asset Management Company Limited (July 2002- Sept.2005), managed equityportfolios. SSKI Investor Services (March 1999- July 2001) & (Jan 2002 - July 2002) was involved in Portfolio advisory - Retail Broking Services,Nimbus Communications - (July 2001-Jan 2002) was involved in Broadcasting - Content Development, LKP Shares & Stock Brokers Pvt. Ltd. (January1998- March 1999) was a Analyst - Equity Research, Meghraj Financial Services (July 1996 - July 1998) was a Portfolio Manager. Age : 35 years

Mr. Suyash Choudhary Fund Manager - Fixed Income PGDM (IIM, Calcutta), Around 5 years' experience inBA-Economics (Delhi University) Capital Markets

Last assignments held : Fund Advisory and Research for Pension Funds - Standard Chartered Asset Management Company Pvt. Ltd. Before that,was working with Deutsche Bank in a Capital Markets' related function. Age: 26 years.

Mr. Kaushal Singh Fund Manager - Fixed Income BE (Mech), MBA Around 4 years of experiencein Fixed income markets

Last assignment held : In the last assignment with Cholamandalam Mutual Fund he was the Fund Manager managing the fixed income portfolio.Prior to this he was a Dealer (Fixed Income) with SBI Capital Markets Limited. Age: 28 years

Ms. Punam Sharma AVP B.Sc - Non Medical, Over 7 years experience inMBA - Finance research, co-ordinating details on

products and markets for thesales team

Last assignments held : In the last assignment with Kotak Mahindra Asset Management Company she was responsible for setting up of the researchdesk, working on reports on products and markets and developing databases.

Mr. Rahul Chadha Senior Research Analyst Master of Finance & Around 5 years of experienceControl (MFC) a two year post in equity researchgraduate, specialized programmein Finance from Department ofFinancial Studies (Universityof Delhi)

Last assignments held : In his last assignment he was designated as Senior Research Analyst in Aviva Life Insurance (2003 - 2005) and has aroundfive years of experience in equity research. Prior to which he was employed with Alliance Capital AMC (2002) and Dundee Investment ManagementAMC (1999 - 2002) Age: 30 years.

Mr. Sunil Nair Equity - Dealer B.A. Around 11 years of experiencein equity trading.

Last assignments held : In his last assignment he was designated as Equity - Dealer in Birla Sunlife AMC Ltd. (1995 - 2005). Prior to which hewas employed with Insec Shares & Stock (1994 - 1995) and has around eleven years of experience in equity trading. Age : 31years.

No. of persons involved in Fund Management : NineNo. of persons involved in Equity Research : Three

Name of the Fund Manager : Mr. Kenneth Andrade

Head Investments : Mr. Rajiv Anand

Managing Director : Mr. Naval Bir Kumar

Compliance Officer : Mr. Gopal Menon

Employee Designation Qualifications Experience

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Investor Relations Officers:Sr. No. Name Region Address and Contact Number

1. Sunil Aryamane West 90 M. G. Road, Fort, Mumbai 400 001 Tel. 91-22- 22674160

2. Vijith Raghavan East 41, Chowringee, Kolkata 700 071 Tel. 91-33-2288 1686

3. Chetan Mankame North Connaught Circus, H Block, New Delhi-110001 Tel. 91-11-23406701/2.

4. Shaji Perincheri South Grindlays Centre, I Floor, 19 Rajaji Salai, Chennai 600 001 Tel .: 91-44-2534 9373

E. AUDITORSB.S.R & Co., Chartered Accountants,KPMG House, Kamala Mills Compound,448 Senapati Bapat Marg, Lower Parel,Mumbai 400 013, have been appointedas Auditors of the Scheme by the TrusteeCompany.

F. THE REGISTRARComputer Age Management Services Pvt.Limited, Ground Floor, 178/10,Kodambakkam High Road, Opp. HotelPalm Groove, Numgambakkam, Chennai- 600 034. (CAMS) have been appointedas Registrar for the Scheme. The Registraris registered with SEBI under registrationNo: INR000002813 dated July 22, 1995.As Registrar to the Scheme, CAMS willhandle communications with investors,perform data entry services and despatchAccount Statements. The AMC and theTrustee have satisfied themselves thatthe Registrar can provide the servicerequired and has adequate facilities andthe system capabilities.

G. THE CUSTODIANDeutsche Bank Limited AG, Mumbai hasbeen appointed as Custodian for theScheme mentioned in the Offer Document.The Custodian has been registered withSEBI and has been awarded registrationNo. IN/CUS/003 dated March 20, 1998.The Trustee has entered into a CustodianAgreement dated January 3, 2000 withthe Custodian and the salient features ofthe said Agreement are to:

a. Provide post-trading and custodialservices to the Mutual Fund.

b. Ensure benefits due on the holdingsare received.

c. Provide detailed managementinformation and other reports asrequired by the AMC.

d. Maintain confidentiality of thetransactions.

e. Be responsible for the loss or damageto the assets belonging to the Schemedue to negligence on its part or on thepart of its approved agents.

f. Segregate assets of each Scheme.

g. The Custodian shall not assign,transfer, hypothecate, pledge, lend,use or otherwise dispose any assetsor property, except pursuant toinstruction from the Trustee/AMC orunder the express provisions of theCustodian Agreement.

The Custodian will be entitled toremuneration for its services in accordancewith the terms of the CustodianAgreement. The Trustee has the right tochange the Custodian, if it deems fit, afterobtaining approval of SEBI.

H. COLLECTING BANKERSThe collecting bankers to the New FundOffer will be Standard CharteredBank (SEBI Regn.No.INBI0000885)and HDFC Bank (SEBI Regn. No.INBI00000063) . Applications for the NewFund Offer will also be accepted at theInvestor Service Centres of the Registrar/Offices of the AMC.

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1. INVESTMENT OBJECTIVEThe investment objective of the Schemeis to seek to generate capital growth froma portfolio of predominantly equity andequity-related instruments (includingequity derivatives). The Scheme may alsoinvest in debt and money marketinstruments to generate reasonableincome.

There can be no assurance that theinvestment objective of the Scheme willbe realised.

2. INVESTMENT PATTERNThe corpus of the Scheme and the Plansthereunder will be invested in equity andequity related instruments, equityderivatives & in debt and money marketinstruments. Subject to the Regulations,the corpus of the Scheme/Plan(s) can beinvested in any (but not exclusively) of thefollowing securities:

1) Equity related securities includeequity warrants and compulsorilyconvertible instruments.

2) ADRs / GDRs issued by the Indiancompanies, subject to necessaryregulatory requirements.

3) Stock futures, index futures, stockoptions, index options and such otherpermitted derivative instruments.

4) Securities created and issued by theCentral and State Governments and/or repos/reverse repos in suchGovernment Securities as may bepermitted by RBI (including but notlimited to coupon bearing bonds, zerocoupon bonds and treasury bills).

5) Securities guaranteed by the Centraland State Governments (including butnot limited to coupon bearing bonds,zero coupon bonds and treasury bills).

6) Debt obligations of domesticGovernment agencies and statutorybodies, which may or may not carrya Central/State Governmentguarantee.

7) Corporate debt and securities (of bothpublic and private sectorundertakings) including Bonds,Debentures, Notes, Strips, etc.

8) Debt instruments (both public andprivate sector) and developmentfinancial institutions.

9) Money market instruments permittedby SEBI in call money market or inalternative investments for the callmoney market as may be provided byRBI to meet the liquidity requirements.

10) Certificate of Deposits (CDs).

11) Commercial Paper (CPs).

12) Securitised Debt obligations.Investment in such securities will notexceed 35% of the net assets of theScheme or such other limit as may

be decided by the Trustee from timeto time. Scheme may invest indomestic securitized debt such asasset backed securities (ABS) orMortgage Backed Securities (MBS).Asset Backed Securities (ABS) aresecuritized debts where theunderlying assets are receivablesarising from automobile loans,personal loans, loans againstconsumer durables, etc. MortgageBacked Securities (MBS) aresecuritized debts where theunderlying assets are receivablesarising from loans backed bymortgage of residential / commercialproperties. At present in Indianmarket, following types of loans aresecuritised 1) Auto Loans (cars /commercial vehicles / two wheelers)2) Residential Mortgages or HousingLoans 3) Consumer Durable Loans &4) Personal Loans. Investments insecuritised debt instruments shall bemade when in view of the FundManager, such investments couldprovide reasonable returnscommensurate with risks associatedwith such investments and shall bemade in accordance with theinvestment objective of the Scheme.Typically, investments in securitiseddebt instruments offer better yield tothe investors. The various types ofreceivables that can be securitisedcan be receivables from auto loans,personal loans, loans to corporatesetc. The investment would be madein line with the objective of the fund.

13) The non-convertible part ofconvertible securities.

14) Any other domestic fixed incomesecurities including Structured Debtinstruments.

15) Any international fixed incomesecurities.

16) Pass through, Pay through or otherParticipation Certificates representinginterest in a pool of assets includingreceivables.

17) Any other securities / instruments asmay be permitted by SEBI from timeto time.

For the purpose of further diversificationand liquidity, the Scheme may invest inanother equity scheme managed by thesame AMC or by the AMC of any otherMutual Fund without charging any fees onsuch investments, provided that aggregateinter-scheme investment made by allschemes managed by the same AMC orby the AMC of any other Mutual Fundshall not exceed 5% of the net asset valueof the Fund.

The securities mentioned above could belisted, unlisted, privately placed, secured,unsecured, rated or unrated and of anymaturity. The securities may be acquired

through Initial Public Offerings (IPOs),secondary market operations, privateplacement, rights offers or negotiateddeals. The Scheme may invest the fundsof the Scheme in short term deposits ofscheduled commercial banks as permittedunder extant regulations.

The Scheme may also enter intorepurchase and reverse repurchaseobligations in all securities held by it asper the guidelines and regulationsapplicable to such transactions.

The Scheme shall not make investmentsin Foreign Securitised debt. The Schememay participate in securities lending aspermitted under the Regulations.

3. ASSET ALLOCATIONThe asset allocation under the Schemewill be as follows:

Asset Class Range of Riskallocation Profile(% of NetAssets)

Equities & Equity 65 - 100 Highrelated instruments

Debt & Money 0 - 35 Low toMarket instruments medium

Securitised debt 0 - 35 Mediuminstruments

Investments in Derivatives - upto the limitspermitted by SEBI Mutual Fundsregulations from time to time.

Investments in Securities Lending - upto100% of Equity investments in theScheme.

Investments in Foreign debt instruments- up to 35% of the net assets of theScheme.

Investments in ADRs and GDRs issuedby Companies in India / equity of listedoverseas companies as permitted by SEBIregulations - upto 75% of the net assetsof the Scheme.

The assets of the Scheme shall bepredominantly invested in equity andequity related instruments. The fundmanager would decide on the appropriateasset allocation for the Scheme dependingon market conditions. The asset allocationpattern may be modified in the interest ofinvestors; however the same will bereviewed to its normal position from timeto time.

4. CHANGE ININVESTMENT PATTERN

Subject to the SEBI Regulations, the assetallocation pattern indicated above maychange from time to time, keeping in viewmarket conditions, market opportunities,applicable regulations and political andeconomic factors. It must be clearlyunderstood that the percentages statedabove are only indicative and not absolute.These proportions can vary substantially

IV. Investment of the Fund

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depending upon the perception of theInvestment Manager; the intention beingat all times to seek to protect the interestsof the Unitholders. Such changes in theinvestment pattern will be for short termand for defensive considerations.

5. INVESTMENT STRATEGYAND RISK CONTROL

Investment strategyThe term 'Enterprise' connotes activity,venture, project or an endeavour. TheScheme intends to invest in companieswhich are involved in or are in the processof setting up various business activities,ventures, projects or other commercialendeavours. The Scheme would invest inequities in the IPOs, subsequent publicoffers or in the secondary market, otherequity related instruments (includingderivatives), benefit out of the cash andderivative markets arbitrage opportunityand invest the residual sums in debt andmoney market instruments.

The Scheme will endeavour to generatecapital appreciation through investing inequities and equity related instruments byinte ralia adopting the mode of applyingfor Initial Public Offerings (IPOs) orsubsequent public offerings made bycompanies. The Scheme envisages togenerate reasonable returns by investingin such equities.

In the event of there not being any wellpriced IPOs from companies with proventrack record / potential growthopportunities etc., the monies collectedcould be deployed in equities and equityrelated instruments, cash futures arbitrage,NIFTY spot futures arbitrage etc. Debtand money market instruments could beconsidered when yields are comparableto those in the spot futures arbitragesegment. The asset allocation would inter-alia depend on various parameters likethe availability of initial or subsequentPublic Offerings made by the companies,the response to the issue and relativevaluations of the peer group of businessthat the company/ies are operating in,opportunities available in the equity,derivatives, debt markets etc.

EquityThe Scheme will endeavour to invest inwell-managed businesses whose sharesare available through the primary market/secondary market at reasonable valuethrough a process of disciplined research.The portfolio of securities could beconcentrated in a particular sector or welldiversified depending on prevailing offersat that point of time.

Stock prices are directly correlated tocompany profits over the medium to longterm. However in the near term given abuoyant market conditions new offeringsare often priced in such a way that itprovides an opportunity to generate anarbitrage on listing of the stock. For eg. Ifthe market average PEx trades at 10xFY06(theoretical) then for an companyapproaching the capital market for the firsttime in a majority of cases these issues

are priced at lower PEx. Thus giving theapplicant an opportunity to generate areasonable return on listing.

Funds management in such cases wouldfocus on picking these reasonably pricedissues. The Equity Research process willendeavour to acquire understanding ofthe dynamics of the underlying businessand the pricing of the industry/ companypeer group. Forecasts on future profitabilityand sustainability of cash profit growthare indicators on whether the stock wouldlist at a premium to offer price.

Opportunities can exist in the markets,inter alia in the following cases :

1. Companies offering stock at avaluation that trades at a discount totheir peer group.

2. There is a reasonable discount of theoffer price in relation to the secondarymarket historical traded prices.

3. Business on a high growth curveoffering stock at a reasonable PriceEarning Growth ratio.

Other aspects which shall be consideredin making investment decisions in equitiesin the initial / subsequent public offeringsby companies or in the secondary marketswould include :

1) Margin of SafetyThe fund managers will look to builda "margin of safety" while makingforecasts on business profitability."Margin of safety" will also be theguiding principle while evaluating acompany's current market price. Theportfolio would also be protected fromcompany specific risks by constantlymonitoring the economic andbusiness environment and changesin management strategy.

2) Acquire stocks at reasonable valueOnce good businesses are identified,stocks would be endeavoured to beacquired when they are available ata reasonable value.

Selling DisciplineIt is left to the discretion of the fundmanager to sell or hold the respectivestock depending on his view of thebusiness and the prospects in the nearfuture. This would also depend on relativevaluation of the business when comparedto its peer group and the market valuations.The selling discipline / process would beno different from the existing schemesthat are being managed by SCAMC,

Cash Futures ArbitrageThe cash futures arbitrage strategy couldbe employed when the price of the futuresexceeds the price of the underlying stock.The methodology would be to first buystocks in the cash segment and then lockinto the spreads / returns by selling thefuture of the same stock. Since the spreadsare locked in, returns remain unaffectedwith the price movement of the cash andthe futures market. The futures contractsare settled based on the last half hours

weighted average trade of the cash marketon the settlement date (once a month).Thus there is a convergence of the cashand futures market on the expiry of thefutures contract. The convergence of theprices on expiry thus enables the schemeto lock in the spreads. The outstandingposition could however be closed earlierin case the price differential is realisedbefore expiry or better opportunities areavailable in other stocks. In case, the futureprice trades at discount to spot price (anytime during the period till expiry) then theoriginal position will be squared by buyingthe future and selling the spot marketposition.

The following example will illustrate thereturn generated out spot and futuresmarket.

Say for stock A spot price is Rs. 100 andmonth end futures is trading at Rs. 101and thirty days are left for the expiry.

The Scheme will enter in the followingtrade.

Purchase 1000 shares of A @ Rs. 100 atthe total Cost of Rs. 1,00,000.

Sell 1000 Futures @ Rs. 101 at the saleproceeds of Rs. 1,01,000.

This trade is done to lock in profit ofRs. 1000 irrespective of price of stock A.

The annualized return before brokerageand transaction cost will be 12%.

The said transaction will generate profitunder any market scenerio as under:

1. At the time of expiry of derivativecontract, price of stock A is Rs. 50

Profit / loss on Stock A will be =1000* (50-100) = -50,000

Profit/loss on Futures will be =1000 * (101-50) = 51,000

Net Profit = Rs. 1,000

2. At the month end, price of stock A isRs. 200

Profit / Loss on stock A will be =1000 * (200-100) = 1,00,00

Profit / Loss on futures position =1000 * (101-200) = 99,000

Net Profit = Rs. 1,000

Thus under any market scenario, thetrade would result in profit ofRs. 1,000.

The fund could hold the cash / spot marketposition and the future market position tillexpiry to earn the arbitrage. However ifthe opportunity is available the samepositions will be rolled over to next monthexpiry by swapping the current monthfuture with the next months future. In thiscase the cash market position wouldremain undisturbed.

Investments to benefit out of the cashfutures arbitrage or in any other permittedderivative products would be made by thefund manager considering the marketconditions and the opportunities availablein such markets.

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Nifty spot - Nifty FuturesThe price of Nifty futures at any giveninstance is typically more than the level ofNifty at that point. Nifty futures trade at alevel that is equal to the level of Nifty plusthe cost of carry (cost of carry is definedas the interest rate prevailing for anequivalent credit risk). In the case of theNifty the credit risk is on the ClearingCorporation of the NSE. In the case of thescheme the spread would be locked intoby buying the Nifty and selling the futurein this case. The settlement of the Niftyfutures arbitrage works on the similar linesof the stock futures arbitrage.

Investments to benefit out of the nifty spot- nifty futures arbitrage or in any othersuch permitted derivative products wouldbe made by the fund manager consideringthe market conditions and the opportunitiesavailable in such markets.

DebtThe Scheme proposes to invest only in adiversified set of fixed income and moneymarket instruments with an aim to generatereasonable income. Domestic debtmarkets are maturing rapidly with liquidityemerging in various debt segmentsthrough the introduction of newinstruments and investors. The actualpercentage of investment in various fixedincome securities will be decided afterconsidering the prevailing politicalconditions, the economic environment(including interest rates and inflation), theperformance of the corporate sector andgeneral liquidity and other considerationsin the economy and markets. Investmentswould be undertaken in debt instrumentsafter appropriate due diligence.

ii) Procedure & Recording ofInvestment Decisions andrisk control

All investment decisions, relating to theScheme, will be undertaken by the AMCin accordance with the Regulations andthe investment objectives specified in thisOffer Document. All investment decisionstaken by the AMC in relation to the Schemeshall be recorded.

The Investment Management Committee(IMC) consisting of senior employeesincluding the Managing Director of theAMC to over see the Investment function,will be responsible for laying down thebroad Investment Policy and the Specificscheme mandates, in addition tomonitoring scheme performance andreviewing portfolio strategy. The riskcontrol parameters would be laid down foreach scheme based on the objectives ofthe scheme and prudent fundmanagement practices will ensure thatinvestor monies are invested in theappropriate risk/reward environment. TheAMC would ensure that investments aremade in accordance with the regulatory /internal guidelines, if any. Internalguidelines may be set by the AMC fromtime to time and reviewed in line with themarket dynamics.

The designated Fund Manager of thescheme will be responsible for taking theday-to-day investment decisions and willinteralia be responsible for asset allocation,security selection and timing of investmentdecisions.

The Fund Manager would work withResearch team to pick stocks. They willprepare a detailed report on any newcompany that would be acquired for theScheme. This report would cover theoverall industry environment, discussdemand supply dynamics of thecompany's products and make profitabilityprojections. This report would also containa discussion on the valuation for the stockprice. The Fund Manager would documentreasons for each transaction in theportfolio.

The Scheme performance would bebenchmarked to the BSE 200 Index. Thefund reserves the right to change the saidbenchmark and/or adopt one/more otherbenchmarks to compare the performanceof the Scheme.

In case of investments in debt instruments,the AMC aims to identify securities, whichoffer better levels of yield at lower levelsof risks. With the aim of controlling risks,requisite credit evaluation of the securitiesproposed to be invested in will be carriedout by the investment team of the AMC.Rated Debt instruments in which theScheme invests will be of investment gradeas rated by a credit rating agency. TheAMC will be guided by the ratings of RatingAgencies such as CRISIL, CARE, ICRAand Fitch or any other rating agenciesthat may be registered with SEBI fromtime to time. In case a debt instrument isnot rated, prior approval of the Board ofDirectors of Trustee and the AMC will beobtained for such an investment.

In addition, the investment team of theAMC will study the macro economicconditions, including the political andeconomic environment and factorsaffecting liquidity and interest rates. TheAMC will use this analysis to attempt topredict the likely direction of interest ratesand position the portfolio appropriately totake advantage of this.

The Scheme may use various derivativesand hedging products from time to time,as would be available and permitted bySEBI, in an attempt to protect the value ofthe portfolio and enhance Unitholders'interests.

The Scheme may invest in other Schemesmanaged by the AMC or in the Schemesof any other Mutual Funds, provided it isin conformity to the investment objectivesof the Scheme and in terms of theprevailing Regulations. As per theRegulations, no investment managementfees will be charged for such investmentsand the aggregate inter-Schemeinvestment made by all Schemes ofStandard Chartered Mutual Fund or in theSchemes under the management of otherasset management companies shall notexceed 5% of the net asset value of theStandard Chartered Mutual Fund. The limit

however does not apply to any Fund ofFunds scheme.

For the present, the Scheme does notintend to enter into underwritingobligations. However, if the Scheme doesenter into an underwriting agreement, itwould do so after complying with theRegulations.

The AMC may approach rating agenciessuch as CRISIL, ICRA etc. for ratings ofthe Scheme.

DEBT MARKET & MONEY MARKETIN INDIAThe Indian debt markets are one of thelargest such markets in Asia. Governmentand Public Sector enterprises arepredominant borrowers in the market.While interest rates were regulated till afew years back, there has been a rapidderegulation and currently both the lendingand deposit rates are market determined.

The debt markets are developing fast,with the rapid introduction of newinstruments including derivatives. ForeignInstitutional Investors are also allowed toinvest in Indian debt markets now. Therehas been a considerable increase in thetrading volumes in the market with thedaily trading volumes in the vicinity ofRs. 3500 crore. The trading volumes arelargely concentrated in the Governmentof India Securities, which contribute about90% of the daily trades.

The money markets in India essentiallyconsist of the call money market (i.e.market for overnight and term moneybetween banks and institutions), repotransactions (temporary sale with anagreement to buy back the securities at afuture date at a specified price),commercial papers (CPs, short termunsecured promissory notes, generallyissued by corporates), certificate ofdeposits (CDs, issued by banks) andTreasury Bills (issued by RBI). In apredominantly institutional market, the keymoney market players are banks, financialinstitutions, insurance companies, mutualfunds, primary dealers and corporates.

The various instruments currently availablefor investments are :

Instruments Current Liquidity*Yields*

Central/StateGovernment 5.00% - VerySecurities 7.75% High

PSU Bonds/ 5.00% - Medium -Corporate 7.60% HighDebentures

Securitised debt 5.00% - Low -8.00% Medium

Commercial 4.75% - HighPapers/Certificates 7.25%of DepositCall/Notice Money 4.50% - Very

6.25% High

Repo 4.00% - Very6.25% High

* As on February 28, 2006

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The actual yields will, however, vary inline with general levels of interest ratesand debt/money market conditionsprevailing from time to time.

The Scheme may also invest in other fixedincome instruments that may be availablefrom time to time. The securities above,subject to applicable SEBI regulations,could be listed, unlisted, privately placed,secured, unsecured and of any maturity.The securities may be acquired throughNew Fund Offer ings, secondary marketoperations, private placement, etc.

6. PORTFOLIO TURNOVERPortfolio turnover is defined as the ratio oflesser of aggregate purchase and salesto the average corpus of the schemeduring a specified period of time. Theportfolio would be rebalanced based onthe view of the fund manager on the debtand equity markets and the redemptionrequests received by the Scheme onspecified repurchase date(s). It is difficultto estimate the likely turnover in theportfolio with reasonable measure ofaccuracy. The AMC will howeverendeavour to optimize the portfolioturnover and try and optimize the riskadjusted returns keeping in mind the costassociated with it.

7. TRADING IN DERIVATIVESThe Scheme intends to use derivativesmainly for the purpose of hedging, portfoliobalancing and may any other purpose asmay be permitted from time to time byregulations.

Derivative transactions that can beundertaken by the Scheme include a widerange of instruments, including, but notlimited tol Futuresl Optionsl Swapsl Any other instrument, as may be

regulatorily permitted

Derivatives can be either exchange tradedor can be over the counter (OTC).Exchange traded derivatives are listed andtraded on Stock Exchanges whereas OTCderivative transactions are generallystructured between two counterparties.

All derivative position taken in theportfolio would be guided by thefollowing principles:i. Position limit for the Mutual Fund

in index options contractsa. The Mutual Fund position limit in all

index options contracts on a particularunderlying index shall be Rs. 250crores or 15% of the total open interestof the market in index options,whichever is higher, per StockExchange.

b. This limit would be applicable on openpositions in all options contracts on aparticular underlying index.

ii. Position limit for the Mutual Fundin index futures contracts:

a. The Mutual Fund position limit in all

index futures contracts on a particularunderlying index shall be Rs. 250crores or 15% of the total open interestof the market in index futures,whichever is higher, per StockExchange.

b. This limit would be applicable on openpositions in all futures contracts on aparticular underlying index.

iii. Additional position limitfor hedging

In addition to the position limits at point (i)and (ii) above, the Mutual Fund may takeexposure in equity index derivativessubject to the following limits:

1. Short positions in index derivatives(short futures, short calls and longputs) shall not exceed (in notionalvalue) the Mutual Fund's holding ofstocks.

2. Long positions in index derivatives(long futures, long calls and shortputs) shall not exceed (in notionalvalue) the Mutual Fund's holding ofcash, government securities, T-Billsand similar instruments.

iv. Position limit for Mutual Fundfor stock based derivativecontracts

The Mutual Fund position limit in aderivative contract on a particularunderlying stock, i.e. stock option contractsand stock futures contracts, is defined inthe following manner:-

1. For stocks in which the market wideposition limit is less than or equal toRs. 250 crores, the Mutual Fundposition limit in such stock shall be20% of the market wide position limit.

2. For stocks in which the market wideposition limit is greater than Rs. 250crores, the Mutual Fund position limitin such stock shall be Rs. 50 crores.

v. Position limit for each schemeof a Mutual Fund for stockbased derivative contracts

The scheme-wise position limit / disclosurerequirements shall be -

1. For stock option and stock futurescontracts, the gross open positionacross all derivative contracts on aparticular underlying stock of ascheme of a mutual fund shall notexceed the higher of:

1% of the free float marketcapitalisation (in terms of number ofshares) or 5% of the open interest inthe derivative contracts on a particularunderlying stock (in terms of numberof contracts).

2. This position limits shall be applicableon the combined position in allderivative contracts on an underlyingstock at a Stock Exchange.

3. For index based contracts, MutualFunds shall disclose the total openinterest held by its scheme or allschemes put together in a particularunderlying index, if such open interest

equals to or exceeds 15% of the openinterest of all derivative contracts onthat underlying index.

IllustrationsIndex FuturesIndex Futures have been introduced byBSE and NSE. Generally three futures of1 month 2 months and 3 months arepresently traded on these exchanges.These futures expire on the last workingThursday of the respective months.If the Nifty (Index) was 1875 at thebeginning of a month and the quotes forthe three futures were as under:Month Bid Price Offer Price1 1880 18852 1900 19153 1910 1930

The Fund can buy an Index of month 1 onthe last day of the month prior to month1 in the illustration above at an offer priceof 1885.l Numerical example of futures tradeThe following is a hypothetical example ofa typical likely index future trade and theassociated costs.

Particulars Index ActualFuture purchase

of stocksIndex at thebeginningof the month 1875 1875

Price of 1 MonthFuture 1885

A. Execution Cost:Carry and otherIndex Futurecosts (1885-1875) 10 Nil

B. Brokerage Cost: 5.66 9.38Assumed at0.30% for IndexFuture and 0.50%for spot Stocks(0.30% of 1885)(0.50% of 1875)

C. Gains onSurplus Funds: 13.87 Nil(assumed 10%return on 90%of the moneyleft after paying10% margin)(10%*1875*90%*30 days/365)

Total Cost(A+B-C) 1.79 9.38

In this example, the Index Future tradehas resulted in profitability compared toactual purchase of the underlying indexstocks. The profitability of Index Future ascompared to an individual security willinter alia depend upon the carrying cost,the interest available on surplus fundsand the transaction cost.

There are futures based on stock indicesas mentioned above as also futures basedon individual stocks.

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l Illustrative list of strategies thatcan employ futures

Strategies that employ index futures:(a) The fund has an existing equity

portion invested in a basket of stocks.In case the fund manager has a viewthat the equity markets are headeddownwards, the fund can then hedgethe exposure to equity either fully orpartially by initiating short futurespositions in the index. A similarposition in the long direction can alsobe initiated by the fund to hedge itsposition of cash and permissibleequivalents. The extent to which thiscan be done is determined by existingguidelines.

(b) To the extent permissible by extantregulations the scheme can initiate anaked short position in an underlyingindex future traded on a recognizedstock exchange. In case the nifty nearmonth future contract trading at say,1850, and the fund manager has aview that it will depreciate goingforward, the fund can initiate a saletransaction of nifty futures at 1850without holding a portfolio of equitystocks or any other underlying longequity position. Once the price fallsto 1800 after say, 20 days the fundcan initiate a square-up transactionby buying the said futures and booka profit of 50. Correspondingly thefund can take a long position withoutan underlying cash / cash equivalentsubject to the extant regulations.

Strategies that employ Stock specificFutures:Individual stock futures are also availablein the Indian Equity Markets. Stock futurestrade either at a premium or at discountto the spot prices, the level of premiumgenerally reflects the cost of carry. Stockspecific issues may have a bearing onfutures as speculators may find futures asa cost-effective way of executing their viewon the stock. However such executionsusually increase the premium / discountto the spot significantly, thereby givingrise to arbitrage opportunities for a fund.(a) Selling spot and buying future : In

case the fund holds the stock of acompany at say Rs. 1000 while in thefutures market it trades at a discountto the spot price say at Rs. 980 thenthe fund may sell the stock and buythe futures. On the date of expiry ofthe stock future, the fund may reversethe transactions (i.e. Buying at Spot& Selling futures) and earn a risk-freeRs. 20/- (2% absolute) on its holdings.As this can be without any dilution ofthe view of the fund on the underlyingstock the fund can still benefit fromany movement of the price in thenorthward direction, i.e. if on the dateof expiry of the futures, if the stocktrades at 1100 which would be theprice of the futures too, the fund willhave a benefit of Rs. 100/- wherebythe fund gets the 10% upsidemovement together with the 2%benefit on the arbitrage, and thusgetting a total return of 12%.

(b) Buying spot and selling future: Wherethe fund holds the stock of a companytrading in the spot market at Rs. 1000while it trades at Rs. 1020/- in thefutures market then fund may buy thestock at spot and sell in the futuresmarket thereby earning Rs. 20. Incase of adequacy of cash with thefund, this strategy may be used toenhance returns of the Scheme whichwas otherwise sitting on cash.

(c) Buying stock future: Where theScheme wants to initiate a longpositon in a stock whose spot price isat say, Rs.1000 and futures is at 980,then the fund may just buy the futurescontract instead of the spot therebybenefiting from a lower cost option.

(d) In case the fund has a bearish viewon a stock which is trading in the spotmarket at Rs.1000/- and the futuresmarket at say Rs. 980/-. The fund canexpress such a view subject to extantSEBI regulations by initiating a shortpostion in the futures contract. In casethe view is right and the futures pricedepreciates to say 900/- the fund cansquare up the short position therebyearning a profit of Rs. 80/-.

Options:Option contracts are of two types - Calland Put; the former being the right, but notobligation, to purchase a prescribednumber of shares at a specified pricebefore or on a specific expiration date andthe latter being the right, but not obligation,to sell a prescribed number of shares ata specified price before or on a specificexpiration date. The price at which theshares are contracted to be purchased orsold is called the strike price. Options thatcan be exercised on or before theexpiration date are called AmericanOptions, while those that can be exercisedonly on the expiration date are calledEuropean Options. Option contracts aredesignated by the type of option, name ofthe underlying, expiry month and the strikeprice.

Numerical examples of OptionsCall Option (Buy): The fund buys a calloption at the strike price of say Rs.1000and pays a premium of say Rs. 50, thefund would earn profits if the market priceof the stock at the time of expiry of theoption is more than 1050 being the totalof the strike price and the premiumthereon. If on the date of expiry of theoption the stock price is below Rs. 1000,the fund will not exercise the option whileit loses the premium of Rs. 50.

Put Option (Buy): The fund buys a PutOption at Rs. 1000 by paying a premiumof say Rs. 50. If the stock price goes downto Rs. 900, the fund would protect itsdownside and would only have to bear thepremium of Rs. 50 instead of a loss ofRs. 100 whereas if the stock price movesup to say Rs. 1100 the fund may let theOption expire and forego the premiumthereby capturing Rs. 100 upside afterbearing the premium of Rs. 50.

Writing a Call Option: The fund writes a

call option at Rs. 1050 and earn a premiumof, say, Rs. 10. If the price is higher thanRs. 1050, say Rs.1100/- at expiry then theoption is exercised, the Fund earns thepremium of Rs. 10/- but loses thedifference between the market price andthe exercise price i.e. Rs. 50/-. In case thestock price is less than Rs. 1050, the fundgets to keep the premium of Rs. 10/-.

Writing a Put Option: The fund writes aput option with the strike price of Rs.1000and earn a premium of say Rs. 20. In casethe stock trades at Rs. 950 the put optionwill be exercised, the fund will earn thepremium of Rs. 20/- but losses thedifference between the exercise price andthe market price which is Rs. 50/-. Wherethe stock trades at above the exerciseprice, the option-holder will not exercisethe option and let it expire. In this case thefund will earn the premium income ofRs. 20.

The above four option positions can beinitiated in both index based options aswell as stock specific options.

Permissible strategies involving indexoptions and stock specific options wouldbe the same as that of index futures andstock specific futures respectively.

Debt DerivativesIn terms of Circular No. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999-2000 dated November 1,1999 and July 7, 1999 respectively issuedby Reserve Bank of India permittingparticipation by Mutual Funds in InterestRate Swaps and Forward RateAgreements, the Fund will use derivativeinstruments for the purpose of hedgingand portfolio balancing. The AMC wouldundertake the same for similar purposesonly.

Interest Rate Swaps (IRS)An IRS is an agreement between twoparties to exchange stated interestobligations for an agreed period in respectof a notional principal amount. The mostcommon form is a fixed to floating rateswap where one party receives a fixed(pre-determined) rate of interest while theother receives a floating (variable) rate ofinterest.

Forward Rate Agreement (FRA)A FRA is basically a forward starting IRS.It is an agreement between two parties topay or receive the difference between anagreed fixed rate (the FRA rate) and theinterest rate (reference rate) prevailing ona stipulated future date, based on anotional principal amount for an agreedperiod. The only cash flow is the differencebetween the FRA rate and the referencerate. As is the case with IRS, the notionalamounts are not exchanged in FRAs.

EXAMPLE OF A DERIVATIVESTRANSACTIONBasic Structure of a SwapBank A has a 6 month Rs 10 crores liability,currently being deployed in call. Bank Bhas a Rs. 10 crore 6 month asset, beingfunded through call. Both banks arerunning an interest rate risk.

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To hedge this interest rate risk, they canenter into a 6 month MIBOR (MumbaiInter Bank Offered Rate) swap. Throughthis swap, A will receive a fixed preagreedrate (say 7%) and pay "call" on the NSEMIBOR ("the benchmark rate"). Bank A'spaying at "call" on the benchmark rate willneutralise the interest rate risk of lendingin call. B will pay 7% and receive interestat the benchmark rate. Bank A's receivingof "call" on the benchmark rate willneutralise his interest rate risk arising fromhis call borrowing.

The mechanism is as follows:l Assume the swap is for Rs.10 crores

from March 1, 2002 to September 1,2002. A is a fixed rate receiver at 7%and B is a floating rate receiver at theovernight compounded rate.

l On March 1, 2002 A and B willexchange only an agreement ofhaving entered this swap. Thisdocumentation would be as perInternational Swaps and DerivativesAssociation (ISDA).

l On a daily basis, the benchmark ratefixed by NSE will be tracked by them.

On September 1, 2002 they will calculatethe following:l A is entitled to receive interest on

Rs.10 crores at 7% for 184 days i.e.Rs. 35.28 lakhs, (this amount is knownat the time the swap was concluded)and will pay the compoundedbenchmark rate.

l B is entitled to receive dailycompounded call rate for 184 days &pay 7% fixed.

l On September 1, 2002, if the totalinterest on the daily overnightcompounded benchmark rate ishigher than Rs. 35.28 lakhs, A willpay B the difference. If the dailycompounded benchmark rate islower, then B will pay A the difference.

l Effectively Bank A earns interest atthe rate of 7% p.a. for six monthswithout lending money for 6 monthsfixed, while Bank B pays interest @7% p.a. for 6 months on Rs. 10 crores,without borrowing for 6 months fixed.

8. FUNDAMENTAL ATTRIBUTESNotwithstanding the above, when anychange in the fundamental attributes ofthe Scheme or the Trust or fees andexpenses payable or any other changewhich would modify the Scheme or affectsthe interest of the Unitholders, is proposedto be carried out, the Trustees shall ensurethat such changes are made on fulfillmentof parameters laid down by SEBI (MutualFunds) Regulations, 1996.

For the purposes of this section, as perthe current Regulations, "fundamentalattributes" of the Scheme shall mean:

(i) Type of SchemeA close ended equity scheme with noassured returns from Standard CharteredMutual Fund. The Scheme has a tenureof 36 months with automatic conversioninto an open ended equity scheme.

(ii) Investment Objectives & PoliciesInvestment Objective as defined in thedocument earlier.

Asset Allocation Pattern as defined in thedocument earlier.

(iii) Terms of IssueRepurchase and Redemption of Units asdefined in Section V titled "Units on Offer",paragraph 21 titled "Repurchase Facility".

Fees and expenses as specified in SectionVI titled "Loads & Recurring Expenses"paragraph C as permitted by theRegulations.

Conversion on MaturityThe Scheme is a close ended schemeand duration of the Scheme is 36 monthsfrom the date of allotment.

If the date stipulated for maturity ofScheme is a non-Busines Day, theScheme will mature on next Business Day.Upon the maturity the Scheme willautomatically be converted into an openended scheme without any furtherreference from the Mutual Fund/Trustee/AMC/ Unit holders, subject to SEBIRegulations.

Fundamental Attributes will not cover suchactions of the Trustees of the Mutual Fundor the Board of Directors of the AssetManagement Company, made in order toconduct the business of the Trust, theScheme or the Asset ManagementCompany, where such business is in thenature of discharging the duties andresponsibilities with which they have beencharged. Nor will it include changes to theScheme made in order to comply withchanges in regulation with which theScheme has been required to comply.

9. INVESTMENT OFSUBSCRIPTION MONEY

The Fund may invest subscription moneyreceived from the investing public in bankdeposits, or money market instrumentsbefore finalisation of the allotment of Units.The AMC, on being satisfied of the receiptof the minimum subscription amount, cancommence investment out of the fundsreceived in accordance with theinvestment objectives of the Scheme andas per the existing Regulations. Theincome earned out of such investmentswould be merged with the corpus of theScheme on completion of the allotment ofthe Units.

10. INVESTMENT BY THE AMCIN THE SCHEME

The AMC may invest in the Scheme fromtime to time. As per the Regulations, suchinvestments are permitted subject todisclosure being made in the OfferDocument. However, the AMC shall notbe entitled to charge any managementfee on its investments in the Scheme. Themaximum extent of investment by the AMCat any given time shall be as per the limitset by the Board of Directors of the AMCfrom time to time.

11) INVESTMENT IN OVERSEASFINANCIAL ASSETS

Mutual funds have been permitted to investin ADRs / GDRs issued by IndianCompanies within certain limits, from 1999.Mutual funds have also been permitted toinvest in foreign debt securities, since2002, in countries with full convertiblecurrencies, short term as well as longterm debt instruments with highest rating(foreign currency credit rating) byaccredited / registered credit ratingagencies including A-1/AAA by Standardand Poor, P-1/AAA by Moody's, and F1/AAA by Fitch. Mutual funds are alsopermitted to invest in governmentsecurities where the countries are AAArated. As there is upper limit of US$500millions for the entire mutual funds industryfor making investment in ADRs / GDRsand foreign securities, each mutual fundis permitted to invest up to 4% of its netassets subject to a maximum of US $50Millions.Further, SEBI vide circular SEBI / MFD /CIR No. 02 /6855/ 03 April 4, 2003 haspermitted investments in equity of listedoverseas companies which have ashareholding of at least 10% in an Indiancompany listed on a recognised stockexchange in India (as on January 31 ofthe year of investment). This circular alsorevised the overall cap for the entire mutualfnds industry to invest in ADRs / GDRsissued by Indian companies and foreignequity and debt securities, to US $1 billionand individual limits for mutual funds to10% of nets assets as on January 31,2003 retaining the earlier cap on individuallimits.SEBI has also vide its circular SEBI /IMD / CIR No.7 / 5573/04 dated March 19,2004, permitted each mutual fund to investin foreign securities up to 10% of its netassets as on January 31 of each relevantyear. It is the Investment Manager's beliefthat overseas securities offer newinvestment and portfolio diversificationopportunities into multi-market and multi-currency products. However, suchinvestments also entail additional risks.Such investment opportunities may bepursued by the Investment Managerprovided they are considered appropriatein terms of the overall the investmentobjectives of the Scheme and inaccordance with any guidelines issued bySEBI from time to time. Since the Schemewould also invest in overseas securities,there may not be readily available andwidely accepted benchmarks to measureperformance of the Scheme. Offshoreinvestments shall be made subject to anynecessary approvals or conditionsstipulated by SEBI and the expensescharged to the Scheme shall not exceedthe total limits on expenses as prescribedunder the Regulations and guidelinesthereunder. The details of calculation forcharging such expenses shall be reportedto the Boards of AMC and trustees andshall also be disclosed in the AnnualReport of the Scheme. The Fund may,where necessary, appoint otherintermediaries of repute as advisors, sub-

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managers, or sub-custodians formanaging and administering suchinvestments. The appointment of suchintermediaries shall be in accordance withthe applicable requirements, if any, ofSEBI.To the extent that the assets of the Schemewill be invested in securities denominatedin foreign currencies, the Indian Rupeeequivalent of the net assets may beadversely affected by changes in the valueof certain foreign currencies relative tothe Indian rupee. The repatriation of capitalto India may also be hampered by changesin regulations concerning exchangecontrols or political circumstances or anyother restriction applicable to it. To managerisk associated with foreign currency andinterest rate exposure and for efficientportfolio management, the fund may usederivatives such as cross currency swapsetc. The use of derivatives would be inaccordance with the prevailing regulations.However, the AMC with a view toprotecting the interests of investorsmay increase exposure in foreignsecurities as deemed fit from time totime.Debt Markets abroad:Overseas debt markets are deep andvibrant and much more sophisticated thanthe Indian debt markets. Most individualbonds are bought and sold in the over-the-counter (OTC) market, although somecorporate bonds are also listed on theNew York Stock Exchange. The OTCmarket comprises hundreds of securitiesfirms and banks that trade bonds by phoneor electronically. Some are dealers thatkeep an inventory of bonds and buy andsell these bonds for their own account;others act as agent and buy from or sellto other dealers in response to specificrequests on behalf of customers. Quotesare available for an entire gamut ofsecurities of varying maturities. Amongthe types of bonds one can choose fromare: Government securities, municipalbonds, corporate bonds, mortgage andasset-backed securities, federal agencysecurities and foreign government bonds.

Bond choices range from the highest creditquality Treasury securities, which arebacked by the full faith and credit of thegovernment, to bonds that are belowinvestment-grade and consideredspeculative. Since a bond may not beredeemed, or reach maturity, for years -even decades, credit quality becomes animportant consideration when you areevaluating a fixed/floating-incomeinvestment.In the United States, major rating agenciesinclude Moody's Investors Service,Standard & Poor's Corporation and Fitch.Each of the agencies assigns its ratingsbased on in-depth analysis of the issuer'sfinancial condition and management,economic and debt characteristics andthe specific revenue sources securing thebond. The highest ratings are AAA (S&Pand Fitch) and AAA (Moody's). Bondsrated in the BBB category or higher areconsidered investment grade; securities

with ratings in the BB category and beloware considered "high yield" or belowinvestment grade. While experience hasshown that a diversified portfolio of high-yield bonds will, over the long run, haveonly a modest risk of default, it is extremelyimportant to understand that, for any singlebond, the high interest rate that generallyaccompanies a lower rating is a signal orwarning of higher risk.

The Link between Interest Rates andMaturityChanges in interest rates do not affect allbonds equally. The longer it takes for abond to mature, the greater the risk thatprices will fluctuate along the way andthat the fluctuations will be greater andthe more the investors will expect to becompensated for taking the extra risk.There is a direct link between maturityand yield. It can best be seen by drawinga line between the yields available on likesecurities of different maturities, fromshortest to longest. Such a line is calleda yield curve. A yield curve could be drawnfor any bond market but it is mostcommonly drawn for the Treasury market,which offers securities of every maturityand where all issues bear the same topcredit quality. By watching the yield curve,as reported in the daily financial press,you can gain a sense of where the marketperceives interest rates to be headed oneof the important factors that could affectyour bonds 'prices. A normal yield curvewould show a fairly steep rise in yieldsbetween short and intermediate termissues and a less pronounced risebetween intermediate and long termissues. That is as it should be, since thelonger the investor 's money is at risk, themore the investor should expect to earn.Indicative yields (As on February 28,2006)US treasuries:1 Month: 2.68%3 Months: 2.82%6 Months: 3.14%2 Years: 3.84%5 Years: 4.24%10 Years: 4.55%30 Years: 4.80%

12. INVESTMENT RESTRICTIONSFOR THE SCHEME

Pursuant to the Regulations andamendments thereto, the followinginvestment restrictions are presentlyapplicable to all the Scheme/s:1) The Fund under all its schemes shall

not own more than 10% of anycompany's paid-up capital carryingvoting rights.

2) The new fund offer expenses inrespect of the Scheme may notexceed 6% of the funds raised underthe Scheme.

3) The Scheme shall buy and sellsecurities on the basis of deliveriesand shall in all cases of purchases,take delivery of relative securities andin all cases of sale, deliver thesecurities and shall in no case putitself in a position whereby it has to

make short sale or carry forwardtransaction or engage in badlafinance.

4) The Scheme shall not invest morethan 10% of its net assets in the equityshares or equity related instrumentsof any company.

5) The Scheme shall not invest morethan 5% of its net assets in the unlistedequity shares or equity relatedinstruments.

6) Debt instruments in which theScheme invests should be rated asinvestment grade by a credit ratingagency. Till the regulations so require,not more than 15% of the Net Assetsof the Scheme shall be invested indebt instruments issued by a singleissuer. Provided that such investmentlimit may be exceeded to 20% of theNet Assets of the Scheme with theprior approval of the Board of Trusteesand the Board of AMC till such timethe regulation requires suchapprovals. Provided that such limitshall not be applicable for investmentsin government securities and moneymarket instruments. Provided furtherthat investment within such limit canbe made in mortgaged backedsecuritised debt which are rated notbelow investment grade by a ratingagency registered with SEBI.

7) All investments in unrated debtinstruments shall be made with theprior approval of the Board of theAMC and the Trustee till theregulations so require. SEBI vide itscircular no. MFD/CIR/9/120/2000dated November 24, 2000 haspermitted the Mutual Fund toconstitute a committee for Investmentin Unrated debt Instruments. The saidcommittee can approve suchinvestments based on parameters laiddown by the Board of AMC and theTrustees and details of suchinvestments should be communicatedby the AMC to the Trustees in theirperiodical / quarterly reports alongwith a disclosure regarding how theparameters have been complied with.Further, the Scheme shall not investmore than 10% of its Net Assets inunrated instruments by a single issuerand the total investment in suchinstruments shall not exceed 20% ofthe Net Assets of the Scheme till theregulations so require. Providedfurther that investment within suchlimit can be made in mortgagedbacked securitised debt, which arerated not below investment grade bya rating agency, registered with theBoard.Debentures, irrespective of anyresidual maturity period (above orbelow one year), shall attract theinvestment restrictions as applicableto debt instruments under clause 1and 1 A of the VII Schedule to theregulations.

8) Till the regulations so require, theScheme shall not make anyinvestment in :

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a) any unlisted security of an associateor group company of the sponsor;

b) any security issued by way of privateplacement by an associate or groupcompany of the sponsor or

c) the listed securities of groupcompanies of the sponsor which is inexcess of 25% of the net assets.

9) Transfer of investments from oneScheme to another Scheme in thesame Mutual Fund is permittedprovided:

a) such transfers are done at theprevailing market price for quotedinstruments on a spot basis (spotbasis shall have the same meaningas specified by a Stock Exchange forspot transactions); transfer ofunquoted securities will be made asper the policies laid down by theTrustees from time to time, and

b) the securities so transferred shall bein conformity with the investmentobjective of the Scheme to which suchtransfer has been made.

10) The Scheme may invest in otherSchemes under the same AMC orany other Mutual Fund withoutcharging any fees, provided theaggregate inter-Scheme investmentmade by all the Schemes under thesame management or in Schemesunder management of any other assetmanagement company shall notexceed 5% of the Net Asset Value ofthe Fund. Provided that this clauseshall not apply to any Fund of Fundsscheme.

11) The Fund shall get the securitiespurchased transferred in the name ofthe Fund on account of the concernedScheme, wherever investments areintended to be of a long-term nature.

12) The Fund may buy and sell securitieson the basis of deliveries and will notmake any short sales or engage incarry forward transactions except asand when permitted by the RBI in thisregard (for example "when issuedmarket" transactions).

13) All the Scheme's investments will bein transferable securities or bankdeposits or in money at call or anysuch facility provided by RBI in lieu ofcall.

14) No loans for any purpose can beadvanced by the Scheme.

15) The Fund shall not borrow except tomeet temporary liquidity needs of theFund for the purpose of repurchase/redemption of units or payment ofinterest and/or dividend to theUnitholders, provided that the Fundshall not borrow more than 20% ofthe net assets of the individualScheme and the duration of theborrowing shall not exceed a periodof 6 months.

16) Pending deployment of funds of aScheme in securities in terms of

investment objectives of the Scheme,the AMC can invest the funds of theScheme in short-term deposits ofscheduled commercial banks or incall deposits.

17) The Scheme may also use varioushedging and derivative products fromtime to time, as are available andpermitted by SEBI, in an attempt toprotect and enhance the interests ofthe Unitholders at all times.Derivatives are contractualinstruments whose performance isderived from that of an underlyingasset.

18) The Scheme shall not make anyinvestment in a Fund of Fundsscheme.

The Scheme will comply with SEBIregulations and any other Regulationsapplicable to the investments of MutualFunds from time to time. The Trusteesmay alter the above restrictions from timeto time to the extent that changes in theRegulations may allow and/or as deemedfit in the general interest of the Unitholders.

All investment restrictions shall beapplicable at the time of making theinvestment.

13. UNDERWRITING BY THE FUNDSubject to the Regulations, the Schememay enter into underwriting agreementsonly after the Fund obtains a certificate ofregistration in terms of the Securities andExchange Board of India (Underwriters)Rules and Securities and Exchange Boardof India (Underwriters) Regulations, 1993,authorising it to carry on activities asunderwriters.

The capital adequacy norms for thepurpose of underwriting shall be the netassets of the Scheme and the underwritingobligation of the Scheme shall not at anytime exceed the total net asset value ofthe Scheme.

14. COMPUTATION OFNET ASSET VALUE

The NAV of the Units of the Scheme willbe computed by dividing the net assets ofthe Scheme by the number of Unitsoutstanding on the valuation date. TheFund shall value its investments accordingto the valuation norms, as specified inSchedule VIII of the Regulations, or suchnorms as may be prescribed by SEBIfrom time to time. The broad valuationnorms are detailed below.

These norms are indicated based on thecurrent Regulations and the guidelines/instructions issued by SEBI i.e. MFD/CIR/8/92/2000 dated September 18, 2000. Interms of SEBI letter No. MFD/CIR/8(A)/104/2000 dated October 3, 2000, the saidguidelines on valuation of non-traded andthinly traded debt securities came intoforce from December 1, 2000 and thesame was modified vide letter No. MFD/CIR/14/088/2001 dated March 28, 2001 &MFD/CIR/No.14/.442/2002 datedFebruary 20, 2002.

1) Traded Securities:i. Traded securities (other than

Government securities) are valued atthe last quoted closing price on thedate of valuation on the National StockExchange (the 'NSE') or the lastquoted closing price on principalexchange on which the security istraded on the date of valuation, whereon the particular valuation day asecurity is not quoted on the NSE.

ii. Traded securities (other thanGovernment Securities) with aresidual maturity over 182 days, butwhich have not been traded on thedate of valuation are valued on thesame basis as that of a non-tradedsecurity with residual maturity over182 days.

iii. Traded securities (other thanGovernment Securities) with aresidual maturity upto 182 days, butwhich have not been traded on thedate of valuation are valued on thesame basis as money marketinstruments (as explained in point II(A)).

2) Non-Traded / Thinly TradedSecuritiesWhen a security (other thanGovernment Securities) is not tradedon any stock exchange for a period offifteen days prior to the valuation date,the scrip must be treated as a 'non-traded' security. However, as per AMFIcircular dated March 10, 2003 Non-traded securities are being valuedfrom the day on which the security isnot traded.

A debt security (other thanGovernment Securities) shall beconsidered as a thinly traded securityif on the valuation date, there are noindividual trades in that security inmarketable lots (currently Rs. 5 crore)on the principal stock exchange orany other stock exchange. In order todetermine whether a security is thinlytraded or not the volumes traded inall recognised stock exchanges inIndia may be taken into account.

A thinly traded debt security asdefined above would be valued asper the norms set for non-tradeddebt securities, providedhereinbelow.

Valuation of Non-Traded / Thinly TradedSecurities:(II)(A) NON-TRADED / THINLY

TRADED DEBT SECURITIESOF UPTO 182 DAYS TOMATURITY:

As the money market securities are valuedon the basis of amortization (cost plusaccrued interest till the beginning of theday plus the difference between theredemption value and the cost spreaduniformly over the remaining maturityperiod of the instruments) a similar processshould be adopted for non-traded debtsecurities with residual maturity of upto

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182 days, in the absence of any otherstandard benchmarks in the market. Debtsecurities purchased with residual maturityof upto 182 days are to be valued at cost(including accrued interest till thebeginning of the day) plus the differencebetween the redemption value (inclusiveof interest) and cost spread uniformly overthe remaining maturity period of theinstrument. In case of a debt security withmaturity greater than 182 days at the timeof purchase, the last valuation price plusaccrued interest should be used insteadof purchase cost. All other non-traded NonGovernment debt instruments shall bevalued using the method suggested below.

(II)(B) NON-TRADED / THINLYTRADED DEBT SECURITIESOF OVER 182 DAYS TOMATURITY:

For the purpose of valuation, all Non-Traded Debt Securities would be classifiedinto "Investment grade" and "Non-Investment grade" securities based ontheir credit ratings. The non-investmentgrade securities would further be classifiedas "Performing" and "Non-Performing"assets.

l All Non Government investmentgrade debt securities, classified asnot traded, shall be valued on yield tomaturity basis as described below.

l All Non Government non-investmentgrade performing debt securitieswould be valued at a discount of 25%to the face value.

l All Non Government non-investmentgrade non-performing debt securitieswould be valued based on theprovisioning norms.

The approach in valuation of non-tradeddebt securities is based on the concept ofusing spreads over the benchmark rate toarrive at the yields for pricing the non-traded security.

The Yields for pricing the non-traded debtsecurity would be arrived at using theprocess as described:

Step AA Risk Free Benchmark Yield is built usingthe government securities (GOI Sec) asthe base. GOI Secs are used as thebenchmarks as they are traded regularly,free of credit risk, and traded acrossdifferent maturity spectra every week.

Step BA Matrix of spreads (based on the creditrisk) is built for marking up the benchmarkyields. The matrix is built based on tradedcorporate paper on the wholesale debtsegment of an appropriate stock exchangeand the primary market issuances. Thematrix is restricted only to investmentgrade corporate paper.

Step CThe yields as calculated above areMarked-up / Marked-down for illiquidityrisk.

Step Da. Construction of Risk-Free

BenchmarkUsing Government of India datedsecurities, the Benchmark shall beconstructed as below:

METHODOLOGYl Government of India Dated securities

will be grouped into the followingduration buckets viz., 0.5-1 year, 1-2 years, 2-3 years, 3-4 years, 4-5years, 5-6 years and greater than 6years and the volume weighted yieldwould be computed for each bucket.Accordingly, there will be abenchmark YTM for each durationbucket. These duration buckets maybe changed to reflect the market valuemore closely by any agencysuggested by AMFI giving benchmarkyield/matrix of spreads overbenchmark yield.

The benchmark as calculated above willbe set weekly, and in the event of anychange in the Reserve Bank of India (RBI)policies affecting interest rates during theweek, the benchmark will be reset to reflectany change in the market conditions.

The Yields so arrived at are used to pricethe portfolio.

Note: The concept of duration over tenorhas been chosen in order to capture thereinvestment risk. It is intended to graduallymove towards a methodology thatincorporates the continuous curveapproach for valuation of such securities.However, in view of the current lack ofliquidity in the corporate bond markets, acontinuous curve approach to valuationwould be necessarily based on limiteddata points, and this would result in out ofline valuations. As an interim methodologytherefore it is proposed that the DurationBucket approach be adopted andcontinuously tracked in order to fine tunethe duration buckets on a periodic basis.Over the next few years it is expected thatwith the deepening of the secondarymarket trading, it would be possible tomake a gradual move from the DurationBucket approach towards a continuouscurve approach.

b. Building a Matrix of Spreads forMarking-up the Benchmark Yield

Mark-up for credit risk over the risk freebenchmark YTM as calculated in step a,will be determined using the trades ofcorporate debentures / bonds of differentratings. All trades on appropriate stockexchanges during the fortnight prior to thebenchmark date will be used in buildingthe corporate YTM and spread matrices.Initially these matrices will be built only forcorporate securities of investment grade.The matrices are dynamic and the spreadswill be computed every week. The matrixwill be built for all duration buckets forwhich the benchmark GOI matrix is builtto effectively link the corporate matrix withthe GOI securities matrix. Accordingly:l All traded paper (with minimum traded

value of Rs. 1 crore) will be classified

by their ratings and grouped into 7duration buckets; for rated securities,the most conservative publiclyavailable rating will be used.

l For each rating category, averagevolume weighted yield will be obtainedboth from trades on the appropriatestock exchange and from the primarymarket issuances.

l Where there are no secondary tradeson the appropriate stock exchange ina particular rating category and noprimary market issuances during thefortnight under consideration, thentrades on the appropriate stockexchange during the 30 days periodprior to the benchmark date will beconsidered for computing the averageYTM for such rating category.

l If the matrix cannot be populatedusing any or all of the above steps,then credit spreads from trades onappropriate stock exchange of therelevant rating category over the AAAtrades will be used to populate thematrix.

l In each rating category, all outlierswill be removed for smoothening theYTM matrix.

l Spreads will be obtained by deductingthe YTM in each duration categoryfrom the respective YTM of the GOIsecurities.

l In the event of lack of trades in thesecondary market and the primarymarket the gaps in the matrix wouldbe filled by extrapolation. If thespreads cannot be extrapolated forthe reason of practicality, the gaps inthe matrix will be filled by carrying thespreads from the last matrix.

c. Mark-up / Mark-down YieldThe Yields calculated would be marked-up / marked - down to account for theilliquidity risk, promoter background,finance company risk and the issuer classrisk. As the level of illiquidity risk would behigher for non-rated securities, the markingprocess for rated and non-rated securities,would be differentiated as follows:

(i) Adjustments for Securities ratedby external rating agencies:The Yields so derived out of the abovemethodology could be adjusted toaccount for risk mentioned above.

A discretionary discount / premium ofupto +100/-50 basis points forsecurities having a duration of upto 2years and upto +75/- 25 basis pointsfor securities having duration higherthan 2 years will be permitted to beprovided for the above mentionedtypes of risks. The rationale for theabove discount structure is to takecognizance of the differential interestrate risk of the securities. Thisstructure will be reviewed periodically.

(ii) Adjustments for Internally RatedSecurities:To value an un-rated security, thefund manager has to assign an

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internal credit rating, which will beused for valuation. Since un-ratedinstruments tend to be more illiquidthan rated securities, the yields wouldbe marked-up by adding +50 basispoints for securities having a durationof upto two years and +25 basis pointsfor securities having duration of higherthan two years to account for theilliquidity risk.

Category Discretionarydiscount overbenchmark yieldin basis points

Unrated DiscretionaryInstruments with Discount of uptoduration upto +50 over and above2 years the mandatory

Discount of +50

Unrated DiscretionaryInstruments with Discount uptoduration over +50 over and above2 years the mandatory

Discount of +25

(iii) The benchmark yield/matrix ofspreads over benchmark yieldobtained from any agency suggestedby AMFI (currently CRISIL) as aprovider of benchmark yield/matrixof spreads over benchmark yield tomutual funds, must be applied forvaluation of securities on the day onwhich the bench mark yield/matrix ofspreads over benchmark yield isreleased by the aforesaid agency.

Valuation of securities with Put/CallOptions:The option embedded securities would bevalued as follows:

Securities with Call option:The securities with call option shall bevalued at the lower of the value as obtainedby valuing the security to final maturityand valuing the security to call option.

In case there are multiple call options, thelowest value obtained by valuing to thevarious call dates and valuing to thematurity date is to be taken as the valueof the instrument.

Securities with Put option:The securities with put option shall bevalued at the higher of the value asobtained by valuing the security to finalmaturity and valuing the security to putoption.

In case there are multiple put options, thehighest value obtained by valuing to thevarious put dates and valuing to thematurity date is to be taken as the valueof the instruments.

Securities with both Put and Calloptions on the same day:The securities with both Put and Call optionon the same day would be deemed tomature on the Put/Call day and would bevalued accordingly.

3) Asset backed securitiesl Asset backed securities with a

residual maturity over 182 days and

where the cash flows are variable arevalued on the same basis as that fornon-traded securities with residualmaturity over 182 days.

l Asset backed securities with aresidual maturity upto 182 days andwhere cash flows are variable arevalued on the basis of amortisation,the last valued yield being the basefor amortisation.

4) Government SecuritiesGovernment securities are valued at pricesobtained from CRISIL in accordance withthe guidelines for valuation of securitiesfor mutual funds issued by SEBI.

5) Money Market Instruments(including CollateralisedBorrowing & Lending Obligation)

While investments in Call money, Billspurchased under rediscounting scheme,Collateralised Borrowing & LendingObligation and short term deposits withbanks shall be valued at cost plus accrual;other money market instruments shall bevalued at the yield at which they arecurrently traded. Non-traded moneymarket instruments are valued at cost/lastvaluation price (including accrued interesttill the beginning of the day) plus thedifference between the redemption value(inclusive of interest) and cost / lastvaluation price, spread uniformly over theremaining maturity period of theinstrument.

6) ReposInstruments bought on 'repo' basis arevalued at the resale price after deductionof applicable interest upto date of resale.Valuation of Derivative Productsi) The traded derivatives shall be valued

at market price in conformity with thestipulations of sub clauses (i) to (v) ofclause 1 of the Eighth Schedule tothe Securities and Exchange Boardof India (Mutual Funds) Regulations,1996 as amended by SEBI CircularNo.MFD/CIR/8/92/2000 and MFD/CIR/14/088/2001 dated September18, 2000 and March 28, 2001respectively.

ii) The valuation of untraded derivativesshall be done in accordance with thevaluation method for untradedinvestments prescribed in sub clauses(i) and (ii) of clause 2 of the EighthSchedule to the Securities andExchange Board of India (MutualFunds) Regulations, 1996 asamended by SEBI Circular No.MFD/CIR/8/92/2000 and MFD/CIR/14/088/2001 dated September 18, 2000 andMarch 28, 2001 respectively.

In accordance with SEBI guidelines, theFund enters into derivative transactions inthe form of Interest Rate Swaps for thepurposes of hedging and portfoliobalancing.RBI vide its circular no. MPD.BC.191/07.01.279/1999-2000 dated November 1,1999 has permitted mutual funds to enterinto Interest Rate Swaps/Forward RateAgreement for hedging and portfoliobalancing. As per RBI circular No.

MPD.BC.187/07.01.279/1999-2000 datedJuly 7, 1999 it specifies that "The Swapthat is accounted for like a hedge shouldbe accounted for on accrual basis exceptthe swap designated with an asset orliability that is carried at market value orlower of cost or market value in thefinancial statements. In that case the swapshould be marked to market with theresulting gain or loss recorded as anadjustment to the market value ofdesignated asset or liability."

As per the said circular, swaps less than6 months to be amortised and more thansix months has to be valued/marked tomarket.

The valuation guidelines as outlined aboveare as per prevailing Regulations and aresubject to change from time to time inconformity with changes made by SEBI /RBI.

All expenses and incomes accrued up tothe valuation date shall be considered forcomputation of NAV. For this purpose,major expenses like management feesand other periodic expenses would beaccrued on a day to day basis. The minorexpenses and income will be accrued ona periodic basis, provided the non-dailyaccrual does not affect the NAVcalculations by more than 1%.Any changes in securities and in thenumber of units be recorded in the booksnot later than the first valuation datefollowing the date of transaction. If this isnot possible given the frequency of theNet Asset Value disclosure, the recordingmay be delayed upto a period of sevendays following the date of the transaction,provided that as a result of the non-recording, the Net Asset Value calculationsshall not be affected by more than 1%.

In case the Net Asset Value of a schemediffers by more than 1%, due to non-recording of the transactions, the investorsor scheme/s as the case may be, shall bepaid the difference in amount as follows:-(i) If the investors are allotted units at a

price higher than Net Asset Value orare given a price lower than Net AssetValue at the time of sale of their units,they shall be paid the difference inamount by the Scheme.

(ii) If the investors are charged lowerNet Asset Value at the time ofpurchase of their units or are givenhigher Net Asset Value at the time ofsale of their units, asset managementcompany shall pay the difference inamount to the Scheme. The assetmanagement company may recoverthe difference from the investors.

NAV of units under the Scheme shall becalculated as shown below:

NAV(Rs.) =Market Current Currentor Fair Assets Liabilities

Value of + including - andScheme's Accrued Provisions

investments Income includingaccrued

expenses

No. of Units outstanding under Scheme

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The NAV of the Scheme will be calculatedon a weekly basis. The valuation of theScheme's assets and calculation of theScheme's NAV shall be subject to auditon an annual basis and shall be subjectto such regulations as may be prescribedby SEBI from time to time.NAV shall be calculated and announcedon a weekly basis. The NAVs of GrowthOption and Dividend Option will bedifferent after the declaration of the firstdividend.

15. ACCOUNTING POLICIES& STANDARDS

In accordance with the Regulations, theAMC will follow the accounting policiesand standards, as detailed below:

a) The AMC, for each Scheme, shallkeep and maintain proper books ofaccount, records and documents, soas to explain its transactions and todisclose at any point of time thefinancial position of the Scheme and,in particular, give a true and fair viewof the state of affairs of the Fund.

b) For the purposes of the financialstatements, the Scheme shall markall investments to market and carryinvestments in the balance sheet atmarket value. However, since theunrealised gain arising out ofappreciation on investments cannotbe distributed, provision shall bemade for exclusion of this item whenarriving at distributable income.

c) In respect of all interest-bearinginvestments, income shall be accruedon a day-to-day basis as it is earned.Therefore, when such investmentsare purchased, interest paid for theperiod from the last interest due dateup to the date of purchase shall notbe treated as a cost of purchase butshall be debited to InterestRecoverable Account. Similarly,interest received at the time of salefor the period from the last interestdue date up to the date of sale mustnot be treated as an addition to salevalue but shall be credited to InterestRecoverable Account.

d) In determining the holding cost ofinvestments and the gains or loss onsale of investments, the "averagecost" method shall be followed foreach security.

e) Transactions for purchase or sale ofinvestments shall be recognised asof the trade date and not as of thesettlement date, so that the effect ofall investments traded during afinancial year are recorded andreflected in the financial statementsfor that year. Where investmenttransactions take place outside thestock market, for example, acquisitionthrough private placement orpurchases or sales through privatetreaty, the transaction would berecorded, in the event of a purchase,as of the date on which the Schemeobtains an enforceable obligation topay the price or, in the event of a

sale, when the Scheme obtains anenforceable right to collect theproceeds of sale or an enforceableobligation to deliver the instrumentssold.

f) Where income receivable oninvestments has been accrued andhas not been received for a periodspecified in the guidelines issued bySEBI, provision shall be made bydebiting to the revenue account forthe income so accrued in the mannerspecified by guidelines issued bySEBI.

g) In a close-ended scheme whichprovides to the unit holders the optionfor an early redemption or repurchasetheir own units, the par value of theunits has to be debited to Capitalaccount and the difference betweenthe purchase price and the par value,if positive should be credited toreserves and, if negative, should bedebited to reserves. A proportionatepart of the unamortized New FundOffer Expenses should also betransferred to the reserves so thatthe balance carried forward on thataccount is proportional to the numberof units remaining outstanding.

h) The cost of investments acquired orpurchased shall include brokerage,stamp charges and any chargecustomarily included in the broker'sbought note. In respect of privatelyplaced debt instruments any front-end discount offered shall be reducedfrom the cost of the investment.

i) Underwriting commission shall berecognised as revenue only whenthere is no devolvement on theScheme. Where there is devolvementon the Scheme, the full underwritingcommission received and not merelythe portion applicable to thedevolvement shall be reduced fromthe cost of the investment.

The accounting policies and standardsoutlined above are as per the existingRegulations and are subject to change asper changes in the Regulations.Guidelines for Identification andProvisioning for Non PerformingAssets (Debt Securities) for MutualFunds:(a) Definition of a Non-Performing Asset

(NPA):An 'asset' shall be classified as nonperforming, if the interest and/orprincipal amount have not beenreceived or remained outstanding forone quarter from the day suchincome / instalment has fallen due.

(b) Effective date for classification andprovisioning of NPAs :The definition of NPA may be appliedafter a quarter past due date of theinterest. For e.g. if the due date forinterest is 30.06.2003, it will beclassified as NPA from 01.10.2003.

(c) Treatment of income accrued on theNPA and further accruals:

l After the expiry of the 1st quarterfrom the date the income hasfallen due, there will be no furtherinterest accrual on the asset i.e.if the due date for interest fallson 30.06.2003 and if the interestis not received, accrual willcontinue till 30.09.2003 afterwhich there will be no furtheraccrual of income. In short, takingthe above example, from thebeginning of the 2nd calendarquarter there will be no furtheraccrual on income.

l On classification of the asset asNPA from a quarter past due dateof interest, all interest accruedand recognised in the books ofaccounts of the Fund till the date,should be provided for. For e.g.if interest income falls due on30.06.2003, accrual will continuetill 30.09.2003 even if the incomeas on 30.06.2003 has not beenreceived. Further, no accrual willbe done from 01.10.2003onwards. Full provision will alsobe made for interest accrued andoutstanding as on 30.06.2003.

(d) Provision for NPAs - Debt Securities:Both secured and unsecuredinvestments once they are recognizedas NPAs call for provisioning in thesame manner and where these arerelated to close ended schemes thephasing would be such as to ensurefull provisioning prior to the closure ofthe scheme or the scheduled phasingwhichever is earlier.

The value of the asset must beprovided in the following manner orearlier at the discretion of the fund.The fund will not have discretion toextend the period of provisioning. Theprovisioning against the principalamount or instalments should bemade at the following ratesirrespective of whether the principalis due for repayment or not.l 10% of the book value of the

asset should be provided for after6 months past due date ofinterest i.e. 3 months from thedate of classification of the assetas NPA.

l 20% of the book value of theasset should be provided for after9 months past due date ofinterest i.e. 6 months from thedate of classification of the assetas NPA.

l Another 20% of the book valueof the assets should be providedfor after 12 months past due dateof interest i.e. 9 months from thedate of classification of the assetas NPA.

l Another 25% of the book valueof the assets should be providedfor after 15 months past due dateof interest i.e. 12 months fromthe date of classification of theasset as NPA.

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l The balance 25% of the bookvalue of the asset should beprovided for after 18 months pastdue date of the interest i.e. 15months from the date ofclassification of the assets asNPA.

Book value for the purpose of provisioningfor NPAs shall be taken as a valuedetermined as per the prescribed valuationmethod.This can be explained by an illustration:

Let us consider that interest income isdue on a half yearly basis and the duedate falls on 30.06.2001 and the interestis not received till 1st quarter after duedate i.e. 30.09.2001. This provisioning willbe done in the following phased manner:

10% provision 01.01.2002 6 months past duedate of interest i.e.3 months from thedate ofclassification ofasset as NPA(01.10.2001)

20% provision 01.04.2002 9 months past duedate of interest i.e.6 months from thedate ofclassification ofasset as NPA(01.10.2001)

20% provision 01.07.2002 12 months pastdue date ofinterest i.e.9 months fromthe date ofclassification ofasset as NPA(01.10.2001)



Thus, 1 1/2 years past the due date ofincome or 1 1/4 years from the date ofclassification of the 'asset' as an NPA, the'asset' will be fully provided for. If anyinstalment has fallen due, during the periodof interest default, the amount of provisionshould be instalment amount or aboveprovision amount, whichever is higher.

(e) Reclassification of assets :

Upon reclassification of assets as'performing assets':

1. In case a company has fullycleared all the arrears of interest,the interest provisions can bewritten back in full.

2. The asset will be reclassified asperforming on clearance of allinterest arrears and if the debt isregularly serviced over the nexttwo quarters.

3. In case the company has fullycleared all the arrears of interest,the interest not credited onaccrual basis would be creditedat the time of receipt.

4. The provision made for theprincipal amount can be writtenback in the following manner:

l 100% of the asset providedfor in the books will bewritten back at the end ofthe 2nd calendar quarterwhere the provision ofprincipal was made due tothe interest defaults only.

l 50% of the asset providedfor in the books will bewritten back at the end ofthe 2nd calendar quarterand 25% after everysubsequent quarter whereboth instalments andinterest were in defaultearlier.

5. An asset is reclassified, as'standard asset' only when bothoverdue interest and overdueinstalments are paid in full andthere is satisfactory performancefor a subsequent period of 6months.

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

l For the next two quarters, incomeshould be recognised on cashbasis and thereafter on accrualbasis. The asset will be continuedto be classified as NPA for thesetwo quarters.

l During this period of two quartersalthough the asset is classifiedas NPA no provision needs to bemade for the principal if the sameis not due and outstanding.

l If part payment is receivedtowards principal, the assetcontinues to be classified as NPAand provisions are continued asper the norms set at (d) above.Any excess provision will bewritten back.

(g) Classification of Deep DiscountBonds as NPAs :Investments in Deep Discount Bondscan be classified as NPAs, if any twoof the following conditions aresatisfied:l If the rating of the Bond comes

down to grade 'BB' or below.l If the company is defaulting in

their commitments in respect ofother assets, if available.

l Full Net worth erosion.

Provision should be made as per thenorms set at (d) above as soon as theasset is classified as NPA.

Full provision can be made if the ratingcomes down to grade 'D'.

(h) Reschedulement of an asset :

In case any company defaults oneither interest or principal amount andthe fund has accepted areschedulement of the schedule ofpayments, then the following practicemay be adhered to:

i. In case it is a first reschedulementand only interest is in default,the status of the asset, namely'NPA' may be continued andexisting provisions should not bewritten back. This practice shouldbe continued for two quarters ofregular servicing of the debt.Thereafter, this may be classifiedas 'performing asset' and theinterest provided may be writtenback.

ii. If the reschedulement is donedue to default in interest andprincipal amount, the assetshould be continued as non-performing for a period of 4quarters, even though the assetis continued to be serviced duringthese 4 quarters regularly.Thereafter, this can be classifiedas 'performing asset' and all theinterest provided till such dateshould be written back.

iii. If the reschedulement is donefor a second/third time orthereafter, the characteristic ofNPA should be continued foreight quarters of regular servicingof the debt. The provision shouldbe written back only after it isreclassified as 'performing asset'.

(i) Disclosure in the Half Yearly PortfolioReports:

The mutual funds shall makescripwise disclosures of NPAs on halfyearly basis along with the half yearlyportfolio disclosure.

The total amount of provisions madeagainst the NPAs shall be disclosed inaddition to the total quantum of NPAs andtheir proportion of the assets of the mutualfund scheme. In the list of investments anasterisk mark shall be given against suchinvestments, which are recognized asNPAs. Where the date of redemption ofan investment has lapsed, the amount notredeemed shall be shown as 'SundryDebtors' and not investment provided thatwhere an investment is redeemable byinstalments that will be shown as aninvestment until all instalments havebecome overdue.

The guidelines for identification andprovisioning for non-performing assets inrespect of debt securities are as per theexisting Regulations and are subject tochange as per changes in the Regulations.

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1. TYPE OF SCHEMEA close ended equity scheme with noassured returns from Standard CharteredMutual Fund. The Scheme has a tenureof 36 months with automatic conversioninto an open ended equity scheme.

2. MINIMUM SUBSCRIPTIONAMOUNT/TARGET AMOUNT

The Scheme under this Offer Documentseeks to raise a minimum subscription ofRs.1,00,00,000 during the New Fund OfferPeriod. There is no maximum limit.

3. MINIMUM APPLICATIONAMOUNT

The minimum application amount isRs. 5000.

4. NEW FUND OFFER PERIODThe New Fund Offer Period, will be fromApril 19, 2006 to May 16, 2006.

5. FACE VALUE OF UNITSThe face value of each Unit issued underthe Scheme shall be Rs. 10 (Rupees ten).

6. EXTENSION OF NEW FUNDOFFER PERIOD

The Trustee reserves the right to extendthe closing date, subject to the conditionthat the subscription list shall not be keptopen for more than 30 days. Any suchextension of the subscription list shall benotified by a suitable display at the officialpoint of acceptance of transactions.

7. MATURITY OF THE SCHEMEThe Scheme is a close ended EquityScheme. The duration of the Scheme is36 months from the date of allotment.

Upon maturity, the Scheme will beautomatically converted into an openended scheme without any furtherreference from the Mutual Fund/Trustee/AMC/Unitholders, subject to SEBIRegulations.

8. OPTIONS OFFERED UNDERTHE SCHEME

Under the Scheme, investors may chooseeither the Growth Option or the DividendOption.

(i) Growth OptionThe Scheme will not declare any dividendunder this option. The income attributableto Units under this Option will continue toremain invested in the Scheme and willbe reflected in the Net Asset Value ofUnits under this option.

(ii) Dividend OptionUnder this option, the Fund will endeavourto declare dividends as and when deemedfit by the Fund and/or on &/or before theclosure of the Scheme. In case no dividendis declared during the tenure of theScheme or at closure, the net surplus, if

any, will remain invested and be reflectedin the NAV.

Dividends, if declared, will be paid out ofthe net surplus of the Scheme to thoseUnitholders whose names appear in theRegister of Unitholders on the record date.The actual date for declaration of dividendwill be notified by a suitable display in theOfficial point of acceptance of transactionsof the AMC. Unitholders are entitled toreceive dividend within 30 days of thedate of declaration of the dividend.However, the Mutual Fund will endeavourto make dividend payments sooner toUnitholders. There is no assurance orguarantee to Unitholders as to the rate ofdividend distribution nor that dividendswill be paid, though it is the intention of theMutual Fund to make dividenddistributions.

The AMC reserves the right to declaredividend at weekly / monthly / quarterly /half yearly / annual or any other intervalsas it may deem appropriate.

For details on taxation of dividend, pleaserefer to the paragraph titled 'Tax Benefitsof Investing in the Mutual Fund' in SectionVII.

The Investors should note that NAVs ofthe Dividend Option and the Growth Optionwill be different after the declaration ofdividend under the Scheme.

Dividend Re-investment facility :Investors opting for the Dividend Optionmay choose to re-invest the dividend tobe received by them in additional Units ofthe Scheme. Under this provision, thedividend due and payable to theUnitholders will compulsorily and withoutany further act by the Unitholders, be re-invested in the same option (at the firstex-dividend NAV). The dividends so re-invested shall constitute a constructivepayment of dividends to the Unitholdersand a constructive receipt of the sameamount from each Unitholder for re-investment in Units.

On re-investment of dividends, the numberof Units to the credit of the Unitholder willincrease to the extent of the dividend re-invested divided by the NAV applicableas explained above. There shall, however,be no entry load on the dividends so re-invested. Dividend declaration anddistribution shall be in accordance withSEBI Regulations as applicable from timeto time.

9. PLEDGE OF UNITSFOR LOANS

The Units can be pledged by theUnitholders as security for raising loanssubject to the conditions of the lendinginstitution. The Registrar will take note ofsuch pledge / charge in its records.Disbursement of such loans will be at theentire discretion of the lending institution

and the fund assumes no responsibilitythereof.

The pledgor will not be able to redeemUnits that are pledged until the entity towhich the Units are pledged provideswritten authorisation to the fund that thepledge/lien charge may be removed. Aslong as Units are pledged, the pledgeewill have complete authority to redeemsuch Units.

10. SWITCH FACILITY(i) Switching from any Schemes of

the Mutual Fund to this SchemeInvestors who hold Units in any openended schemes launched or to belaunched hereafter of the Mutual Fundand also investors who holds Units inPlan/(s) of any close ended schemelaunched or to be launched hereafter, mayswitch all or part of their holdings to theScheme available for subscription underthis Offer Document during the New FundOffer Period of the Scheme (subject toTerms & Conditions of respectiveSchemes). The switch from any closeended fund will be subject to applicablerepurchase &/or maturity date of therespective Scheme/(s) or Plan/(s) and willbe permitted only on such dates ofrespective Plans/Schemes.

Investors so desiring to switch may submita switch request, already available withthem along with an application form of theScheme indicating therein the details ofthe Scheme to which the switch is to bemade. Applications for switch as aboveshould specify the amount/Units to beswitched from out of the Units held in anyof the existing Schemes of the Fund. Theswitch request will be subject to theminimum application size and other termsand conditions of the Offer Document ofthe Scheme under this Offer Documentand the Scheme from which the amountis switched out.

The Applicable NAV for switching out ofthe existing open-ended funds will be theNAV of the Business Day on which theswitch request, complete in all respects,is accepted by the AMC, subject to thecut-off time and other terms specified inthe Offer Documents of the respectiveexisting open-ended Schemes.

Similarly the applicable NAV for switchingout of the existing close-ended funds willbe the applicable NAV (after consideringapplicable loads) on the specifiedrepurchase date for such Plan(s), subjectto the switch request, complete in allrespects, being accepted by the AMC,and subject to the availability of repurchasefacility and other terms specified in theOffer Document of the respective existingclosed-end Schemes.

Investors should note that the amountinvested under Sections 54EB in theInvestment Plans of Grindlays SuperSaver Income Fund would have to be

V. Units on Offer

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locked-in for a period of seven years andthe Units so allotted cannot be switchedto another Scheme/option during the lock-in period of seven years. This is subjectto any change that may be effected in theIncome-tax Act, 1961 or any guidelines /amendments / rules / clarifications issuedby the Central Board of Direct Taxes.

(ii) Switch from this Scheme to anyother eligible Schemes of theMutual Fund

Investors who hold Units of the Schememay switch all or part of their holdings toany (to be launched hereafter) other Open-end/close-ended Scheme/s (where switch-in is permitted) of the Mutual Fund. Suchswitch will be permitted only on theStipulated Repurchase Date or onmaturity/redemption of the Scheme.

Investors so desiring to switch may submita switch request, already available withthem, indicating therein the details of theScheme or any other Scheme of theMutual Fund to which the switch is to bemade. Applications for switch as aboveshould specify the amount/Units to beswitched from out of the Units held. Theswitch request will be subject to theminimum application size and other termsand conditions under this Offer Documentand the terms and conditions of theScheme to which the amount is switchedinto.

Note:The switch will be effected by redeemingUnits from the Scheme in which the Unitsare held and investing the net proceeds inthe other Scheme(s)/Plan(s), subject tothe minimum balance applicable for therespective Scheme(s)/ Plan(s).

The price at which the Units will beswitched out of the Scheme(s) /Plan(s)will be based on the Applicable NAV ofthe relevant Scheme(s)/ Plan(s) and afterconsidering any exit/entry/ combination ofentry and exit loads that the Trustee mayapprove from time to time.

11. SYSTEMATIC INVESTMENTPLAN (SIP)

This facility will be available to the investorsof the Scheme subsequent to itsconversion into open ended Scheme uponmaturity.

Unitholders of the Scheme can avail thebenefit of opting for SIP. For a SIP theunitholder is required to invest specifiedsum of money each month, being minimumamounts of Rs. 500/- respectively, i.e.Unitholders who wish to invest on amonthly basis can invest a minimum ofRs. 500 and in multiples of Re. 1/-thereafter.

The unitholder wish to opt for monthlySIP, has to commit investment by providingthe Registrar with at least six post datedcheques/debit mandate/mandate form forElectronic Clearing System (ECS) / suchother instrument as recognized by AMCfrom time to time for a block of 6 monthsin advance.

SIP can commence on any date as desiredand specified by the unitholder in SIPapplication form. cheques/debit mandate/mandate form for Electronic ClearingSystem (ECS)/ such other instrument asrecognized by AMC from time to timeshould be drawn in favour of the respectiveschemes.

The AMC reserves the right to introduceSIPs at such other frequencies such asweekly / quarterly / half-yearly etc. as theAMC may feel appropriate from time totime.

SIP offered through AUTOSAVEUnitholder can opt for SIP facility by fillingup "Mandate form for ECS (debit)-Autosave" ECS debit mandate should beaccompanied with cheque for first SIPinstalment. This facility is at presentavailable at select centres only. The AMCat its own discretion reserves the right toincrease the number of centres or curtailthis facility at one or more centres asdeemed appropriate. The first SIP chequeduring the continuous offer of the Schemeshould be received by the AMC/Registrar20 days before the specified/desired dateof SIP.

The AMC reserves the right to introduceSIPs through autosave at such otherfrequencies such as weekly / quarterly /half-yearly etc. as the AMC may feelappropriate from time to time.

SIP offered through debit mandateInvestors having a bank account withStandard Chartered Bank or such otherBank with whom the Fund would have anarrangement from time to time may giveinstructions to that Bank at any of itsbranches in India to debit investorsaccount on a monthly basis.

On receipt of the SIP application alongwithcheques/debit mandate/mandate form forElectronic Clearing System (ECS)/ suchother instrument as recognized by AMCfrom time to time, the Registrar will senda letter to the Unitholder confirming thathis/her name has been included in theSystematic Investment Plan. The cheques/mandates will be presented on the desireddate as specified in the application form.If specified date falls on a holiday, thecheques will be deposited on the nextBusiness Day. In case of debitmandates / local cheques, Units will beallotted at the Purchase Price on thedesired date as specified in the applicationform in case the date happens to be aholiday, Units will be allotted on the nextBusiness Day.

Within 3 Business Days of such allotment,the Fund shall under normalcircumstances endeavour to mail anAccount Statement indicating the newbalance to his / her credit in the Account.An investor will have the right todiscontinue the Systematic InvestmentPlan, subject to giving 14 days' prior noticeto the Registrar.

The AMC reserves the right to introduceSIPs through debit mandate at such other

frequencies such as weekly / quarterly /half-yearly etc. as the AMC may feelappropriate from time to time.

The AMC reserves the right to change theprocedures, terms and conditions ofinvesting.

12. SYSTEMATIC WITHDRAWALPLAN (SWP)

This facility will be available to the investorsof the Scheme subsequent to itsconversion into open ended Scheme uponmaturity.

Unitholders of the Scheme have the benefitof enrolling themselves in the SystematicWithdrawal Plan. The SWP allows theUnitholder to withdraw a specified sum ofmoney periodically from his investmentsin the Scheme. SWP is ideal for investorsseeking a regular inflow of funds for theirneeds. It is also ideally suited to retireesor individuals who wish to invest lumpsumsand withdraw from the investment over aperiod of time.

Systematic Withdrawal Plan - As peramount indicated by the UnitholderThe minimum amount which the Unitholdercan withdraw is Rs. 500 and in multiplesof Re. 1 thereafter. Unitholders maychange the amount indicated in the SWP,subject to a minimum amount of Rs. 500and in multiples of Re. 1 thereafter. TheUnitholder may avail of this plan by sendinga written request to the Registrar. Thisfacility is available in the growth anddividend option.

Systematic Withdrawal Plan-As peramount decided by the AMC hereinaftercalled "Periodic Encashment Plan"(PEP)

This facility is available in the growth optiononly. The amount of withdrawal would bedecided by the AMC based on anticipatedgrowth in NAV. Further to facilitateinvestors, such encashment facility isavailable on monthly/quarterly/half yearly/annual basis.

To investors having a bank account withStandard Chartered Bank or such otherBanks with whom the Fund would havean arrangement from time to time, thepayments on account of SWP/PEP wouldbe effected by way of credit to theiraccount.

The amount thus withdrawn by redemptionwill be converted into Units at theApplicable NAV based prices and thenumber of Units so arrived at will besubtracted from the Units balance to thecredit of that Unitholder. The Fund mayclose a Unitholder's account if the balancefalls below Rs. 500 and the investor failsto invest sufficient funds to bring the valueof the account up to Rs. 500 within 30Business Days, after a written intimationin this regard is sent to the Unitholder.

The SWP may be terminated on a writtennotice by a Unitholder of the Scheme andit will terminate automatically if all Unitsare liquidated or withdrawn from the

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account or upon the Funds' receipt ofnotification of death or incapacity of theUnitholder.

13. WHO CAN INVEST?The following persons are eligible andmay apply for subscription to the Units ofthe Scheme (subject, wherever relevant,to purchase of units of Mutual Funds beingpermitted under respective constitutionsand relevant statutory regulations):

l Resident adult individuals either singlyor jointly.

l Minor through parent/lawful guardian

l Non-resident Indians/Persons ofIndian origin residing abroad (NRIs)on full repatriation basis or on non-repatriation basis.

l Companies, Bodies Corporate, PublicSector Undertakings, association ofpersons or bodies of individualswhether incorporated or not andsocieties registered under theSocieties Registration Act, 1860 (solong as the purchase of units ispermitted under the respectiveconstitutions).

l Religious and Charitable and PrivateTrusts under the provision of Section11(5) (xii) of the Income Tax Act,1961 read with Rule 17C of IncomeTax Rules, 1962 (subject to receipt ofnecessary approvals as "PublicSecurities" where required).

l The Trustee of Private Trustsauthorised to invest in mutual fundSchemes under their trust deed.

l Partnership Firms.

l Karta of Hindu Undivided Family(HUF).

l Banks (including Co-operative Banksand Regional Rural Banks), FinancialInstitutions and InvestmentInstitutions.

l Foreign Institutional Investors (FIIs)registered with SEBI on fullrepatriation basis.

l Army, Air Force, Navy and other para-military funds.

l Scientific and Industrial ResearchOrganizations.

l Mutual fund Schemes.

l Provident/Pension/Gratuity and suchother Funds as and when permittedto invest.

l International Multilateral Agenciesapproved by the Government of India.

l Others who are permitted to invest inthe Scheme as per their respectiveconstitutions.

l Other Schemes of StandardChartered Mutual Fund subject to theconditions and limits prescribed inSEBI Regulations and/or by theTrustee, AMC or sponsor maysubscribe to the units under thisScheme.

The Fund reserves the right to include /exclude new / existing categories ofinvestors to invest in this Scheme fromtime to time, subject to SEBI Regulations,if any.

The AMC reserves the right toscrutinize /verify the application/applicantand the source of the applicant's fundsand also reserves the right on the groundsof money laundering by the applicant toforce redemption within thirty BusinessDays of the allotment of units at theapplicable NAV prevalent at the time ofsuch redemption, by redeeming theproceeds in favour of the applicant and/orundertaking such other action with thefunds, that may be prescribed underapplicable law including redeeming theproceeds in favour of the source accountfrom which the funds had been investedin the mutual fund.

14. HOW TO APPLY?A common application form would beapplicable for investment by all classes ofinvestors.

Application forms would be available atthe Distributors, Official point ofacceptance of transactions, at thecorporate office of the AMC and the officeof the Registrar.

Applications complete in all respects, maybe submitted before closure of the NewFund Offer Period at the Official point ofacceptance of transactions, or may besent by mail to the Registrar, ComputerAge Management Services Pvt. Limited,Ground Floor, 178/10, KodambakkamHigh Road, Opp. Hotel Palm Groove,Numgambakkam, Chennai - 600 034 orat Standard Chartered Asset ManagementCo. Pvt. Ltd., 90, M.G. Road, 1st floor,Fort, Mumbai 400 001.

Kindly retain the acknowledgement slipinitialed/stamped by the collecting agency.

15. MODE OF PAYMENT(I) Resident Investors(a) For Investors having a bank

account with Standard CharteredBank or such other Banks withwhom the Fund would have anarrangement from time to time:

Investors may make payments forsubscription to the Units of theScheme either by issuing a chequedrawn on or by giving a debit mandateto their account in the appropriateplace in the application form, withany branch of Standard CharteredBank or such other Banks with whomthe Fund would have an arrangementfrom time to time and are approvedby RBI in India.

(b) For Other Investors not coveredby (i) above:

1) Investors may make payments forsubscription to the Units of theScheme at the bank collection centresby local Cheque/Pay Order/BankDraft, drawn on any bank branch,

which is a member of BankersClearing House located in the Officialpoint of acceptance of transactionswhere the application is lodged.

Cheques/Pay Orders/Demand Draftsshould be drawn as follows:l The Cheque/DD/Payorder

should be drawn in favour ofStandard Chartered EnterpriseEquity Fund (SCEEF) asmentioned in the applicationform/addendum at the time ofthe launch.

Please note that all cheques/DDs/payorders should be crossed as"Account payee".

2) Centres other than the places wherethere are Official point of acceptanceof transactions as designated by theAMC from time to time, are OutstationCentres. Investors residing atoutstation centres should senddemand drafts drawn on any bankbranch which is a member of BankersClearing House payable at any of theplaces where an Official point ofacceptance of transactions is located.

Payments by cash, money orders,postal orders, stockinvests and out-station and/or post-dated cheques willnot be accepted.

(II) NRIs, FIIsa) NRIs:The Reserve Bank of India, in terms ofNotification No. FERA.195/99-RB datedMarch 30, 1999 has granted generalpermission to mutual funds referred to inclause (23D) of Section 10 of Income TaxAct, 1961:

1) (a) to issue, to Non-Residents ofIndian nationality or origin (NRIs),Units or similar other instrumentsof the Scheme approved bySecurities and Exchange Boardof India subject to conditionsstated in para 2 below,

(b) to send such Units/instrumentsout of India to their place ofresidence or location as the casemay be, and

(c) to make payment to non-residentinvestors, on repurchase of Unitsor other instruments subject toconditions in paragraph 3 below.

2) The general permission grantedherein to issue Units is subject to thefollowing conditions:

(a) the Mutual Fund complies withterms and conditions stipulatedby Securities and ExchangeBoard of India;

(b) in respect of investment madeon repatriation basis, the amountrepresenting the investment isreceived by inward remittancethrough normal bankingchannels or by debit to the NRE/FCNR account of the non-

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resident investor maintained withan authorised dealer in India;

(c) in respect of an investment madeon non-repatriation basis, theamount representing theinvestment is received by inwardremittance through normalbanking channels or by debit tothe NRE/FCNR/NRO/NRSRaccount of the non-residentinvestor maintained with anauthorised dealer in India.

3) The general permission grantedherein to repurchase Units is subjectto the following conditions:

(a) Where the investment is made on arepatriation basis, the amountrepresenting the dividend/interest andmaturity proceeds may be remittedthrough normal banking channels orcredited to NRE/FCNR/NRO/NRSRaccount of the non-resident investor.

(b) Where the investment is made byremittance from abroad throughnormal banking channels or by debitto NRE/FCNR/NRO account of thenon-resident investor on a non-repatriation basis the interest/dividend and maturity proceeds maybe credited to the NRO/NRSRaccount of the non-resident investor.

(c) Where the investment is made bydebit to the NRSR account of thenon-resident investor the dividend/interest and maturity proceeds shallbe credited to the NRSR account ofthe non-resident investor.

b) FIIs:The Reserve Bank of India, in terms of itsnotification No. FERA.212/99-RB datedOctober 18,1999, has granted generalpermission to Mutual Funds:

1.(a) to issue, Units or similar instrumentsunder Plans approved by Securitiesand Exchange Board of India toForeign Institutional Investors (FIIs)subject to para 2 below,

(b) to send such Units / instruments outof India to their global custodians,

(c) to repurchase Units or otherinstruments issued to FIIs and makepayment thereof, subject to para 3below.

2. The general permission grantedherein to issue Units is subject to thefollowing conditions:

(a) The Mutual Fund complies with termsand conditions stipulated bySecurities and Exchange Board ofIndia;

(b) The amount representing theinvestment is received by debit to theSpecial Non-Resident RupeeAccount of the FII maintained with adesignated bank, approved by thebank.

3. The general permission grantedherein to repurchase Units is subjectto the condition that the amount

representing dividend/interest andmaturity proceeds are credited to aSpecial Non-Resident RupeeAccount.

(III) Mode of Payment onRepatriation basis

In case of NRIs and persons of Indianorigin residing abroad, payment may bemade by inward remittance through normalbanking channels or by means of an IndianRupee draft purchased abroad or by wayof a cheque / demand draft drawn on Non-Resident (External) (NRE) Accountpayable at par at Mumbai or alternativelyby way of a debit mandate on their Non-Resident (External) (NRE) Account withStandard Chartered Bank in India.Payments can also be made by means ofrupee drafts payable at Mumbai andpurchased out of funds held in NREAccounts / FCNR Accounts. Paymentsmay also be made through Demand Draftsor other instruments permitted underForeign Exchange Management Act.

FIIs and International Multilateral Agenciesshall pay their subscription by way of directremittance from abroad or out of theirspecial Non-Resident Rupee Accountmaintained with a designated bank in Indiaor as may be permitted by law.

All cheques/pay orders/drafts should bemade out in favour of "SCEEF - NRI/FII"and crossed "Account Payee Only".Please refer to the Application Form/Addendum for exact details. In case IndianRupee drafts are purchased abroad orfrom FCNR/NRE Account, a certificatefrom the Bank issuing the draft confirmingthe debit shall also be enclosed.

(IV) Mode of payment onNon-Repatriation basis

In case of NRIs/persons of Indian originapplying for Units on a non-repatriationbasis, payments may be made by inwardremittance through normal bankingchannel or by local Cheques/Pay Ordersor Demand Drafts drawn on any bankbranch which is a member of BankersClearing House located in the Official pointof acceptance of transactions where theapplication is accepted out of Non-Resident Ordinary (NRO) accounts or byway of debit mandate on their NROaccount with Standard Chartered Bank orsuch other banks with whom the fund hasan arrangement from time to time and isapproved by RBI in India.

The AMC reserves the right to rejectapplications received by any mode ofpayment other than mentioned above.

16. APPLICATION UNDERPOWER OF ATTORNEY/BODY CORPORATE/REGISTERED SOCIETY/TRUST/ PARTNERSHIP

In case of an application under Power ofAttorney or by a limited company, bodycorporate, registered society, trust orpartnership, etc., the relevant Power ofAttorney (original or certified true copy

duly notarised) or the relevant resolutionor authority to make the application as thecase may be, or duly certified copy thereof,along with the certified copy of thememorandum and articles of associationand/or bye-laws and/or trust deed and/orpartnership deed and certificate ofregistration must be lodged at theRegistrar's Office. The officials should signthe application under their officialdesignation. In case of a trust/fund, it shallsubmit a certified true copy of the resolutionfrom the trustee(s) authorising suchpurchases.

17. JOINT APPLICANTSIn the event an Account has more thanone registered owner, the first-namedholder (as determined by reference to theoriginal Application Form) shall receivethe Account Statement, all notices andcorrespondence with respect to theAccount, as well as the proceeds of anyredemption requests or dividends or otherdistributions. In addition, such Unitholdersshall have the voting rights, as permitted,associated with such Units, as per theapplicable guidelines.

Applicants can specify the 'mode ofholding' in the Application Form. Anapplicant can hold Units either 'Singly' or'Jointly' or on the basis of 'Anyone orSurvivor'. In the case of the holdingspecified as 'Jointly', redemptions and allother requests relating to monetarytransactions would have to be signed byall joint holders. However, in cases ofholding specified as 'Anyone or Survivor',any one of the Unitholders will have thepower to make redemption requests,without it being necessary for all theUnitholders to sign. However, in all cases,the proceeds of the redemption will bepaid to the first-named holder.

18. NOMINATION FACILITYIn terms of recent SEBI Notification datedJuly 2, 2002 nomination can be madeonly by individuals on their own behalfsingly or jointly. If the units are held jointly,all joint unit holders will sign the nominationform. No person other than an individualincluding but not limited to a Company,Body Corporate, PSU, AOP, BOI, Society,Trust, Partnership Firm, Karta of HUF,Banks, FIIs and holders of POA cannominate.

The Unit Holder/s can at the time anapplication is made or by subsequentlywriting to a Official point of acceptance oftransactions, request for a NominationForm in order to nominate any one personto receive the Units upon his/ her deathsubject to the completion of the necessaryformalities e.g. Proof of the death of theUnit Holder, signature of the nominee,furnishing proof of guardianship in casethe nominee is a minor, execution ofIndemnity Bond of or such otherdocuments as may be required from thenominee in favour of and to the satisfactionof the Fund, the AMC, or the Trustee.

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If the nominee is a minor, then the nameand address of the guardian nominee shallbe provided. An NRI can be a nomineesubject to the Exchange ControlRegulations from time to time. In terms ofSEBI circular dated February 16, 2004,nomination can also be in favour of theCentral Government, State Government,Local authority, any person designated byvirtue of his office or a religious charitabletrust. The nominee shall not be a trust(other than a religious or charitable trust),society, body corporate, partnership firm,Karta of Hindu Undivided Family or apower of attorney holder.

Nomination in respect of the Units standsrescinded upon the redemption of Units.Cancellation of nomination can be madeonly by those individuals who hold unitson their own behalf singly or jointly andwho made the original nomination. Oncancellation of the nomination thenomination shall stand rescinded and theAMC/Fund shall not be under anyobligation to transfer the units in favour ofthe nominee.

Transfer of Units / payment to the nomineeof the sums shall be valid and effectualagainst any demand made upon the Trust/AMC and shall discharge the Trust/ AMCof all liability towards the estate of thedeceased Unit Holder and his/ hersuccessors and legal heirs, executors andadministrators.

If the Fund or the AMC or the Trusteewere to incur, or suffer any claim, demand,liabilities, proceedings or actions are filedor made or initiated against any of themin respect of or in connection with thenomination, they shall be entitled to beindemnified absolutely for any loss,expenses, costs, and charges that any ofthem may suffer or incur absolutely fromthe investor's estate.

19. ISSUANCE OF UNITSFull allotment will be made to all validapplications received during the New FundOffer Period . Allotment of Units, shall becompleted not later than 30 days after theclose of the New Fund Offer Period .

20. ACCOUNT STATEMENTSAn Account Statement will be sent byordinary post to each Unitholder, statingthe number of Units allotted, not later than30 Days from the close of the New FundOffer Period . The account statement shallnot be construed as a proof of title and isonly a computer generated statementindicating the details of transactions underthe Scheme and is a non-transferabledocument. The account statement will beissued in lieu of Unit Certificate/s.

21. UNIT CERTIFICATESNormally no Unit Certificates will be issued.However, if the applicant so desires, theAMC shall issue a non-transferable UnitCertificate to the applicant within 6 weeksof the receipt of request for the certificate.A Unit Certificate if issued must be dulydischarged by the Unitholder(s) and

surrendered along with the request forredemption/switch or any other transactionof Units covered therein.

22. REFUNDSIn accordance with the Regulations, if theScheme fails to collect the minimumsubscription amount as specified above,the Fund shall be liable to refund themoney to the applicants.

In addition to the above, refund ofsubscription money to applicants whoseapplications are invalid for any reasonwhatsoever will commence immediatelyafter the allotment process is completed.Refunds will be completed within six weeksof the close of the New Fund Offer Period.If the Fund refunds the amount after sixweeks, interest @ 15% per annum shallbe paid by the AMC. Refund orders will bemarked "Account Payee only" and drawnin the name of the applicant in the caseof the sole applicant and in the name ofthe first applicant in all other cases. Allrefund cheques will be sent by RegisteredPost A.D.

As per the directives issued by SEBI,it is mandatory for applicants tomention their bank account numbersin their applications for purchase orredemption of Units.

23. REPURCHASE FACILITYBefore Maturity of the SchemeTo provide additional facility to theUnitholders, the Fund will offer torepurchase Units on a half-yearly basisexcept for settlement of death claim cases.The Units can be repurchased/redeemed(i.e., sold back to the Fund), at theApplicable NAV subject to payment of exitload, if any. The Units so repurchasedshall not be reissued. Redemptionrequests can be made in amounts/Units.The repurchase request can be made infull/part for Units held by the Unitholder.

Redemption Price = Applicable NAV x(1 - Exit Load,if any).

Eg.: If the applicable NAV is Rs. 10.00;exit load is 2% then redemption price willbe Rs. 9.80.

Investors may note that the Trustee hasa right to prescribe or modify the loadstructure and to introduce an exit loadsubject to the Regulations. Please refer tothe section titled "Loads and RecurringExpenses" for further details.

A Unitholder may request for redemption/repurchase for a specified amount or aspecified number of Units. The number ofUnits specified will be multiplied by theApplicable NAV for deciding theredemption amount to be paid. If aUnitholder specifies the redemptionamount, the Fund will divide the amountso specified by the Applicable NAV toarrive at the number of Units to beredeemed.

Unitholders may also request forredemption of their entire holding and close

the account or may request for redemptionof their part holdings by indicating thesame at the appropriate place in theRedemption Request Form.

The Scheme will come to an end as perthe specified period of the scheme. Onmaturity of the scheme, the outstandingUnits shall be redeemed and proceedswill be paid to the Unitholder.

Purchase of Units on an ongoing basisupon conversion into an open endedSchemeSubsequent to the Scheme's conversioninto an open-ended scheme upon maturity,ongoing purchases by investors will beaccepted only by Cheques/pay orders/demand drafts or debit mandate for theminimum application amount of thescheme and in multiples of Re. 1/-thereafter. Ongoing purchases by existingunitholders will be accepted by Cheques/pay orders/demand drafts or debitmandate in multiples of Re 1/-. The debitmandate to be on their account withStandard Chartered Bank and/or suchother banks with whom the fund has anarrangement from time to time and isapproved by RBI in India.

The Trustee shall, have absolute discretionto accept/ reject any application forpurchase of Units, if in the opinion of theTrustee, increasing the size of theScheme's Unit capital is not in the generalinterest of the Unitholders, or the Trusteefor any other reason believes it would bein the best interest of the Scheme or itsUnitholders to accept/reject such anapplication.

Redemption of Units after conversionto an open-ended SchemeSubsequent to conversion of Scheme intoan open-ended Scheme upon maturity,the Units can be Redeemed (i.e. sold backto the Mutual Fund) or Switched out (i.e.to another scheme of the Mutual Fund) onevery Business Day at the RedemptionPrice. A unitholder may requestredemption of a specified amount or aspecified number of units, (subject tominimum redemption amount which is inmultiples of Re. 1/-) the number of unitswill be considered for redemption amount.In case an investor has purchased Unitson more than one Business Day the Unitspurchased prior in time (i.e. those Unitswhich have been held for the longestperiod of time) will be deemed to havebeen redeemed first i.e. on a First-in-First-Out basis.

Unitholders may also request forredemption of their entire holding and closethe account by indicating the same at theappropriate place in the RedemptionRequest Form.

i) Redemption PriceThe Redemption Price of the Units will bebased on the Applicable NAV. If there isno exit load, the Redemption Price wouldbe:

Redemption Price = Applicable NAV

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In cases where exit load is applicable, theRedemption price would be:

Redemption Price = Applicable NAV x(1 - Exit Load,if any)

Eg.: If the applicable NAV is Rs. 10.00;exit load is 2% then redemption price willbe Rs. 9.80

Investors may note that the Trustee hasa right to prescribe or modify the loadstructure and to introduce an exit load ora combination of entry and exit loadssubject to the Regulations.

24. APPLICABLE NAVBefore the Maturity of SchemeRedemptions/Switches are permissibleonly at the end of every half year as perthe Repurchase Schedule of the Scheme.The NAV applicable for such redemptions /switches will be based on the last Businessday for that half year, as per the StipulatedRepurchase Schedule of the Scheme.

Applicable NAV on an ongoing basisupon conversion into an open-endedSchemeFor Purchases including switch-insIn respect of valid applications receivedupto 3 p.m. by the Mutual Fund* alongwitha local cheque or a demand draft payableat par at the place where the applicationis received, the closing NAV of the day onwhich the application is received shall beapplicable.

In respect of valid applications receivedafter 3 p.m. by the Mutual Fund alongwitha local cheque or a demand draft payableat par at the place where the applicationis received, the closing NAV of the nextBusiness Day shall be applicable.

Redemptions including switch-outsIn respect of valid applications receivedupto 3 p.m. by the Mutual Fund, sameday's closing NAV shall be applicable.

In respect of valid applications receivedafter 3 p.m. by the Mutual Fund, the closingNAV of the next Business Day shall beapplicable.

The fund shall under normalcircumstances endeavour to despatchredemption proceeds within threeBusiness Days (T+3) from the date ofacceptance of redemption requests at theofficial points of transactions but as perRegulations under no circumstances, laterthan 10 (ten) Business Days from thedate of acceptance of the request.

25. LISTING AND TRANSFEROF UNITS

Units of the Scheme is not proposed to belisted on any stock exchange and notransfer facility is provided. However, theFund may at its sole discretion list theUnits under the Scheme on one or moreStock Exchanges at a later date, andthereupon the Fund will make a suitablepublic announcement to that effect.

If a person becomes a holder of the Unitsconsequent to operation of law, or uponenforcement of a pledge, the Fund will,subject to production of satisfactoryevidence, effect the transfer, if thetransferee is otherwise eligible to hold theUnits. Similarly, in cases of transfers takingplace consequent to death, insolvencyetc., the transferee's name will be recordedby the Fund subject to production ofsatisfactory evidence.

26. HOW TO REDEEM /REPURCHASE?

The redemption / repurchase requests canbe made on the transaction slip forredemption available at the Official pointof acceptance of transactions or the officeof the Registrar or the offices of the AMCon any Business Day.

In case the Units are standing in the namesof more than one Unitholder, where modeof holding is specified as 'Jointly',redemption requests will have to be signedby all joint holders. However, in cases ofholding specified as 'Anyone or Survivor',any one of the Unitholders will have thepower to make redemption requests,without it being necessary for all theUnitholders to sign. However, in all cases,the proceeds of the redemption will bepaid only to the first-named holder.

The Unitholder may either request formailing of the redemption proceeds to his/her address or the collection of the samefrom the Official point of acceptance oftransactions.

27. CONVERSION ON MATURITYThe Scheme is a close ended equityscheme and duration of the Scheme is 36months from the date of allotment.

If the date stipulated for maturity ofScheme is a non-Busines Day, theScheme will mature on next Business Day.Upon the maturity the Scheme willautomatically be converted into an openended scheme without any furtherreference from the Mutual Fund/Trustee/AMC/ Unitholders, subject to SEBIRegulations.

28. PAYMENT OF PROCEEDSAll redemption requests received at anOfficial point of acceptance of transactionsor the Office of the Registrar on anyBusiness Day will be considered acceptedfor that stipulated Repurchase Period,subject to the redemption request beingcomplete in all respects, and will be pricedon the basis of the Applicable NAV (subjectto the applicable load) for that stipulatedRepurchase Period.

Please see hereinbelow the paragraphtitled 'Suspension of Repurchase of Unitsand Dividend Distribution'.

The Fund shall despatch the redemptionproceeds within 10 (ten) Business Daysfrom the stipulated Repurchase date/Applicable NAV date.

The redemption cheque will be issued infavour of the sole/first Unitholder'sregistered name and bank accountnumber and will be sent to the registeredaddress of the sole/first holder as indicatedin the original Application Form. Theredemption cheque will be payable at parat all the places where the Official pointsof acceptance of transactions are located.The bank charges for collection of chequesat all other places will be borne by theUnitholder.

Direct Credit Facility for account holdersof Standard Chartered Bank or such otherBanks with whom the Fund would havean arrangement from time to time:

Unitholders having a bank account withStandard Chartered Bank or such otherBanks with whom the Fund would havean arrangement from time to time mayavail of the facility of direct credit to theiraccount for sale of their Units of theScheme. In such cases the Fund will creditthe first/sole Unitholder's account with theredemption proceeds within 10 (ten)Business Days from the StipulatedRepurchase Date.

As per the directives issued by SEBI,it is mandatory for applicants tomention their bank account numbersin their applications for purchase orredemption of Units.

A fresh Account Statement will be sent bythe Registrar to the redeeming investors,indicating the new balance to the credit inthe Account.

The Fund may close a Unitholder'saccount if, as a consequence ofredemption/ repurchase, the balance fallsbelow Rs. 500/-. In such a case, entireUnits to the Unitholder's account will beredeemed at the Applicable NAV with theapplicable Load, if any, and the accountwill be closed.

29. REDEMPTION BY NRIs /FIIsUnits held by an NRI investor and FIIsmay be redeemed by such an investor inaccordance with the procedure describedabove and subject to any procedures laiddown by RBI.

30. EFFECT OF REPURCHASEThe Unit capital and Reserves of theScheme will stand reduced by an amountequivalent to the product of the number ofUnits repurchased and the Applicable NAVas on the date of redemption.

31. FRACTIONAL UNITSIf a request for redemption / repurchaseis made in Rupee amounts and not interms of number of Units of the Scheme,an investor may be left with FractionalUnits. Fractional Units will be computedand accounted for up to three decimalplaces. However, Fractional Units will inno way affect the investor's ability toredeem the Units, either in part or in fullstanding to the Unitholder's credit.

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32. SUSPENSION OFREDEMPTION /REPURCHASE OF UNITSAND DIVIDENDDISTRIBUTION

The Mutual Fund at its sole discretionreserves the right to withdraw repurchaseor switching of Units of the Scheme,temporarily or indefinitely, if in the opinionof the AMC the general market conditionsare not favourable and/or suitableinvestment opportunities are not availablefor deployment of funds. However, thesuspension of repurchase/switching eithertemporarily or indefinitely will be with theapproval of the AMC & trustee. The AMCreserves the right in its sole discretion towithdraw the facility of switching out of theScheme, temporarily or indefinitely.Further, the AMC & Trustee may alsodecide to temporarily suspenddetermination of NAV of the Schemeoffered under this Document, andconsequently redemption of Units,declaration and distribution of dividend inany of the following events:

1. When one or more stock exchangesor markets, which provide basis forvaluation for a substantial portion ofthe assets of the Scheme are closedotherwise than for ordinary holidays.

2. When, as a result of political,economic or monetary events or anycircumstances outside the control ofthe Trustee and the AMC, the disposalof the assets of the Scheme is notreasonable, or would not reasonablybe practicable without beingdetrimental to the interests of theUnitholders.

3. In the event of a breakdown in themeans of communication used forthe valuation of investments of theScheme, without which the value ofthe securities of the Scheme cannotbe accurately calculated.

4. During periods of extreme volatility ofmarkets, which in the opinion of theAMC are prejudicial to the interestsof the Unitholders of the Scheme.

5. In case of natural calamities, strikes,riots and bandhs.

6. In the event of any force majeure ordisaster that affects the normalfunctioning of the AMC or theRegistrar.

7. During the period of Book Closure.

8. If so directed by SEBI.

In the above eventualities, the time limitsindicated above, for processing of requestsfor redemption of Units and/or distributionof dividend will not be applicable. Furtheran order to purchase units is not bindingon and may be rejected by the Trustee,the AMC or their respective agents until ithas been confirmed in writing by the AMCor its agents and payment has beenreceived. The suspension or restriction ofrepurchase/redemption facility under the

scheme shall be made applicable onlyafter the approval of the Board of Directorsof the Asset Management Company andthe Trustee and the details of thecircumstances and justification for theproposed action shall be informed to SEBIin advance.

33. MANDATORY QUOTING OFBANK MANDATE AND PANNUMBER BY INVESTORS

Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 6/4213/04 dated March 1, 2004it is mandatory for investors to mentiontheir bank account number in theirapplication/request for redemption.Pursuant to Central Board of Direct Taxes(CBDT) notification no 288 of 2004December 1, 2004 where the amountinvested is for a total value of Rs. 50,000/- or more the sole applicant or in case ofan application in joint names, each of theapplicants should mention his/herPermanent Account Number (PAN)allotted under the Income Tax Act 1961and provide a copy of PAN card/PAN letter/Refund Order or Demand notice from theIncome Tax department where PAN ismentioned or where the same has notbeen allotted/or applied for/is not anassessee a declaration vide Form 60/61giving therein particulars of transactionmust be furnished. In case of minorinvesting more than Rs. 50,000/- PAN no.of the guardian should be mentioned if theminor does not have any incomechargeable to tax. The Application Formwithout these information and documentswill be considered incomplete and is liableto be rejected without any reference to theinvestors.

34. OFFICIAL POINTS OFACCEPTANCE OFTRANSACTIONS

All applications for redemption of unitsshould be submitted by investors at theofficial point of acceptance of transactionsat the office of the registrar and/or AMCas may be notified from time to time. Fordetails please refer to the application formand/or website of the Mutual Fund atwww.standardcharteredmf.com.

35. QUOTING OF UNIQUEIDENTIFICATION NUMBER(UIN)

A Committee constituted by SEBI reviewedissues relating to SEBI (Central Databaseof Market Participants) Regulations, 2003and has submitted its report thereon.Pending the final view on the above report,all the fresh registrations for obtaining UINand the requirement to obtain/quote UINhas been suspended w.e.f July 1, 2005 bySEBI.

36. PHONE TRANSACTAll individual investors in the schemeapplying on "Sole" or "Anyone or Survivor"basis in their own capacity shall be eligibleto avail of phonetransact facilities forpermitted transactions inter alia on thefollowing terms and conditions:

1. "Terms and Conditions" mean theterms and conditions set out belowby which the Facility shall be used/availed by the Unit holder and shallinclude all modifications andsupplements made by AMC theretofrom time to time.

2. In order to access the Facility, theUnit holder shall be required to giveBasic Identification Data (BID) toStandard Chartered AssetManagement Company Pvt. Ltd.(AMC) based on which the AMC mayallow access to the Facility. The BIDmay be enhanced / modified by theAMC from time to time. The unitholdermust provide additional BID as &when required by the AMC.

3. The AMC has a right to ask suchinformation from the available data ofthe Unit holder before allowing him/her access to avail of the Facility. Iffor any reason, the AMC is notsatisfied with the replies of the Unitholder, the AMC has at its solediscretion the right of refusing accesswithout assigning any reasons to theUnit holder.

4. It is clarified that the Facility is onlywith a view to accommodate /facilitatethe Unit holder and offered at thesole discretion of the AMC. The AMCis not bound and/or obliged in anyways to give access to Facility to Unitholder.

5. AMC may periodically provide the Unitholder with a written statement of allthe transactions made by the Unitholder on a regular/as & when basis,as is being currently done.

6. The Unit holder shall check his/heraccount records carefully andpromptly. If the Unit holder believesthat there has been a mistake in anytransaction using the Facility, or thatunauthorised transaction has beeneffected, the Unit holder shall notifyAMC immediately. If the Unit holderdefaults in intimating the allegeddiscrepancies in the statement withina period of thirty days of receipt of thestatements, he waives all his rights toraise the same in favour of the AMC,unless the discrepancy /error isapparent on the face of it.

7. By opting for the facility the Unit holderhereby irrevocably authorises andinstructs the AMC to act as his /heragent and to do all such acts as AMCmay find necessary to provide theFacility.

8. The Unit holder shall not disclose/divulge the BID to any person andshall ensure that no person gainsaccess to it.

9. The Unit holder shall at all times bebound by any modifications and/orvariations made to these Terms andConditions by the AMC at their solediscretion and without notice to them.

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34

10. The Unit holder agrees and confirmsthat the AMC has the right to ask theUnit holder for an oral or writtenconfirmation of any transactionrequest using the Facility and/or anyadditional information regarding theAccount of the Unit holder.

11. The Unit holder agrees and confirmsthat the AMC may at its sole discretionsuspend the Facility in whole or inpart at any time without prior noticeif (i) the Unit holder does not complywith any of the Terms and Conditionsor any modifications thereof, (ii) theAMC has the reason to believe thatsuch processing is not in the interestof the Unit holder or is contrary toRegulation/Offer Documents/amendments to the Offer Documentsand (iii) otherwise at the solediscretion of the AMC in casesamongst when the markets arevolatile or when there are majordisturbances in the market, economy,country, etc.

12. The Unit holder shall not assign anyright or interest or delegate anyobligation arising herein.

13. The Unit holder agrees that it shall behis/her sole responsibility to ensureprotection and confidentiality of BIDand any disclosures thereof shall beentirely at the Unit holder's risk.

14. The Unit holder shall takeresponsibility for all the transactionsconducted by using the Facility andwill abide by the record of transactionsgenerated by the AMC. Further, theUnit Holder confirms that such recordsgenerated by the AMC shall beconclusive proof and binding for allpurposes and may be used asevidence in any proceedings andunconditionally waives all objectionsin this behalf.

15. The Unit holder shall, in case ofaccounts opened in the names ofminors and being the natural guardian

of such minor, give all instructionsrelating to the operation of the accountand shall not, at any point of timedisclose the BID to the minor / anyother person.

16. AMC shall be notified immediately ifa record of the BID, is lost or stolenor if the Unit holder is aware orsuspects another person knows orhas used his/her BID withoutauthority.

17. The Unit holder agrees andacknowledges that any transaction,undertaken using the Unit holder'sBID shall be deemed to be that of theUnit holder. If any third party gainsaccess to the Facility, the Unit holderagrees to indemnify the AMC and itsdirectors, employees, agents andrepresentatives against any liability,costs, or damages arising out ofclaims or suits by such other thirdparties based upon or related to suchaccess or use.

18. The Unit holder agrees that use ofthe Facility will be deemedacceptance of the Terms andConditions and the Unit holder willunequivocally be bound by theseTerms and Conditions.

19. Indemnities in favour of the SCAMC:The Unit holder shall not hold theAMC liable for the following:

i) For any transaction using theFacilities carried out in good faithby the AMC on instructions ofthe Unit holder.

ii) For the unauthorized usage/unauthorised transactionsconducted by using the Facility.

iii) For any loss or damage incurredor suffered by the Unit holderdue to any error, defect, failureor interruption in the provision ofthe Facility arising from or causedby any reason whatsoever.

iv) For any negligence / mistake ormisconduct by the Unit holderand/or for any breach or non-compliance by the Unit holder ofthe rules/terms and conditionsstated in this Agreement.

v) For accepting instructions givenby any one of the Unit holder incase of joint account/s havingmode of operations as "Either orSurvivor" or "anyone or survivor".

vi) For not verifying the identity ofthe person giving the telephoneinstructions in the unit holdername.

vii) For not carrying out any suchinstructions where the AMC hasreason to believe (which decisionof the AMC the Unit holder shallnot question or dispute) that theinstructions given are notgenuine or are otherwiseimproper, unclear, vague or raisea doubt.

20. The AMC may assign any of its rightsunder these terms and conditionswithout the consent of the Unit holderto any of the AMC's group companies,subsidiary or Associate Company orsuch other company which the AMCdeems suitable for provision of thisFacility.

All other investors in the Scheme/plan willbe eligible to avail of phonebankingfacilities for permitted transactions (as maybe decided by the AMC from time to time)by entering into an agreement with theAMC/Mutual Fund. Requests like changein bank mandate, change of nomination,change in mode of holding, change ofaddress or such other requests as theAMC may decide from time to time will notbe permitted using the phonebankingfacility. The AMC/Mutual Fund reservesthe right to modify the terms and conditionsof the service from time to time as may bedeemed expedient or necessary.

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A. PRICE1. New Fund Offer PriceUnits will be sold during the period of offerat Rs. 10.

2. Repurchase PriceRepurchase facility will be offered on ahalf yearly basis. Investors may submittheir redemption request on any BusinessDay. The redemption will be processed atthe end of the Half year / next StipulatedRedemption Date following their requestand desired amount/units will be redeemedat the Applicable NAV on such date aftercharging applicable Exit Load, if any.

While calculating the repurchase price,the Fund shall be at liberty to charge aload as permitted under SEBI regulations.The Repurchase Price of the Units as percurrent SEBI regulations shall not be lowerthan 95% of the Applicable NAV. TheFund also has the right to charge a differentload and therefore a different repurchaseprice for investors who want to switchover to other eligible schemes of the Fund.An indicative load structure is givenhereunder.

B. LOAD STRUCTURE1. Exit Load:Redemptions made on the Maturity Dateof the Scheme do not attract any exit load.

However, redemptions made duringStipulated Repurchase Periods/Date(s)will attract, for the present, an exit load onthe amount sought to be redeemed asunder:

During the term the scheme remainsclose ended :

Stipulated repurchase Stipulated Applicableperiod for repurchase / repurchase Exitredemption request date(s) / Load %received between applicable

NAV date(s)*From the date of allotment December 31,to June 30, 2007 2006 3.00

June 30, 2007

From July 1, 2007 December 31, 2.00to June 30, 2008 2007

June 30, 2008

From July 1, 2008 December 31, 1.00to December 31, 2008 2008

Between January 1, 2009 June 9, 2009 Nil& June 9, 2009

* If the given date falls on holiday, the date willbe next working day.

The AMC in consultation with the Trustee,reserves the right to change the loadstructure, if it so deems fit, in the interestof smooth & efficient functioning of thescheme.

The Trustee reserves the right to modify/alter the load structure under the schemeand may decide to charge a load orintroduce a differential load structure onthe Units redeemed during the stipulatedRepurchase Period(s).

Load Structure after the conversion ofthe Scheme into open-ended Schemeis as follows:During the Ongoing Offer Period :

Entry Load: For Purchases

Of less than Rs. 5 Crores 2.25%

Of Rs. 5 Crores or more Nil

By an FOF (irrespective ofthe amount of Purchase) Nil

By way of Dividend Re-investment Nil

Through SIP/STP where singleinstalment is less than or equal toRs. 10 Lakhs or equal to or morethan Rs. 5 Crores Nil

Through SIP/STP where singleinstalment is more than Rs 10 2.25%Lakhs and less than Rs. 5 Crores

A switch-in may also attract an Entry Loadlike any Purchase however no load shallbe chargeable on investments switchedby investors between Equity Scheme(s)of Standard Chartered Mutual Fund.

Exit Load: For RedemptionLoad (% of

ApplicableNAV)

Within 2 years from the date of 2.00%allotment or Purchase applyingFirst in First Out basis if thepurchase is made through SIP/STP in cases where singleinstalment is less than or equalto Rs. 10 Lakhs and the EntryLoad applicable at the time of theSIP/STP purchase was NIL

No Entry / Exit Loads / CDSC will bechargeable in case of switches madebetween different options of the Scheme.If the SIP/STP is discontinued prior tominimum six months after commencementof SIP/STP, an exit load of 2% will becharged on such investments irrespectiveof the date of redemption.

After conversion into an open ended fund,the Redemption Price will not be lowerthan 93% of the Applicable NAV and thePurchase Price will not be higher than107% of the Applicable NAV, providedthat the difference between theRedemption Price and the Purchase Priceat any point in time shall not exceed thepermitted limit as prescribed by SEBI fromtime to time, which is currently 7%calculated on the Purchase Price.

In case of changes/modifications of load,the AMC will endeavour to do the following:

1. An addendum will be attached to theoffer document and will be circulatedto brokers/distributors so that thesame can be attached to all offerdocuments and abridged offerdocuments in stock. Further theaddendum will be sent along with anewsletter to unitholders immediatelyafter the changes.

2. An arrangement will be made todisplay the changes/modifications inthe offer document in the form of anotice in all the official point ofacceptance of transactions anddistributor's/broker's office.

The load collected under the Scheme willbe credited to a separate account. Surplusof load, if any, will be credited to thescheme whenever felt appropriate by theAMC or on maturity of the Scheme.

C) FEES AND EXPENSES OFTHE SCHEME

As per the provisions of the Regulations,read with the amendments thereto, thefollowing fee and expenses will be chargedto the Scheme:

1. New Fund Offer Expenses(a) For the present Scheme:

The total New Fund Offer Expenseschargeable to the Scheme as percurrent Regulations are subject to amaximum of 6% of the amountcollected during the New Fund OfferPeriod. New Fund Offer Expenses ofthe Scheme are estimated as under:

New Fund Offer Estimated %Expenses of amount

collected

Brokers' / Agents' commissions 2.25%

Marketing and Advertising 3.00%

Printing and Mailing 0.35%

Registrar Expenses 0.15%

Miscellaneous Expenses 0.25%

Total 6.00%

The above estimates are made based onthe minimum subscription (target) amountof Rs. 1 Crore. The above estimates aresubject to change as per actual amountsmobilised.The New Fund Offer Expenses to theextent borne by the Scheme will beamortised over the period of the Scheme.The New Fund Offer Expenses in excessof the above limits shall be borne by theAMC / Sponsor / Trustee.For every Rs. 100 invested by the investorit is estimated that Rs. 94 will be availablefor investment.

VI. Loads and Recurring Expenses

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36

An illustration is provided for clarificationof the same :

Face Value of Units(Rs. per unit) / NFO Price A 10

New Fund Offer Price B 10

Maximum NFO expenses asper SEBI Regulations (A*6%) C 0.60

Estimated NFO Expense D 0.60

Estimated NFOexpenses to be charged tothe Scheme E 0.60

Amortisation of NFO expensesper day (Rs. per Unit) (0.60 /(1080 - being 30 days eachfor 36 months) F 0.0005

Balance NFO expenses to becarried forward (E-F) G 0.5995

NAV on day 1(A-F) H 9.9995

For illustrating the impact on NAV, noaccruals, appreciation or depreciation onInvestments have been assumed from thetime of New Fund Offer till the date ofcomputation of NAV.

Redemption Price would be ApplicableNAV x (1 - Exit Load, if any) on specifiedrepurchase dates.

In case of an investor exiting the schemebefore amortisation is completed, the AMCshall redeem the units only after recoveringthe balance proportionate unamortisedissue expenses, in accordance with SEBIRegulations.

An illustration is provided for clarificationof the same:Estimated NFO expenses(Per Unit) 0.6

Date of allotment (say) 9.6.2006

Total No. of days for amortisation (say)(being 3 years with 360 days each ) 1080

NAV at the time of Redemption by an investor(say) on 31.12.2006 being the stipulatedrepurchase date * 11*

Total days from date of allotmentupto 31.12.2006 205

Total amortised expense upto 31.12.2006(being 0.6 x 205/1080) 0.114

Total Unamortised Expense as on 31.12.2006 0.486(0.6- 0.114) rounded

off to 0.49

Exit Load applicable for redemption onSay 31.12.2006 3%

Amount Payable to the exiting investor on redemption

= [Number of Units x {Applicable NAV x (1-Exit Load)}] –Balance Unamortised Expenses pertaining to exiting investors

= [ 1 x {11 x (1-0.03)} ] – 0.49

= [1 x {11 x 0.97} ] – 0.49

= [1 x 10.67] – 0.49

Amount payable per unit = 10.18

* Net Asset Value (NAV) of Rs. 11 on 31-12-2006 is arrived atassuming that the NAV of the scheme appreciated due to accrualsand other income, appreciation in Market / Fair Value of investmentsetc.

b) Past SchemesThe details of the Schemes launched priorto the date of this document and the NewFund Offer Expenses charged thereunderare as follows:

Name of the Date of launch New FundScheme Offer

Expensescharged tothe Scheme(as per thedisclosuremade inthe offerdocument)

GSSIF* -Investment Plan June 13, 2000 NilGSSIF -Short Term Plan December 13, 2000 NilGFSS** Series (I) March 22, 2001 NilGFSS Series (II) June 25, 2001 NilGCF*** July 2, 2001 NilGFSS Series (III) September 24, 2001 NilGFSS Series (IV) December 10, 2001 NilGGSF**** -Investment Plan& Short Term Plan February 21, 2002 NilGFSS Series (V) March 11, 2002 NilGDBF@ June 25, 2002 NilGFSS**(NEW)Q1 June 27, 2002 NilGFSS**(NEW)A1 July 18, 2002 NilGFSS**(NEW)A3 & Q2 March 27, 2003 NilGFSS** (NEW) A4 July 17, 2003 NilGFSS**(NEW) A6 October 23, 2003 NilGFRF^ST February 18, 2003 NilGSSIF-MediumTerm Plan June 16, 2003 NilGGSF-ProvidentFund Plan February 24, 2004 NilGFMP^^Annual& Quarterly March 10, 2004 NilGFRF ^ LT July 19, 2004 NilSCASBF$ August 9,2004 NilGFMP^^Annual Plan 2 August 16,2004 NilGFMP - 6## November 18, 2004 NilGFMP - 3# November 24, 2004 NilGFMP - 5### December 24, 2004 NilGFMP - 7 $$ January 24, 2005 NilGFMP - 9 $$$ February 7, 2005 NilGFMP-10^^ February 25, 2005 NilGFMP-4^^^ March 9, 2005 NilGFMP-11§ April 12, 2005 NilGFMP-12^^^^^ April 29, 2005 NilGFMP-8 ^^^^^^ May 09, 2005 NilSCCEF~ June 27, 2005 1.0008SCPEF@@ September 5, 2005 0.27GFMP-15++ October 10,2005 NilGFMP-16+++ October 27, 2005 NilGFMP-17++++ October 21, 2005 NilGFMP-18 +++++ October 27, 2005 NilGFMPP-I~~ December 7, 2005 0.75SCTS-I~~~ December 7, 2005 2SCLM¥ January 12, 2006 NilGFMP-19¥¥ January 20, 2006 0.0031GFMP-21@@@ January 27, 2006 0.0028GFMP-20#### January 17, 2006 0.1125GFMPP-II##### February 1, 2006 1.0362SCFMP-3 $$$$ February 24, 2006 0.0032GFMP-22 @@@@ February 24, 2006 0.0924SCFMP-4***** March 8, 2006 0.0023SCFMP-2****** March 9, 2006 0.0906SCIEF¥¥¥ January 30, 2006 4.1500

* Grindlays Super Saver Income Fund , **Grindlays Fixed Saving Scheme, ***Grindlays Cash Fund, **** GrindlaysGovernment Securities Fund @ GrindlaysDynamic Bond Fund, ̂ Grindlays FloatingRate Fund ^^ Grindlays Fixed MaturityPlan $ Standard Chartered All SeasonsBond Fund, # Grindlays Fixed Maturity3rd Plan, ## Grindlays Fixed Maturity 6thPlan, ### Grindlays Fixed Maturity 5thPlan, $$$ Grindlays Fixed Maturity 9thPlan, $$Grindlays Fixed Maturity 7th Plan,^^ Grindlays Fixed Maturity 10th Plan ^^^Grindlays Fixed Maturity 4th Plan,§ Grindlays Fixed Maturity 11th Plan, ̂ ^^^^Grindlays Fixed Maturity 12th Plan, ̂ ^^^^^Grindlays Fixed Maturity 8th Plan , ~Standard Chartered Classic Equity Fundand @@ StandardChartered PremierEquity Fund, ++Grindlays Fixed Maturity15th Plan, +++Grindlays Fixed Maturity 16thPlan, ++++Grindlays Fixed Maturity 17thPlan, +++++Grindlays Fixed Maturity 18thPlan, ~~Grindlays Fixed Maturity PlusPlan-I ~~~ Standard Chartered TristarSeries-I, ¥ Standard Chartered LiquidityManager, ¥¥ Grindlays Fixed Maturity 19thPlan, @@@Grindlays Fixed Maturity 21stPlan, #### Grindlays Fixed Maturity 20thPlan, ##### Grindlays Fixed Maturity PlusPlan-.II, $$$$ Standard Chartered FixedMaturity 3rd Plan, @@@@ GrindlaysFixed Maturity 22nd Plan, ***** StandardChartered Fixed Maturity 4th Plan andStandard Chartered Fixed Maturity 2ndPlan, ¥¥¥Standard Chartered ImperialEquity Fund.

Given below are the details of actualaggregate issue expenses incurred withrespect to schemes launched during thelast one year.

New Fund Offer Expenses -Comparison of Estimated to Actuals

Description Grindlays SuperSaver Income FundMedium Term Plan*

Estimated - Actuals -% to % to

Target SubscriptionAmount

Advertising, MarketingPrinting and Distributionexpenses 1.25 0.106

Collection and Registrar 0.13 0.0036

Bank charges &other expenses 0.15 0.004

Selling Commissions 1.00 Nil

Total 2.53 0.113

Target Amount/AmountMobilised (Rs. Cr.) 5.05 384.17

*Both Plan A & B are put together.

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Description Grindlays GovernmentSecurities Fund-

Provident Fund Plan*






Selling Commissions 0.30 0.481

Total 0.40 1.093

Target Amount/AmountMobilised (Rs. Cr.) 0.026 30.65


Description Grindlays FixedMaturity Plan -Quarterly Plan

and Annual Plan$







Total 0.55 0.009

Target Amount/AmountMobilised (Rs. Cr.) 10 372.18

$ The Scheme comprises two Plans - Annual Plan & QuarterlyPlan & the funds mobilised per Plan in the New Fund Offerwere Rs. 286.11 cr. and Rs. 86.07 cr. respectively. Theexpenses of both Plans have been put together

Description Standard CharteredAll SeasonsBond Fund*







Total 2.00 0.289

Target Amount/AmountMobilised (Rs. Cr.) 20.01 348


Description Grindlays FixedMaturity Annual Plan 2



Advertising, Marketing Printingand Distribution expenses 0.25 0.0005


Bank charges &other expenses 0.02 –


Total 0.55 0.0501

Target Amount/AmountMobilised (Rs. Cr.) 5 140

Description Grindlays FixedFloating Rate Fund- Long Term Plan*







Total 0.10 0.107

Target Amount/AmountMobilised (Rs. Cr.) 20.01 665


Description Grindlays FixedMaturity 3rd Plan






Selling Commissions 0.25 -

Total 0.55 0.0032


Description Grindlays FixedMaturity 5th Plan







Total 0.55 0.00385









Total 0.55 0.00915








Selling Commissions 0.25

Total 0.55 0.0087

Target Amount/Amount Plan AMobilised (Rs. Cr.) – 0.01

Plan B – 20 222.82








Total 0.55 0.1864









Total 0.55 0.1228


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Total 0.55 0.0023









Total 0.55 0.0052









Total 0.55 0.0681









Total 0.55 0.0079

Target Amount/Amount 5 – Plan AMobilised (Rs. Cr.) 20 – Plan B 84.67








Total 0.55 0.0056

Target Amount/Amount 5 – Plan AMobilised (Rs. Cr.) 20 – Plan B 117




Advertising, MarketingPrinting and Distributionexpenses 0.25 0.0004Collection and Registrar 0.03 0.0011Bank charges &other expenses 0.02 0.0013Selling Commissions 0.25 -Total 0.55 0.0028Target Amount/AmountMobilised (Rs. Cr.) 5 231





Description Standard CharteredClassic Equity Fund

(SCCEF)



Advertising, MarketingPrinting and Distributionexpenses 3.35 0.6738Collection and Registrar 0.15 0.0272Selling Commissions 2.25 0.2582Miscellaneous Exp. 0.25 0.0414Total (against scheme- amortised) 1.0008Total (against Load) 1.8459Target Amount/AmountMobilised (Rs. Cr.) 1 1009.29

Description Standard CharteredPremier Equity Fund

(SCPEF)



Advertising, MarketingPrinting and Distributionexpenses 3.35 0.2091Collection and Registrar 0.15 0.01589Sales and Distribution 2.25Amortized 0.03908Against Load 2.1837Miscellaneous Exp. 0.25 0. 00597Target Amount/AmountMobilised (Rs. Cr.) 1 337.76

Description Standard CharteredLiquidity Manager

(SCLM)








Description Grindlays FixedMaturity 21st Plan



Advertising, MarketingPrinting and Distributionexpenses 0.25 0.0003Collection and Registrar 0.03 0.0009Bank charges &other expenses 0.02 0.0008Selling Commissions 0.25 -Total 0.55 0.0028Target Amount/AmountMobilised (Rs. Cr.) 1 315.16

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Total 0.55 0.1125Target Amount/AmountMobilised (Rs. Cr.) 1 239.23

Description Grindlays FixedMaturity Plus Plan – II




Collection and Registrar 0.03 0. 06525

Bank charges &other expenses 0.02 0. 06517


Total 0.55 0.0056Target Amount/Amount 1 – Plan AMobilised (Rs. Cr.) 20 – Plan B

*Plan A only

Description Grindlays FixedMaturity 22nd Plan








Description Standard CharteredFixed Maturity 3rd Plan








Description Grindlays FixedMaturity Plus Plan – I




Collection and Registrar 0.15 Nil

Bank charges &other expenses 0.25 Nil


Total 6.00 0.75Target Amount/Amount 1 – Plan AMobilised (Rs. Cr.) 20 – Plan B 89.34

Description Standard CharteredTristar Series – I*




Collection and Registrar 0.15 Nil

Bank charges &other expenses 0.25 Nil


Total 6.00 2.00Target Amount/AmountMobilised (Rs. Cr.) 1 – Plan A 18.42

* Plan A only

Description Standard CharteredFixed 4th Plan








Description Standard CharteredFixed Maturity 2nd Plan








Description Standard CharteredImperial Equity Fund








The New Fund Offer Expenses disclosed in the offer document at the time of launched are estimates and may be generally basedon the target amounts and hence are different from actual expenses. New Fund Offer Expenses for close ended debt Schemes (withoutany Equity exposure) launched till date up to SCFMP - 3 have been borne by the AMC. New Fund Offer Expenses for SCCEF &SCPEF were borne by the Scheme as per the table above. New Fund Offer Expenses to the extent of 0.75% (Rs. 67,01,174) & 2%(Rs. 36,84,403) of the initial amount mobilized in GFMPP-I & SCTS-I respectively were charged to the Scheme. Additional New FundOffer Expenses to the extent of Rs.1,19,70,451 for GFMPP-I & SCTS-I were borne by the AMC. Over and above the expenses chargedto the schemes, other expenses, if any, are borne by the AMC.

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2. Estimated Recurring Expenses(% per annum of average net assets)

Description EstimatedExpenses

InvestmentManagement Fee 1.25

Trustee Fee 0.05

Custodian Fee 0.05

Marketing & Selling(incl. Agents Commissions) 0.75

Registrar & Transfer Agent 0.15

Transaction Costs 0.07

Audit Costs 0.04

Costs of InvestorCommunications 0.06

Cost of StatutoryAdvertisements 0.04

Other Expenses 0.04

Total Recurring Expenses 2.50

The purpose of the above table is to assistthe investor in understanding the variouscosts and expenses that an investor in theScheme will bear. These estimates arebased on a corpus size of Rs.1 crore

under the Scheme, and would change, tothe extent assets are lower or higher. Ifthe corpus size is in excess of Rs.1 crore,the above mentioned recurring expensesin the Scheme would change. The aboveexpenses are subject to inter-se changeand may increase/decrease as per actualand/or any change in the Regulations.

These estimates have been made in goodfaith as per information available to theAMC and the total expenses may be morethan as specified in the table above.However, as per the Regulations, the totalrecurring expenses that can be chargedto the Scheme in this Offer Documentshall be subject to the applicableguidelines. Expenses over and above thepermitted limits will be borne by the AMC.

If the Scheme happens to be a "No LoadScheme" as per the regulations, the AMCmay charge an additional managementfee of upto 1% per annum of the averagenet assets outstanding in each financialyear, until and unless the Trusteeintroduces an exit load or a combinationthereof, in exercise of the powers reserved.

As per SEBI (MF) Regulations, 1996,recurring expenses will not exceed thefollowing limits per annum :

1. on the first Rs. 100 crores of theScheme's weekly average net assets,will not exceed 2.50%

2. on the next Rs. 300 crores of theScheme's weekly average net assets,will not exceed 2.25%

3. on the next Rs. 300 crores of theScheme's weekly average net assets,will not exceed 2.00% and

4. on the balance of the Scheme'sweekly average net assets, will notexceed 1.75%.

Recurring expenses incurred in excess ofthe aforesaid limits will be borne by theAMC.

The total recurring expenses of theScheme, including the additionalmanagement fees, will, however, belimited to the ceilings as prescribed underRegulation 52(6) of the Regulations. Interms of Regulation 52(3) read with Para(f) of the Tenth Schedule of theRegulations, the AMC will not charge tothe scheme ongoing distribution expensesas long as additional management feesare charged to the scheme.

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D. CONDENSED FINANCIAL INFORMATION

Condensed Financial Information for the period ended September 30, 2005

Historical per Unit Statistics Grindlays Super Saver Income Fund - Investment Plan (GSSIF- IP)

Date of Allotment July 14, 2000

March 31, 2003 March 31, 2004 March 31, 2005 September 30, 2005

NAV at the beginning of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option 12.88 14.3888 15.7336 15.5626

Dividend (Quarterly) Option 10.23 10.8199 10.6682 10.0289

Dividend ( Halfyearly) Option 10.20 11.2770 11.1788 10.2141

Dividend ( Annual Option) 10.07 11.2453 10.0559 9.9466

(Plan - B)

Growth Option - 14.3896 15.8054 -

Dividend (Quarterly) Option - 10.8210 10.7285 -

Dividend ( Halfyearly) Option - 11.2770 11.1788 -

Dividend ( Annual Option) - 11.2453 11.0293 -

Net Income per unit 1.3381 2.0374 0.1552 0.4185

Dividend per unit:

(Plan - A)

Quarterly Option :

June 8, 2001 - - - -

September 7, 2001 - - - -

December 7, 2001 - - - -

March 12, 2002 - - - -

June 21, 2002 0.03 - - -

September 23, 2002 0.05 - - -

December 9, 2002 0.25 - - -

February 26, 2003 0.25 - - -

June 9, 2003 - 0.25 - -

September 8, 2003 - 0.25 - -

December 8, 2003 - 0.25 - -

March 12, 2004 - 0.25 - -

June 7, 2004 - - 0.25 -

September 6, 2004 (others)@ - - 0.1866 -

September 6, 2004 (I&H)@@ - - 0.20 -

March 7, 2005 (others)@ 0.0141 -

March 7, 2005 (I&H)@@ 0.0150 -

September 8, 2005 (others)@ 0.0931

September 8, 2005 (I&H)@@ 0.1000

Half Yearly Option :

September 23, 2002 0.04 - - -

February 26, 2003 0.07 - - -

September 21, 2001 - - - -

March 12, 2002 - - - -

September 1, 2003 0.50 - -

March 1, 2004 - 0.50 - -

September 1, 2004 (others) - - 0.4135 -

September 1, 2004 (I&H) - - 0.5000 -

March 1, 2005 (others)@ 0.2332 -

March 1, 2005 (I&H)@@ 0.2500 -


September 1, 2005 (I&H)@@ 0.2500

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42

Annual Option :

March 21, 2001 - - - -

March 21, 2002 - - - -

April 4, 2003 - 1.00 - -

March 22, 2004 - 0.90 - -

Plan - B

Quarterly Option :

June 9, 2003 - 0.25 - -

September 8, 2003 - 0.25 - -

December 8, 2003 - 0.25 - -

March 12, 2004 - 0.25 - -

June 7, 2004 - - 0.25 -


September 6, 2004 (I&H) - - 0.25 -

Annual Option :

April 25, 2003 - 1.00 - -

Transfer to reserves *

*(Including Unit Premium Reserve, Equalisation Reserve andUnrealised Appreciation Reserve) - - -

NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option 14.3888 15.7336 15.5626 15.9354

Dividend (Quarterly) Option 10.8199 10.6682 10.0289 10.0398

Dividend ( Halfyearly) Option 11.2770 11.1788 10.2141 10.1724

Dividend ( Annual Option) 11.2453 10.0559 9.9466 10.1849

(Plan - B)

Growth Option 14.3896 15.8054 - -

Dividend (Quarterly) Option 10.8210 10.7285 - -

Dividend ( Halfyearly) Option 11.2770 11.1788 - -

Dividend ( Annual Option) 11.2453 11.0293 - -

Absolute return - - - -

Returns during the half year (absolute)April 01, 2004 to Sep 30, 2004 - - -

Returns during the half year (absolute)Oct 01, 2003 to Mar 31, 2004 6.28% 1.85% 0.78% -

Returns during the half year (absolute)April 01, 2005 to September 30, 2005 - - - 2.40%

Returns since inception (Absolute)for schemes which have not completed 1 year - - - -

CAGR ( since inception) 14.36% 12.97% 9.83% 9.34%

CAGR - (last 1 year) 11.71% 9.32% -1.09% 3.19%

CAGR for schemes in existence (more than 3 years) - 12.95% 6.50% 5.61%

Benchmark performance (Absolute) April 01, 2004 to Sep 30, 2004 - - -

Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 - 1.96% 2.09% -

Benchmark performance (Absolute)April 01, 2005 to September 30, 2005 - 1.96% 2.09% 2.71%

Benchmark performance Last 1 year CAGR 10.774% 8.80% 0.18% 4.84%

Net Assets end of period (Rs. Crs.) 2198.77 1681.72 233.59 159.65

Ratio of Recurring Expenses to net assets - Plan A 1.63% 1.64% 1.92% 2.14%

Ratio of Recurring Expenses to net assets - Plan B 1.10% 1.18% 1.41% NA

Ratio of Recurring Expenses to net assets - Plan C - - NA NA

@ Others include investore excepting individualis and HUFs

@@ Individuals & HUFs

Historical per Unit Statistics Grindlays Super Saver Income Fund - Investment Plan (GSSIF- IP)


43

43

Historical per Unit Statistics Grindlays Super Saver Income Fund - Short Term Plan (GSSIF - ST)

Date of Allotment December 13, 2000


NAV at the beginning of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option 11.128 12.0243 12.7766 13.2501

Dividend (Monthly) Option 10.011 10.2542 10.1553 10.0394

(Plan - B)

Growth Option - 12.0087 12.7560 -

Dividend (Monthly) Option - 10.2545 10.1811 -


Dividend per unit:

Monthly Option :

Plan - A

April 30, 2001 - - - -

June 1, 2001 - - - -

June 29, 2001 - - - -

July 31, 2001 - - - -

August 30, 2001 - - - -

October 1, 2001 - - - -

November 1, 2001 - - - -

December 3, 2001 - - - -

January 1, 2002 - - - -

January 31, 2002 - - - -

February 28, 2002 - - - -

March 25, 2002 - - - -

May 1, 2002 0.06 - - -

May 31, 2002 0.055 - - -

June 30, 2002 0.055 - - -

July 31, 2002 0.060 - - -

August 29, 2002 0.065 - - -

September 30, 2002 0.065 - - -

November 29, 2002 0.065 - - -

December 31, 2002 0.065 - - -

January 31, 2003 0.035 - - -

May 1, 2003 - 0.06 - -

May 30, 2003 - 0.06 - -

June 30, 2003 - 0.06 - -

July 31, 2003 - 0.06 - -

August 29, 2003 - 0.06 - -

September 30, 2003 - 0.06 - -

October 31, 2003 - 0.06 - -

November 28, 2003 - 0.06 - -

December 31, 2003 - 0.06 - -

January 30, 2004 - 0.05 - -

February 27, 2004 - 0.05 - -

March 31, 2004 - 0.05 - -

April 29, 2004 0.05 -

May 31, 2004 - - 0.05 -

July 1, 2004 - - 0.04 -

July 29, 2004 (others)@ - - 0.0257 -

July 29, 2004 (I&H)@@ - - 0.0275 -

August 31, 2004 (others) - - 0.0210 -

August 31, 2004 (I&H) - - 0.0225 -


44


44

September 29, 2004 (I&H) - - 0.2250 -

October 28, 2004 (others) 0.0050 -

October 28, 2004 (I&H) 0.0047 -

November 30, 2004 (others) 0.0044 -

November 30, 2004 (I&H) 0.0047 -

December 31, 2004 (others) 0.0234 -

December 31, 2004 (I&H) 0.0250 -

January 31, 2005 (others) 0.0304 -

January 31, 2005 (I&H) 0.0325 -

February 28, 2005 (others) 0.0304 -

February 28, 2005 (I&H) 0.0325 -

March 30, 2005 (others) 0.0561 -

March 30, 2005 (I&H) 0.0600 -

April 29, 2005 (others) 0.0559

April 29, 2005 (I&H) 0.0600

July 29, 2005 (others) 0.0466

July 29, 2005 (I&H) 0.0500

August 30, 2005 (others) 0.0279

August 30, 2005 (I&H) 0.0300

September 28, 2005 (others) 0.0372

September 28, 2005 (I&H) 0.0400

Monthly Option :

Plan - B

May 1, 2003 - 0.06 - -

May 30, 2003 - 0.06 - -

June 30, 2003 - 0.06 - -

July 31, 2003 - 0.06 - -

August 29, 2003 - 0.06 - -

September 30, 2003 - 0.06 - -

October 31, 2003 - 0.06 - -

November 28, 2003 - 0.06 - -

December 31, 2003 - 0.06 - -

January 30, 2004 - 0.05 - -

February 27, 2004 - 0.05 - -

March 31, 2004 - 0.05 - -

April 29, 2004 0.05 -

May 31, 2004 - - 0.05 -

July 1, 2004 - - 0.07 -

July 29, 2004 (others) - - 0.0257 -

July 29, 2004 (I&H) - - 0.0275 -

August 31, 2004 (others) - - 0.0220 -

August 31, 2004 (I&H) - - 0.0235 -


September 29, 2004 (I&H) - - 0.0235 -

October 28, 2004 (others) 0.0050 -


November 30, 2004 (I&H) 0.0053 -


January 31, 2005 (others) 0.0325 -


March 30, 2005 (others) 0.0600 -




45

45

Monthly Option :

Plan - C

April 29, 2004 - - 0.0200 -

May 31, 2004 - - 0.0200 -

July 1, 2004 - - 0.0125 -

July 29, 2004 (others) - - 0.0270 -

July 29, 2004 (I&H) - - 0.0289 -

August 31, 2004 (others) - - 0.0229 -

August 31, 2004 (I&H) - - 0.0245 -


September 29, 2004 (I&H) - - 0.0245 -

October 28, 2004 (others) 0.0050 -


November 30, 2004 (I&H) 0.0053 -



*(Including Unit Premium Reserve, Equalisation Reserveand Unrealised Appreciation Reserve) - - - -

NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option 12.0243 12.7766 13.2501 13.6491

Dividend (Monthly) Option 10.2542 10.1553 10.0394 10.0173

(Plan - B)

Growth Option 12.0087 12.7560 - 10.0446

Dividend (Monthly) Option 10.2545 10.1811 - 10.0079

(Plan - C)

Growth Option - - - 10.0464

Dividend (Monthly) Option - - - 10.0097


Returns during the half year (absolute) 3.51% 2.25% 2.07% 3.01%

Returns since inception (Absolute) for schemeswhich have not completed 1 year - - - -


CAGR - (last 1 year) 8.05% 6.24% 3.71% 5.13%

CAGR for schemes in existence (more than 3 years) 7.55% 5.98% 5.52%

Benchmark performance (Absolute) April 01, 2004 to Sep 30, 2004 - - - -


Benchmark performance (Absolute) April 01, 2005 to Sep 30, 2005 2.67%




Ratio of Recurring Expenses to net assets - Plan B 0.90% 0.90% 0.92% 0.01%

Ratio of Recurring Expenses to net assets - Plan C - - 0.30% 0.07%

@ others include investors excepting individuals and HUFs

@@ Individuals & HUFs



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46

Historical per Unit Statistics Grindlays Super Saver Income Fund -Medium Term Plan (GSSIF-MT)

Date of Allotment July 8, 2003

March 31, 2004 March 31, 2005 September 30, 2005

NAV at the beginning of the year / period (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option - 10.4537 10.6197

Dividend (Bimonthly) Option - 10.0684 10.0640

(Plan - B)

Growth Option - 10.4881 -

Dividend (Bimonthly) Option - 10.0721 -

Net Income per unit 0.6533 0.0374 -4.8283

Dividend per unit:

Bimonthly Option (Plan - A)

September 1, 2003 0.085

November 3, 2003 0.120

January 5, 2004 0.110

March 1, 2004 0.020

May 3, 2004 0.0800

July 1, 2004 0.0075


September 1, 2004 (I&H)@@ 0.0275

March 1, 2005 (others)@ 0.0256

March 1, 2005 (I&H)@@ 0.0275

May 2, 2005 (others)@ 0.0256

May 2, 2005 (I&H)@@ 0.0275

July 4, 2005 (others)@ 0.0256

July 4, 2005 (I&H)@@ 0.0275


Bimonthly Option (Plan - B)

September 1, 2003 0.085

November 3, 2003 0.120

January 5, 2004 0.120

March 1, 2004 0.0375

May 3, 2004 0.0900

July 1, 2004 0.0100


September 1, 2004 (I&H) 0.0300

Bimonthly Option (Plan - C)

May 3, 2004 0.0300

July 1, 2004 0.0015


September 1, 2004 (I&H) 0.0275


*(Including Unit Premium Reserve, Equalisation Reserveand Unrealised Appreciation Reserve) - - -

NAV at the end of the year / period (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)*

Growth Option 10.4537 10.6197 10.8725

Dividend (Bimonthly) Option 10.0684 10.064 10.1969

(Plan - B)

Growth Option 10.4881 - -

Dividend (Bimonthly) Option 10.0721 - -

(Plan - C)

Growth Option - - -

Dividend (Bimonthly) Option - - -

47

47

Returns during the half year (absolute) 2.29% 0.73% 2.38%

Returns since inception (Absolute) for schemes which have not completed 1 year 4.54% - -

CAGR ( since inception) - 3.53% 3.82%

CAGR - (last 1 year) - 1.59% 3.12%


Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 2.09% 2.23%

Benchmark performance Last 1 year CAGR - 3.03% 4.95%

Net Assets end of period (Rs. Crs.) 403.45 22.20 9.83

Ratio of Recurring Expenses to net assets - Plan A 1.66% 1.33% 1.26%

Ratio of Recurring Expenses to net assets - Plan B 1.16% 1.23% -

Ratio of Recurring Expenses to net assets - Plan C - 0.91% -

@ Others include investors excepting individuals & HUFs @@ Individuals & HUFs Benchmark - Crisil Short Term Bond Fund Index

Historical per Unit Statistics Grindlays Cash Fund - (GCF)

Date of Inception July 2, 2001March 31, 2003 March 31, 2004 March 31, 2005 September 30, 2005

NAV at the beginning of the year / period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)(Plan - A)Growth Option 10.5493 11.2536 11.7922 12.3239Dividend (Daily) Option 10.0055 10.5755 10.5819 10.5819Dividend (Weekly) Option 10.0065 10.2971 10.1974 10.2008(Plan - B)Growth Option - 11.2551 11.8247 12.381Dividend (Daily) Option - - 10.5816 10.5816Dividend (Weekly) Option - - 10.3060 10.5989Dividend (Periodic) Option - 10.5736 10.6027 10.3093(Plan - C)Growth Option - - - 10.4876Dividend (Daily) Option - - - 10.0000Dividend (Weekly) Option - - - 10.0103Dividend (Monthly) Option - - - 10.0437Net Income per unit 0.6918 0.4044 0.6745 0.1259Dividend per unit: **** **** **** ****Periodic Option :Plan B28/07/2003 - 0.0143 - -25/08/2003 - 0.0371 - -24/10/2003 - 0.0360 - -25/11/2003 - 0.0389 - -25/12/2003 - 0.0347 - -27/01/2004 - 0.0379 - -25/02/2004 - 0.0325 - -25/03/2004 - 0.0334 - -28/04/2004 - - 0.0390 -25/05/2004 - - 0.0321 -25/06/2004 - - 0.0354 -07/07/2004 - - 0.0137 -26-07-2004 (Others) @ - - 0.0201 -25-08-2004 (Others) @ - - 0.0322 -24-09-2004 (Others) @ - - 0.0322 -28-10-2004 (Others) @ 0.0336 -24-11-2004 (Others) @ 0.0336 -27-12-2004 (Others) @ 0.0372 -25-01-2005 (Others) @ 0.0334 -

Historical per Unit Statistics Grindlays Super Saver Income Fund -Medium Term Plan (GSSIF-MT)

March 31, 2004 March 31, 2005 September 30, 2005

NAV at the end of the year / period (In Rs./-) (In Rs./-) (In Rs./-)

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48

26-02-2005 (Others) @ 0.0366 -

28-03-2005 (Others) @ 0.0355 -

25-04-2005 (Others) @ 0.0334

25-05-2005 (Others) @ 0.0360

27-06-2005 (Others) @ 0.0396

25-07-2005 (Others) @ 0.0335

Plan - CMonthly Option

31-03-2005 (Others) @ 0.0350 0.0350

29-04-2005 (Others) @ 0.0350

31-05-2005 (Others) @ 0.0375

30-06-2005 (Others) @ 0.0375

29-07-2005 (Others) @ 0.0350

30-08-2005 (Others) @ 0.0350

28-09-2005 (Others) @ 0.0350



NAV at the end of the year / period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)*Growth Option 11.2536 11.7922 12.3239 12.6335

Dividend (Daily) Option 10.5755 10.5819 10.5819 10.5819

Dividend (Weekly) Option 10.2971 10.1974 10.2008 10.2014

(Plan - B)Growth Option 11.2551 11.8247 12.3810 12.6977

Dividend (Daily) Option - 10.5816 10.5816 10.5816

Dividend (Weekly) Option - 10.3060 10.5989 10.3096

Dividend (Periodic) Option 10.5736 10.6027 10.3093 -

(Plan - C)Growth Option - - 10.4876 10.7755

Dividend (Daily) Option - - 10.0000 10.0000

Dividend (Weekly) Option - - 10.0103 10.0106

Dividend (Monthly) Option - - 10.0437 10.0099


Returns during the half year (absolute) 3.00% 2.15% 2.33% 2.51%

Returns since inception (Absolute)for schemes which have not completed 1 year - - - -


CAGR -(last 1 year) 6.73% 4.77% 4.51% 4.90%

Benchmark performance (Absolute) April 01, 2004 to Sep 30, 2004 - - - -


Benchmark performance (Absolute) Mar 31, 2005 to Sep 30, 2005 - - - 2.35%




Ratio of Recurring Expenses to net assets - Plan B 0.65% 0.64% 0.60% 0.97%

Ratio of Recurring Expenses to net assets - Plan C - - 0.46% 0.32%

@ Others include investors excepting individuals & HUFsBenchmark - Crisil Liquid Fund Index

*** In Daily Dividend Reinvestment Plan (DDRP), dividend is being declared on a daily basis and Weekly Dividend Reinvestment Plan(WDRP), dividend was beingdeclared on a weekly basis. Range of dividend declared in DDRP for GCF - Plan A for Corporates from April 01, 2005 till September 30, 2005 is Rs. 0.00098359to Rs. 0.00343228 per unit* and for Non Corporates is Rs. 0.00105618 to Rs. 0.00368558 and WDRP for Corporates from April 01, 2005 till September 30, 2005is Rs. 0.0078 to Rs. 0.0089 per unit and for Non Corporates is Rs. 0.0075 to 0.0096. For GCF - Plan B from April 01, 2005 till September 30, 2005 the rangeof DDRP is Rs. 0.00060056 to Rs. 0.00349926 per unit and WDRP from April 01, 2005 till September 30, 2005 is Rs. 0.0078 to Rs. 0.0094. In case of GCF- Plan C the range of DDRP is Rs. 0.00108626 to Rs. 0.00361354 and for WDRP is Rs. 0.0082 to Rs. 0.0098.

Historical per Unit Statistics Grindlays Cash Fund - (GCF)


49

49

Historical per Unit Statistics Grindlays Dynamic Grindlays Floating Rate Fund - Grindlays Floating RateBond Fund (GDBF) Short Term Plan (GFRF - ST) Fund - Long Term Plan

(GFRF- LT)Date of Allotment June 25, 2002 February 18, 2003 August 9, 2004

March 31, March 31, March 31, September March 31, March 31, March 31, September March 31, September2003 2004 2005 30, 2005 2003 2004 2005 30, 2005 2005 30, 2005

NAV at the beginning of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)(Plan - A)Growth Option 10.0013 10.9816 12.0857 12.1738 10.0000 10.0626 10.5724 11.0662 - 10.33210Dividend (Monthly) Option - - - - 10.0000 10.0623 10.0408 10.0552 - 10.04610Dividend (Daily) Option - - 10.0699 10.0714 -Dividend (Weekly) Option - - 10.0731 10.0767 -Dividend (Quarterly) Option 10.0013 10.4278 10.3104 10.0281 - - - - - 10.05970Dividend (Annual) Option 10.0013 10.9857 10.3412 10.1335 - - - - - 10.10490(Plan - B)Growth Option - 10.9816 12.1367 - - - 10.4237 10.9261 - 10.33880Dividend (Monthly) Option - - - - - - 10.0455 10.0547 - 10.04770Dividend (Daily) Option - - - - - - 10.0703 10.0718 - -Dividend (Weekly) Option - - - - - - 10.0979 10.1015 - -Dividend (Quarterly) Option - 10.4278 10.3560 - - - - - - 10.06460Dividend (Annual) Option - 10.9857 10.3412 - - - - - - 10.10490(Plan - C)Growth Option - - 10.4902Dividend (Monthly) Option - - 10.0616Dividend (Daily) Option - - 10.0016Dividend (Weekly) Option - - 10.0102Dividend (Quarterly) Option - - -Dividend (Annual) Option - - -Net Income per unit 0.6087 0.8665 -0.2647 -0.2614 0.0755 0.1858 0.7143 0.1059 0.3607 0.19730Dividend per unit: **** **** **** **** ***** *****Plan - AMonthly Dividend OptionMay 1, 2003 - - - - - 0.05 - - - -May 30, 2003 - - - - - 0.05 - - - -June 30, 2003 - - - - - 0.05 - - - -July 31, 2003 - - - - - 0.05 - - - -August 29, 2003 - - - - - 0.05 - - - -September 30, 2003 - - - - - 0.0355 - - - -October 31, 2003 - - - - - 0.0355 - - - -November 28, 2003 - - - - - 0.0355 - - - -December 31, 2003 - - - - - 0.0350 - - - -January 30, 2004 - - - - - 0.0350 - - - -February 27, 2004 - - - - - 0.0327 - - - -March 31, 2004 - - - - - 0.0350 - - - -April 29, 2004 - - - - - - 0.0310 -May 31, 2004 - - - - - - 0.0310 -July 1, 2004 - - - - - - 0.0325 -July 29, 2004 - - - - - - 0.0257 -August 31, 2004 (others) - - - - - - 0.0304 -August 31, 2004 (I&H) - - - - - - 0.0325 -September 29, 2004 (others) - - - - - - 0.0304 - - -September 29, 2004 (I&H) - - - - - - 0.0325 - - -October 28, 2004 (others) 0.0304 -October 28, 2004 (I&H) 0.0325 -November 30, 2004 (others) 0.0304 -November 30, 2004 (I&H) 0.0325 -December 31, 2004 (others) 0.0328 -December 31, 2004 (I&H) 0.0350 -January 31, 2005 (others) 0.0330 -January 31, 2005 (I&H) 0.0350 -

50


50

February 28, 2005 (others) 0.0330 -February 28, 2005 (I&H) 0.0350 -March 31, 2005 (others) 0.0328 - 0.0350March 31, 2005 (I&H) 0.0350 - 0.0375April 29, 2005 (others) 0.0326 0.03500April 29, 2005 (I&H) 0.0350 0.03750May 31, 2005 (others) 0.0326 0.03260May 31, 2005 (I&H) 0.0350 0.03500June 30, 2005 (others) 0.0326 0.03260June 30, 2005 (I&H) 0.0350 0.03500July 29, 2005 (others) 0.0419 0.03720July 29, 2005 (I&H) 0.0450 0.04000August 30, 2005 (others) 0.0326 0.03730August 30, 2005 (I&H) 0.0350 0.40000September 28, 2005 (others) 0.0326 0.03720September 28, 2005 (I&H) 0.0350 0.40000Quarterly Dividend OptionSeptember 23, 2002 0.18 - - - - - - - - -December 9, 2002 0.25 - - - - - - - - -February 26, 2003 0.10 - - - - - - - - -June 9, 2003 - 0.25 - - - - - - - -September 8, 2003 - 0.25 - - - - - - - -December 8, 2003 - 0.25 - - - - - - - -March 12, 2004 - 0.25 - - - - - - - -June 7, 2004 - - 0.2500 - - - - - - -September 6, 2004 (others) - - 0.0466 - - - - - - -September 6, 2004 (I&H) - - 0.0500 - - - - - - -December 6, 2004 (others) - 0.1294December 6, 2004 (I&H) - 0.1383March 7, 2005 (others) 0.0141 - 0.0935March 7, 2005 (I&H) 0.0150 - 0.0100June 7, 2005 (others) 0.0931June 7, 2005 (I&H) 0.1000September 08, 2005 (others) 0.0931 0.09310September 08, 2005 (I&H) 0.1000 0.10000Annual Dividend OptionApril 4, 2003 - 0.50 - - - - - - - -March 22, 2004 - 1.00 - - - - - - - -March 1, 2005 (others) 0.2332 - 0.1870March 1, 2005 (I&H) 0.2500 - 0.2000Plan - BQuarterly Dividend OptionJune 9, 2003 - 0.25 - - - - - - - -September 8, 2003 - 0.25 - - - - - - - -December 8, 2003 - 0.25 - - - - - - - -March 12, 2004 - 0.25 - - - - - - - -June 7, 2004 - - 0.2500 - - - - - - -December 6, 2004 0.13080September 6, 2004 (others) - - 0.0700 - - - - - - -September 6, 2004 (I&H) - - 0.0750 - - - - - - -March 7, 2005 (others) 0.2338 - 0.09350March 7, 2005 (I&H) 0.2500 -September 08, 2005 (others) 0.09310September 08, 2005 (I&H) 0.10000


(GFRF- LT)March 31, March 31, March 31, September March 31, March 31, March 31, September March 31, September

2003 2004 2005 30, 2005 2003 2004 2005 30, 2005 2005 30, 2005

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51

Monthly Dividend Option

December 31, 2003 - - - - - 0.0300 - - - -

January 30, 2004 - - - - - 0.0350 - - - -

February 27, 2004 - - - - - 0.0350 - - - -

March 31, 2004 - - - - - 0.0375 - - - -

April 29, 2004 - - - - - - 0.0325 -

May 31, 2004 - - - - - - 0.0325 -

July 1, 2004 - - - - - - 0.0350 -

July 29, 2004 - - - - - - 0.0280 -

August 31, 2004 (others) - - - - - - 0.0328 -

August 31, 2004 (I&H) - - - - - - 0.0350 -

September 29, 2004 (others) - - - - - - 0.0350 - - -

October 28, 2004 (others) 0.0275 -


November 30, 2004 (I&H) 0.0294 -


January 31, 2005 (others) 0.0350 -


March 31, 2005 (others) 0.0350 - 0.0375

April 29, 2005 (others) 0.0350 0.03500

May 31, 2005 (others) 0.0350 0.02500

June 30, 2005 (others) 0.0350 0.03500

July 29, 2005 (others) 0.0450 0.04000

August 30, 2005 (others) 0.0350 0.04000

September 28, 2005 (others) 0.0350 0.04000

Plan - C

Quarterly Dividend Option

September 6, 2004 (others) - - 0.0300 - - - - - - -

December 6, 2004 0.1308

March 7, 2005 (others) 0.0935

Monthly Dividend Option

July 29, 2004 - - - - - - 0.0280

August 31, 2004 (others) - - - - - - 0.0351

August 31, 2004 (I&H) - - - - - - 0.0375

September 29, 2004 (others) - - - - - - 0.0350 - -

October 28, 2004 (others) 0.0275

November 30, 2004 (others) 0.0275

November 30, 2004 (I&H) 0.0294

December 31, 2004 (others) 0.0325

January 31, 2005 (others) 0.0350

February 28, 2005 (others) 0.0350

March 31, 2005 (others) 0.0350 0.0375 0.03750

April 29, 2005 (others) 0.0350

May 31, 2005 (others) 0.0350

June 30, 2005 (others) 0.0350

July 29, 2005 (others) 0.0500

August 30, 2005 (others) 0.0350



*(Including Unit Premium Reserve,Equalisation Reserve andUnrealised Appreciation Reserve) - - - - - - - - - -



2003 2004 2005 30, 2005 2003 2004 2005 30, 2005 2005 30, 2005

52


52

NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)(Plan - A)*Growth Option 10.9816 12.0857 12.1738 12.5048 10.0626 10.5724 11.0662 11.3596 10.3321 10.61490Dividend (Monthly) Option - - - - 10.0623 10.0408 10.0552 10.0279 10.0461 10.01380Dividend (Daily) Option - - - - - 10.0699 10.0699 10.0703 - -Dividend (Weekly) Option - - - - - 10.0731 10.0767 10.0768 - -Dividend (Quarterly) Option 10.4278 10.3104 10.0281 10.0705 - - - - 10.0597 10.10470Dividend (Annual) Option 10.9857 10.3412 10.1335 10.4089 - - - - 10.1049 10.38140(Plan - B)*Growth Option 10.9816 12.1367 - - - 10.4237 10.9261 11.2173 10.3388 10.62980Dividend (Monthly) Option - - - - - 10.0445 10.0547 10.0086 10.0477 10.00560Dividend (Daily) Option - - - - - 10.0703 10.0703 10.0699 - -Dividend (Weekly) Option - - - - - 10.0979 10.1015 10.1013 - 10.00000Dividend (Quarterly) Option 10.4278 10.3560 - - - - - - 10.0646 10.11760Dividend (Annual) Option 10.9857 10.3412 - - - - - - 10.1049(Plan - C)Growth Option - - - - - - 10.4902 10.7803 - -Dividend (Monthly) Option - - - - - - 10.0616 10.0177 - -Dividend (Daily) Option - - - - - - 10.0000 10.0000 - -Dividend (Weekly) Option - - - - - - 10.0102 10.0106 - -Dividend (Quarterly) Option - - - - - - - - - -Dividend (Annual) Option - - - - - - - - - -(Plan - D)Growth Option - - - - - - - - - -Absolute return - - - - - - - - - -Returns during the half year(absolute) 7.04% 1.95% 0.61% 2.72% - 2.33% 2.43% 2.65% 2.52%Returns since inception (Absolute)for schemes which havenot completed 1 year 9.82% - - - 0.63% - - - 3.32%CAGR ( since inception) - 11.32% 7.37% 7.08% - 5.12% 4.91% 4.99% - 5.36%CAGR -(last 1 year) - 10.03% 0.73% 3.33% - 5.05% 4.67% 5.15% - 5.31%Benchmark Returns since inception(Absolute) for Schemes inexistence for less than 1 year 9.46% - - - 0.68% - - - - 5.58%Benchmark performance (Absolute)April 01, 2004 to Sep 30, 2004 - - - - - - - - - 5.11%Benchmark performance (Absolute)Oct 01, 2003 to Mar 31, 2004 - 1.96% 2.09% - - 2.29% 2.54% 2.55%Benchmark performance (Absolute)Apr 01, 2005 to Sep 30, 2005 2.71% 2.57%Benchmark performanceLast 1 year CAGR - 8.80% 0.18% 4.84% - 4.83% 4.88% 5.17% - -Net Assets end of period (Rs. Crs.) 288.10 808.71 102.31 87.50 248.37 713.29 1348.86 2191.02 992.57 1,254.67Ratio of Recurring Expensesto net assets - Plan A 1.58% 2.01% 1.99% 1.30% 0.60% 0.60% 0.63% 0.62% 0.73% 0.22%Ratio of Recurring Expensesto net assets - Plan B - 1.58% 1.69% - - 0.58% 0.51% 0.69% 0.63% 0.32%Ratio of Recurring Expensesto net assets - Plan C - - 1.52% - 0.60% 0.60% 0.38% 0.49% - -Ratio of Recurring Expensesto net assets - Plan D - - - - - 0.58% - - - -

@ Others include investors excepting individuals & HUFs. '@@ Individuals & HUFs. Benchmark - GBDF - Crisil Composite Bond Fund Index. Benchmark - GFR-ST & GFR-LT - Mibor Index**** In Daily Dividend Reinvestment Plan (DDRP), dividend is being declared on a daily basis and Weekly Dividend Reinvestment Plan(WDRP), dividend was being declared on a weekly basis.Range ofdividend declared in DDRP for GFRF-ST - Plan A for Corporates from April 01, 2005 till September 30, 2005 is Rs. 0.00104999 to Rs. 0.00336146 per unit* and for Non Corporates is Rs. 0.00112748 toRs. 0.00360953 and WDRP for Corporates from April 01, 2005 till September 30, 2005 is Rs. 0.0063 to Rs. 0.0105 per unit and for Non Corporates is Rs. 0.0068 to 0.0113. For GFRF-ST - Plan B fromApril 01, 2005 till September 30, 2005 the range of DDRP is Rs. 0.00107062 to Rs. 0.00342923 per unit and WDRP from April 01, 2005 till September 30, 2005 is Rs. 0.0003 to Rs. 0.0165. In case ofGFRF- ST - Plan C the range of DDRP is Rs. 0.00109884 to Rs. 0.00350688 and for WDRP is Rs. 0.0081 to Rs. 0.0097 (*Face Value per unit = Rs. 10/-).



2003 2004 2005 30, 2005 2003 2004 2005 30, 2005 2005 30, 2005

53

53

Historical per Unit Statistics Grindlays Fixed Maturity Plan Grindlays Fixed Maturity Plan Grindlays Fixed Maturity Plan- 6th Plan (GFMP-6) - 5th Plan (GFMP-5) - 7th Plan (GFMP-7)

Date of Allotment December 16, 2004 December 30, 2004 February 10, 2005

March 31, September 30, March 31, September 30, March 31, September 30,2005 2005 2005 2005 2005 2005

NAV at the beginning of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option - 10.2672 - 10.1874 - 10.1066

Dividend Option 10.2672 10.1874 10.1066

Dividend (Quarterly) Option - - - - - -

Dividend (Half Yearly) Option - - - - - -

Dividend (Annual) Option - - - - - -

Dividend (Monthly) Option

(Plan - B)

Growth Option - - - - - 10.1114

Dividend Option 10.1114




Dividend (Monthly) Option - - - - - -

Net Income per unit 0.2540 0.3947 0.3006 0.5724 0.1486 0.5702

Dividend per unit:


*(Including Unit Premium Reserve, EqualisationReserve and Unrealised Appreciation Reserve) - - - - - -

NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)*

Growth Option 10.2672 10.5869 10.1874 10.5207 10.1066 10.4212

Dividend Option 10.2672 10.5870 10.1874 10.5207 10.1066 10.4212





(Plan - B)

Growth Option - - - - 10.1114 10.4443

Dividend Option - - - - 10.1114 10.4443




Absolute Return - - - - - -

Returns during the half year (absolute) - 3.11% - 3.27% - 3.06%

Returns since inception (Absolute) for schemeswhich have not completed 1 year 2.67% 5.87% 1.87% 5.21% 1.11% 4.21%

CAGR ( since inception) - - - - - -

CAGR -(last 1 year) - - - - - -

Benchmark Returns since inception (Absolute)for Schemes in existence for less than 1 year - - - - - -

Benchmark performance (Absolute)April 01, 2004 to Sep 30, 2004 - - - - - -

Bench mark performance (Absolute)Oct 01, 2003 to Mar 31, 2004 - - - - - -

Benchmark performance Last 1 year CAGR - - - - - -

Net Assets end of period (Rs. Crs.) 291.87 300.34 147.84 152.57 225.27 231.41

Ratio of Recurring Expenses to net assets - Plan A 0.94% 0.94% 0.54% 0.36% 0.66% 0.64%

Ratio of Recurring Expenses to net assets - Plan B - - - - 0.31% 0.32%

54


54

Historical per Unit Statistics Grindlays Fixed Maturity Plan Grindlays Fixed Maturity Plan- 9th Plan (GFMP-9) - 4th Plan (GFMP-4)

Date of Allotment February 28, 2005 March 31, 2005

March 31, 2005 March 31, 2005September 30, 2005 September 30, 2005

NAV at the beginning of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option - 9.9819 - 10.02

Dividend Option - 9.9819 10.02

Dividend (Quarterly) Option - - - -

Dividend (Half Yearly) Option - - - -

Dividend (Annual) Option - - - -


(Plan - B)

Growth Option - - - 10.02

Dividend Option - - 10.00




Dividend (Monthly) Option - - - -


Dividend per unit:



NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)*

Growth Option 9.9819 10.3402 10.0162 10.3192

Dividend Option 9.9819 9.9983 10.0162 10.3192




Dividend (Monthly) Option - -

(Plan - B)

Growth Option - - 10.0162 10.3399

Dividend Option - - - 10.0000




Absolute Return - - - -

Returns during the half year (absolute) - - - -

Returns since inception (Absolute) for schemes which have not completed 1 year -0.18% 3.40% 0.16% 3.19%

CAGR (since inception) - - -

CAGR - (last 1 year) - - -

Benchmark Returns since inception (Absolute)for Schemes in existence for less than 1 year - 3.02% - 2.35%


Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 - - -

Benchmark performance Last 1 year CAGR - - -



Ratio of Recurring Expenses to net assets - Plan B - - 0.25% 0.31%

55

55

Historical per Unit Statistics Grindlays Government Securities Fund - Grindlays Government Grindlays GovernmentInvestment Plan (GGSF - IP) Securities Fund - Securities Fund -

Short Term Plan Provident Fund Plan(GGSF - ST) (GGSF - PF)

Date of Allotment March 9, 2002 March 9, 2002 March 29, 2004March 31, March 31, March 31, September March 31, March 31, September March 31, September

2003 2004 2005 30, 2005 2003 2004 30, 2005 2005 30, 2005

NAV at the beginning of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)

Growth Option 10.1332 11.2808 12.5732 12.3782 10.0337 10.9072 11.6405 11.6405 11.6363

Dividend (Quarterly) Option 10.1337 10.4662 10.4942 9.9956 10.0361 10.3902 10.0533 10.0533 10.0188

Dividend (Half Yearly) Option 10.1334 10.4889 10.1807 10.0230 - - - - -

Dividend (Annual) Option 10.1336 11.2702 10.2356 10.0515 - - - - -

Dividend (Monthly) Option - 10.0310 10.7248 10.0767 10.0767 10.0053

(Plan - B)

Growth Option - 11.2808 12.6312 - - - - - -

Dividend (Quarterly) Option - 10.4662 10.6590 - - - - - -

Dividend (Half Yearly) Option - 10.4889 10.1807 - - - - - -

Dividend (Annual) Option - 11.2702 10.2356 - - - - - -

Dividend (Monthly) Option - - - - - - - - -

Net Income per unit 1.3289 0.9634 -0.4749 0.2353 2.2520 0.3129 -0.0518 -0.0155 0.1468

Dividend per unit:

Plan - A

Monthly Dividend Option :

July 31, 2002 - - - - 0.06 - - -

August 29, 2002 - - - - 0.06 - - -

May 30, 2003 - - - - - 0.25 - -

June 30, 2003 - - - - - 0.25 - -

July 31, 2003 - - - - - 0.25 - -

August 29, 2003 - - - - - 0.25 - -

September 30, 2003 - - - - - 0.045 - -

October 31, 2003 - - - - - 0.045 - -

November 28, 2003 - - - - - 0.045 - -

December 31, 2003 - - - - - 0.040 - -

April 29, 2004 - - - - - - 0.0100 0.0100

March 31, 2005 (others) 0.0025

March 31, 2005 (I&H) 0.0023

May 31, 2005 (others) 0.0250

May 31, 2005 (I&H) 0.0233

June 30, 2005 (others) 0.0250

June 30, 2005 (I&H) 0.0233

July 29, 2005 (others) 0.0500

July 29, 2005 (I&H) 0.0466

August 30, 2005 (others) 0.0210

August 30, 2005 (I&H) 0.0225


September 28, 2005 (I&H) 0.0150

Quarterly Dividend Option : - -

September 23, 2002 0.25 - - - 0.15 - - -

December 9, 2002 0.25 - - - 0.15 - - -

February 26, 2003 0.25 - - - 0.15 - - -

June 9, 2003 - 0.25 - - - 0.25 - -

September 8, 2003 - 0.25 - - - 0.25 - -

December 8, 2003 - 0.25 - - - 0.25 - -

March 12, 2004 - 0.25 - - - 0.15 - -

June 7, 2004 - - 0.2500 - - - 0.0250 0.0250

56


56

September 6, 2004 (others)@ - - 0.0500 - - - - -

September 6, 2004 (I&H)@@ - - 0.0466 - - - - -

March 7, 2005 (others) - 0.0023

March 7, 2005 (I&H) - 0.0025

September 8, 2005 (others)@ 0.0931 0.0698

September 8, 2005 (I&H)@@ 0.1000 0.0750

Half Yearly Option : - -

September 23, 2002 0.25 - - - - - - -

February 26, 2003 0.50 - - - - - - -

September 1, 2003 - 1.00 - -

March 1, 2004 - 0.25 - -


September 1, 2005 (I&H) 0.1500

Annual Option : - -

April 4, 2003 - 1.00 - - - - - -

March 22, 2004 - 1.00 - - - - - -

March 1, 2005 (others) 0.0210

March 1, 2005 (I&H) 0.0225

Plan - B

Quarterly Dividend Option :

June 7, 2004 - - - - - - - -

September 6, 2004 (others) - - - - - - - -

September 6, 2004 (I&H) - - - - - - - -

September 8, 2005 (others)

September 8, 2005 (I&H)


*(Including Unit Premium Reserve, EqualisationReserve and Unrealised Appreciation Reserve) - - - - - - - -

NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-)

(Plan - A)*

Growth Option 11.2808 12.5732 12.3782 12.6757 10.9072 11.6405 11.5223 11.6363 11.8552

Dividend (Quarterly) Option 10.4662 10.4942 9.9956 10.0351 10.3902 10.0533 9.9234 10.0188 10.0352

Dividend (Half Yearly) Option 10.4889 10.1807 10.0230 10.0923 - - - - -

Dividend (Annual) Option 11.2702 10.2356 10.0515 10.2932 - - - - -

Dividend (Monthly) Option 10.7248 10.0767 9.9073 10.0053 10.0042

(Plan - B)

Growth Option 11.2808 12.6312 - - - - - -

Dividend (Quarterly) Option 10.4662 10.6590 - - - - - -

Dividend (Half Yearly) Option 10.4889 10.1807 - - - - - -

Dividend (Annual) Option 11.2702 10.2356 - - - - - -

Absolute Return - - - - - - - -

Returns during the half year (absolute) 8.70% 1.79% -0.12% 2.40% 6.47% 1.31% -1.02% 0.99% 1.88%

Returns since inception (Absolute) for schemeswhich have not completed 1 year - - - - - - - -

CAGR (since inception) - 11.74% 7.21% 6.88% - 7.64% 5.69% 5.07% 4.89%

CAGR - (last 1 year) - 11.42% -1.55% 2.28% - 6.71% 0.41% -0.04% 2.88%

Benchmark Returns since inception (Absolute)for Schemes in existence for less than 1 year - - - - - - - -

Benchmark performance (Absolute)April 01, 2004 to Sep 30, 2004 - - - - - -2.75% -



March 31, March 31, March 31, September March 31, March 31, September March 31, September2003 2004 2005 30, 2005 2003 2004 30, 2005 2005 30, 2005

57

57

Bench mark performance (Absolute)Oct 01, 2003 to Mar 31, 2004 - 2.83% 2.56% - - 2.83% 2.56%

Bench mark performance (Absolute)April 01, 2005 to Sep 30, 2005 2.74% 2.74%

Bench mark performance Last 1 year CAGR 12.595% 12.00% -0.26% 5.36% 12.595% 12.00% 0.39% -0.26% 5.36%

Net Assets end of period (Rs. Crs.) 25.14 66.40 12.10 13.09 0.81 2.18 2.17 1.25 1.34

Ratio of Recurring Expensesto net assets - Plan A 1.93% 1.93% 1.92% 1.95% 1.25% 1.25% 1.24% 1.07% 0.70%

Ratio of Recurring Expensesto net assets - Plan B - 1.08% 0.67% - - - - - -Benchmark - I-Sec Composite Index@ Others include investors excepting individuals and HUFs

Historical per Unit Statistics Standard CharteredAll Seasons Bond Fund

(SCASBF)

Date of Allotment August 9, 2004

March 31, September2005 30, 2005

NAV at the beginning of the period (In Rs./-) (In Rs./-)

(Plan - A)Growth Option - 10.2395

Dividend (Quarterly) Option - 10.0618

Dividend (Half Yearly) Option - 10.1882

Dividend (Annual) Option - 10.1883


(Plan - B)Growth Option - -

Dividend (Quarterly) Option - -

Dividend (Half Yearly) Option - -

Dividend (Annual) Option - -


Net Income per unit 0.4504 0.2062

Dividend per unit:Monthly Dividend Option :July 31, 2002 - -

August 29, 2002 - -

May 30, 2003 - -

June 30, 2003 - -

July 31, 2003 - -

August 29, 2003 - -

September 30, 2003 - -

October 31, 2003 - -

November 28, 2003 - -

December 31, 2003 - -

March 31, 2004 - -

Quarterly Dividend Option :September 23, 2002 - -

December 9, 2002 - -

February 26, 2003 - -

June 9, 2003 - -


December 8, 2003 - -



March 31, March 31, March 31, September March 31, March 31, September March 31, September2003 2004 2005 30, 2005 2003 2004 30, 2005 2005 30, 2005

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58

March 12, 2004 - -

December 6, 2004 (others) 0.0065 0.0065

December 6, 2004 (I&H) 0.0069 0.0069

March 7, 2005 (others) 0.1403 0.1403

March 7, 2005 (I&H) 0.1500 0.1500

June 7, 2005 (others) - 0.0931

Half Yearly Option :September 23, 2002 - -

February 26, 2003 - -


March 1, 2004 - -

March 1, 2005 (others)@ 0.0421 0.0421

March 1, 2005 (I&H)@@ 0.0450 0.0450

September 1, 2005 (others) - 0.2328

September 1, 2005 (I&H) - 0.2500

September 8, 2005 (others) - 0.0931

September 8, 2005 (I&H) - 0.1000

Annual Option : - -April 4, 2003 - -

March 22, 2004 - -

March 1, 2005 (others) 0.0421 0.0421

March 1, 2005 (I&H) 0.0450 0.0450

June 7, 2005 (I&H) - 0.1000


*(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) - -

NAV at the end of the period (In Rs./-) (In Rs./-)

(Plan - A)*Growth Option 10.2395 10.5002

Dividend (Quarterly) Option 10.0618 10.0881

Dividend (Half Yearly) Option 10.1882 10.1614

Dividend (Annual) Option 10.1883 10.4476


(Plan - B)Growth Option - -




Absolute return - -

Returns during the half year (absolute) - -

Returns since inception (Absolute) for schemes which have not completed 1 year - -

CAGR ( since inception) - 5.00%

CAGR - (last 1 year) - 4.67%

Benchmark Returns since inception (Absolute) for Schemes in existence for less than 1 year 2.40% 4.80%

Benchmark performance (Absolute) April 01, 2004 to Sep 30, 2004 - -

Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 2.09% 5.10%

Benchmark performance Last 1 year CAGR - -

Net Assets end of period (Rs. Crs.) 138.18 91.80

Ratio of Recurring Expenses to net assets - Plan A 0.47% 0.00%

Ratio of Recurring Expenses to net assets - Plan B 0.12% 0.00%

Benchmark - Crisil Composite Bond Fund Index

Historical per Unit Statistics Standard CharteredAll Seasons Bond Fund

(SCASBF)

March 31, September2005 30, 2005

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59

Historical per Unit Statistics Standard Chartered Standard CharteredClassic Equity Fund Premier Equity Fund

(SCCEF) (SCPEF)

Date of Inception ** **

Date of Allotment August 10, 2005 September 28, 2005

September 30, 2005 September 30, 2005


(Plan - A)

Growth Option ^10.0000 ^10.0000

Dividend Option ^10.0000 ^10.0000





(Plan - B)

Growth Option - -

Dividend Option






Dividend per unit:


*(Including Unit Premium Reserve, Equalisation Reserve andUnrealised Appreciation Reserve) - -


(Plan - A)*

Growth Option 11.1900 -

Dividend Option 11.1900 -





(Plan - B)

Growth Option - -

Dividend Option - -




Absolute Return - -


Returns since inception (Absolute) for schemes which have not completed 1 year 11.90% -

CAGR ( since inception) - -

CAGR - (last 1 year) - -

Benchmark Returns since inception (Absolute)for Schemes in existence for less than 1 year - -


Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 - -




Ratio of Recurring Expenses to net assets - Plan B - -

^ Launched During the period

60


60

Historical per Unit Statistics Grindlays Fixed Maturity Plan - Grindlays Fixed Maturity Plan -8th Plan (GFMP-8) 12th Plan (GFMP-12)

Date of Allotment May 27, 2005 May 10, 2005

September 30, 2005 September 30, 2005


(Plan - A)

Growth Option ^10.0000 ^10.0000

Dividend Option ^10.0000 ^10.0000





(Plan - B)

Growth Option - -

Dividend Option






Dividend per unit:


*(Including Unit Premium Reserve, Equalisation Reserveand Unrealised Appreciation Reserve) - -


(Plan - A)*

Growth Option 10.2440 10.2516

Dividend Option 10.2440 10.2516





(Plan - B)

Growth Option - -

Dividend Option - -




Absolute Return - -


Returns since inception (Absolute) for schemes which have not completed 1 year 2.44% 2.52%

CAGR ( since inception) - -

CAGR - (last 1 year) - -

Benchmark Returns since inception (Absolute)for Schemes in existence for less than 1 year - -


Benchmark performance (Absolute) Oct 01, 2003 to Mar 31, 2004 - -




Ratio of Recurring Expenses to net assets - Plan B - 0.00%

^ Launched During the period

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61

NAV as on February 28, 2006

GSSIF GSSIF GSSIF GCF GILT GILT GILT GDBF GFRF GFRF SCASBF GFSSA4 SCCEF SCLM SCPEF- IP - ST - MT - IP - ST - PF - ST - LT

(PLAN - A)

Growth Option 16.0221 13.8353 11.0639 12.9090 12.8995 12.0051 10.4184 12.6909 11.6006 10.8158 - 10.6888 12.93 10.0746 11.14

Dividend Option - - - - - - - - - - - - 12.93 11.14

Dividend (Daily) Option - - - 10.5819 - - - - 10.0699 - - - - 10.0010 -

Dividend (Weekly) Option - - - 10.1974 - - - - 10.0726 - - - - 10.0103 -

Dividend (Monthly) Option - 10.0150 - - - 10.0050 - - 10.0275 10.0100 - - - 10.0005 -

Dividend (Bi-Monthly) Option - - 10.2624 - - - - - - - - - -

Dividend (Quarterly) Option 10.0124 - - - 10.1153 10.0411 10.1068 10.1137 - 10.1745 - 10.1692 - -

Dividend (Half Yearly) Option 10.2277 - - - 10.2705 - - - - - - 10.3440 - -

Dividend (Annual) Option 10.2403 - - - 10.4749 - 10.4194 10.5638 - 10.5778 - 10.6352 - -

(PLAN - B)

Growth Option - 10.1899 - 12.9745 - - 10.4570 - 11.4554 10.8389 - - -

Dividend Option - - - - - - - - - - - - -

Dividend (Daily) Option - - - 10.5816 - - - - 10.0703 - - - -

Dividend (Weekly) Option - - - 10.3053 - - - - 10.0971 9.8401 - - -

Dividend (Monthly) Option - 10.1500 - - - - - - 10.0035 10.0075 - - -

Dividend (Bi-Monthly) Option - - - - - - - - - - - - -

Dividend (Quarterly) Option - - - - - - 10.1056 - - 10.1939 - - -

Dividend (Half Yearly) Option - - - - - - - - - - - - -

Dividend (Annual) Option - - - - - - - - - - - - -

Dividend (Periodic) Option - - - 10.0057 - - - - - - - - -

(PLAN - C)

Growth Option - 10.2036 - 11.0232 - - - - 11.0233 - - -

Dividend (Daily) Option - - - 10.0000 - - - - 10.0000 - - -

Dividend (Weekly) Option - - - 10.0058 - - - - 10.0059 - - - -

Dividend (Periodic) Option - - - - - - - - - - - - -

Dividend (Monthly) Option - 10.0100 - 10.0015 - - - - 10.0150 - - - -

Dividend (Bi-Monthly) Option - - - - - - - - - - - - -

Dividend (Quarterly) Option - - - - - - - - - - - - -

Dividend (Half Yearly) Option - - - - - - - - - - - - -

Dividend (Annual) Option - - - - - - - - - - - - -

(PLAN - D)

Dividend (Monthly) Option 10.0000

CAGR (1 year) 3.23% 4.83% 4.57% 5.16% 4.41% 3.49% 4.99% 4.54% 5.26% 5.12% 4.81% NA NA NA NA

CAGR (since allotment) 8.73% 6.43% 3.89% 5.63% 6.61% 4.70% 2.16% 6.69% 5.02% 5.17% 4.67% NA NA NA NA

Absolute returns (since allotment) NA NA NA NA NA NA NA NA NA NA NA 4.60% 29.30% 6.33% 11.40%

NAV as on February 28, 2006 for close-ended schemes:

GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMPP GFMP GFMP GFMPP SCTS- 4 - 6 - 5 - 7 - 9 - 8 - 9 - 10 - 11 - 12 - 8 - 15 - 16 -20 -II -21 - 19 -I -I

(PLAN - A)

Growth Option 10.4967 10.6400 10.7000 10.5535 - 10.0028 10.4177 0.0000 10.1186 10.4248 10.2899 10.2164 10.0396 10.0450 10.0085 10.0436 10.0554 10.0924 10.1838

Dividend Option 10.4967 10.6400 10.7000 10.5535 - 10.0028 10.0732 0.0000 10.1186 10.4248 10.2899 10.2164 10.0396 10.0450 10.0085 10.0436 10.0554 10.0924 10.1838

Dividend (Daily) Option - - - - - - - - - - - - - - - - - - -

Dividend (Weekly) Option - - - - - - - - - - - - - - - - - - -

Dividend (Monthly) Option - - - - - - - - - - - - - - - - - - -

Dividend (Bi-Monthly) Option - - - - - - - - - - - - - - - - - - -

Dividend (Quarterly) Option - - - - - - - - - - - - - - - - - - -

Dividend (Half Yearly) Option - - - - - - - - - - - - - - - - - - -

Dividend (Annual) Option - - - - - - - - - - - - - - - - - - -

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(PLAN - B)

Growth Option 10.5304 - - 10.5942 - - - - - - - 10.2164 - - - - - 10.0922 -

Dividend Option - - - 10.5942 - - - - - - - - - - - - - 10.0922 -








Dividend (Periodic) Option - - - - - - - - - - - - - - - - - - -

(PLAN - C)

Growth Option - - - - - - - - - - - - - - - - - - -



Dividend (Periodic) Option - - - - - - - - - - - - - - - - - - -






(PLAN - D)


CAGR (1 year) NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

CAGR (since allotment) NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Absolute returns(since allotment) (%) 4.97 6.40 7.00 5.54 -100.00 0.03 4.18 -100.00 1.19 4.25 2.90 2.16 0.40 0.45 0.08 0.44 0.55 0.92 1.84

Borrowings in the month of December, 2005

These amounts were borrowed from Standard Chartered Bank

Sr. Scheme Year Amount Borrowed Time Period Purpose of BorrowingNo. as % of net assets of Borrowing

Amount % of netBorrowed assets of

(Rs. in Crs) the scheme

1 Grindlays 2005-2006 250.00 6.57% 1 Day For meeting redemptionCash Fund (22, Dec., 2005) requirements

2 Grindlays 2005-2006 150.00 4.45% 3 Days For meeting redemptionCash Fund (23, Dec., 2005) requirements



Borrowings in the month of January, 2006 are given as follows :

Sr. Scheme Year Amount Borrowed Time Period Purpose of BorrowingNo. as % of net assets of Borrowing

Amount % of netBorrowed assets of

(Rs. in Crs) the scheme

1 Grindlays 2005-2006 80.00 2.37% 1 Day For meeting redemptionCash Fund (January 16, 2006) requirements

No Borrowings were made during the month of February, 2006.

NAV as on February 28, 2006 for close-ended schemes:

GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMP GFMPP GFMP GFMP GFMPP SCTS- 4 - 6 - 5 - 7 - 9 - 8 - 9 - 10 - 11 - 12 - 8 - 15 - 16 -20 -II -21 - 19 -I -I

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A. UNITHOLDERS' RIGHTSAND SERVICES

1) Investor ServicesThe Fund believes in providing theinvestors with a superior service to makethe investors' experience in dealing withthe Fund an efficient and satisfactory one.In order to achieve these goals, the Fundwill endeavour to continuously establishand upgrade systems to handletransactions efficiently and resolve anyinvestor grievances promptly.

2) Ease of TransactionsThe Fund intends to make everytransaction for the investor a simple andconvenient one. The Fund plans to providethe following services:

i) Official points of acceptanceof transactions

The AMC presently has official points ofacceptance of transactions in variouscities, the details in respect of which arestated on the last page of this OfferDocument. Over a period of time, the AMCwill endeavour to add further official pointsof acceptance of transactions and/or SalesOffices in other cities. Unitholders can goto these Service Centres / Sales Officesfor enquiries and transactions duringbusiness hours.

ii) Process transactions in atimely manner

Under the Regulations, the Fund/theRegistrar / the AMC shall despatch to theUnitholders the dividend warrants withinthirty days of the date of declaration ofdividend and the redemption / repurchaseproceeds within ten Business Days fromthe date of acceptance / deemedacceptance (i.e. Stipulated RepurchaseDate) of the request for repurchaseproceeds, as the case may be.

Any communication /despatch ofredemption /dividend proceeds, accountstatements etc. to the unitholders wouldbe made by the Registrar/AMC mayconsider appropriate in line withreasonable standards of servicing.Dividend /Redemption proceeds maybecredited to the Unitholders bank accountselectronically. In case the Unitholdersrequire these to be sent by cheque/ draftusing postal /courier service, theunitholders shall provide appropriateinstructions for the same to the AMC/Registrar.

As per the guidelines issued by SEBI, inthe event of failure to despatch theredemption or repurchase proceeds within10 working days, the AMC is liable to payinterest to the Unit holders @ 15% p.a. orsuch other rate as may be notified bySEBI from time to time. SEBI has furtheradvised the mutual funds that in the eventof payment of interest to the Unit holders,such Unitholders should be informed aboutthe rate and the amount of interest paidto them.

Ordinarily, non-monetary transactions orrequests will be processed, (with theexception of issue of Unit Certificates)within 7 (seven) Business Days.

3) Problem ResolutionThe Fund will follow up with official pointsof acceptance of transactions and theRegistrar on complaints and enquiriesreceived from investors for resolving thempromptly.

In case of any unresolved complaints, theUnitholders are requested to contact thefollowing:

Sr. Name Region Address andNo. Contact Number

1. Sunil West 90, M. G. Road,Aryamane Fort, Mumbai 400 001

Tel.: 91-22- 22674160

2. Vijith East 41, Chowringee,Raghavan Kolkata 700 071

Tel.: 91-33-2288 1686

3. Chetan North Connaught Circus,Mankame H Block, Mezzanine Floor,

New Delhi-110 001Tel.: 91-11-23406701/2

4. Shaji South Grindlays Centre,Perincheri I Floor, 19 Rajaji Salai,

Chennai 600 001Tel.: 91-44-2534 9373

4) NAV InformationThe NAV of the Scheme will be calculatedand announced by the Fund on a weeklybasis. The Fund shall publish NAVs atleast once a week in two daily newspapers.

5) Disclosure of Information underthe Regulations

The Fund will, not later than six monthsafter the close of each financial year(March 31), publish through anadvertisement, an abridged Annual Reportrelating to the Scheme which would alsobe mailed to the Unitholders. Further, thefull text of the Annual Report will beavailable for inspection at the corporateoffice of the Fund. A copy of the AnnualReport (abridged / full) will be sent toUnitholders.

The Fund shall before the expiry of onemonth from the close of each half year,that is as on March 31 and September 30,publish its unaudited financial results inone English daily newspaper circulatingall India and in a newspaper published inthe language of the region where the HeadOffice of the Fund is situated. To ensurethat portfolio disclosures are made morefrequently and timely, a completestatement of the Scheme portfolio wouldbe published by the Fund as anadvertisement in two newspapers withinone month from the close of each half-year (i.e. March 31 and September 30) ormailed to the Unitholders.

6) Rights of Unitholdersof the Scheme

1. Unitholders of the Scheme have aproportionate right in the beneficialownership of the assets of theScheme and in case of declaration ofdividend, for the receipt of the dividenddeclared by the Fund under theScheme.

2. When the Fund declares a dividendunder the Scheme, the Fund shalldespatch the dividend warrants to theUnitholders within 30 days from thedate of declaration of dividend.

3. The Trustee is bound to make suchdisclosures to the Unitholders as areessential in order to keep theminformed about any informationknown to the Trustee which may havean adverse bearing on theirinvestments.

4. The appointment of an AMC for theFund can be terminated by a majorityof the Trustees or by 75% of theUnitholders of the Scheme and anychange in the appointment of the AMCshall be subject to the prior approvalof SEBI and the Unitholders of theScheme.

5. The Trustee is obliged to convene ameeting on a requisition of 75% ofthe Unitholders of the Scheme.

6. 75% of the Unitholders of the Schemecan pass a resolution to wind up theScheme.

7. Unitholders have the right to inspectall the documents listed under"Documents Available for Inspection".

8. The Trustee shall obtain the consentof the Unitholders:

a) whenever required to do so by SEBI,in the interest of Unitholders.

b) whenever required to do so on therequisition made by three-fourths ofthe Unitholders of the Scheme.

c) when the Trustee decides to wind upor prematurely redeem the Units.

9. The Trustees shall ensure that nochange in the fundamental attributesof the scheme or the trust or fee andexpenses payable or any otherchange which would modify theScheme and affect the interests ofUnit holders is carried out unless:

l a written communication about theproposed change is sent to eachUnitholder and an advertisement isgiven in one English daily newspaperhaving nationwide circulation as wellas in a newspaper published in thelanguage of the region where theHead Office of the mutual fund issituated; and

VII. Unitholders' Rights and Services

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l the Unitholders are given an optionto exit at the prevailing Net AssetValue without any exit load.

Subject to the Regulations and theguidelines issued by SEBI, the consent ofthe Unitholders will be obtained throughvoting, by mail. Detailed modalities of thesame, including the principles forentitlement of votes for each Unitholderwill be finalised in consultation with andafter obtaining the approval of SEBI andthe Trustee.

SEBI vide its circular dated November 24,2000, has asked the Mutual Fund to followbelow mentioned guidelines:

The unclaimed redemption and dividendamounts may be deployed by the mutualfunds in call money market or moneymarket instruments only and the investorswho claim these amounts during a periodof three years from the due date shall bepaid at the prevailing Net Asset Value.After a period of three years, this amountcan be transferred to a pool account andthe investors can claim the amount atNAV prevailing at the end of the thirdyear. The income earned on such fundscan be used for the purpose of investoreducation. It should be specifically notedthat the AMC should make a continuouseffort to remind the investors throughletters to take their unclaimed amounts.Further, the investment management feecharged by the AMC for managingunclaimed amounts shall not exceed 50basis points.

As per SEBI circular dated February 9,2001, investors may ascertain about anyfurther changes after the date of the OfferDocument from the Mutual Fund/its officialpoint of acceptance of transactions/distributors or brokers.

7) Procedure for Conversion ofclose ended Scheme intoopen ended Scheme:

Standard Chartered Enterprise EquityFund - is a close ended scheme and theduration of the Scheme is 36 months fromthe date of allotment subsequent to whichthe Scheme will automatically convertedin to an open ended Scheme without anyfurther reference from the Mutual Fund/Trustee / AMC / Unitholder.

Upon maturity the following steps wouldbe taken for converting the Scheme intoan open ended scheme:

a) A communication will be sent to allunit holders whose names appear inthe list of Unitholders 30 days prior tothe maturity date informing theconversion.

b) Those Unitholders who do not wishto continue either in full or in part withthe open ended scheme may submita redemption/switch request in anyof the ISC's or transaction point.

c) For convenience of the Unitholders,the Mutual Fund will start acceptingsuch redemption/switch requests foraperiod of 30 days prior to the Maturitydate.

d) All such redemption/switch requestsshall be deemed to have beenreceived on Maturity date of theScheme, and processed accordingly.

e) After Maturity, the Scheme may havea book closure for a minimum periodof 7 days or till first Mondayimmediately on or after the 7th day.The Scheme will re open for ongoingpurchase and redemption after thedate of Book closure.

f) All unitholders (who do not exercisethis option of redemption ) of the closeended scheme, at the end of maturityautomatically become the unitholderof the open end Scheme.

8) Duration/Terminationof the Scheme

Standard Chartered Enterprise EquityFund is a close ended scheme and theduration of the Scheme is 36 months fromthe date of allotment subsequent to whichthe Scheme will automatically convertedin to an open ended Scheme without anyfurther reference from the Mutual Fund/Trustee / AMC / Unitholder.

As per the regulations, the Trustee maywind up the Scheme under the followingcircumstances:

a. on the happening of any event whichin the opinion of the Trustee requiresthe Scheme to be wound up, or

b. if 75% of the Unitholders of theScheme pass a resolution that theScheme be wound up; or

c. if SEBI so directs in the interest of theUnitholders.

d. Where the Scheme is wound up, theTrustee shall give notice of thecircumstances leading to the windingup of the Scheme to SEBI and in twodaily newspapers having circulationall over India and also in a vernacularnewspaper circulating in Mumbai atleast a week before the termination iseffected.

9) Effect of Winding UpOn and from the date of advertisement ofthe termination, the Trustee shall -

a. cease to carry on any businessactivities in respect of the Scheme

b. cease to create and cancel Units inthe Scheme

c. cease to issue and redeem Units inthe Scheme.

10) Procedure and Mannerof Winding Up

In the event, the Scheme being wound upthe AMC shall proceed as follows :

1. The Trustee shall call a meeting ofthe Unitholders to consider and passa necessary resolution by a simplemajority of the Unitholders presentand voting at the meeting forauthorising the Trustee or any otherperson to take steps for winding up ofthe Scheme.

2.a. The Trustee or the person authorisedunder above sub clause shall disposeof the assets of the Scheme in theinterest of the Unitholders of theScheme.

b. The proceeds of sale made inpursuance of the sub clause above,shall in the first instance be utilisedtowards discharge of such liabilitiesas are properly due under the Schemeand after making appropriateprovision for meeting the expensesconnected with such winding up, thebalance shall be paid to theUnitholders in proportion to theirrespective interest in the assets ofthe Scheme as on the date when thedecision for winding up was taken.

3. On completion of the winding up, theFund shall forward to SEBI and theUnitholders a report on the windingup containing particulars such ascircumstances leading to the windingup, the steps taken for disposal ofassets of the Scheme before windingup, expenses of the Scheme forwinding up, net assets available fordistribution to the Unitholders and acertificate from the auditors of theScheme.

4. Notwithstanding anything containedhereinabove, the application of theprovisions of SEBI (Mutual Funds)Regulations, 1996 in respect ofdisclosures of half yearly reports andannual report shall continue untilwinding up is completed or theScheme ceases to exist.

5. After the receipt of the report referredto in item (vii) above, if SEBI issatisfied that all measures for windingup of the Scheme have beencompleted, the Scheme shall ceaseto exist.

B. TAXATION

Tax benefits of investing in the MutualFundAs per the taxation laws in force as at thedate of this Offer Document, some broadincome tax implications of investing in theunits of the Scheme are stated below.The information so stated is based on theMutual Fund’s understanding of the taxlaws in force as of the date of this OfferDocument, which have been confirmedby its auditors.

The information stated below is only forthe purposes of providing generalinformation to the investors and is neitherdesigned nor intended to be a substitutefor professional tax advice. As the taxconsequences are specific to eachinvestor and in view of the changing taxlaws, each investor is advised to consulthis or her or its own tax consultant withrespect to the specific tax implicationsarising out of his or her or its participationin the Scheme.

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Implications of the Income-tax Act, 1961as proposed to the amended by theFinance Bill, 2006

(i) To the Mutual FundThe Fund is a Mutual Fund registeredwith the Securities and ExchangeBoard of India and hence, is eligiblefor the benefits of section 10(23D) ofthe Income-tax Act, 1961 (“the Act”).Accordingly, the income of the Fundis exempt from income tax.

The Fund will receive all its incomewithout any deduction of tax at source

under the provisions of Section 196(iv)of the Act.

a. Securities Transaction Tax (STT)

The Mutual Fund is liable to paysecurities transaction tax (STT) atprescribed rates on the value oftransactions of purchase or sale ofspecified securities.

The value of the taxable securitiestransaction shall be determined asunder:

l Where the transaction is inrespect of option in securities -the aggregate of the strike priceand the option premium of suchoption in securities;

l Where the transaction is inrespect of futures – at the priceat which such futures are traded;and

l Where the transaction is inrespect of any other security – atthe price at which such securitiesare purchased or sold.

The current rates of STT and also the rates proposed in the Finance Bill, 2006, to be effective from 1 June 2006, are as under:

Nature of Transaction Payable by Value on which tax Existing Proposedshall be levied tax rate (%) rates (%)

Delivery based purchase Purchaser Value at which shares / units 0.1 0.125transaction in equity shares or are boughtunits of equity oriented fundentered in a recognized stockexchange

Delivery based sale transaction in Seller Value at which shares / units are sold 0.1 0.125equity shares or units of equityoriented fund entered in arecognized stock exchange

Non-delivery based sale Seller Value at which shares / units are sold 0.02 0.025transaction in equity shares orunits of equity oriented fundentered in a recognised stockexchange.

Transaction for Derivatives Seller Futures : Value at which futures 0.0133 0.017entered in a recognized stock are tradedexchange Options : Aggregate value of strike(Futures and options) price and premium

Sale of units of an equity Seller Value at which units are sold 0.2 0.25oriented fund to the mutual fund

For this purpose, an “equity oriented fund”is defined to mean:

l such scheme where the investiblefunds are invested by way of equityshares in domestic companies to theextent of more than 50 per cent of thetotal proceeds of such funds; and

l which has been set up under ascheme of mutual fund.

The percentage of equity shares holdingsof such fund is required to be computedwith reference to the annual average ofthe monthly averages of the opening andclosing figures.

The above definition of an equity orientedfund is proposed to be amended by theFinance Bill, 2006 to mean a fund thatinvests at least 65 per cent of its investiblefunds in equity shares of domesticcompanies (as against current thresholdof 50 per cent). This amendment isproposed to be effective 1 June 2006.

b. Income Distribution TaxNo income distribution tax is payable

by the Fund, in respect of schemesin the nature of open equity orientedfund, in terms of section 115R of theAct, which deals with tax on incomedistributable to unitholders of mutualfunds.

For this purpose, “open ended equityoriented fund” is defined to mean,inter alia, a fund where the investiblefunds are invested by way of equityshares in domestic companies to theextent of more than 50 per cent of thetotal proceeds of such funds. Thepercentage of equity shares holdingsof such fund is required to becomputed with reference to the annualaverage of the monthly averages ofthe opening and closing figures.

Pursuant to the amendment proposedin the Finance Bill, 2006, effective 1June 2006, the benefit of exemptionfrom income distribution tax wouldalso be extended to close endedequity oriented schemes.Therefore, subject to the enactmentof the Finance Bill, 2006, even closeended equity oriented funds would

be exempt from income distributiontax with effect from Further, the abovedefinition of an equity oriented fund isproposed to be amended by theFinance Bill, 2006 to mean a fundthat invests at least 65 per cent of itsinvestible funds in equity shares ofdomestic companies (as againstcurrent threshold of 50 per cent). Thisamendment is proposed to beeffective 1 June 2006.

c. Service Tax

The Mutual Fund is liable for paymentof service tax as recipient of serviceson “Business Auxiliary Service”provided by distributors of mutualfunds/ agents. The rate of service taxis 10.2 percent (tax rate of 10 percentplus education cess at 2 percent ofthe tax).

The Finance Bill, 2006 proposes toincrease the above rate of servicetax to 12.24 per cent. The new ratewould be effective from the date ofthe enactment of the Bill.

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(ii) To the Unitholders

a. Tax on Income

In accordance with the provisions ofsection 10(35)(a) of the Act, incomereceived by all categories of unitholders in respect of units of the Fundwill be exempt from income-tax intheir hands.

Exemption from income tax undersection 10(35) of the Act would,however, not apply to any incomearising from the transfer of these units.

b. Tax on capital gains

As per the provisions of section2(42A) of the Act, a unit of a MutualFund, held by the investor as a capitalasset, is considered to be a short-term capital asset, if it is held for 12months or less from the date of itsacquisition by the unit holder.Accordingly, if the unit is held for aperiod of more than 12 months, it istreated as a long-term capital asset.

Computation of capital gain

Capital gains on transfer of units willbe computed after taking into accountthe cost of their acquisition. Whilecalculating long-term capital gains,such cost will be indexed by usingthe cost inflation index notified by theGovernment of India.

Individuals and HUFs, are granted adeduction from total income, undersection 80C of the Act upto Rs.100,000, in respect of specifiedinvestments made during the year(please also refer paragraph d).

Long-term capital gains

As per Section 10(38) of the Act, long-term capital gains arising from thesale of unit of an equity oriented fundentered into in a recognised stockexchange or sale of such unit of anequity oriented fund to the mutualfund would be exempt from income-tax, provided such transaction of saleis chargeable to securities transactiontax.

Pursuant to an amendment proposedin the Finance Bill, 2006, companieswould be required to include suchlong term capital gains in computingthe book profits and minimumalternated tax liability under section115JB of the Act. This amendment isproposed to be effective from 1 April2006.

Short -term capital gains

As per Section 111A of the Act, short-term capital gains from the sale ofunit of an equity oriented fund enteredinto in a recognised stock exchangeor sale of such unit of an equityoriented fund to the mutual fund wouldbe taxed at 10 per cent, providedsuch transaction of sale is chargeableto securities transaction tax.

The said tax rate would be increasedby a surcharge of:

l 10 per cent in case of non-corporate Unit holders, where thetotal income exceedsRs.1,000,000,

l 10 per cent in case of residentcorporate Unit holders, and

l 2.5 per cent in case of non-resident corporate unit holdersirrespective of the amount oftaxable income.

Further, an additional surcharge of 2per cent by way of education cesswould be charged on amount of taxinclusive of surcharge.

In case of resident individual, if theincome from short term capital gainsis less than the maximum amount notchargeable to tax, then there will beno tax payable.

Further, in case of individuals/ HUFs,being residents, where the totalincome excluding short-term capitalgains is below the maximum amountnot chargeable to tax1, then thedifference between the currentmaximum amount not chargeable totax and total income excluding short-term capital gains, shall be adjustedfrom short-term capital gains.Therefore only the balance short termcapital gains will be liable to incometax at the rate of 10 percent plussurcharge, if applicable and educationcess.

Non-residents

In case of non-resident unit holderwho is a resident of a country withwhich India has signed a DoubleTaxation Avoidance Agreement(which is in force) income tax ispayable at the rates provided in theAct, as discussed above, or the ratesprovided in the such agreement, ifany, whichever is more beneficial tosuch non-resident unit holder.

Investment by Minors

Where sale / repurchase is madeduring the minority of the child, taxwill be levied on either of the parents,whose income is greater, where thesaid income is not covered by theexception in the proviso to section64(1A) of the Act. When the childattains majority, such tax liability willbe on the child.

Losses arising from sale of units

l As per the provisions of section94(7) of the Act, loss arising ontransfer of units, which areacquired within a period of threemonths prior to the record date(date fixed by the Fund for thepurposes of entitlement of theunit holder to receive the incomefrom units) and sold within aperiod of nine months after the

record date, shall not be allowedto the extent of incomedistributed by the Fund in respectof such units.

l As per the provisions of section94(8) of the Act, where any units(“original units”) are acquiredwithin a period of three monthsprior to the record date (date fixedby the Fund for the purposes ofentitlement of the unitholder toreceive bonus units) and anybonus units are allotted (free ofcost) based on the holding of theoriginal units, the loss, if any, onsale of the original units within aperiod of nine months after therecord date, shall be ignored inthe computation of the unitholder’s taxable income. Suchloss will however, be deemed tobe the cost of acquisition of thebonus units.

l Each Unit holder is advised toconsult his / her or its ownprofessional tax advisor beforeclaiming set off of long-termcapital loss arising on sale /repurchase of units of an equityoriented fund referred to above,against long-term capital gainsarising on sale of other assets.

l Short-term capital loss sufferedon sale / repurchase of units shallbe available for set off againstboth long-term and short-termcapital gains arising on sale ofother assets and balance short-term capital loss shall be carriedforward for set off against capitalgains in subsequent years.

l Carry forward of losses isadmissible maximum upto eightassessment years.

c. Tax withholding on capital gains

Capital gains arising to a unit holderon repurchase of units by the Fundshould attract tax withholding asunder:

l No tax needs to be withheld fromcapital gains arising to a FII onthe basis of the provisions ofsection 196D of the Act.

1 The maximum amounts of totalincome, not chargeable to tax are asunder:

Type of Maximum amountperson of income not

chargeable totax

Women Rs. 135,000

Senior citizens Rs. 185,000

Otherindividualsand HUFs Rs. 100,000

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l In case of non-resident unitholder who is a resident of acountry with which India hassigned a double taxationavoidance agreement (which isin force) the tax should bededucted at source under section195 of the Act at the rate providedin the Finance Act of the relevantyear or the rate provided in thesaid agreement, whichever isbeneficial to such non-residentunit holder. However, such a non-resident unit holder will berequired to provide appropriatedocuments to the Fund, to beentitled to the beneficial rateprovided under such agreement.

l No tax needs to be withheld fromcapital gains arising to a resident

unit holder on the basis of theCircular no. 715 dated 8 August1995 issued by the CBDT.

Subject to the above, the provisionsrelating to tax withholding in respect ofgains arising from the sale of units of thevarious schemes of the fund are as under:

l No tax is required is to be withheldfrom long term capital gains arisingfrom sale of units in equity orientedfund schemes, that are subject tosecurities transaction tax.

l In respect of short-term capital gainsarising to foreign companies(including Overseas CorporateBodies), the Fund is required todeduct tax at source at the rate of10.46 per cent (10 per cent tax plus2.5 per cent surcharge thereon plus

additional surcharge of 2 per cent byway of education cess on the tax plussurcharge), as proposed by theFinance Bill, 2006. In respect of short-term capital gains arising to non-resident individual unit holders, asproposed in the Finance Bill, the Fundis required to deduct tax at source atthe rate of 11.22 per cent (10 per centtax plus 10 per cent surchargethereon2 plus additional surcharge of2 per cent by way of education cesson the tax plus surcharge).

d. Wealth Tax

Units held under the Schemes of theFund are not treated as assets withinthe meaning of section 2(ea) of theWealth Tax Act, 1957 and therefore,not liable to wealth-tax.

e. Securities Transaction Tax

Nature of Transaction Current ProposedTax Rate (%) Tax Rate3 (%)

Delivery based purchase transaction in equity shares or units of equityoriented fund entered in a recognized stock exchange 0.1 0.125

Delivery based sale transaction in equity shares or units of equity orientedfund entered in a recognized stock exchange 0.1 0.125

Non-delivery based sale transaction in equity shares or units of equityoriented fund entered in a recognised stock exchange. 0.02 0.025

Sale of units of an equity oriented fund to the mutual fund 0.2 0.25

Value of taxable securities transaction in case of units shall be the price at which such units are purchased or sold.

A deduction in respect of securities transaction tax paid is not permitted for the purpose of computation of business income orcapital gains.

However, if the total income of an assessee includes any business income arising from taxable securities transactions, he shallbe entitled to a rebate4 from income-tax of an amount equal to the securities transaction tax paid by him in respect of the taxablesecurities transactions entered during the course of his business.2 Assuming that the total income of the unit holder exceeds Rs. 1,000,000 in a tax year

3 To be effective from 1 June 2006, subject to enactment of the Finance Bill, 20064 Section 88E of the Act

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A. UNITHOLDER GRIEVANCES REDRESSAL MECHANISMInvestor grievances will normally be received at the Corporate Office of the AMC or at the official points of acceptance of transactionsor directly by the Registrar. All grievances will be forwarded to the Registrar for their necessary action. The complaints will be closelyfollowed up with the Registrar to ensure timely redressal and prompt investor service.

The status of complaints receivedPeriod Complaints received Complaints redressed Complaints pending

April 2001 to March, 2002 1031 1031 NIL



April 2004 to March 2005 1347 1342 5 (redressed)

April 2005 to February, 2006 4206 4187 19

B. ASSOCIATE TRANSACTIONS1. Investments in Group CompaniesThe AMC has till date not made investment in any of its Group companies.

However, the AMC has invested in Commercial Paper issued by Standard Chartered Investments & Loans (India) Ltd. The detailsare as under:

Scheme Deal Date Settlement Date Security Quantity Rate SettlementAmount

GCF 22-04-2004 22-04-2004 CP 4,500,000 98.8789 444,955,050

GFRF- ST 22-04-2004 22-04-2004 CP 3,000,000 98.8789 296,636,700

GFRF-ST 30-04-2004 30-04-2004 CP 2,000,000 98.8956 197,791,200

2. Underwriting obligations with respect to issues of Associate CompaniesThe AMC has, till date, not entered into any underwriting contracts in respect of any public issue made by any of its associatecompanies.

3. Subscription in issues lead managed by the Sponsor or any of its associates:Since inception till February 28, 2006 Subscription in issues lead managed by the Sponsor or any of its associates are as under:

Subscription in issues lead managed by the Sponsor or any of its associates are as under:

Name of the Scheme Security Lead Manager Till March 31, 2002(Amount in Rupees)

GSSIF-IP Associates India Financial Services Limited - 11% Standard Chartered Bank 100,000,000

GSSIF-IP The Tata Iron and Steel Company Limited 10.05% Standard Chartered Bank 250,000,000

GSSIF-IP Cholamandalam Investment & Finance Co. Ltd. Standard Chartered Bank 100,000,000

GSSIF-IP Indian Aluminium Company Limited - 9.95% Standard Chartered Bank 150,000,000

GSSIF-IP Mahindra & Mahindra Financial Services Ltd. Standard Chartered Bank 150,000,000

GSSIF-IP Reliance Industries Limited Standard Chartered Bank 100,000,000

GSSIF-ST Mahindra & Mahindra Financial Services Ltd. Standard Chartered Bank 500,000,000

GSSIF-ST Reliance Industries Limited Standard Chartered Bank 350,000,000

GSSIF-ST Larsen & Toubro Standard Chartered Bank 100,000,000

GSSIF-ST Kotak Mahindra Primus Limited Standard Chartered Bank 100,000,000

GSSIF-ST Reliance Industries Limited Standard Chartered Bank 75,000,000

GCF Whirpool India Limited Standard Chartered Bank 50,000,000

GCF Cholamandalam Investment & Finance Co. Ltd. Standard Chartered Bank 150,000,000

GCF Kotak Mahindra Primus Limited Standard Chartered Bank 50,000,000

GCF Reliance Industries Limited Standard Chartered Bank 350,000,000

GCF Mahindra & Mahindra Financial Services Ltd. Standard Chartered Bank 100,000,000

GCF Reliance Industries Limited Standard Chartered Bank 250,000,000

GFSS-Series III - Plan A Mahindra & Mahindra Financial Services Ltd. Standard Chartered Bank 19,200,000

GFSS-Series III - Plan A Rabo India Limited Standard Chartered Bank 18,000,000

GFSS-Series III - Plan B Mahindra & Mahindra Financial Services Ltd. Standard Chartered Bank 10,800,000

GFSS-Series III - Plan B Rabo India Limited Standard Chartered Bank 11,000,000

GFSS-Series I Rabo India Limited Standard Chartered Bank 60,000,000

GFSS-Series V Rabo India Limited Standard Chartered Bank 80,000,000

VIII. Other Matters

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Name of the Scheme Security Lead Manager Till March 31, 2003(Amount in Rupees)

GSSIF-IP Indo Gulf Corporation 8.70% NCD Standard Chartered Bank 250,000,000

GSSIF-IP Reliance Industries Mibor + 40 Standard Chartered Bank 350,000,000

GSSIF-IP IDFC Limited - NCD - 8.05% Standard Chartered Bank 250,000,000

GSSIF-ST Rabo India - 9% NCD Standard Chartered Bank 250,000,000

GSSIF-ST IPCL 6.40% NCD Standard Chartered Bank 400,000,000

GSSIF-ST GE Capital - 7.58% NCD Standard Chartered Bank 250,000,000

GSSIF-ST 6.60% Rabo India - NCD Standard Chartered Bank 350,000,000

GSSIF-ST M&M Securities Loan - 6.85% Standard Chartered Bank 251,404,947

GCF BSES Limited - NCD - 6.78% Standard Chartered Bank 300,000,000

GCF IPCL 6.40% NCD Standard Chartered Bank 250,000,000

GCF 6.65% GE Capital NCD Standard Chartered Bank 500,000,000

GDBF IPCL 6.40% NCD Standard Chartered Bank 100,000,000

GFSS-A3 6.95% GE Capital NCD Standard Chartered Bank 90,000,000

Name of the Scheme Security Lead Manager From 1st April, 2003to 31st March, 2004

GCF AP - Mumbai Auto Recble Trust A1 Standard Chartered Bank 325,271,035

GSSIF - MT AP - Mumbai Auto Recble Trust A2 Standard Chartered Bank 84,424,095

Note: Investments has been made in securitised debt of a Special Purpose Vehicle (SPV) viz. Mumbai Auto Receivables Trust, which has takenover the auto receivables of Standard Chartered Bank and issued pass through certificates against the same . UTI Bank is the settlor/trustee of theSPV.

Name of the Scheme Security Lead Manager From 1st April 2004to 31st March, 2005

GCF AP - Retail 2004 Series II * Standard Chartered Bank 50,17,00,000

GFRF-LT AP - HDFC Bank ABS Trust Ser.VI Standard Chartered Bank 272,388,187

* Primary Application - Securitised Debt

Name of the Scheme Security Lead Manager From 1st September2005 to 30th September

GCF AP -UBL Trust Series 16 Standard Chartered Bank 250,629,135.30

GCF AP - UBL Trust Series16 Standard Chartered Bank 250,629,135.30

Other than the cases given above, Standard Chartered Bank has not acted as lead manager in any of the issues subscribed to, bythe schemes during the period April 01, 2005 to February 28, 2006.

4. Transactions with AssociatesAmount paid to sponsor or associates for brokerage are as under:

4. a. From April 1, 2001 to March 31, 2002

Name of the Scheme Brokerage Paid (Rs.)

SCGB* SCB

GSSIF-IP 46,761,065 13,401,551

GSSIF-ST 4,487,931 1,542,284

GFSS-Series I - -

GFSS-Series IIPlan A - -

GFSS-Series IIPlan B - -

GFSS-Series IIIPlan A - -

GFSS-Series IIIPlan B - -

GFSS Series IV - -

GFSS Series V - -

GCF 2,209,610.70 170,691.04

GGSF-IP - -

GGSF-ST - -

* Standard Chartered Grindlays Bank

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4. b. From April 1, 2002 to March 31, 2003Name of the Scheme Brokerage Paid (Rs.)

SCGB SCBGSSIF-IP 9,680,565.35 28,916,707.25GSSIF-ST 2,225,451.65 7,565,587.67GCF 897,965.29 2,181,549.97GGSF-IP 134,320.88 319,534.99GGSF-ST 3,505.41 23,558.62GDBF 631,716.52 3,459,593.08GFRF - 287,375.96TOTAL 13,573,525.11 42,753,907.54

4. c. From April 1, 2003 to March 31, 2004Scheme BrokerageGSSIF-IP 7,67,01,268GSSIF-ST 70,75,861GCF 77,38,389GGSF-IP 3,70,525GGSF-ST 4,191GDBF 1,65,16,635GFRF 46,15,766GSSIF MT 78,61,647GGSF PF -FMP A -TOTAL 12,08,84,281

4. d. From April 1, 2004 to March 31, 2005Scheme BrokerageGSSIF-IP 111,62,989GSSIF-ST 8,58,284GCF 54,40,668GGSF-IP 52,409GGSF-ST 6,063GDBF 64,37,169GFRF- ST 1,12,57,023GSSIF MT 25,41,122GGSF PF 1,30,162GFRF-LT 38,30,177SCASBF 43,56,721GFMP A 32,625GFMP Q 30,048GFMP 6 29,38,835TOTAL 4,90,74,295

4. e. From April 1, 2005 to February 28, 2006Scheme BrokerageGSSIF-IP 1,779,885GSSIF-ST 668,465GCF 2,848,946GILT-IP 16,325GILT-ST 2,201GDBF 465,368GFRF ST 6,521,724GSSIF MT 80,919GGSF PF 8,361GFRF LT 2,255,762ASBF 381,200GFMPP1 350,241GFMPP2 17,355SCTS 385,544GFMP 16 60,490GFMP 18 5,706GFMP 15 87,182GFMP 12 16,188GFMP 10 38,214.20GFMP 8 69,821.03GFMP 20 273,009.54SCCEF 89,427,755.59SCPEF 18,149,580.93TOTAL 123,910,243

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Dealings with Associate CompaniesThe AMC may, from time to time, for the purpose of conducting its normal business, use the services of the subsidiaries of its Sponsors.These subsidiaries as on the date of this Offer Document include Standard Chartered Bank, a scheduled commercial bank andStandard Chartered Finance Limited & Standard Chartered Investments & Loans (India) Ltd, non-banking finance companies,Standard Chartered UTI Securities India Private Limited, a primary dealer and SCOPE International Private Limited, which specialisesin IT enabled services. The AMC may utilise the services of these group companies and any other subsidiary or associate companyof the Sponsors established or to be established at a later date in case such an associate company is in a position to provide therequisite services to the AMC. The AMC will conduct its business with the aforesaid companies on commercial terms and on arm'slength basis and at the then prevailing market prices to the extent permitted under the applicable laws including the Regulations,after an evaluation of the competitiveness of the pricing offered by the associate companies and the services to be provided by them.The AMC will, before investing in the securities of the group companies of the Sponsor, evaluate such investments, the criteria forthe evaluation being the same as is applied to other similar investments to be made under the Scheme. Investments under the Schemein the securities of the group companies will be subject to the limits under the Regulations.Standard Chartered Bank and Standard Chartered UTI Securities India Private Limitd are on the panel of Bankers/Primary Dealerswith whom the Mutual Fund places money on call and /or fixed deposits and/or may enter into Interest Rate Swaps/Forward RateAgreements from time to time at competitive rates.Associate transactions, if carried out, will be as per the Regulations and the limits prescribed there under the Regulations.Standard Chartered Bank (SCB) is a distributor of the Schemes of Standard Chartered Mutual Fund.

C) DETAILS OF INVESTMENTS THAT HOLD MORE THAN 5% OF NAV OF ANY SCHEME OFSTANDARD CHARTERED MUTUAL FUND

In the opinion of Standard Chartered Asset Management Company Private Limited, the above investments were considered soundand are in line with the investment objective of the Scheme.Details of investment in companies / subsidiaries that hold more than 5% of NAV of any scheme of Standard Chartered Mutual Fund

Company Schemes Investing Scheme Aggregate for the period *Outstanding as at 28.02.2006invested in by Name under Regulation 25(11) At Market / Fair Valuethe company At Cost (Rs.) (Rs.)

Hindalco Industries Limited GFMP A GSSIF-IP 52,115,400.00 -GFMP A2 GSSIF-ST 51,890,300.00 -GFMP 3 GFMPP1 106,989,108.00 105,913,700.00GSSIF-ST

Hindustan Lever Ltd. GFMPP1 3,112,061.00 -SCTS 995,805.00 -GFMPP-2 197,581.00 -SCPEF 60,093,144.00 58,488,000.00

HDFC Bank Limited GFRF-LT GCF 8,238,164,356.11 169,236,577.30GDBF 1,347,586,644.00 -GFRF-ST 2,689,044,392.77 15,490,905.31GFRF-LT 1,173,573,437.50 158,002,635.84FMP-4 314,888,801.62 315,504,713.63FMP-19 343,700,000.00 345,730,000.00FMP-21 1,963,161,644.00 1,971,757,260.47SCLM 4,790,465,312.00 1,167,238,428.60FMP-18 1,478,626,848.00 -SCPEF 246,081,250.00 -SCFMP-3 2,203,785,616.00 -

Housing Development GSSIF MT GSSIF-IP 500,269,100.00 -Finance Corporation GSSIF-ST 489,898,950.00 - Limited GCF 14,179,795,897.00 1,140,521,915.23

GDBF 168,743,500.00 -GFRF ST 6,925,911,190.00 501,397,550.00GFRF LT 5,575,456,464.00 601,246,767.10FMP-A2 103,838,800.00 -FMP-6 100,980,680.00 197,631,200.00FMP-5 164,888,790.00 161,690,990.00FMP-7 156,408,300.00 151,335,900.00FMP-4 249,968,750.00 249,417,250.00FMP-9 50,000,000.00 39,568,560.00FMP-17 986,022,000.00 -SCCEF 1,491,941,520.00 -GFMPP1 101,759,463.00 2,754,200.00SCLM 1,414,216,400.00 536,147,504.27GFMP-20 98,361,000.00 -SCPEF 1,178,883,340.00 -

Mahindra & Mahindra GSSIF-ST GSSIF-IP 252,858,760.00 -Limited GSSIF-ST 308,376,170.00 -

GSSIF-MT 9,536,840.00 -GCF 7,557,604,280.00 1,173,740,638.80GDBF 580,068,710.00 -GFRF ST 5,416,122,710.00 100,000,000.00FMPA2 9,543,140.00 -FMP-4 188,972,400.00 -FMP-5 22,646,314.00 23,481,489.66FMP-6 49,089,430.00 29,914,800.00FMP-12 57,277,770.00 -FMP-7 16,072,926.00 6,494,880.27FMP-19 196,558,800.00 197,667,631.14GFMPP1 2,853,285.00 3,215,300.00SCLM 1,322,608,840.00 942,384,797.36

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GFMP-20 170,000,000.00 169,517,200.00GFMP-21 146,404,800.00 146,931,485.28GFRF LT 1,266,954,810.00 -SCCEF 579,793,347.50 220,370,708.70

Maruti Udyog Ltd. GFRF-LT GFMPP1 2,032,624.00 2,320,470.00SCCEF 205,346,035.80 224,240,760.00

ICICI Bank Limited GFRF ST GSSIF-IP 366,091,290.00 -GSSIF-ST 554,215,880.00 40,556,360.00GCF 10,660,866,040.00 70,973,630.00GSSIF MT 351,884,770.00 -GDBF 1,916,479,900.00 -GFRF ST 8,815,733,540.00 150,000,000.00FMPA 323,301,550.00 -FMPA2 178,726,000.00 -FMP-6 106,103,600.00 102,896,600.00FMP-5 157,909,650.00 40,579,200.00FMP-3 2,957,142,000.00 -FMP-7 75,541,130.00 71,005,700.00FMP-9 50,000,000.00 48,773,300.00FMP-10 1,971,358,000.00 -FMP-4 96,040,900.00 -FMP-11 1,676,932,000.00 -FMP-8 14,639,988.00 14,058,620.40GFRF LT 2,063,008,730.00 -SCPEF 92,192,580.00 -GFMPP1 106,041,122.00 105,273,800.00GFMP-20 103,011,400.00 102,896,600.00GFMP-21 98,121,800.00 98,248,420.22SCCEF 374,432,659.25 -SCLM 6,000,000,000.00 6,000,000,000.00

ICICI Securities Limited GSSIF-ST 100,000,000.00 -FMP-16 100,666,100.00 98,683,300.00SCLM 200,000,000.00 -GCF 308,565,380.00 247,527,771.95GFMPP-I 68,572,980.00 -

IL&FS GCF GSSIF-IP 239,643,520.00 -GCF 5,072,043,900.00 260,288,360.00GFRF-ST 3,993,910,700.00 -GFRF LT 1,128,976,590.00 29,923,320.00FMP-3 16,277,332.50 -SCPEF 129,195,880.00 -GDBF 100,336,400.00 -FMP-A 488,098,500.00 -SCLM 2,409,424,140.00 509,514,370.00SCCEF 249,671,750.00

ITC Limited GCF SCCEF 922,054,802.16 291,440,500.00GSSIF-ST SCTS 1,497,200.00 1,668,720.00GFRF-ST GFMPP1 5,169,243.00 5,726,000.00GFRF-LT GFMPP2 282,550.00

Infosys Technologies Ltd. GCF GFMPP-1 4,613,587.00 -SCCEF 805,692,536.65 -

Indian Petro Chemicals Ltd. SCLM SCPEF 148,569,197.00 -GFMPP-1 4,047,224.00 3,798,400.00SCCEF 197,036,650.00 -

Finolex Cables Limited GGSF-IP SCCEF 60,415,643.39 -HCL Technologies Ltd. GFRF-ST GFMPP1 2,978,530.00 3,080,500.00

SCCEF 173,896,457.16 147,299,265.30Bajaj Auto Fin. GCF GCF 1,025,458,459.00

GFRF ST 138,203,260.00 -GDBF 49,807,700.00 -GFRF LT 48,719,649.00 -SCLM 119,808,240.00 -GFMPP-I 51,123,595.00 -GFMPP-II 256,789.00 -SCCEF 220,990,698.50 247,118,750.00

Bajaj Hindustan Limited SCCEF 424,519,600.15 250,609,427.75GFMPP1 5,437,070.00 5,456,250.00

Bharti Tele Ventures Ltd. GSSIF-ST SCCEF 397,700,515.00 -GFMPP1 1,816,070.00 -

**Reliance Industries GCF SCCEF 913,709,306.05 283,540.00Limited GFRF-ST FMP-4 152,771,880.00 150,431,250.00

FMP-16 99,521,900.00 97,861,500.00FMP-A 53,608,650.00 -GDBF 752,421,050.00 -GFRF-ST 102,324,600.00 -


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GSSIF-IP 834,215,940.00 -GSSIF-MT 107,288,550.00 -GSSIF-ST 880,187,830.00 -GFMP-20 98,590,300.00 97,861,500.00GFMPP1 8,310,309.20 5,490,810.00

Reliance Energy Ltd. GCF GFMPP1 1,773,114.00 1,637,025.00Reliance Capital Ltd. GFMPP1 70,227.00 138,000.00Reliance Communication GFMPP1 2,090,635.92 978,600.00Venture Ltd.Reliance Natural GFMPP1 18,900.00 30,000.00Resources Ltd.Reliance Tele Ltd. GCF 245,246,000.00 -

SCFMP-3 245,566,500.00 - Raymonds Limited GSSIF-ST GFRF ST 750,000,000.00 -

GFRF LT 350,000,000.00 -GCF 900,000,000.00

Sterlite Industries Limited GSSIF-IP GCF 2,090,000,000.00 GSSIF-ST GFRF ST 1,040,000,000.00 -GDBF GFRF LT 160,000,000.00 -GFRF-LT SCLM 300,000,000.00 150,000,000.00

Sterlite Optical SCCEF 164,086,478.50 -Technologies LimitedWipro Ltd. GCF GFMPP1 4,166,664.00 - Tata Sons GCF FMP A 101,433,100.00 -

GFMP 3 FMP A2 151,075,950.00 -FMP-5 299,294,200.00 199,986,400.00GDBF 100,221,500.00 -GCF 150,360,500.00 GFRF LT 100,592,200.00 -

Tata Consultancy GCF GFMPP1 3,356,361.00 3,323,700.00Tata Power GCF 40,932,737.74

GFMPP1 2,321,238.00 2,537,250.00Tata Tea GFMPP1 622,618.00 594,685.00Tata Iron & Steel GCF GFMPP1 1,131,894.00 -

SCCEF 326,518,882.00 340,490,000.00Tata Motors Ltd. SCCEF 372,933,783.00 420,343,000.00Tata Coffee GCF 296,755,950.00

GFRF ST 148,000,200.00 -UCO Bank GSSIF-ST GSSIF-ST 350,462,260.00 48,075,579.84

GSSIF-IP 49,054,800.00 49,147,014.60GCF 4,441,495,670.00 402,225,268.94GDBF 105,542,280.00 9,977,271.62GFRF LT 1,322,243,750.00 -GFRF ST 4,210,854,200.00 -GFMP 12 47,120,500.00 49,432,098.34GFMP 17 336,251,000.00 -SCPEF 49,257,550.00 -SCLM 1,508,081,850.00 1,223,317,610.61SCFMP-3 621,171,816.30 GFMP-21 245,229,950.00 246,111,842.45

UTI Bank Limited GCF GFRF ST 5,824,945,951.00 350,167,650.00GDBF 312,461,400.00 -FMPA 195,391,200.00 -FMPA2 97,716,250.00 -FMP-4 575,666,900.00 -FMP-16 73,383,590.00 71,781,220.00GCF 7,894,867,347.00 537,934,227.70GSSIF-ST 551,938,490.00 144,701,976.74GFRF-LT 1,209,727,150.00 -GSSIF-MT 28,253,100.00 -GSSIF IP 47,192,500.00 -GFMPP1 32,674,600.00 32,874,288.05GFMP-20 31,015,440.00 30,763,380.00SCLM 3,448,499,070.00 1,910,199,663.12

* Market Value for Close Ended Scheme is considered as on 22.02.2006

** RIL and REL had invested in schemes of SCMF during the concerned period. The schemes which have invested in Reliance have been includedin the report. As RIL had demerged into multiple entities according to the demerger scheme applied to it, name of demerged entities are alsoappearing for the purpose of information. Cost of investment of the schemes in demerge entities of RIL have been spilt in the ratio providedby RIL and accordingly disclosed.


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D. PENALTIES & PENDING LITIGATIONSSr. No. SEBI requirement Response

1 All disclosures on penalties and action taken against foreignentities may be limited to the jurisdiction of the country wherethe principal activities (in terms of income / revenue) of thesponsors / associate companies are carried out or the wherethe headquarter is situated.

2 Top 10 monetary penalties in case of foreign entities and allmonetary penalties in case of Indian entities, imposed againstthe AMC / Trustee Company / Sponsor or any associate ofthe sponsor (for irregularities / violations in the financial servicessector or for defaults in respect of share holders / debentureholders and depositors, in jurisdiction country as determinedin the above clause, by any financial regulatory body orgovernment authority or settlement arrived with any financialregulatory body during the last five years and details thereof.

Penalties awarded for economic offences may be disclosedonly in case of AMC, sponsor and Trustee Company.

3 Details of all cases of suspensions and cancellation ofcertificate of registration (for irregularities / violations in financialservices sector or for defaults in respect of share holders,debenture holders and depositors) of the AMC, TrusteeCompany and sponsor or any associate of the sponsor shallbe disclosed for the last 10 years.

4 Mutual funds having associate companies abroad shall makethe above disclosures for foreign and Indian entities separately.

Standard Chartered Bank and its subsidiaries (“the Group”) has operationsin some 50 territories throughout the world and is regulated and supervisedby the relevant central banks and regulatory authorities in each jurisdictionin which it has offices, branches and or subsidiaries. As far as we are aware,as at 28 November, 2005, the Group had not been subject to regulatorypenalties of material significance to the Group in each of the followingcategories:

- Penalties and actions taken against SCB in the UK over past 10 years

- Penalties and actions taken against SCB subsidiaries in their countryof incorporation (UK or otherwise) over past 10 years

Standard Chartered Bank and its subsidiaries (“the Group”) has operationsin some 50 territories throughout the world and is regulated and supervisedby the relevant central banks and regulatory authorities in each jurisdictionin which it has offices, branches and or subsidiaries. As far as we are aware,as at 6 February, 2004 the Group’s top 10 monetary penalties worldwideduring the past five years were:

Malaysia 2000 - SCB did not meet guidelines laid down by Bank NegaraMalaysia on lending to priority sectors. SCB was required to place aGBP 600,000 deposit on a zero interest deposit with BNM for one year

Malaysia 2000 - Bank Negara Malaysia imposed a penalty of a fine ofRM95,200 (USD 25,000) on SCBMB for failing to submit a tender fortreasury bills

Indonesia 2000 - Penalty due to audit findings due to Net Inter Office Fundof USD 11,700

Indonesia 2001 - imposed a penalty of USD 900,000 on SCB due to violationon IDR trading and loan to nonresident restriction

Indonesia 2001 - Penalty for breaching NIOF and Commercial Offshoreborrowing of USD 18,507

Indonesia 2002 - Bank of Indonesia fined SCB Indonesia USD 18,000 forbreaching limit on offshore borrowing bilateral loan to NGO a/cs identifiedin BI audit

Thailand 2002 - Bank of Thailand fined SCB Bangkok branch USD 20,000for breach of single lending limit and risk weighted capital ratio

Philippines 2002 - fined USD 15,000 for noncompliance with requirementfor lending to agriculture sector

Philippines 2003 - BSP imposed a penalty of USD 72,000 for delay ineffecting treasury transaction with them due to technical problems with aSWIFT transmission

Oman 2003 Oman Central Bank fined USD 30,000 for breach of financialregulations

Standard Chartered Bank has operated over 150 years and has operationsin some 50 territories throughout the world and is regulated and supervisedby the relevant central banks and regulatory authorities in each jurisdictionin which it has offices, branches and or subsidiaries. As far as we are aware,as at 28 November 2005, we are not aware of any such issues of materialrelevance to the Standard Chartered Bank Group, with the exception detailedbelow.

In February 2004,Standard Chartered Bank , Japan Branch was subject toBusiness Improvement Order from the Japanese Financial Services Agency.The BIO required the cessation of new custody business. The BIO was liftedin February 2005 with full resumption of the Custody Business.

India- The Enforcement Directorate has levied a penalty upon SCB and itsstaff for certain irregularities under the FERA to the tune of INR 2.35 crores.

The penalty has not been paid as an appeal has been preferred by SCBand the staff.

The order for penalty is dated 30th Oct., 2003.

RBI had penalised SCB with INR 5,00,000/- for violating guidelines/instructionsrelating to KYC norms, and as SCB has also failed to verify the end use offunds in respect of loans granted against shares to a number of individuals

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5 Any pending material litigation proceedings, other than ordinaryroutine litigation incidental to the business of the Mutual Fundto which the Sponsor of the Mutual Fund or any Companyassociated with the Sponsor in any capacity such as theAMC, Board of Trustees/Trustee Company or any of theDirectors or key personnel is a party.

Any pending criminal cases or economic offence cases againstthe Sponsor or any company associated with the sponsor inany capacity such as AMC, Board of Trustees/TrusteeCompany or any of the directors or key personnel.

6 Any deficiencies in the systems and operations of the Sponsorof the Mutual Fund or any company associated with thesponsor in any capacity such as the AMC or the TrusteeCompany which SEBI has specifically advised to be disclosedin the offer document, or which has been notified by any otherregulatory agency.

7 Any enquiry / adjudication proceedings under the SEBI Actand the Regulations made there under, against the Sponsorof the Mutual Fund or any Company associated with theSponsor in any capacity such as the AMC, Board of Trustees/Trustee Company or any of the Directors or key personnelof the Asset Management Company.

Sr. No. SEBI requirement Response

E. BORROWING BY THEMUTUAL FUND

Under the Regulations, the Fund is allowedto borrow to meet its temporary liquidityneeds of the Fund for the purpose ofrepurchase, redemption of Units orpayment of interest or dividend to theUnitholders. Further, as per theRegulations, the Fund shall not borrowmore than 20% of the Net Assets of theScheme and the duration of suchborrowing shall not exceed a period of sixmonths. The Fund may raise suchborrowings after approval by the Trusteefrom any of its Sponsors/Associate/Groupcompanies/Commercial Banks in India orany other entity at market related ratesprevailing at the time and applicable tosimilar borrowings. The security for suchborrowings, if required, will be asdetermined by the Trustee. Suchborrowings, if raised, may result in a cost,which would be dealt with in consultationwith the Trustees.

Till November 30, 2005, no borrowingshave been made by the Fund. However,during the months December, 2005 andJanuary, 2006 there were Borrowings inGrindlays Cash Fund (GCF) for meetingredemption requirements. No Borrowingswere made during the month of February,2006..

F. INTER-SCHEME TRANSFERSTransfer of investments from one Schemeto another Scheme under the Mutual Fundshall be allowed only if such transfers aredone on the closing prices of the PrincipalStock Exchange and in conformity with

Regulations. In case of securities whichare not traded on the Principal StockExchange / any other exchange, the inter-Scheme transfers will be effected basedon fair valuation to be arrived at by theAMC with the approval of the Trustee.

G. STOCK LENDING"If permitted by SEBI under extantregulations/guidelines, the Scheme mayalso engage in stock lending. The Schememay also enter into 'Repo/Reverse Repo'transactions, as may be permitted fromtime to time. Stock lending means thelending of stock to another person or entityfor a fixed period of time, at a negotiatedcompensation. The securities lent will bereturned by the borrower on expiry of thestipulated period.

The risks in lending portfolio securitiesconsists of counterparty risk - inability toreturn the securities deposited by thelender and the possible loss of any incomeaccruing to the lender. Besides, there canalso be temporary illiquidity of thesecurities that are lent out and the Schememay not be able to sell such lent outsecurities. It may be noted this activitywould have the inherent probability ofcollateral value drastically falling in timesof strong downward market trends.

Subject to the SEBI Regulations, theMutual Fund may, engage in SecuritiesLending. Such investments shall be madewhen in view of the Fund Manager, suchinvestments could provide reasonablereturns commensurate with risksassociated with such investments andshall be made in accordance with the

investment objective of the Scheme.Securities Lending means the lending ofSecurities to another person or entity fora fixed period of time, at a negotiatedcompensation in order to enhance returnsof the portfolio. The securities lent will bereturned by the borrower on the expiry ofthe stipulated period. The lendingtransactions may require procurement ofcollateral which would exceed in value,the value of the securities lent. Thecollateral can be in the form of cash, bankguarantee, government securities orcertificate of deposits or other securitiesas may be agreed. As with other modesof extensions of credit, there are risksinherent to securities lending, includingthe risk of failure of the other party, in thiscase the approved intermediary, to complywith the terms of the agreement enteredinto between the lender of securities i.e.the Scheme and the approvedintermediary. Such failure can result inthe possible loss of rights to the collateralput up by the borrower of the securities,the inability of the approved intermediaryto return the securities deposited by thelender and the possible loss of anycorporate benefits accruing to the lenderfrom the securities deposited with theapproved intermediary.

The Mutual Fund may not be able to sellsuch lent out securities and this can leadto temporary illiquidity.

The AMC, with a view to optimizingreturns / protecting the interests of theinvestors, may increase / decreaseexposure in stock lending activities asdeemed fit from time to time.

Standard Chartered plc and its subsidiaries (“the Group”) are subject tocertain claims and are a party to a number of legal proceedings relating tothe normal course of their business.

As far as Group is aware it and its subsidiaries are not engaged in anymaterial litigation (whether as defendant or otherwisec), the results of whichwould have a significant material effect on their financial position or operation.

As far as the Group is aware there are no pending material criminal oreconomic offence cases in India as described.

Standard Chartered Bank has operated for over 150 years and has operationsin some 50 territories throughout the world and is regulated and supervisedby the relevant central banks and regulatory authorities in each jurisdictionin which it has offices, branches and or subsidiaries. As far as we are aware,as at November 28, 2005, we are not aware of any such issues of materialimportance to the Standard Chartered Bank Group, with the exception, orotherwise stated in this report, as detailed below.

In October 2004, Standard Chartered Bank, New York Branch was subjectot Written Agreement for weaknes in its Anti Money Laundering Controls.A rectification programme is underway in conjunction with the relevantregulatory authorities.

Nil.

76


76

H. DIVIDENDS ANDDISTRIBUTION

The Trustee proposes to adopt thefollowing dividend distribution policy:

Dividends, if declared, will be given out ofthe net surplus of the Scheme/Plan tothose unitholders whose names appear inthe register of unitholders on the recorddate. The investors may obtain informationon the exact record date from the office ofthe mutual fund / the registrar. Unitholdersare entitled to receive dividend within 30days of the date of declaration of thedividend. However, the mutual fund willendeavour to make dividend paymentssooner to unitholders. There is noassurance or guarantee to unitholders asto the rate of dividend distribution nor thatdividends will be regularly declared, thoughit is the intention of the mutual fund tomake regular dividend distributions underthe respective investment option.

The AMC reserves the right to declaredividend at weekly / monthly / quarterly /half yearly / annual or any other intervalsas it may deem appropriate.

Dividend declaration and distribution shallbe in accordance with SEBI Regulationsas applicable from time to time.

H. GENERAL INFORMATION1. Power to make RulesSubject to the Regulations, the Trusteemay, from time to time, prescribe suchterms and make such rules for the purposeof giving effect to the Scheme with powerto the AMC to add to, alter or amend allor any of the terms and rules that may beframed from time to time.

2. Power to remove DifficultiesIf any difficulties arise in giving effect tothe provisions of the Scheme, the Trusteemay, subject to the Regulations, doanything not inconsistent with suchprovisions, which appears to it to benecessary, desirable or expedient, for thepurpose of removing such difficulty.

3. Scheme to be binding on theUnitholders

Subject to the Regulations, the Trusteemay, from time to time, add or otherwisevary or alter all or any of the features ofinvestment options and terms of theScheme after obtaining the priorpermission of SEBI and Unitholders(where necessary), and the same shall bebinding on all the Unitholders of theScheme and any person or personsclaiming through or under them as if eachUnitholder or such person expressly hadagreed that such features and terms shallbe so binding.

4. Documents available forinspection

1. Memorandum and Articles ofAssociation of the Trustee Companyand the AMC

2. Custodian Agreement betweenTrustee and Deutsche Bank

3. Investment Management Agreement

4. Trust Deed and amendments thereto

5. Mutual Fund Registration Certificate

6. Consent of Registrar to act in thesaid capacity

7. Consent of Auditors to act in the saidcapacity

8. Securities and Exchange Board ofIndia (Mutual Funds) Regulations,1996 and amendments thereof fromtime to time

9. Indian Trust Act, 1882

10. Annual Report of the AMC

Note : This Offer Document has beenissued under the authority accorded bythe Board of Standard Chartered TrusteeCompany Private Limited on December22, 2005.

Notwithstanding anything contained inthe Offer Document the provisions ofSEBI (Mutual Funds) Regulations, 1996and Guidelines thereunder shall beapplicable.

Further, investors may ascertain aboutany further changes from the Mutual Fund/Investor Service Centres/distributors orbrokers.

For and on behalf of theBoard of Directors of

Standard Chartered AssetManagement Company PrivateLimited

Sd/-Debashis RoyHead Operations

Mumbai, dated - December 23, 2005

Cov. (iii)

COLLECTION CENTRES (During NFO Period)

HDFC BANK LTD. - Collection CentresAGRA : Shop No-11, Block No. 17/2/4, Friends Plaza, Sanjay Place, Agra - 282 002 & AHMEDABAD : HDFC Bank House, Near Mithakali Six Roads, Navrangpura, Ahmedabad - 380 009& AHMEDNAGAR : Amber Plaza, Station Road, Opp. ADCC Bank Sahakar Gruh., Ahmednagar - 414 001 & AJMER : AMC No.13/10 & 14/10, Near Suchma Kendra, Adjacent to SwamiComplex, Ajmer - 305 001 & AKOLA : Sethi Heights, Opp. to Collector Office, Z. P. Road, Akola - 444 001 & ALWAR : Bhagat Singh Circle, Road No. 2, Alwar, Alwar - 301 001 & ALLAHABAD :54/1 S. P. Marg Civil Lines, Allahabad - 211 003 & AMBALA : Shingar Palace Complex, Nicholson Road, Ambala Cantt. 133 001 & AMRAVATI : C/o. Rasik Plaza, Jaistambh Chowk, MorshiRoad, Amravati - 444 601 & AMRITSAR : 39, The Mall, Amritsar & ANAND : 1st Floor, Sanket Towers, Opp. Anand Arts College, Grid Road, Anand - 388 001 & ANKLESHWAR : SA MotorsBulding, Old National H. No. - 8, Ankleshwar - 395 002 & ASANSOL : P. C. Chatterjee Market, G. T. Road, Rambandhu Tala, Asansol - 713 303 & AURANGABAD : Shivani Chambers,Manjeet Nagar, Jalna Road, Opp. Akashwani, Auranagabad - 431 001 & BALASORE : C/o Bharat Motors, F. M. Circle, Balasore - 756 001 & BANGALORE : No. 8/24, Salco Centre, RichmondRoad, Bangalore - 560 025 & BARDOLI : Shree Ambika Niketan Temple, Bardoli Dist Surat - 394 601 & BAREILLY : 154, Krishna Palace, Civil Lines, Opp. B. M. Compound, Bareilly - 243 001& BARODA : 5th Floor,'Midway Heights', Next to Panchmukhi Hanuman Temple, Lokmanya Tilak Road, Kirti Mandir, Near Kala Ghoda, Raopura, Baroda - 390 001 & BELGAUM : 4830/28AOpp. Dist Hospital, Dr. Ambedkar Road, Belgaum - 590 002 & BHARUCH : Near Octroi Naka, Link Rd, Bharuch - 392 001 & BHATINDA : 3027-B, Guru Kanshi Marg, Bathinda - 151 001& BHAVNAGAR : Gopi Arcade, Opp. Takhteshwar Post Office, Bhavnagar & BHILWARA : 2-3-4, S. K. Plaza, Pur Road, Bhilwara & BHIWADI : SP 54 Ashiana Arcade, Riico Industrial Area,Bhiwadi - 301 019. & BHOPAL : E-1/57, Arera Colony, Bhopal - 462 016 & BHUBANESHWAR : Junction of Janpath & Gandhi Marg, Hotel Jajati Complex, Kharvelanagar, Unit - III, MasterCanteen Square, Bhubaneswar - 751 001 & BHUJ : 101 & 102 Sunrise Tower, 11 - Vijaynagar Society, Hospital Road, Bhuj - 370 001. & BOKARO : B-9 City Centre , Sector IV, BokaroSteel City , Bokaro - 827 004 & BURDWAN : 45 G .T. Road, Birhata, Burdwan - 713 001 & CALICUT : Malabar Palace, G. H. Road, Calicut - 673 001 & CHALAKUDY : Irimpan's ShoppingComplex, Police Station Road, Chalakudy - 680 307 & CHANGANACHERRY : Golden Tower, M. C. Road, Vezhakattuchira, Changanacherry - 686 101 & CHANDIGARH : SCO 371/372,Sector 35-B, Chandigarh & CHENGANNUR : Bin Tower, Govt. Hospital Junction, Chengannur - 689 121 & CHENNAI : 751 - B Anna Salai, Mariam Centre, Chennai - 600 002 & CUTTACK :Bajrakbati Road, Cuttack. Orissa - 753 001 & COIMBATORE : 1635, Classic Towers, Trichy Road, Coimbatore - 641 018 & CURCHOREM : Mopkar Chamunda, Ground Floor, Near PostOffice, Curchorem-Sanguem Road, Curchorem - 403 706 & DAHANU : Matruashish Building, Irani Road, Dahanu Road & DAMAN : ARC Shoping Mall, Dilip Nagar, Teen Batti, Daman -396 210 & DAVANAGERE : No. 621, BHM Enclave, Binny Co. Road, Mandipet, Davangere & DEHRADUN : 56, Rajpur Road, Dehradun - 248 001 & DHANBAD : Sri Ram Plaza, 1st Floor,Bank More Dhanbad - 826 001 & DURGAPUR : A102 & 103, City Centre, Bengal Shristi Complex, Durgapur - 713 216 & ERODE : 456 Brough Road, Erode - 638 001 & FEROZEPUR :Bldg # 307/7, The Mall, Ferozepur City, Ferozepur - 152 002 & GANDHIDHAM : Tagore Road, Gandhidham - 370 201 & GAYA : Gaya, Bihar - 823 001 & GORAKHPUR : Prahlad Rai TradeCentre, Ayodhya Crossing, Bank Road, Gorakhpur - 273 001 & GUNTUR : 87-90, Main Road, Lakshmipuram, Guntur - 522 007 & GURDASPUR : SCF-1& 2 Shopping Complex, ImprovementTrust Market, Hanuman Chowk, Gurdaspur - 143 521 & GWALIOR : Anand Deep Building, City Centre, Gwalior & HAJIPUR : Vimal Complex, Dak Banglow Complex, Hajipur, Vaishali -844 101 & HIMATNAGAR : Durga Oil Mill Compound, Himmatnagar - 383 001 & HISSAR : SCO 170, Red Square Market, Station Road, Hissar - 125 001 & HOSHIARPUR : SCO 1-2-3,Improvement Trust, Hoshiarpur - 146 001 & HOSUR : No. 24 & 25, Maruthi Nagar, Near Dharga, Sipcot PO, Hosur - 635 126 & HUBLI : T B Revankar Complex, Vivekanand Hospital Road,Hubli - 580 029 & HYDERABAD : 6-1-73 3rd Floor, Saeed Plaza, Lakdikapul, Hyderabad - 500 004 & INDORE : IIIrd Floor, 9/1A , U. V. House, South Tukonj, Indore - 452 001 & IRINJALAKUDA :Ushus Complex, Main Road, Tana, Irinjalakuda - 680121 & JABALPUR : 1702, Napier Town Model Road, Jabalpur - 482 002 & JAIPUR : HDFC Bank House, 1st Floor, O-10, Ashok Marg,Ahimsa Circle, C-Scheme, Jaipur & JAGRAON : 368 B, Kapoor Building, Tehsil Road, Jagraon - 142 026 & JALANDHAR : 911, G.T. Road, Near Narinder Cinema, Jalandhar & JALGAON :Facing Mahabal Rd., DSP Chowk, Jalgaon - 425 001 & JAMNAGAR : Plot No. 6, Park Colony, Opp. St Ann's School, Bedi Bunder Road, Jamnagar - 361 008 & JAMSHEDPUR : C/o MithilaMotors Ltd., Near Rammandir, Bistupur, Jamshedpur - 831 001 & JAMMU : CB 13, Railhead Complex, Gandhi Nagar, Jammu & JODHPUR : 57/B "Swapndeep", Chopasani Road, Jodhpur- 342 003 & JUNAGADH : Moti Palace, Ground Floor, Moti Baug Road, Junagadh - 362 001 & KADI : Near N. C. Desai Petrol Pump, Radhaswami Complex, Highway Char Rasta, Kadi- 382 715 & KANPUR : Navin Market Branch, 15/46, Civil Lines, Kanpur - 208 001 & KANNUR : K. V. R. Towers, South Bazar Road, Kannur - 670 002 & KAPURTHALA : Mall Road, Kapurthala& KARAD : Hotel Sangam, Pune-Banglore Hihgway, Karad, Dist :- Satara - 415 110 & KARNAL : SCO 778-779, Opp. Mahabir Dal Hospital, Kunjpura Road, Karnal & KHANNA : G. T. Road,Khanna - 141 401 & KOCHI : 2nd Floor, Elmar Square, M. G. Road, Ravipuram, Kochi - 682 016 & KOLKATA : Abhilasha II, 6, Royal Street, First Floor, Kolkata - 700 016 & KOLHAPUR :Jaju Arcade, Tarabai Park, Kolhapur - 416 003 & KOLLAM : VGP Buildings, Door No. XVI / 1539 (1320a), Vadakumbhagom Ward, Irumpupalam, Kollam - 691 001 & KALYANI : B-7/40 &41(S), Central Avenue West, Central Park, Kalyani, Nadia - 741 235 & KOTA : Show Room No-13-14, Main Jhalawar Road, Kota & KOTTAYAM : Unity Building, Opp. MDC Centre, K.K. Road, Kottayam - 686 002 & KURUKSHETRA : Shop #1 To 5, Kalawati Market, Railway Road, Kurukshetra - 136 118 & LATUR : Shri Prabha Arcade, Shop Nos. 3 to 6, CTS 4705, 31/1 M. G. Road, Near Nagar Parishad, Latur - 413 512. & LUCKNOW : Pranay Tower, Darbari Lal Sharma Marg, Beside Pratibha Cinema, Lucknow - 226 001 & LUDHIANA : 5th Floor, TheMall, Mall Road, Ludhiana & MARGAO : Ranghavi Bldg, Opp. Municipality Garden, Dr. George Baretto Road, Margao - Goa 403 601 & MADURAI : 7-A, West Veli Street, Opp. RailwayStation, Madurai - 625 001 & MANDI GOBINDGARH : Hukum Chand Bansal Building, Post Office Road, Mandi Gobindgarh & MANJERI : Kurikal Plaza, Bldg #20/1245 Kacheripady, MalapurramRoad, Manjeri - 676 121 & MANGALORE : M. N. Towers, Kadri, Mangalore - 575 002 & MAPUSA : S1/2 Ground Floor, Cosmos Towers, Near Govt. Bldg. Complex, Mapusa Goa 403 507& MATHURA : Opp BSA College, Gaushala Road, Mathura - 281 001 & MEERUT : 381 Western Kachery Road, Meerut - 250 001 & MEHSANA : Prabhu Complex, Nr. Raj Kamal PetrolPump, Abu Highway, Mehsana - 384 002 & MOGA : G. T. Road , Opp. D. C. Office, Moga & MORADABAD : Chaddha Shopping Complex, GMD Road, Moradabad - 244 001 & MORVI :Om Shopping Centre, Ravapar Road, Morvi & MUMBAI : Maneckjiwadia Bldg., Nanik Motwani Marg, Mumbai - 400 023 & MUZZAFARPUR : Tilak Maidan Raod, Above Maruti Showroom,Choti Saria Ganj, Muzzafarpur - 842 001 & MYSORE : Nageetha Complex, Vishwamanawa Double Road, Saraswathi Puram, Mysore - 570 009 & NABHA : SCO 14-15, Patiala Gate, Nabha- 147 201 & NADIAD : Shoot Out Bldg, Nadiad Ice Factory Compound, College Rd., Nadiad - 387 001 & NAGPUR : 303 & 304 3rd Floor, Wardha Road, Transactional Banking Group, 12,Milestone, Near Lokmat Square, Nagpur - 440 010 & NASIK : Archit Centre, 3rd Floor, Chandak Circle Link Road, Opposite Sandeep Hotel, Near Mahamarg Bus Stand, Nasik - 422 002& NAVSARI : Nandini Complex, Ground Floor, Station Road, Sandh Kuva, Navsari - 396 445 & NAWANSHAHAR : B1/48, Banga Road, Nawanshahar - 144 514 & NELLORE : 17/126, G.V.R.Enclave, G. T. Road, Nellore - 524 001 & NEW DELHI : Fig-ops 1st Floor, Kailash Bldg 26, K. G. Marg, New Delhi - 110 001 & PALAKKAD : 8/246, Chandra Nagar, Palakkad - 678 007& PANIPAT : 801/4, G. T. Road, Panipat - 132 103 & PALANPUR : Parth Complex, Near Cozy Tower, Opp. Joravar Palace, Palanpur - 385 001 & PANJIM : 059, Swami Vivekanand Road,301 , Milroc Lar Menezes, Opp. Gomantak Maratha Samaz, Panjim-Goa 403 001 & PATHANAMTHITTA : Aban Arcade Ward # 9/1128, Pathanathitta-kumbazha Road, Pathanathitta - 689 645& PATIALA : S.C.O. 70-73, Leela Bhawan Market, Patiala - 147 001 & PATNA : Rajendra Ram Plaza, Exhibition Road, Patna - 800 001 & PHAGWARA : Opp. Bus Stand, G.T. Road, Phagwara& PERINTHALMANNA : Sree Complex, Calicut Road, Perinthalmanna, Malappuram Dist, Perinthalmanna - 679 322 & PONDA : Royal Chambers, GD1-GD4, , Tisk, Ponda - Goa 403 401& PONDICHERRY : TS No. 6, 100 Feet Road, Ellaipillaichavady, Pondicherry - 605 005 & PORBANDAR : Om Shiv Shakti, R.D. Chembers, Porbandar - 360 575 & PUNE : 5th Floor, MillenniumTower, Bhandarkar Road , Shivajinagar, Pune - 411 004 & RAIPUR : Chawla Complex, Near Vanijya Bhawan, Sai Nagar, Devendra Nagar Road, Raipur - 492 009 & RAJAHMUNDRY :H. No. 46-17-20, Main Road, Danavaipet, Rajahmundry - 533 103 & RAJKOT : Opp. Alfred High School, 2nd Floor, Panchratna Building, Jawahar Road, Rajkot & RAJPURA : 11-12 BlockB, Chandigarh Patiala Road, Rajpura - 140 401 & RANCHI : Ranchi Club Shopping Complex, Apt. No .11, Main Road, Ranchi - 834 001 & REWARI : L-203. Old Court Road, Model Town,Rewari - 123 401 & ROHATAK : 401-402, Model Town, D-Park, Delhi Road, Rohatak & ROPAR : College Road, Ropar & ROURKELA : Bisra Road, Dwivedi Bhawan, Dwivedi Square, Rourkela- 769 001 & RUDRAPUR : Plot No.1 & 2, Nanital Road, Rudrapur - 263 153 & SAHARANPUR : Mission Compound, Court Road, Adj. Top Shop, Saharanpur - 247 001 & SALEM : 5/241-F,Rathna Arcade, Omalur Main Road, Salem - 636 004 & SANGLI : 640, Venkatesh Senate, Sangli - Miraj Road, Sangli - 416 416 & SANGRUR : Shop No. 1-2-3 Kaula Park Market, Sangrur& SHIMLA : Jankidas Building, 3, The Mall, Shimla - 171 001. & SILIGURI : 3 No. Ramkrishna Samity Building, Sevoke Road, Pani Tanki More, Siliguri - 734 401 & SILVASSA : 1-16, JaypeeHouse, Opp. Patel Petrol Pump, Vapi-Silvassa Road, Silvassa - 396 230 & SOLAN : Anand Bhavan, Near D.C. Office, Rajgarh Road, Solan - 173 212 & SURAT : 7th Floor, Kashi Plaza, Nextto Dr. Bipin Desai Children Hospital, Majura Gate, Surat - 395 002 & THALASSERY : Sahara Centre, AVK Nair Road, Thalassery - 670 101 & THIRUVALLA : Illampallil Buildings, 26/149(1&2),M.C. Road, Tiruvalla - 689 101 & TIRUPATI : H.No.10-14-575/A3, Mosque Road (V.V. Mahal Road), Tirupati - 517 501 & TRICHUR : Kalliyath Royal Square, Palace Road,Trichur - 680 020& TRICHY : A-10, " Lakshmi Arcade", 11th Cross Main Road, Thillainagar, Trichy - 620 018 & TRIVANDRUM : Kenton Towers, Vazhuthacaud, Trivandrum - 695 014 & UDAIPUR : ChetakCircle, GPO Road, Udaipur & UNJHA : Suvidhi Complex, 1st Floor, Nr. Radha Krishna Temple, Station Road, Unjha - 382 170 & VALSAD : Ekta Appt., Nr, RJJ High School, Thithal Road,Valsad - 1. & VAPI : Lower Ground, Emperor Arcade, Chala Road, Vapi - 396 191 & VARANASI : D 58/2 Kuber Complex, Rathyatra Crossing, Varanasi - 221 010 & VASCO : Gr. Floor,Damodar Building, Swatantra Path, Vasco Da Gama, Goa - 403 802 & VERAVAL : Amrutdeep, Opp. Public Garden, Rajmahal Road, Veraval - 362 265. & VIJAYAWADA : 40-1-48/2, M.G. Road,Labbipet, Vijayawada - 520 010 & VISAKHAPATNAM : Potluri Castle, Dwaraka Nagar, Visakhapatnam & WARANGAL : D.No. 1-8-605/1 Nakkalgutta, Hanamkonda, Warangal - 506 001& YAMUNANAGAR : 103, Model Town, Nehru Park Road, Yamunanagar - 135 003.

STANDARD CHARTERED BANK - Collection CentresAHMEDABAD : Abhijeet II, Ground Floor, Meetakali, 6th Road, Ahmedabad - 380 006 & AMRITSAR : 360, The Mall, Amritsar - 143 001 & BANGALORE : 26th Floor, West Wing, RahejaTower, M .G. Road, Bangalore - 560 001 & BHOPAL : Ground Floor, Northern Wing, Alankar Complex, Plot No. 10, Zone II, M.P. Nagar, Bhopal - 462 011. & BHUBANESHWAR : Plot No.3, Bapuji Nagar, Janpath, Bhubaneshwar - 751 009 & CHANDIGARH : SCO, 137-138 Sector - 9C, Madhya Marg, Chandigarh & CHENNAI : 19, Rajaji Salai, Grindlays Centre, Chennai -600 001 & COIMBATORE : 509, D. B. Road, R. S. Puram, Coimbatore - 641 002. & ERNAKULAM : HDFC House, M. G. Road, Ernakulam, Cochin - 682 015 & GURGAON : JMD RegentSquare, 12A, First Floor, Gurgaon Mehrauli Road Gurgaon - 122 001 & GUWAHATI : G. N. Bardoli Road, Ambari-Guwahati, Guwahati - 781 001 & HOWRAH : 49 - Dobson Road, Howrah- 711 101 & HYDERABAD : 6-3-1090, Raj Bhavan Road, Somajiguda, Hyderabad - 500 082 & JAIPUR : 8, Showroom No. 1, Bhagwat Bhawan, M. I. Road, Jaipur & JALANDHAR : PlotNo. 34, G. T. Road, Jalandhar - 144 001 & KANPUR : 16/105, M. G. Marg, Kanpur - 208 001 & KOCHI : XXIV/ 1633, KPK Menon Road Willingdon Island, Kochi - 682 003 & KOLKATA :19 Netaji Subhas Road, Kolkata - 700 001 & New Alipore, 17 SA Nalini Ranjan Avenue Kolkata - 700 053 & 163, Rash Behari Avenue, Kolkata - 700 019 & CF-347, Sector 1, Salt Lake,Kolkata - 700 064 & LUCKNOW : Narain Automobiles, 4, Shahnajaf Road, Lucknow - 226 001 & LUDHIANA : SCO 16-17, Feroze Gandhi Market, Ludhiana - 141 001 & MUMBAI : 90, M.G. Road,Mumbai 400 001 & Shivaji Mandir, N.C. Kelkar Road, Dadar, Mumbai - 400 028 & 21-23, Samarth Vaibhav, Off New Link Road, Lokhandwala, Andheri(W), Mumbai - 400 053. & GardenApts, Diamond Garden CHS, A. Sores Road, Chembur, Mumbai 400 071 & Aditya Apts, CTS No. 639, Chandavarkar Road, Borivali - West, Mumbai - 400 092 & Emerald Plaza, Block 2,Hiranandani Meadows, Pokhran Road No - 2, Thane - 400 601 & NAGPUR : Narang Towers, 27, Palm Road, Civil Line, Nagpur - 440 001 & NEW DELHI : H2 Connaught Circle, New Delhi- 110 001 & NOIDA : Brahm Datt Tower, Plot No. K -3, Sector 18, Noida - 201 301 & PATNA : Bhagwati Dwaraka Arcade, Plot No: 830 P, Exhibition Road, Patna - 800 001 & PUNE : ShrirangHouse, 364-365 Junglee Maharaj Road, Shivaji Nagar, Pune - 411 005 & RAJKOT : Business Empire, 5 Jagnath Plot Corner, Gymkhana Road, Rajkot - 360 002 & SECUNDERABAD : GroundFloor, Unit No.2, 2A & 3, Ashoka Bhoopal Chambers, S. P. Road, Secunderabad - 500 003 & SURAT : Manav Mandir, UG4 & FF, Parle Point, Surat - 395 007 & VADODARA : Gokulesh,R. C. Dutt Road, Vadodara - 390 009.

Cov. (4)

OFFICIAL POINTS OF ACCEPTANCE OF TRANSACTIONS

CAMS INVESTOR SERVICE CENTRES*

• Ahemdabad : 402-406, 4th Floor - Devpath Building, Off C. G. Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380 006. Tel.: 3008 2468 / 3008 2469 / 3008

2470 • Bangalore : Trade Centre, 1st Floor, 45, Dikensen Road (Next to Manipal Centre), Bangalore - 560 042. Tel.: 3094 1357 / 3094 2468. • Bhubaneswar : 101/ 7,

Janpath, Unit – III, Bhubaneswar - 751 001. Tel.: 395 3307 / 395 3308. • Chennai : Ground Floor, 178/10 Kodambakkam High Road, Opp. Hotel Palmgrove, Nungambakkam,

Chennai - 600 034. Tel.: 39115 561 / 39115 562. • Coimbatore : 66, Lokamanya Street (West), Ground Floor, R. S. Puram, Coimbatore - 641 002. Tel.: 301 8000 / 301

8001. • Cochin : 40 / 9633 D, Veekshanam Road, Near International Hotel, Cochin - 682 035. Tel.: 302 4651 / 302 4658 / 302 4662. • Chandigarh : SCO 154-155,

1st Floor, Sector 17-C, Chandigarh 160017. Tel.: 3048720 / 3048721 / 3048722. • Delhi : 304-305 III Floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi

- 110 001. Tel.: 3048 1203 / 3048 1205 / 3048 1202. • Durgapur : SN- 10, Ambedkar Sarani, City Centre, Durgapur - 713 216. Tel.: 309 8890 / 309 8891. • Goa : No.108,

1st Floor, Gurudutta Bldg, Above Weekender, M. G. Road, Panaji Goa - 403 001. Tel.: 395 1755 / 395 1640. • Hyderabad : 102, First Floor, Jade Arcade, Paradise Circle,

Secunderabad - 500 003. Tel.: 3918 2468 / 3918 2469. • Indore : Dalal Chambers, 101.Sagarmatha Apartments, 1st Floor, 18 / 7 MG Road, Indore - 452 003. Tel.: 395

3692 / 395 3646. • Jaipur : G-III, Park Saroj, Behind Ashok Nagar Police Station, R-7, Yudhisthir Marg ,C-Scheme, Jaipur - 302 001. Tel.: 396 9126 / 396 9128. • Kanpur :

G – 27,28 – Ground Floor, City Centre, 63/ 2, The Mall, Kanpur - 208 001. Tel.: 391 8000 / 391 8001 / 391 8002. • Kolkata : LORDS Building, 7/1, Lord Sinha Road,

Ground Floor, Kolkata - 700 071. Tel.: 3058 2297 / 3058 2285 / 3058 2303. • Lucknow : No.3, First Floor, Saran Chambers 1, 5, Park Road, Lucknow - 226 001.

Tel.: 391 8000 / 391 8002 / 391 8003. • Ludhiana : Shop No. 20-21 (Ground Floor), Prince Market, near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, P.O: Model

Town, Ludhiana - 141 002. Tel.: 301 8000 / 301 8001. • Madurai : 86/71A, Tamilsangam Road, Madurai 625 001. Tel.: 395 1357 / 395 2468. • Mangalore : No. G 4 & G 5,

Inland Monarch, Opp. Karnataka Bank, Kadri Main Road, Kadri, Mangalore - 575 003. Tel.: 3951357 / 3952468. • Mumbai : Rajabahdur Compound, Ground Floor, Opp

Allahabad Bank, Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai - 400 023. Tel.: 22702414 / 22702415 / 22702416. • Nagpur : 145 Lendra Park,Behind

Shabari, New Ramdaspeth, Nagpur - 440 010. Tel.: 395 8275 / 309 8206. • Pune : Nirmiti Eminence, Off No. 6, I Floor, Opp Abhishek Hotel Mehandale Garage Road,

Erandawane, Pune - 411 004. Tel.: 3028 3005 / 3028 3003 / 3028 3000. • Patna : Kamlalaye Shobha Plaza (1st Floor), Behind RBI Near Ashiana Tower, Exhibition Road,

Patna - 800 001. Tel.: 395 5284 / 395 5285. • Surat : Office No. 2 Ahura-Mazda Complex, First Floor, Sadak Street, Timalyawad, Nanpura, Surat - 395 001.

Tel.: 246 4887 / 246 4679 / 246 2531. • Vadodara : 109 - Silver Line, Besides World Trade Centre, Sayajigunj, Vadodara - 390 005. Tel.: 301 8029 / 301 8031. • Vizag :

47/ 9 / 17, 1st Floor, 3rd Lane , Dwaraka Nagar, Visakhapatnam - 530 016. Tel.: 309 8397 / 309 8374. • Vijayawada : 40-1-68, Rao & Ratnam Complex, Near Chennupati

Petrol Pump, M.G. Road, Labbipet, Vijayawada - 520010. Tel.: 309 5202.

*Only for redemptions.

AMC OFFICES** - Call Free No.: 1-800-226622

• Ahmedabad : Abhijeet - II, Ground Floor, Mithakali Six Road, Ahmedabad - 6. Tel.: 26460923. • Bangalore : Raheja Towers, 26 M.G. Road, 6th Floor, West Wing,

Bangalore - 1. Tel.: 25323059/ 7395. • Chandigarh : SCO 137-138, Sector 9 C, Madhya Marg, Chandigarh - 17. Tel.: 5071918/ 19. • Chennai : Grindlays Centre, I Floor,

19, Rajaji Salai, Chennai - 1. Tel.: 25349371/ 72/ 73. • Cochin : 1st Floor, HDFC House, Ravipuram Junction, M. G. Road, Cochin - 15. Tel.: 2358639. • Coimbatore :

Red Rose Plaza, 509, D. B. Road, R. S. Puram, Coimbatore - 2. Tel.: 2542645/ 78. • Hyderabad : # 6/3/1090, TSR Towers, Raj Bhavan Road, Somajiguda, Hyderabad -

82. Tel.: 55779925. • Indore : D. M. Tower, 21/1, Race Cource Road, Indore - 452 001. Tel.: 420 6927 / 23 • Jaipur : G-7,8, Anukampa Tower, Church Road, Jaipur,

Rajasthan- 1. Tel.: 5105798. • Kanpur : 16/105, Mahatma Gandhi Road, Mall Road, Kanpur - 1. Tel.: 2305955/ 2331071. • Kolkata : 41, Chowringee, Kolkata -71.

Tel.: 22881686/ 22883017. • Lucknow : Narain Automobiles, 4 Shahnazaf Road, Lucknow - 1. Tel.: 2200097. • Ludhiana : SCO 16-17, Feroze Gandhi Market, Ludhiana - 1.

Tel.: 5022155/ 56. • Mumbai : 90, Mahatma Gandhi Road, Fort, Mumbai - 1. Tel.: 22621111. • Nagpur : Narang Towers, 27, Palm Road, Civil Lines, Nagpur - 440 001.

Tel.: 5620714. • New Delhi : Connaught Circus, H Block, Ground Floor, New Delhi -1. Tel.: 23406701/ 51513041/ 42. • Patna : Bhagawati Dwaraka Arcade, Plot No. 830 P,

Patna - 800 001. Telefax: 2223172. • Pune : 4th Floor, Shrirang House, 364-365 J. M. Road, Shivajinagar, Pune - 5. Tel.: 56020965. • Surat : 1st Floor, Manav Mandir,

Parle Point, Surat - 7. Tel.: 2254837. • Vadodara : Ground Floor, Akashganga Complex, Adjacent to Vanijya Bhawan, Vadodara - 7. Tel.: 5520919 / 39.

** For subscriptions and redemptions

SPONSOR TRUSTEE INVESTMENT MANAGER

Standard Chartered Bank Standard Chartered Trustee Standard Chartered Asset1, Aldermanbury Square, Company Private Limited Management Company Private LimitedLondon EC2V 7SB Registered Office: Registered Office:

90, M. G. Road, Fort, Mumbai 400 001 90, M.G. Road, Fort, Mumbai 400 001

REGISTRAR CUSTODIAN AUDITORS TO THE SCHEME

Computer Age Management Deutsche Bank B. S. R & Co.Services Private Limited Kodak House, 222, D. N. Road KPMG House, Kamala Mills Compound,Ground Floor, 178/10, Fort, Mumbai 400 001 448, Senapati Bapat Marg,Kodambakkam High Road, Lower Parel, Mumbai 400 013.Opp. Hotel Palm Groove,Numgambakkam, Chennai - 600 034.

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