OFFER DOCUMENT
Balanced Offer Document - Appuonline.com
Balanced Offer Document - Appuonline.com
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Prudential ICICI Balanced Fund<br />
Rights and Obligations of the Trustee<br />
Pursuant to the Deed of Trust dated August 25, 1993 constituting the Mutual Fund and in terms of the SEBI (Mutual Funds)<br />
Regulations, 1996, the rights and obligations of the Trustee are as under:<br />
1. The Trustee shall have a right to obtain from the AMC such information as is considered necessary by it.<br />
2. The Trustee shall ensure before the launch of any scheme that the Asset Management Company has:<br />
i. systems in place for its back office, dealing room and accounting;<br />
ii. appointed all key personnel including fund manager(s) for the scheme(s) and submitted to the Trustee their bio-data<br />
which shall contain the educational qualifications, past experience in the securities market within fifteen days of<br />
their appointment;<br />
iii. appointed auditors to audit the accounts of the schemes;<br />
iv. appointed a compliance officer to comply with regulatory requirements and to redress investor grievances;<br />
v. appointed registrars and laid down parameters for their supervision;<br />
vi. prepared a compliance manual which is updated by including all the provisions of regulations and guidelines issued<br />
by SEBI from time to time and designed internal control mechanisms including internal audit systems commensurate<br />
with the size of the mutual fund.<br />
vii. Specified norms for empanelment of brokers and marketing agents.<br />
3. The Trustee shall ensure that the AMC has been diligent in empanelling the brokers, in monitoring securities transactions<br />
with brokers and avoiding undue concentration of business with any broker.<br />
4. The Trustee is required to ensure that the AMC has not given any undue or unfair advantage to any associate or dealt<br />
with any of the associates of the AMC in any manner detrimental to the interests of the Unitholders.<br />
5. The Trustee is required to ensure that the transactions entered into by the AMC are in accordance with the Regulations<br />
and the provisions of the Scheme.<br />
6. The Trustee is required to ensure that the AMC has been managing the schemes independently of other activities and<br />
has taken adequate steps to ensure that the interest of investors of one Scheme are not compromised with those of any<br />
other Scheme or of other activities of the AMC.<br />
7. The Trustee is required to ensure that all the activities of the AMC are in accordance with the provisions of the Regulations<br />
and shall exercise general and specific due diligence as required under the Regulations.<br />
8. Where the Trustee has reason to believe that the conduct of the business of the Fund is not in accordance with these<br />
Regulations and the provisions of Scheme it is required to take such remedial steps as are necessary by it and to immediately<br />
inform SEBI of the violation and the action taken by it.<br />
9. Each Director of the Trustee is required to file with the Trust the details of each securities transaction, which exceed the<br />
value of Rs.1 lakh on a quarterly basis.<br />
10. The Trustee is accountable for and is required to be the custodian of the Fund’s property of the respective Scheme and to<br />
hold the same in trust for the benefit of the Unitholders in accordance with the Regulations and the provisions of the<br />
Trust Deed.<br />
11. The Trustee is required to take steps to ensure that the transactions of the Fund are in accordance with the provisions of<br />
the Trust Deed.<br />
12. The Trustee is responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income<br />
received in the Mutual Fund for the holders of the units of any scheme in accordance the Regulations and the Trust<br />
Deed.<br />
13. The Trustee is required to obtain the consent of the Unitholders of the Scheme :<br />
a. When the Trustee is required to do so by SEBI in the interest of the Unitholders; or<br />
b. Upon a requisition made by three-fourths of the Unitholders of the Scheme; or<br />
c. If a majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units; or<br />
d. The Trustee shall ensure that no change in the fundamental attributes of the Scheme or the trust or fee and expenses<br />
payable or any other change which would modify the Scheme and affects the interests of unit holders, shall be<br />
carried out unless:<br />
i) a written communication about the proposed change is sent to each Unitholder and an advertisement is given<br />
in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language<br />
of the region where the Head Office of the mutual fund is situated; and<br />
ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit load.<br />
14. The Trustee is required to call for the details of transactions in securities by the key personnel of the AMC in their own<br />
names or on behalf of the AMC and report the same to SEBI as and when called for.<br />
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