SENSEX Prudential ICICI Exchange Traded Fund (“SPIcE”)

SENSEX Prudential ICICI 

Exchange Traded Fund (“SPIcE”) 

An open-ended, exchange listed, index linked growth scheme 

from 

Issue of Units of Rs.10/- per Unit 

at NAV based prices linked to the SENSEX 

on an on-going basis 

SPONSORS: Prudential plc (formerly known as Prudential Corporation plc) (through its wholly 

owned subsidiary, Prudential Corporation Holdings Limited): Laurence Pountney Hill, London EC4R 0HH, 

United Kingdom; and 

ICICI Bank Limited, Registered Office: Landmark, Race Course Circle, Vadodara 390 007, India 

INVESTMENT MANAGER: Prudential ICICI Asset Management Company Limited 

Registered Office: 206 Ashoka Estate, 2 nd Floor, Barakhamba Road, New Delhi – 110 001 

Corporate Office: Contractor Building, 3 rd Floor, 41, R. Kamani Marg, Ballard Estate, Mumbai 400 038 

TRUSTEE: Prudential ICICI Trust Limited 

Registered Office: 206 Ashoka Estate, 2 nd Floor, Barakhamba Road, New Delhi – 110 001 

The particulars of SENSEX Prudential ICICI Exchange Traded Fund, the mutual 

fund Scheme offered under this Offer Document, have been prepared in 

accordance with the Securities and Exchange Board of India (Mutual Funds) 

Regulations, 1996, as amended till date, and filed with the Securities and 

Exchange Board of India, and the Units being offered for public subscription 

have not been approved or disapproved by the Securities and Exchange 

Board of India nor has the Securities and Exchange Board of India certified 

the accuracy or adequacy of the Offer Document. 

This Offer Document contains information necessary for an investor to make 

an informed investment decision in the Scheme described herein. Investors 

should carefully read the Offer Document prior to making an investment 

decision and retain the Offer Document for future reference. Investors may 

note that this Offer Document remains effective until a material change occurs. 

Material changes shall be filed with SEBI and circulated to all Unit holders or 

may be publicly notified by advertisements in the newspapers subject to the 

applicable regulations. 

The offer document sets forth concisely; the information about the scheme 

that a prospective investor ought to know before investing. 

“The Stock Exchange, Mumbai (“ the Exchange”) has given vide its letter 

dated 16 th December, 2002, permission to Prudential ICICI Mutual Fund to 

use the Exchange’s name in this offer document as one of the stock 

exchanges on which Units of this Mutual Fund’s Scheme are proposed to be 

listed. The Exchange has scrutinized this offer document for its limited internal 

purpose of deciding on the matter of granting the aforesaid permission to 

Prudential ICICI Mutual Fund. The Exchange does not in any manner:- 

i) warrant, certify or endorse the correctness or completeness of any 

contents of this offer document; or 

ii) warrant that this scheme’s units will be listed or will continue to be 

listed on the Exchange; or 

iii) take any responsibility for the financial or other soundness of this Mutual 

Fund, its promoters, its management or any scheme or project of this 

Mutual Fund; 

and it should not for any reason be deemed or construed that this offer 

document has been cleared or approved by the Exchange. Every person who 

desires to apply for or otherwise acquires any units of SPIcE may do so 

pursuant to independent inquiry, investigation and analysis and shall not 

have any claim against the Exchange whatsoever by reason of any loss which 

may be suffered by such person consequent to or in connection with such 

subscription / acquisition whether by reason of anything stated or omitted to 

be stated herein or for any other reason whatsoever.”

Prudential ICICI Mutual Fund 

IMPORTANT NOTICE 

Investing in mutual fund schemes involves certain risks and considerations associated generally with making investments 

in securities. The value of the Scheme’s investments may be affected generally by factors affecting financial markets, such 

as price and volume, volatility in interest rates, currency exchange rates, changes in regulatory and administrative policies 

of the Government or any other appropriate authority (including tax laws) or other political and economic developments. 

Consequently, there can be no assurance that the Scheme offered in this Offer Document would achieve the stated objectives. 

The NAV of the Units of the Scheme may fluctuate and can go up or down. Past performance of the schemes managed by 

the Sponsors or their affiliates or the Asset Management Company is not indicative of the future performance of the 

Scheme nor will the performance of the Scheme, following the commencement of the operations, be indicative of the 

Scheme’s future performance. 

Prospective investors are advised to review this Offer Document carefully and in its entirety and consult their legal, tax and 

financial advisors to determine possible legal, tax and financial or any other consequences of subscribing to, purchasing or 

holding Units under the Scheme, before making an application to subscribe or purchase the Units. 

The Prudential ICICI Mutual Fund (the Fund) and the Prudential ICICI Asset Management Company Limited (the AMC), 

have not authorized any person to give any information or make any representations, either oral or written, not stated in 

this Offer Document in connection with issue of Units under the Scheme. Prospective investors are accordingly advised not 

to rely upon any information or representations not incorporated in this Offer Document. Any subscription, purchase or 

sale made by any person on the basis of statements or representations which are not contained in this Offer Document or 

which are inconsistent with the information contained herein shall be solely at the risk of the investor. 

The current Regulations impose certain restrictions and conditions on the AMC for entering into transactions with the 

Sponsors and their associates on behalf of the Fund. These restrictions include: 

a) Purchase or sale of securities through any broker associated with the Sponsors or through a firm which is an associate 

of the Sponsor(s) shall not exceed an average of 5% of the aggregate purchases and sale of securities made by the 

Fund in all its Schemes in a block of any three months. 

b) Utilization of the services of the Sponsors or any of their associates, for the purpose of any securities transactions and 

distribution and sale of securities shall be made only if a disclosure to this effect is made in the Offer Document and 

the brokerage or commission paid is also disclosed in the half yearly annual accounts of the mutual fund. 

c) The Mutual Fund Scheme shall not make any investment in; 

1. any unlisted security of an associate or group company of the Sponsor; or 

2. any security issued by way of private placement by an associate or group company of the Sponsor; or 

3. the listed securities of group companies of the Sponsor which is in excess of 25% of its net assets. 

In this Offer Document, all references to “$” are to United States of America Dollars, “£” to Pound Sterling of United 

Kingdom and “Rs.” to Indian Rupees. The Reference Exchange Rate between the United States Dollar and the Indian 

Rupee has been taken at $1 = Rs.48.00 and UK£ and Indian Rupee at 1£=Rs.75.00. 

This Offer Document is dated December 31, 2004. 

2

SENSEX Prudential ICICI Exchange Traded Fund (“SPIcE’) 

TABLE OF CONTENTS 

1. Highlights ...................................................................................................................................................................... 6 

2. Special Consideration ................................................................................................................................................... 8 

3. Risk Factors ................................................................................................................................................................... 9 

4. Due Diligence Certificate ........................................................................................................................................... 13 

5. Definitions .................................................................................................................................................................. 14 

6. Summary – SENSEX Prudential ICICI Exchange Traded Fund ................................................................................. 16 

7. Constitution of the Mutual Fund ............................................................................................................................... 17 

a) The Sponsors ........................................................................................................................................................ 17 

b) The Trustee Company ........................................................................................................................................... 18 

i) Directors ........................................................................................................................................................ 18 

ii) Rights and Obligations of the Trustee ........................................................................................................... 19 

iii) Trusteeship Fees ............................................................................................................................................. 21 

c) Management of Asset Management Company .................................................................................................... 21 

i) Board of Directors of the AMC ...................................................................................................................... 22 

ii) Powers, Duties & Responsibilities of the AMC ............................................................................................... 24 

iii) Key Employees of AMC & relevant experience ............................................................................................... 25 

iv) Fund Manager ............................................................................................................................................... 28 

v) Compliance Officer ........................................................................................................................................ 28 

vi) Investor Relations Officer ............................................................................................................................... 28 

d) Auditors ................................................................................................................................................................ 29 

e) Registrar................................................................................................................................................................ 29 

f) Custodian ............................................................................................................................................................. 29 

8. Investment Objectives & Policies - SENSEX Prudential ICICI Exchange Traded Fund ........................................... 30 

Fundamental Attributes of the Scheme ........................................................................................................................ 30 

a) Type of the Scheme ............................................................................................................................................... 30 

b) Investment Objective ............................................................................................................................................. 31 

c) Investment Pattern, Principal Investment Strategies, Investment Process .............................................................. 31 

d) Depository ............................................................................................................................................................. 32 

e) Underwriting by the Fund ..................................................................................................................................... 32 

f) Portfolio Turnover ................................................................................................................................................. 32 

g) Trading in Derivatives ............................................................................................................................................ 32 

h) Change in Investment Pattern ............................................................................................................................... 35 

i) Tracking Error ........................................................................................................................................................ 35 

j) Terms of the Scheme ............................................................................................................................................. 36 

Issue of Units ........................................................................................................................................................ 36 

Rounding off of Units: .......................................................................................................................................... 36 

Creation Unit ........................................................................................................................................................ 36 

a. Portfolio Deposit ........................................................................................................................................... 36 

b. Cash Component for Creation Unit ............................................................................................................... 36 

c. Cash Component for Redemption in Creation Unit Size ............................................................................... 36 

Listing ................................................................................................................................................................... 37 

Fees and Expenses ................................................................................................................................................. 38 

Load ...................................................................................................................................................................... 38 

k) Change in Fundamental Attributes ....................................................................................................................... 38 

l) Procedure followed for investment decisions: ....................................................................................................... 38 

3


m) Risk factors ............................................................................................................................................................ 39 

n) Investment Restrictions for the Scheme ................................................................................................................ 42 

o) Computation of Net Asset Value ........................................................................................................................... 42 

p) Accounting Policies & Standards ........................................................................................................................... 45 

9. Units & The Initial Offer & investing on ongoing basis ........................................................................................... 46 

General Information .................................................................................................................................................... 46 

a) Investing on an ongoing basis .............................................................................................................................. 46 

b) Dematerialization .................................................................................................................................................. 46 

c) Transfer ................................................................................................................................................................. 46 

d) Listing ................................................................................................................................................................... 46 

e) Initial Issue Expenses ............................................................................................................................................. 46 

f) Options offered under the Scheme ....................................................................................................................... 46 

g) Pledge of Units for Loans ...................................................................................................................................... 46 

h) Who can invest? .................................................................................................................................................... 46 

i. Price of SENSEX ETFs/ “SPIcE” ........................................................................................................................ 47 

ii. Entry / Exit Load .............................................................................................................................................. 47 

iii. Settlement of Purchase / Sale of “SPIcE” on the BSE/DSE ............................................................................... 47 

iv. Rolling settlement ......................................................................................................................................... 47 

v. Creation/redemption of units directly from the fund ..................................................................................... 47 

vi. Procedure for Creating SENSEX ETF/ “SPIcE” in Creation Unit Size ................................................................ 48 

vii. Redemption of units of SENSEX ETF ............................................................................................................... 48 

viii. Procedure for Redeeming SENSEX ETF in Creation Unit Size .......................................................................... 48 

ix. Dividend policy .............................................................................................................................................. 48 

x. Application under Power of Attorney/ Body Corporate/Registered Society/ Trust/ Partnership ...................... 48 

xi. Joint Applicant ............................................................................................................................................... 48 

xii. Nomination Facility ........................................................................................................................................ 48 

i) Issuance of Units/Account Statement .................................................................................................................... 49 

j) Right to Limit Redemptions .................................................................................................................................. 49 

k) Suspension of Purchase and Redemption of Units ............................................................................................... 49 

10. Fees, Expenses and Load Structure .......................................................................................................................... 50 

a) Load Structure of the Scheme ............................................................................................................................... 50 

b) Fees and Expenses of the Scheme ......................................................................................................................... 50 

i) Initial Issue Expenses ..................................................................................................................................... 50 

ii) Estimated Recurring Expenses ....................................................................................................................... 50 

c) Fees and Expenses of the Existing Scheme ............................................................................................................ 51 

i) Initial Issue Expenses - Comparison of Estimated to Actual ........................................................................... 53 

ii) Condensed Financial Information .................................................................................................................. 57 

11. Unitholder’s Rights and Services ............................................................................................................................... 74 

a) Investors Services .................................................................................................................................................. 74 

b) Ease of Transactions .............................................................................................................................................. 74 

i) Customer Service Centres in major metros .................................................................................................... 74 

ii) Process transactions in a timely manner ........................................................................................................ 74 

c) Problem Resolution .............................................................................................................................................. 74 

d) Information about the Scheme ............................................................................................................................. 74 

e) NAV Information ................................................................................................................................................... 75 

f) Disclosure of information under the Regulations ................................................................................................. 75 

g) Rights of Unitholders of the Scheme .................................................................................................................... 75 

4


h) Duration of the Scheme/winding up ..................................................................................................................... 76 

i) Procedure and manner of Winding up .................................................................................................................. 76 

j) Tax Benefits ........................................................................................................................................................... 76 

a) To the Mutual Fund ....................................................................................................................................... 76 

b) To the Unit holders ........................................................................................................................................ 77 

i) Income Received from Mutual Fund ....................................................................................................... 77 

ii) Long Term Capital Gains ......................................................................................................................... 77 

For Individuals and HUFs ................................................................................................................. 77 

For Partnership Firms, Non-Residents and Indian/Foreign Companies ............................................ 77 

For Non-resident Indians ................................................................................................................. 78 

For OFO/FII ....................................................................................................................................... 78 

iii) Short Term Capital Gains ........................................................................................................................ 78 

iv) Tax Deduction at Source ......................................................................................................................... 79 

v) Exemption from Tax on Capital Gains arising on Transfer of Units held for more than 12 months ........ 79 

vi) Investments by charitable and Religious trusts in the Plan ..................................................................... 79 

vii) Wealth Tax .............................................................................................................................................. 79 

viii) Gift Tax ................................................................................................................................................... 79 

k) Unclaimed Redemption Amount ........................................................................................................................... 80 

12. Other Matters ............................................................................................................................................................ 81 

a) Unitholder’s Grievances Redressal Mechanism ..................................................................................................... 81 

b) Associate Transactions .......................................................................................................................................... 83 

c) Details of Investment in Companies that hold or have held more than 5% 

of NAV of Schemes managed by the AMC ............................................................................................................ 90 

d) Penalties and Pending Litigation ........................................................................................................................... 93 

e) Borrowing by the Mutual Fund ........................................................................................................................... 105 

f) Policy on Offshore Investments by the Scheme ................................................................................................... 105 

g) Inter-Scheme Transfers ........................................................................................................................................ 105 

h) General Information ........................................................................................................................................... 105 

Power to make Rules ................................................................................................................................... 105 

Power to remove Difficulties ........................................................................................................................ 105 

Scheme to be binding on the Unit holders .................................................................................................. 105 

Documents available for Inspection ............................................................................................................. 106 

5


HIGHLIGHTS 

6 

The Sponsors of the Fund are Prudential plc of the United Kingdom (UK) and ICICI Bank Limited (erstwhile ICICI Limited). 

Prudential plc is a leading international financial services group providing retail financial products and services and 

fund management to many millions of customers worldwide. As a group Prudential plc has, as of June 30, 2004, over 

GBP170 billion of funds under management, more than 16 million customers and over 22,000 employees worldwide. 

Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval 

in recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd. 

ICICI Bank is India’s second-largest bank with total assets of about Rs.132,780 crore at September 30, 2004 and 

profit after tax of Rs. 873 crore in the half year ended September 30, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank 

has a network of about 470 branches and extension counters and over 1,800 ATMs. ICICI Bank offers a wide range of 

banking products and financial services to corporate and retail customers through a variety of delivery channels and 

through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture 

capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the crossborder 

needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank 

currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and Bahrain and representative 

offices in the United States, China, United Arab Emirates and Bangladesh. (Source: Overview at www.icicibank.com). 

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned 

subsidiary. 

Fund Management expertise – 

Prudential plc is a leading international financial services group providing retail financial products and services and 

fund management to many millions of customers worldwide. As a group Prudential plc has, as of 30 June 2004, over 

GBP170 billion of funds under management, more than 16 million customers and over 22,000 employees worldwide. 

Prudential ICICI Asset Management Company Limited, the Investment Manager to the Prudential ICICI Mutual Fund, 

manages assets over Rs. 17,000 crores as of December 31, 2004 through 20 schemes. It is one of the largest asset 

management companies in the country. 

Investment Objective - The investment objective of the “SPIcE” is to provide investment returns that, before expenses, 

closely correspond to the total returns of the securities as represented by the SENSEX. However, the performance of 

Scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee 

that the investment objective of the Plan will be achieved. 

Benefits of ETFs: 

1. Can be easily bought / sold like any other stock on the exchange through terminals spread across the country. 

2. Can be bought / sold anytime during market hours at prices that are expected to be close to actual NAV of the 

Scheme. Thus, investor invests at real-time prices as opposed to end of day prices. 

3. No separate form filling for buying / selling of units. It is just a phone to your broker or a click on the net. 

4. Ability to put limit orders. 

5. Minimum investment for an ETF is one unit, on the Exchange. 

Transparency – NAV will be determined on every Business Day except in special circumstances described on page 49 

of the Offer Document. NAV shall be made available at all Customer Service Centers of the AMC. The AMC shall 

endeavor to also have the NAV published in two daily newspapers and updated on AMC’s website (www.pruicici.com). 

AMC shall update the NAVs on the website of Association of Mutual Funds in India – AMFI (www.amfiindia.com) by 

8.00-p.m. every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI and SEBI by 

the next day. If the NAVs are not available before commencement of business hours on the following day due to any 

reason, the Fund shall issue a press release providing reasons and explaining when the Fund would be able to publish 

the NAVs. The Mutual Fund shall disclose the full portfolio in respect of the Plan and mail the same to the Unitholders 

on half-yearly basis as prescribed under the SEBI Regulations. Monthly disclosure of the entire portfolio for the Plan 

will be available on the AMC’s web site www.pruicici.com. 

Load - There will be no entry/exit load on “SPIcE” bought or sold through the secondary market on the BSE/DSE. 

However, an investor would be paying cost in the form of a bid and ask spread and brokerage, as charged by his 

broker, for buying / selling “SPIcE”. 

In case, there are no quotes on the BSE/DSE for five trading days consecutively, an investor can sell directly to the fund 

with an exit load of 2.5% of NAV. The payout of such redemptions will be as per the respective pay-out day, as defined 

by respective exchange. 

Initial Issue Expenses: Initial issue expenses to be charged under the Scheme have been borne by AMC. 

Options – The Trustees reserve the right to introduce/ alter/ extinguish any of the option at a later date.


 

 

Repatriation – NRIs/PIOs/FIIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange 

Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in / 

redeeming units of the schemes subject to conditions set out in the aforesaid regulations. 

For details on tax update, please refer page 76 of this document. 

 

 

Investors in the Scheme are not being offered any guaranteed returns. 

Investors are advised to consult their Legal /Tax and other Professional Advisors in regard to tax/legal 

implications relating to their investments in the Scheme and before making decision to invest in the 

Scheme or redeem the Units in the Scheme. 

7


SPECIAL CONSIDERATIONS: 

“All rights in the SENSEX vest in The Stock Exchange, Mumbai (“BSE”). BSE and SENSEX are trademarks of BSE and are 

used by the Prudential ICICI Asset Management Company Limited under license. BSE shall not be liable in any manner 

whatsoever (including in negligence) for any loss arising to any person whosoever out of use of or reliance on the SENSEX 

by any person.” 

“SENSEX Prudential ICICI Exchange Traded Fund is not sponsored, endorsed, sold or promoted by The Stock Exchange, 

Mumbai (“BSE”). BSE makes no representation or warranty, express or implied to the investors in SENSEX Prudential ICICI 

Exchange Traded Fund or any member of the public in any manner whatsoever regarding the advisability of investing in 

securities generally or in SENSEX Prudential ICICI Exchange Traded Fund particularly or the ability of the SENSEX to track 

general stock market performance in India or otherwise. The relationship of BSE towards Prudential ICICI Asset Management 

Company Limited is in respect of the licensing of use of SENSEX which is determined, composed and calculated by BSE 

without regard to the Prudential ICICI Asset Management Company Limited or SENSEX Prudential ICICI Exchange Traded 

Fund. BSE has no obligation to take the needs of the investors of SENSEX Prudential ICICI Exchange Traded Fund into 

consideration in determining, composing or calculating the SENSEX. BSE is neither responsible for nor has participated in 

the determination of the time or price at which the units under SENSEX Prudential ICICI Exchange Traded Fund are to be 

issued or in the determination or calculation of the equation by which the units are to be redeemed for the underlying 

securities. BSE has no obligation or liability in connection with the administration, marketing or trading of SENSEX Prudential 

ICICI Exchange Traded Fund”. 

“BSE does not guarantee the accuracy and/or the completeness and/or continuity of SENSEX or any data included therein 

and they shall have no liability for any errors, omissions or interruptions therein or change or cessation thereof. BSE makes 

no warranty, express or implied, as to the results to be obtained by the Prudential ICICI Asset Management Company 

Limited , investors of SENSEX Prudential ICICI Exchange Traded Fund, or any other persons or entities from the use of 

SENSEX or any data included therein. BSE makes no express or implied warranties and expressly disclaims all warranties of 

merchantability or fitness for a particular purpose or use with respect to SENSEX or any data included therein. Without 

limiting any of the foregoing, in no event shall BSE have any liability for any special, punitive, indirect or consequential 

damages (including lost profits), even if notified of the possibility of such damages”. 

8

RISK FACTORS 


Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the 

objectives of the Plan will be achieved. 

As with any securities investment, the NAV of the Units issued under the Plan can go up or down depending on the 

factors and forces affecting the capital markets. 

Past performance of the Sponsors, AMC/Fund does not indicate the future performance of the Schemes of the Fund. 

The Sponsors are not responsible or liable for any loss resulting from the operation of the Plan beyond the contribution 

of an amount of Rs 22.2 lakhs collectively made by them towards setting up the Fund and such other accretions and 

additions to the corpus set up by the Sponsors. 

SENSEX Prudential ICICI Exchange Traded Fund /“SPIcE” is the name of the Plan and does not in any manner indicate 

either the quality of the Plan or its future prospects and returns. Investors are therefore urged to study the terms of 

offer carefully and consult their Investment Advisor before they invest in the Scheme. 

SENSEX ETF/“SPIcE” is an Exchange Traded Fund (ETFs). There can be no assurance that an active secondary market will 

develop or be maintained. 

The NAV of the Plan may be affected by changes in the general level of interest rates and trading volumes. 

The NAV of the Plan may be affected by settlement periods and transfer procedures. 

In the event of receipt of inordinately large number of redemption requests or of a restructuring of the Plan’s portfolios, 

there may be delays in the redemption of Units 

The Liquidity of the Plan’ investments is inherently restricted by trading volumes. 

Investors in the Plan are not being offered any guaranteed returns. 

The Fund may use derivatives instruments like index futures, stock futures and options contracts, warrants, convertible 

securities, swap agreements or any other derivative instruments for the purpose of hedging and portfolio balancing, 

as permitted under the Regulations and guidelines. Usage of derivatives will expose the Plan to certain risks inherent 

to such derivatives. As and when the schemes trade in the derivatives market there are risk factors and issues concerning 

the use of derivatives that investors should understand. Derivative products are specialized instruments that require 

investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative 

requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the 

maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative 

adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is the possibility that a 

loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counter 

party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mis 

pricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, 

rates and indices. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying 

security could have a large impact on their value. Also, the market for derivative instruments is nascent in India. 

Mutual funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee 

against loss resulting from investing in the Schemes. The various factors which impact the value of the Plan’s investments 

include, but are not limited to, fluctuations in interest rates, prevailing political and economic environment, changes 

in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, 

settlement periods, trading volumes etc. 

The past performance of the mutual funds managed by the Sponsors and their affiliates/associates is not indicative of 

the future performance of the Schemes. 

Investment decisions made by the AMC may not always be profitable. 

From time to time and subject to the Regulations, the Sponsors, the Mutual Funds and investment companies managed 

by them, their affiliates, their associate companies, subsidiaries of the Sponsors, and the AMC may invest either directly 

or indirectly in any or all the Schemes. The funds managed by these affiliates, associates, the Sponsors, subsidiaries of 

the Sponsors and /or the AMC may acquire a substantial portion of the Plan’s Units and collectively constitute a major 

investor in the Plan. Accordingly, redemption of Units held by such funds, affiliates/associates and Sponsors might 

have an adverse impact on the Units of the Schemes because the timing of such redemption may impact the ability of 

other Unit holders to redeem their Units. 

As per the Regulations, in case the AMC invests in any of the Plans managed by it, it shall not be entitled to charge 

any fees on such investments. 

As per SEBI circular dated December 12, 2003, ref SEBI/IMD/CIR No. 10/22701/03 and AMFI’s communication having 

ref. No.35/MEM-COR/55/04-05 dated December 31, 2004, each scheme and individual plan(s) under the schemes should 

have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such 

scheme/plan(s). In case of non-fulfillment with either of the above two conditions in a three months time period or the 

end of succeeding calendar quarter, whichever is earlier, from the close of the Initial Public Offering (IPO) of open 

ended schemes or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound up by following 

the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV. 

9


RISK FACTORS SPECIFIC TO THE SCHEME 

 

The Scheme is subject to the principal risks described below. Some or all of these risks may adversely affect Scheme’s 

NAV, trading price, yield, total return and/or its ability to meet its objectives. 

Market Risk 

 

The Scheme’s NAV will react to the stock market movements. The Investor could lose money over short periods due to 

fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest 

rates and perceived trends in stock prices market movements, and over longer periods during market downturns. 

Market Trading Risks 

 

 

 

 

 

 

Absence of Prior Active Market: Although “SPIcE” described in this Document are to be listed on the Exchange, 

there can be no assurance that an active secondary market will develop or be maintained. 

Lack of Market Liquidity: Trading in “SPIcE” on the Exchange may be halted because of market conditions or for 

reasons that in the view of the Market Authorities or SEBI, trading in “SPIcE” is not advisable. In addition, trading in 

“SPIcE” is subject to trading halts caused by extraordinary market volatility and pursuant to BSE and SEBI ‘‘circuit filter’’ 

rules. There can be no assurance that the requirements of the Market necessary to maintain the listing of “SPIcE” will 

continue to be met or will remain unchanged. 

“SPIcE” may trade at Prices Other than NAV: “SPIcE” may trade above or below its NAV. The NAV of “SPIcE” will 

fluctuate with changes in the market value of Scheme’s holdings. The trading prices of “SPIcE” will fluctuate in 

accordance with changes in their NAVs as well as market supply and demand of “SPIcE”. However, given that “SPIcE” 

can be created and redeemed only in Creation Units directly with the fund, it is expected that large discounts or 

premiums to the NAVs of “SPIcE” will not sustain due to arbitrage possibility available. 

Regulatory Risk: Any changes in trading regulations by the Stock Exchange/s or SEBI may affect the ability of marker 

maker to arbitrage resulting into wider premium/ discount to NAV. 

Although, “SPIcE” are proposed to be listed on The Stock Exchange, Mumbai and the Delhi Stock Exchange, AMC and 

the Trustees will not be liable for delay in listing of Units of the Scheme on the stock exchanges / or due to connectivity 

problems with the depositories due to the occurrence of any event beyond their control. 

Right to Limit Redemptions: The Trustee, in the general interest of the Unit holders of the Scheme offered in this 

Document and keeping in view of the unforeseen circumstances / unusual market conditions, may limit the total number 

of Units which can be redeemed on any Business Day depending on the total “Saleable Underlying Stock” available 

with the fund. 

Redemption Risk 

Investors may note that even though this is an open-ended scheme, the scheme would ordinarily repurchase units in 

creation unit size. Thus unit holdings less than the creation unit size can only be sold through the secondary market 

unless no quotes are available on the BSE for 5 trading days consecutively. 

Asset Class Risk 

The returns from the types of securities in which a Scheme invests may under perform returns from the various general 

securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance 

and under performance in comparison of the general securities markets. 

Passive Investments 

The Scheme is not actively managed. The Scheme may be affected by a general decline in the Indian markets relating 

to its Underlying Index. The Scheme invests in the securities included in its Underlying Index regardless of their investment 

merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets. 

Tracking Error Risk 

Factors such as the fees and expenses of the Scheme, Corporate Actions, Cash balance, changes to the Underlying 

Indices and regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying Index of each 

Scheme. The Scheme’s returns may therefore deviate from those of its Underlying Index. “Tracking Error” is defined as 

the standard deviation of the difference between daily returns of the index and the NAV of the Scheme. Tracking Error 

may arise due to the following reasons: - 

1. Expenditure incurred by the Scheme. 

2. The funds may not be invested at all times as it may keep a portion of the funds in cash to meet redemptions or 

for corporate actions of securities in the index. 

3. Securities trading may halt temporarily due to circuit filters. 

4. Corporate actions such as rights, merger, change in constituents etc. 

5. Rounding off quantity of shares underlying the index 

10


 

6. Dividend payout. 

Given the structure of SENSEX ETF/ “SPIcE”, the AMC expects the tracking error to be lower. The AMC will endeavor to 

keep the tracking error as low as possible. Under normal circumstances, such tracking errors are not expected to exceed 

2% per annum. However this may vary when the markets are very volatile. 

Investments in Derivative Instruments 

The risk of loss associated with futures contracts is potentially unlimited due to the low margin deposits required and the 

extremely high degree of leverage involved in futures pricing. As a result, a relatively small price movement in a futures 

contract may result in an immediate and substantial loss or gain. However, the Scheme will not use futures contracts, 

options or swap agreements for speculative purposes or to leverage its net assets and the Fund will comply with applicable 

SEBI requirements. However, there may be a cost attached to buying index futures. Further there could be an element of 

settlement risk, which could be different from the risk in settling physical shares, and there is a risk attached since Indian 

market for derivative instruments is untried and untested. The possible lack of a liquid secondary market for a futures 

contract or listed option may result in inability to close futures or listed option positions prior to their maturity date. 

Investments in Overseas Financial Assets 

The Plan shall, with the approval of SEBI/Reserve Bank of India as appropriate, invest in Foreign Debt Securities as provided 

in SEBI Circular No. MFD/CIR/17/419/02 dated 30 th March 2002 and any subsequent instructions or guidelines that may be 

issued by SEBI/Reserve Bank of India in this regard. As per prevailing rules mutual funds are permitted to invest in ADRs/ 

GDRs and Foreign Debt Securities upto 10% of net assets of each mutual fund as on January 31, 2004, subject to a 

maximum of $ 50 million. 

The Mutual Fund had applied to SEBI seeking approval for investment in ADRs/GDRs and Foreign Debt Securities up to US 

dollar equivalent of Rs. 243.65 crores and the same has been forwarded by SEBI and approved by RBI vide its letter ref. No. 

EC.CO.OID7407/19.16.151/2001-2002 dated May 16, 2002. 

In terms of Annual Monetary and Credit Policy for the year 2003-2004, RBI has decided to accord general permission to 

mutual funds for their overseas investments within the overall cap - US $ 1.0 billion, once SEBI’s approval has been obtained. 

This general permission will be available until further notice. 

It is the Investment Manager’s belief that investment in ADRs/GDRs/ overseas securities offer new investment and portfolio 

diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional 

risks. Such investment opportunities may be pursued by the Investment Manager provided they are considered appropriate 

in terms of the overall investment objectives of the Scheme. Since the Scheme would invest only partially in ADRs/GDRs/ 

overseas securities, there may not be readily available and widely accepted benchmarks to measure performance of the 

Scheme and the Plans thereunder. To manage risks associated with foreign currency and interest rate exposure, the Fund 

may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be 

stipulated by SEBI/RBI from time to time. 

To the extent that the assets of the Schemes will be invested in securities denominated in foreign currencies, the Indian 

Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of 

certain foreign currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in 

regulations concerning exchange controls or political circumstances as well as the application to it of the other restrictions 

on investment. 

Offshore investments will be made subject to any/all approvals, conditions thereof as may be stipulated by SEBI/RBI and 

provided such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and 

consistent with costs and expenses attendant to international investing. The Fund may, where necessary, appoint other 

intermediaries of repute as advisors, custodian/ sub-custodians etc. for managing and administering such investments. The 

appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the 

permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investment management 

fees, custody fees and costs, fees of appointed advisors and sub-managers, transaction costs, and overseas regulatory 

costs. 

Political Risks 

Whereas the Indian market was formerly restrictive, a process of deregulation has been taking place over recent years. 

This process has involved removal of trade barriers and protectionist measures, which could adversely affect the value 

of investments. It is possible that the future changes in the Indian political situation, including political, social or 

economic instability, diplomatic developments and changes in laws and regulations could have an effect on the value 

of investments. Expropriation, confiscatory taxation or other relevant developments could affect the value of investments. 

Tax Issues : Conversion of the underlying stocks to “SPIcE” may attract capital gains tax depending on acquisition 

cost and holding period of each individual stock to the investor. Repurchase of “SPIcE” by the Fund or sale of “SPIcE” 

on the Stock Exchange may attract short or long term capital gain tax depending upon the holding period of the 

units. 

Investors are urged to study the terms of the Offer document carefully before investing in this Plan, and to 

retain this Document for future reference. 

11


Sponsors 

Prudential plc 

Laurence Pountney Hill 

London EC4R 0HH 

United Kingdom 

ICICI Bank Limited 

Registered Office 

Landmark, Race course Circle 

Vadodara- 390007 

Asset Management Company 

Prudential ICICI Asset Management Company Limited 

Registered Office 

206 Ashoka Estate, 2 nd Floor 

24 Barakhamba Road, 

New Delhi – 110 001 

Corporate Office 

3 rd Floor, Contractor Building 

41, R. Kamani Marg 

Ballard Estate 

Mumbai 400 038. 

Trustee 

Prudential ICICI Trust Limited 

Registered Office : 

206 Ashoka Estate, 2 nd Floor 

24 Barakhamba Road 

New Delhi – 110 001 

Registrar 

Computer Age Management Services Private Limited 

Unit: Prudential ICICI Mutual Fund 

Floor IV, Tower 1, Rayala Towers 

158, Anna Salai 

Chennai - 600 002 

Auditors to the Scheme 

N. M. Raiji & Company 

Universal Insurance Building 

Sir Phiroze Shah Mehta Road 

Mumbai 400 001 

Custodian 

HDFC Bank Limited 

Sandoz House 

Dr. Annie Besant Road 

Worli 


Legal Advisors 

A.R.A. Law 

Agra Building, 1 st floor 

121, M.G. Road 

Fort, Mumbai 400 023 

12


SECTION I 

DUE DILIGENCE CERTIFICATE 

It is confirmed that: 

i) The draft Offer Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the 

guidelines and directives issued by SEBI from time to time. 

ii) 

iii) 

iv) 

All legal requirements connected with the launching of the Scheme and also the guidelines, instructions, etc. issued 

by the Government of India and any other competent authority in this behalf, have been duly complied with. 

The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well-informed 

decision regarding investment in the proposed Scheme. 

The intermediaries named in the Offer Document, according to the information given to the AMC, are registered with 

SEBI and till date such registration is valid. 

Place : Mumbai Sd/- 

Date : January 27, 2005 Name: Ranganath Athreya 

Sr. Vice President –Compliance, Legal and Company Secretary 

Note: The Due Diligence Certificate as stated above was submitted to SEBI 

13


DEFINITIONS 

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

otherwise requires: 

Asset Management Company or Prudential ICICI Asset Management Company Limited (formerly ICICI Asset 

AMC or Investment Manager 

Management Company Limited), the Asset Management Company 

incorporated under the Companies Act, 1956, and registered with SEBI to act 

as an Investment Manager for the schemes of Prudential ICICI Mutual Fund. 

Applicable NAV for redemption, Applicable NAV is the NAV per Unit at the close of the Business Day on which 

if lodged with the Fund (in case, 

the application is accepted. In case, there are no quotes on the BSE for five 

there are no quotes on the BSE for trading days consecutively, an investor can redeem the Units directly to the 

five trading days consecutively): Fund with an exit load of 2.5% of Applicable NAV. 

‘Authorised Participant’ 

‘Authorised Participant’ means the Member of the Stock Exchange, Mumbai, 

who is appointed by the AMC/Fund to act as Authorised Participant or any 

other person appointed by AMC/Fund. 

BSE 

The Stock Exchange, Mumbai 

SENSEX 

The Index Cell of the Stock Exchange, Mumbai does the day-to-day 

maintenance of SENSEX within the broad index policy framework set by the 

Index Committee. The Index Cell takes special care to ensure that SENSEX 

maintains its benchmark properties by striking a delicate balance between 

high turnover in Index scrips and its representative character. The Index 

Committee of the Exchange has experts from different fields related to the 

capital markets. They include Academicians, Fund-managers from leading 

Mutual Funds, Finance - Journalists, Market Participants, Independent 

Governing Board members, and Exchange administration. The Index 

Committee meets every quarter to review SENSEX. In case of a revision in the 

SENSEX constituent scrips, the announcement of the incoming and outgoing 

scrips is made six weeks in advance of the actual revision of the SENSEX. 

Business Day 

A day other than: (i) Saturday and Sunday, (ii) a day on which The Stock 

Exchange, Mumbai is closed, (iii) a day on which the Sale and Redemption of 

Units is suspended by the Trustee, (iv) a day on which normal business could 

not be transacted due to storms, floods, bandhs, strikes, connectivity problems, 

communications line failure, or other similar causes beyond the reasonable 

control of the AMC etc. However the AMC reserves the right to declare any 

day a Business Day or otherwise at any or all collection centers. 

Cash Component for Creation Unit: The Cash Component represents the difference between the applicable net 

asset value of a Creation Unit and the market value of the Portfolio deposit. 

This difference may include accrued dividends, accrued annual charges 

including management fees and residual cash in the scheme. In addition, the 

Cash Component may include transaction cost as charged by the Custodian/ 

Depository Participant, equalization of dividend, effect of rounding-off of 

number of shares in portfolio Deposit and other incidental expenses for 

Creating Units. The cash component will vary from time to time and will be 

computed and announced by the AMC on its website every Business Day. 

Creation Unit 

It is a fixed number of “SPIcE”, which is exchanged for a predefined basket of 

shares underlying the index fund called the “Portfolio Deposit” and a “Cash 

Component”. For redemption of units it is vice versa, i.e. a fixed number of 

“SPIcE” will always be exchanged for Portfolio Deposit and cash component. 

The Portfolio Deposit and Cash Component may change from time to time 

and is discussed separately on page 14 of this document. The minimum 

number of “SPIcE” units that can be created/redeemed by Authorized 

Participants post IPO (Initial Offer Period) is 25000 units and in multiples 

thereof. 

Custodian 

‘Custodian’ means HDFC Bank Ltd., which has been granted a certificate of 

registration by SEBI under the SEBI (Custodian of Securities) Regulations 1996 

and for the time being appointed by the Fund for rendering custodial services 

for the Scheme in accordance with the Regulations. 

Customer Service Centre 

The Customer Service Centres as may be designated by the Mutual Fund. 

Depository Depository as defined in the Depositories Act, 1996. 

Entry Load/Purchase Load 

Load on Purchase in of Units. 

Exchange Traded Fund/ETF 

‘Exchange Traded Fund’/’ETF’ means a fund whose units are listed/traded on 

an exchange and can be bought/sold at prices, which may be close to the 

NAV of the Scheme. 

14

Exit Load / Redemption Load 

FII 

ICICI Bank 

Offer Price for on-going subscriptions 

Investment Management Agreement 

NAV 

NRI 

Offer Document 

Prudential 

Saleable Underlying Stock 

SENSEX Prudential ICICI Exchange 

Traded Fund /The Plan/The Scheme / 

SENSEX Exchange Traded Fund/ “SPIcE” 

Portfolio Deposit: 


ETFs (Exchange Traded Funds) are listed securities representing an underlying 

fund, which replicates a benchmark index. They just trade like stocks so they 

are essentially index stocks that combine the benefits of a mutual fund with a 

listed stock. They are passively managed funds providing exposure to the 

performance of that index. They offer the best features of open and close 

end funds. 

Load on Redemption/Repurchase of Units 

Foreign Institutional Investors, registered with SEBI under Securities and 

Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, 

as amended from time to time. 


Based on the Applicable NAV of the Scheme linked to the SENSEX, subject to 

entry load provision 

The Agreement dated September 3, 1993 entered into between Prudential 

ICICI Trust Limited (formerly ICICI Trust Limited) and Prudential ICICI Asset 

Management Company Limited (formerly ICICI Asset Management Company 

Limited) as amended from time to time. 

Net Asset Value of the Units of the Scheme, calculated on every Business Day 

in the manner provided in this Offer Document or as may be prescribed by 

Regulations from time to time. 

Non-Resident Indian. 

This document issued by Prudential ICICI Mutual Fund, offering Units of 

SENSEX Prudential ICICI Exchange Traded Fund 

Prudential plc, of the U.K. and includes, wherever the context so requires, its 

wholly owned subsidiary Prudential Corporation Holdings Limited. 

Saleable Underlying Stock means the securities of the underlying index, which 

form part of the holdings of the Scheme, as certified by the Custodian and 

can be readily sold. 

SENSEX Prudential ICICI Exchange Traded Fund including, any other option 

that may be introduced later on by the Trustees. 

This is a pre-defined basket of securities that represent the SENSEX and will 

be defined and announced by the Fund on allotment date and on all Business 

Days thereafter. Portfolio Deposit can change from time to time. 

RBI Reserve Bank of India, established under the Reserve Bank of India Act, 1934, 

as amended from time to time. 

Redemption 

Redemption of Units of the Scheme at the Applicable NAV. 

SEBI 

The Fund or Mutual Fund 

The Trustee 

The Regulations 

Tracking Error 

Trust Deed 

Trust Fund 

Unit 

Unitholder(s) 

Securities and Exchange Board of India established under Securities and 

Exchange Board of India Act, 1992, as amended from time to time. 

Prudential ICICI Mutual Fund (formerly ICICI Mutual Fund), a trust set up under 

the provisions of the Indian Trusts Act, 1882. The Fund is registered with SEBI 

vide Registration No.MF00393/6 dated October 13, 1993 as ICICI Mutual Fund 

and has obtained approval from SEBI for change in name to Prudential ICICI 

Mutual Fund vide SEBI’s letter dated April 16, 1998. 

Prudential ICICI Trust Limited (formerly ICICI Trust Limited), a company set up 

under the Companies Act, 1956, and approved by SEBI to act as the Trustee 

for the schemes of Prudential ICICI Mutual Fund 

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as 

amended from time to time. 

“Tracking Error” is defined as the standard deviation of the difference between 

daily returns of the index and the NAV of the Scheme. 

The Trust Deed dated August 25, 1993 establishing ICICI Mutual Fund, 

(subsequently renamed Prudential ICICI Mutual Fund) as amended from time 

to time. 

Amounts settled/contributed by the Sponsors towards the corpus of the 

Prudential ICICI Mutual Fund and additions/accretions thereto. 

The interest of an investor, which consists of, one undivided share in the Net 

Assets of the Scheme. 

A holder of Units in the Scheme of SENSEX Prudential ICICI Exchange Traded 

Fund as contained in this Offer Document. 

15


16 

Name of the Scheme 

Structure 

Offer Price for on-going subscriptions 

Features 

Minimum Redemption Units 

Cut off time – applicable in case of Units 

to be redeemed with the Fund in case 

when there are no quotes on the BSE 

for five trading days consecutively. 

Cut-Off time applicable for subscription 

/ redemptions of Units in Creation 

Unit Size 

Initial Issue Expenses 

Liquidity 

Transparency 

Repatriation facility 

Eligibility for Trusts 

SUMMARY 

SENSEX PRUDENTIAL ICICI EXCHANGE TRADED FUND 


An open-ended, exchange listed, index linked growth scheme 

Based on the Applicable NAV of the Scheme linked to the SENSEX, subject to 

entry load provision 

SENSEX Prudential ICICI Exchange Traded Fund, an exchange traded fund will 

track the BSE-30 Sensitive Index (the SENSEX). The units issued under the 

scheme will be referred to as “SPIcE”. 

In case of redemption through the Authorised Participant: 25,000 Units. 

In case, there are no quotes on the BSE for five trading days consecutively, an 

investor can sell directly to the Fund with an exit load of 2.5% of Applicable 

NAV. Minimum Units to be redeemed in such a case is 1000 Units provided 

that minimum balance under a particular folio should not fall below Rs. 

25,000. In case of redemptions by NRIs, requisite TDS will be deducted from 

the respective redemption proceeds. In case of Authorised Participants and 

Large Institutional Investors would be allowed to redeem/ switch SPIcE units 

directly with the Prudential ICICI Mutual Fund (the Fund) in case the Unit size 

is 100,000 Units or more and AMC is authorized in such cases to make 

payments from the Scheme at applicable NAV instead of refunding the basket 

of securities to such investors. 

3.00 p.m. 

3:00 p.m. 

Initial issue expenses to be charged under the Scheme have been borne by 

AMC. 

After the IPO, as SENSEX ETF/ “SPIcE” is listed on BSE and DSE, subsequent 

buying or selling by investors can be made from the secondary market on the 

BSE and DSE. The minimum number of units that can be bought or sold is 1 

(one) unit. Alternatively Authorised Participant and large Institutional Investors 

can directly buy / sell in blocks from the fund in ‘Creation Unit’ Size, as defined 

in this document. Unit holdings less than the creation unit size can only be 

sold through the secondary market unless no quotes are available on the BSE 

for 5 trading days consecutively. 

SENSEX ETF is listed and traded on The Stock Exchange, Mumbai (BSE) and 

The Delhi Stock Exchange(DSE). The trading will be as per the normal settlement 

cycle. 

NAV will be determined on every Business Day, except in special circumstances 

described on page 49. NAV of the Plan shall be made available at all Customer 

Service Centers of the AMC. The AMC shall also endeavor to have the NAV 

published in a daily newspaper and updated on AMC’s website 

(www.pruicici.com). 

AMC shall update the NAVs on the website of Association of Mutual Funds 

in India - AMFI (www.amfiindia.com) by 8.00-p.m. every Business Day. In case 

of any delay, the reasons for such delay would be explained to AMFI and SEBI 

by the next day. If the NAVs are not available before commencement of 

business hours on the following day due to any reason, the Fund shall issue 

a press release providing reasons and explaining when the Fund would be 

able to publish the NAVs. 

The Mutual Fund shall disclose the full portfolio of the Scheme every quarter. 

The first such disclosure will be for the quarter ending March 21, 2003 

NRIs/PIOs/FIIs have been granted a general permission by RBI [Schedule 5 of 

the Foreign Exchange Management (Transfer or Issue of Security by a Person 

Resident Outside India) Regulations, 2000] for investing in / redeeming units 

of the schemes subject to conditions set out in the aforesaid regulations. 

Religious and Charitable Trusts are eligible to invest in the Scheme under the 

provisions of section 11(5)(xii) of the Income-tax Act, 1961 read with Rule 

17C of Income-tax Rules, 1962.


CONSTITUTION OF THE MUTUAL FUND 

ICICI Mutual Fund, which has been renamed as Prudential ICICI Mutual Fund, has been constituted as a Trust in accordance 

with the provisions of the Indian Trusts Act, 1882 (2 of 1882). The Mutual Fund was registered with SEBI on October 13, 

1993. 

ICICI Mutual Fund was established by erstwhile ICICI Ltd.(Since merged with ICICI Bank Ltd), by execution of a Trust Deed 

dated August 25, 1993. Prudential plc, through its wholly owned subsidiary, Prudential Corporation Holdings Limited, has 

contributed an amount of Rs.12.2 lacs to the corpus of the Fund and has received permission for such contribution from 

the RBI vide letter No: CO.FID(I)4940/10/I.07.02.200(221)97-98 dated April 25, 1998. SEBI has approved the change in 

name of the Fund to Prudential ICICI Mutual Fund vide its letter IIMARP / 88 / 98 dated April 16, 1998. A deed of amendment 

to the Trust Deed dated August 25, 1993 was executed and registered. 

a) Sponsors 

Prudential plc (formerly known as Prudential Corporation plc) 

Prudential plc is a leading international financial services group providing retail financial products and services and fund 

management to many millions of customers worldwide. As a group Prudential plc has, as of June 30, 2004, over GBP170 

billion of funds under management, more than 16 million customers and over 22,000 employees worldwide. 

Given below is a brief summary of Prudential’s financials: 

Year ended December 31 (Rs. crores) 

Description 2003 2002 2001 2000 

Total Income 263,515 123,398 192,728 97,042 

Profit Before Tax 2,932 3,630 2,888 6,534 

Profit After Tax 1,742 3,368 2,730 4,747 

Shareholders’ Funds 27,460 27,750 29,625 27,738 

Earnings per share (Rs.) 10.81 11.85 17.48 24.22 

Equity Capital (5 Pence per share) 838 750 750 683.1 

Free Reserves 26,622 27,000 28,875 26717 

Net-worth 27,460 27,750 29,625 27,400 

Book Value per share (Rs.) 136.62 138.75 148.58 138.28 

Percentage of dividend per share 320 520% 508% 490% 

Dividend per share (in Pence) 16.00P 26.00P 25.4P 24.5P 


Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval in 

recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd. 

ICICI Bank is India’s second-largest bank with total assets of about Rs.132,780 crore at September 30, 2004 and profit 

after tax of Rs. 873 crore in the half year ended September 30, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a 

network of about 470 branches and extension counters and over 1,800 ATMs. ICICI Bank offers a wide range of banking 

products and financial services to corporate and retail customers through a variety of delivery channels and through its 

specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and 

asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross-border needs of 

clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries 

in the United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in the United States, 

China, United Arab Emirates and Bangladesh. (Source: Overview at www.icicibank.com). 

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was originally a whollyowned 

subsidiary of ICICI. 

Given below is a brief summary of ICICI Bank’s financials: 

(Rs. in crores) 

*Year ended *Year ended *Year ended 

March 31, 2002 March 31, 2003 March 31,2004 

Total Income 2726.59 12,526.88 11,958.96 

Profit After Tax 258.3 1,206.18 1,637.10 

Free Reserves @ 5632.41 6,320.65 7,394.16 

Net Worth 6244.96 6933.31 8,010.56 

Earnings per Share (Rs.) (diluted) 11.61 19.65 26.44 

Book Value per Share (Rs.) 101.95 113.10 129.96 

Dividend 20% 75% Nil 

Paid Up Capital (Equity) $ 612.55 612.66 616.40 

(Preference) # 350 350 350 

* The results include the result of erstwhile ICICI Limited and its subsidiaries, ICICI Personal Financial Services Limited 

and ICICI Capital Services Limited, amalgamated with the Bank w.e.f. March 30, 2002. The financials for the current periods 

are not comparable with the earlier periods. 

17


@ Excludes revaluation reserve 

$ Includes in 2002, Rs. 392.67 crores for shares to be issued to shareholders of ICICI Limited on amalgamation, further, 

during the year ended March 31, 2003, the Bank allotted 3,000 shares pursuant to exercise of employee stock options. 

# Represents in 2002, face value of 350 preference shares to be issued to shareholders of ICICI Ltd on amalgamation, 

redeemable at par on April 20, 2018. As per the notification received from Ministry of Finance, the restriction of section 

12(1) of the Banking Regulation Act, 1949, prohibiting banks established after 1944 from holding preference shares, is 

not applicable to the Bank for a specified period. 

Note: ICICI Bank has raised Rs. 324600 Crores of equity in April 2004 (including a green shoe option) 

Prudential plc of UK, through its wholly owned subsidiary, Prudential Corporation Holdings Limited, has been issued and 

allotted shares aggregating 55% stake in the share capital of Prudential ICICI Asset Management Company Limited (AMC), 

whereas the balance 45% shareholding in the AMC is being held by ICICI Group. Out of the total 45% of the paid-up 

capital of the AMC held by the ICICI Group, 30% is held by ICICI Bank and the balance 15% is held by a subsidiary of 

ICICI Bank Ltd. viz. ICICI Venture Funds Management Company Limited, in order to ensure adherence with the provisions 

of Section 19(2) of the Banking Regulation Act, 1949. 

b) The Trustee Company (The Trustee) - Prudential ICICI Trust Limited 

Prudential ICICI Trust Limited, a company incorporated under the Companies Act, 1956 is the Trustee to the Fund vide 

Trust Deed dated August 25, 1993 as amended from time to time. Prudential plc. of UK, through its wholly owned subsidiary, 

Prudential Corporation Holdings Limited, has been issued and allotted shares aggregating 55% stake in the share capital 

of Prudential ICICI Trust Limited, whereas the balance 45% shareholding in the Prudential ICICI Trust Limited is being held 

by ICICI Group. Out of the total 45% of the paid-up capital of the Prudential ICICI Trust Limited held by the ICICI Group, 

30% is held by ICICI Bank and the balance 15% is held by a subsidiary of ICICI Bank Ltd. viz. ICICI Venture Funds 

Management Company Limited. 

i) The Directors of the Trustee Company are: 

Mr. Vishnu Bhagwandas Haribhakti 

Partner 

(S/o. Late Mr. Bhagwandas Haribhakti) 

Haribhakti & Co., Mumbai 

Flat No.51, 5 th Floor 

V.B. Haribhakti Associates, Mumbai 

Maker Tower ‘B’ 

Haribhakti Shah & Co., Ahmedabad 

Cuffe Parade 

V.B. Haribhakti & Co., New Delhi 


V.B. Haribhakti & Co., Chennai 

Chartered Accountant 

V.B. Haribhakti & Co., Bangalore 

V.B. Haribhakti & Co., Jodhpur 

V.B. Haribhakti & Co., Calcutta 

V.B. Haribhakti & Co., Jaipur 

V.B. Haribhakti & Co., Bhopal 

V.B. Haribhakti & Co., Bhuvaneshwar 

V.B. Haribhakti & Co., Chandigarh 

V.B. Haribhakti & Co., Cochin 

V.B. Haribhakti & Co., Patna 

V.B. Haribhakti & Co., Pune 

Director 

Bajaj Electricals Ltd 

Rohit Pulp and Paper Mills Company Ltd. 

The Simplex Mills Company Ltd. 

The Anglo-French Drug Co.(Eastern) Ltd. 

Ester Industries Ltd. 

Lakshmi Automatic Loom Works Ltd. 

Tilaknagar Industries Ltd. 

Hindustan Composites Ltd. 

Mutual Mecaplast Ltd (Alternate Director) 

Haribhakti MRI Corporate Services Pvt.Ltd. 

Moores Rowland Consulting Pvt. Ltd. 

Trustee 

Bombay Rotary Midtown Trust 

The Pransukhlal Mafatlal Hindu Swimming Bath and Boat Club Trust 

V.B. Haribhakti Charitable Trust 

Indian Merchants’ Chamber Platinum Jubilee Endowment Trust 

Council for Fair Business Practices 

Managing Committee Member 

Indian Merchant Chamber 

The Associated Chambers of Commerce and Industry of India 

18


Mr. Eruch .B. Desai 

Partner 

(S/o. Mr. Byramsha Desai) 

Mulla & Mulla & Craigie Blunt & Caroe 

81, Sonarica Director 

33-A, Pedder Road 

Birla Global Finance Ltd. 


Bekaert Industries Pvt.Ltd. 

Solicitor and Advocate 

The Century Textiles & Industries Ltd.S 

Dolphin Fisheries & Trading Pvt.Ltd. 

Hercules Hoists Ltd. (Alternate director) 

Hindalco Industries Ltd. 

Matsushita Lakhanpal Battery India Ltd. 

National Panasonic India Private Ltd. 

Kennametal Widia (India) Ltd. (Alternate) 

Supreme Industries Ltd. 

Mr. Nagesh D. Pinge* 

Nominee Director (on behalf of ICICI Bank Limited) 

(S/o. Dinkar Shripad Pinge) 

Halia Petrochemicals Limited 

D-408/1, Viman Darshan 

The India Cements Limited. 

28-29 Swami Nityanand Marg Rama Newsprint and Papers Ltd. 

Andheri (East) 

Mumbai 400069 

Senior General Manager – Compliance and 

Audit Group – ICICI Bank Ltd. 

Mr. Sham P. Subhedar* 

Senior Advisor 

(S/o. Mr. Pandharinath Subhedar) 

Prudential Corporation Asia Ltd. 

1, Gulmohar Director 

S.V. Road 

Peter Pan Travels Services Pvt. Ltd. 

Vile Parle (W) 

SAS Management Consultants and Office Services Pvt. Ltd. 


Prudential Process Management Services Pvt. Ltd. 

Consultant 

Mr. D. J. Balaji Rao 

Director 

(S/o D. B. Jagannath Rao) 

Ashok Leyland Ltd. Chennai 

D-103, Adarsh Residency 

Ashok Leyland Finance Ltd. Chennai 

47 th Cross (2 nd Main) Bajaj Auto Ltd. 

Jayanagar, 8 th Block 

3M INDIA Ltd., Bangalore 

Bangalore – 560082 

Jindal Iron and Steel Co. Ltd., Mumbai 

He is presently acting as an independent Director South East Asia Marine Engg. & Construction Ltd., Kolkata 

on the Board of various Companies. 

Graphite India Ltd., Kolkata 

Ennore Foundries Ltd. 

Mr . M S Parthasarathy 

Director 

(S/o Late M.S. Tiruvenkatachari) 

None 

B2 Ashok Svasti, 33 Balakrishna Road 

Valmiki Ngr, Tiruvanmiyur 

Chennai – 600041 

* Mr. Nagesh Pinge is a Senior General Manager (Compliance and Audit Group) of ICICI Bank Limited and Mr. S.P. 

Subhedar is a Senior Advisor to the Prudential Corporation Asia Limited, a wholly owned subsidiary of Prudential plc. 

ii) Rights and Obligations of the Trustee under the Trust Deed and the Regulations 

Pursuant to the Deed of Trust dated August 25, 1993 constituting the Mutual Fund and in terms of the Regulations the 

rights and obligations of the Trustee are as under: 

1. The Trustee shall have a right to obtain from the AMC such information as is considered necessary by it. 

2. The Trustee shall ensure before the launch of any scheme that the Asset Management Company has : 

i. systems in place for its back office, dealing room and accounting; 

ii. appointed all key personnel including fund manager(s) for the Scheme and submitted to the Trustee their biodata 

which shall contain the educational qualifications, past experience in the securities market within fifteen 

days of their appointment; 

iii. appointed auditors to audit the accounts of the scheme; 

19


iv. appointed a compliance officer to comply with regulatory requirements and to redress Investor grievances; 

v. appointed registrars and laid down parameters for their supervision; 

vi. prepared a compliance manual and designed internal control mechanisms including internal audit systems and 

vii. Specified norms for empanelment of brokers and marketing agents. 

3. The Trustee shall ensure that the AMC has been diligent in empanelling the brokers, in monitoring securities transactions 

with brokers and avoiding undue concentration of business with any broker. 

4. The Trustee is required to ensure that the AMC has not given any undue or unfair advantage to any associate or dealt 

with any of the associates of the AMC in any manner detrimental to the interests of the Unitholders. 

5. The Trustee is required to ensure that the transactions entered into by the AMC are in accordance with the Regulations 

and the provisions of the Scheme. 

6. The Trustee is required to ensure that the AMC has been managing the Scheme independently of other activities and 

has taken adequate steps to ensure that the interest of Investors under the Scheme are not compromised with those 

of any other Scheme or of other activities of the AMC. 

7. The Trustee is required to ensure that all the activities of the AMC are in accordance with the provisions of the 

Regulations and shall exercise general and specific due diligence as required under the Regulations. 

8. Where the Trustee has reason to believe that the conduct of the business of the Fund is not in accordance with these 

Regulations and the provisions of the Scheme launched there under, it is required to take such remedial steps as are 

necessary by it and to immediately inform SEBI of the violation and the action taken by it. 

9. Each Director of the Trustee is required to file with the Trust the details of his securities transactions on a quarterly 

basis. 

10. The Trustee is accountable for and is required to be the custodian of the Fund’s property of the respective of the 

Scheme and to hold the same in trust for the benefit of the Unitholders in accordance with the Regulations and the 

provisions of the Trust Deed. 

11. The Trustee is required to take steps to ensure that the transactions of the Mutual Fund are in accordance with the 

provisions of the Trust Deed. 

12. The Trustee is responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income 

received in the Mutual Fund for the holders of the units of any Plan of the Scheme in accordance the Regulations and 

the Trust Deed. 

13. The Trustee is required to obtain the consent of the Unitholders of the Scheme : 

When the Trustee is required to do so by SEBI in the interest of the Unitholders; or 

a. Upon a requisition made by three-fourths of the Unitholders of the Scheme; or 

b. If a majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units; or 

c. The Trustee shall ensure that no change in the fundamental attributes of the Scheme or the trust or fee and 

expenses payable or any other change which would modify the Plan and affects the interests of unit holders, shall 

be carried out unless: 

i) a written communication about the proposed change is sent to each Unitholder and an advertisement is 

given in one English daily newspaper having nationwide circulation as well as in a newspaper published in 

the language of the region where the Head Office of the mutual fund is situated; and 

ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit load. 

14. The Trustee is required to call for the details of transactions in securities by the key personnel of the AMC in their own 

names or on behalf of the AMC and report the same to SEBI as and when called for. 

15. The Trustee is required to review quarterly, all transactions carried out between the Fund, the AMC and its associates. 

16. The Trustee is required to review quarterly, the net worth of the AMC and in case of any shortfall ensure that the AMC 

makes up for the shortfall as per clause (f) of sub regulation (1) of Regulation 21 of the Regulations. 

17. The Trustee is required to periodically review all service contracts such as custody arrangements and transfer agency, 

and satisfy itself that such contracts are executed in the interest of the Unitholders. 

18. The Trustee is required to ensure that there is no conflict of interest between the manner of deployment of its net 

worth by the AMC and the interest of the Unitholders. 

19. The Trustee is required to periodically review the Investor complaints received and the redressal of the same by the 

AMC. 

20. The Trustee is required to abide by the Code of Conduct as specified in the Fifth Schedule of the Regulations. 

21. The Trustee has to furnish to SEBI on a half-yearly basis:- 

(a) a report on the activities of the Fund covering the details as prescribed by SEBI; 

(b) a certificate stating that the Trustees have satisfied themselves that there have been no instances of self dealing or 

front running by any of the Trustee, directors and key personnel of the AMC; 

20


(c) a certificate to the effect that the AMC has been managing the schemes independently of any other activities and 

in case any activities of the nature referred to in sub Regulation (2) of Regulation 24 of the Regulations have been 

undertaken, the AMC has taken adequate steps to ensure that the interest of the Unitholders is protected. 

22. The independent Directors of the Trustee are required to give their comments on the report received from the AMC 

regarding the investments by the Mutual Fund in the securities of the group companies of the sponsors. 

23. No amendments to the Trust Deed shall be carried out without the prior approval of SEBI and Unitholders approval/ 

consent will be obtained where it affects the interests of Unitholders as per the procedure / provisions laid down in 

the Regulations. 

24. The Trustees shall exercise general and specific due diligence required under the Regulations. 

25. Trustee shall maintain high standards of integrity and fairness in all their dealings and in the conduct of their business. 

26. Trustee shall render at all times high standards of service, exercise due diligence, ensure proper care and exercise 

independent professional judgement. 

27. The independent directors of the Trustee shall pay specific attention to the following as may be applicable, namely : 

i. The Investment Management Agreement and the compensation paid under the agreement. 

ii. Service contracts with affiliates – whether the asset management company has charged higher fees than outside 

contractors for the same services. 

iii. Selection of the asset management company’s independent directors 

iv. Securities transactions involving affiliates to the extent such transaction are permitted. 

v. Selecting and nominating individuals to fill independent directors vacancies. 

vi. Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection 

with personal securities transactions. 

vii. The reasonableness of fees paid to sponsors, asset management company and any others for services provided. 

viii. Principal underwriting contracts and renewals 

ix. Any service contracts with the associates of the asset management company. 

28. Notwithstanding anything contained in sub-regulations (1) to (25) of regulation 18 of the Regulations, the Trustees 

shall not be held liable for acts done in good faith if they have exercised adequate due diligence honestly. 

29. SEBI circular no. MFD/CIR/10/ 15895 /2002 dated August 20, 2002 provides that the meetings of the Trustees shall be 

held at least once in every two calendar months and at least six such meetings should be held every year. Further, as 

per the Regulations, for the purposes of constituting the quorum for the meetings of the Trustees, at least one 

Independent Trustee or Director should be present during such meetings. 

During the period from January 1,2004 December 31, 2004, seven meetings of the Directors of the Trustee were held. The 

Trustee’s supervisory role is discharged by reviewing the information and the operations of the Fund based on reports 

submitted at the Board Meetings of the Trustee, by reviewing the reports being submitted by the Internal Auditor and the 

bi-monthly, quarterly and half-yearly compliance reports. The Trustee also conducts a detailed review of the half-yearly and 

annual accounts of the schemes of the Fund and discusses the matters arising there from with the Statutory Auditors of 

the Fund. 

iii) Trusteeship Fees 

Pursuant to the Deed of Trust constituting the Fund, the Fund is authorised to pay the Trustee a fee for its services in such 

capacity of a sum, presently computed at the rate of up to 0.05% of the amount, being the aggregate of the Trust Fund 

and Unit Capital of all the schemes put together on April 1 of each year or a sum of Rs.5 lacs, whichever is higher. The 

Trustee may charge further fees as permitted from time to time under the Trust Deed and the Regulations. 

SEBI has, in terms of its letter No.MFD/LV/059/00 dated January 31, 2000 approved an amendment to Trust Deed. The 

amendment authorizes the Trustee to decide upon the Trusteeship Fee to be charged from the Mutual Fund at the beginning 

of each financial year (April 1 to March 31), subject to the maximum limit of 0.05% to be arrived at as indicated above. The 

amendment does not in any way, adversely impact or alter the interests of Unitholders under the existing schemes of the 

Fund. 

C) MANAGEMENT OF ASSET MANAGEMENT COMPANY (AMC) 

ICICI Asset Management Company Limited (I-AMC), a company registered under the Companies Act, 1956, was established 

by ICICI (now ICICI Bank Ltd) as its wholly owned subsidiary, to act as the Investment Manager of the ICICI Mutual Fund 

vide the Investment Management Agreement dated September 3, 1993. Consequent to a review of long-term business 

strategy of the AMC, it was decided to further strengthen commitment to the individual investor segment. As a part of this 

plan, Prudential plc. (formerly known as Prudential Corporation plc.) of the UK (Prudential) was inducted as the new joint 

venture partner. 

Prudential plc. of UK, through its wholly owned subsidiary, Prudential Corporation Holdings Limited, has been issued and 

allotted shares aggregating 55% stake in the share capital of Prudential ICICI Asset Management Company Limited (AMC), 

whereas the balance 45% shareholding in the AMC is being held ICICI Group. Out of the total 45% of the paid-up capital 

of the AMC held by the ICICI Group, 30% is held by ICICI Bank and the balance 15% is held by a subsidiary of ICICI Bank 

Ltd. viz. ICICI Venture Funds Management Company Limited. 

I-AMC was approved by SEBI to act as the Investment Manager of ICICI Mutual Fund vide its letter No.IIMARP/MF/22356 

dated October 12, 1993. Consequent to the restructuring of shareholding pattern as stated above, SEBI vide its letter 

21


No.IIMARP\631\98 dated March 11, 1998 accorded its approval for the induction of Prudential plc (through its wholly own 

subsidiary, Prudential Corporation Holdings Limited) as a shareholder of the AMC. The AMC has applied and secured 

approval from the Registrar of Companies, Delhi and Haryana, for its change of name to Prudential ICICI Asset Management 

Company Limited, vide letter No.21/55-54135/320 dated March 26, 1998. 

The AMC will manage the schemes of the Fund, including the Scheme mentioned in this Offer Document, in accordance 

with the provisions of Investment Management Agreement, the Trust Deed, the Regulations and the objectives of each of 

the schemes. 

AMC has obtained registration from SEBI vide Registration No.INP000000373 dated February 29, 2000 read with a renewed 

certificate dated February 27, 2003, to act as a Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993. 

Further, the Mutual Funds Division of SEBI, vide its letter no. MFD/LV/248/2000 dated May 10, 2000, conveyed its no objection 

for the AMC undertaking PMS activities subject to the AMC complying with the requirements as envisaged in Regulation 

24(2) of SEBI (Mutual Funds) Regulations, 1996. The AMC has commenced the Portfolio Management activities, after 

complying with the regulatory requirements. The same are not in conflict with the mutual fund activities. 

i) Board of Directors of the AMC 

Mr. Mark Norbom 

Prudential Corporation Asia, One International Finance Centre, 13 Floor, 1 Harbour View Street, Central, Hong Kong. 

Mr. Mark Norbom graduated from Pennsylvania State University with a B.S. degree in Economics in 1980. 

Mr. Norbom began his career at GE in 1980 and served in a number of senior management positions in the US and in Asia. 

Prior to joining Prudential, Mr. Norbom was President and CEO for GE Japan with responsibility for all of GE’s activities in 

Japan. Mr. Norbom’s ten years experience in Asia also included being Head of GE Capital Taiwan, Country President of GE 

Capital Indonesia, CEO of GE Capital Thailand, and National Executive of GE Thailand. Presently, Mr. Norbom is a Chief 

Executive of Prudential Corporation Asia with responsibility for Prudential’s business interests across the region. Mr. Norbom 

oversees Prudential’s extensive network of 23 life insurance, general insurance, retail mutual funds and institutional asset 

management operations across 12 countries in Asia: China, India, Taiwan, Hong Kong, Singapore, Malaysia, Korea, Japan, 

Vietnam, Indonesia, the Philippines, and Thailand. 

Mr. Ajay Srinivasan 

Prudential Corporation Asia, One International Finance Centre 13 Floor, 1 Harbour View Street, Central, Hong Kong 

Mr. Srinivasan, Managing Director, Regional Funds Management, Prudential Corporation Asia (PCA) is responsible for PCA’s 

mutual funds / Institutional Funds business in Asia. Mr. Srinivasan was the Managing Director of the Prudential ICICI Asset 

Management Company Ltd. during the period March 1998 to December 2000 and was responsible for the development 

of business of the Company and its day-to-day management. 

Mr. Srinivasan has significant experience in managing asset management companies. As the Deputy Chief Executive of ITC 

Threadneedle AMC. Mr. Srinivasan was part of the team responsible for making policy for ITC Threadneedle AMC Ltd and 

was also head of the fund management function. Prior to his tenure at ITC Threadneedle, Mr. Srinivasan was a member of 

the ITC Group’s Financial Services Division and was responsible for establishing, planning and running several businesses 

at ITC, including the stock broking business, Over the Counter Exchange business, the private equity business and investment 

banking business. 

Mr. Srinivasan began his career at ICICI where, as a part of project appraisal team, he assessed the feasibility of several 

projects in various sectors. 

Mr. Srinivasan has a Post Graduate Diploma in Business Management from Indian Institute of Management, Ahmedabad, 

specializing in finance. He has a Bachelor’s Degree in Economics (Honours) from St. Stephens’ College, New Delhi. 

Mr. Ananda Mukerji 

301, Radhika Apartments, Off. Sayani Road, Prabhadevi, Mumbai 400 025 

Mr. Ananda Mukerji has a B Tech degree in Mechanical Engineering from the Indian Institute of Technology, Kharagpur 

and a Post-graduate Diploma in Management from the Indian Institute of Management, Kolkata. He has over 17 years 

experience including 11 years at ICICI during which he set up and managed a number of businesses including the 

infrastructure finance, structured finance and advisory businesses. He also worked as Executive Assistant to the Managing 

Director & CEO, and Head of Strategy. Since January 2002, he has headed ICICI OneSource Limited, the ICICI group’s 

Business Process Outsourcing (BPO) arm, as its Managing Director & CEO. 

Mr. N. S. Kannan 

Flat 201, Radhika Apts., 930 TPS IV, Off Sayani Road, Prabhadevi, Mumbai 400 025. 

Mr. N.S. Kannan has completed a Mechanical Engineering from the Regional Engineering College, Trichy and has a Postgraduate 

Diploma in Management from the Indian Institute of Management, Bangalore. He is also a Chartered Financial 

Analyst from the Institute of Chartered Financial Analyst of India, Hyderabad. Mr. Kannan has about 16 years experience 

including 13 years at ICICI during which he has managed a number of activities including the project finance, structured 

finance and treasury operations. He started his career with SRF Limited in 1986 and was deputed to SRF Nippon denso 

Limited in 1987 as an Executive – Project Planning He joined ICICI Ltd. in 1991 as a Project Officer. Subsequent to the 

merger of ICICI with ICICI Bank, he was responsible for the treasury operations including structured finance and strategy 

activities of the Bank as a Treasury Head. He is currently acting as a CFO & Treasurer, managing the finance functions & 

treasury of the Bank. He is also in charge of Risk Management and Corporate Communications. 

22


Mr. K. S. Mehta 

C-70 Panchsheel Enclave, New Delhi 11 0017 

Mr. Mehta is a Senior Partner of S.S. Kothari & Co., Chartered Accountants, and heads the firm’s management consultancy 

division. Mr. Mehta specializes in corporate financial planning, restructuring, project financing and working capital control. 

He has an in-depth knowledge of industry in his capacity as Director of some of the leading companies and as a management 

consultant. 

Mr. Mehta is a Member of the Managing Committee of Federation of Indian Chambers of Commerce and Industry (FICCI). 

He is a former Member of the Advisory Committee on Primary Markets set up by SEBI, a Former Director on the Board of 

the National Stock Exchange of India Limited and is the past President of PHD Chamber of Commerce & Industry. 

Mr. Mehta is a FCA and has a Bachelor of Commerce (Hons.) Degree. 

Mr. Dadi Engineer 

Flat no.4, 1 st Floor, Shiv Shanti Bhuvan, 146 M. Karve Road, Opp. The Oval, Mumbai – 400 020. 

Mr. Engineer is a Solicitor and Advocate and is a Senior Partner at Crawford Bayley & Co. He has over 40 years experience in 

the legal profession and has expertise in various aspects of Corporate Law, Indirect Taxation, Foreign Exchange, Imports, 

Trade Control Regulations and Civil and Constitutional Law. 

Mr. Engineer is the President of the Managing Committee of Bombay Incorporated Law Society and served as the 

Representative Member of the Governing Council of the Bar Association of India. He has also been associated with the 

various committees set up by Bombay Chamber of Commerce and Industry and Associated Chambers of Commerce and 

Industry. 

Mr. Engineer is on the Boards of several leading domestic and multi-national 

companies. 

Mr. B. R. Gupta 

6B, Sheetal Apartments, Lokhandwala Complex, Andheri (W) , Mumbai400 053. 

Mr. Gupta is the former Executive Director of the Life Insurance Corporation of India (LIC). He was working as Consultant 

(Investment) to GIC, India till December 2000. 

Mr. Gupta has worked with LIC for over 35 years in various capacities and has had extensive experience in the operations 

of the life insurance industry, specifically in the areas of investment, marketing, underwriting and administration. Mr. Gupta 

also worked in the investment department of the LIC for 10 years and headed the department as Executive Director. He was 

responsible for managing LIC’s portfolio comprising a variety of investments. Subsequent to his retirement, till May 1999, 

he functioned as the Investment Advisor to LIC. 

Mr. Gupta is on the Boards of several companies and had been a Member of “The Administrative Committee of Insurance 

Institute of India”, “The Committee of NSE on Development of the Debt Market in India”, “The Executive Committee of 

the NSE” and “The Advisory Committee on Secondary Market Operations of SEBI”. At present Mr. Gupta is an Advisor to 

IL&FS Academy for Insurance & Finance Ltd., an initiative of IL&FS. Mr. Gupta is a M.A in English and has a LL.B. degree 

besides being a Fellow of Insurance Institute of India. 

Mr. Pradip P. Shah 

72A, Embassy Apartments, 46, Nepean Sea Road, Bombay 400 006. 

Mr. Pradip P. Shah started IndAsia, a private equity investment and corporate finance advisory company in April 1998, 

following his separation from the management of the Indocean Fund which he helped establish in October 1994, in 

association with affiliates of Soros Fund Management and Chemical Venture Partners (now Chase Capital Partners). 

Prior to starting Indocean, he was the Managing Director of the Credit Rating and Information Services of India Limited 

(‘CRISIL’), India’s first and the largest credit rating agency. Mr. Shah was one of the team members, which assisted in founding 

CRISIL in 1988. While at CRISIL, Mr. Shah was instrumental in technology transfer to and the training of personnel of 

Rating Agency Malaysia Berhad and The Israeli Securities Rating Company. 

Prior to founding of CRISIL, Mr. Shah assisted as a member of the project team in founding the Housing Development 

Finance Corporation (HDFC) in 1977. Before joining HDFC, Mr. Shah was a Project Officer at the Industrial Credit and 

Investment Corporation of India Limited (‘ICICI’). Mr. Shah has also served as a consultant to USAID, the World Bank and 

the Asian Development Bank. 

Mr. Shah holds an MBA from Harvard Business School and is a qualified Chartered Accountant as well as a Cost Accountant 

and ranked first in India in the Chartered Accountancy examination. 

Mr. Pankaj Razdan 

Sherwin Ark, Bunglow No. 3, Bellscot Co-op Hsg. Society, Lokhandwala Complex, Andheri (W), Mumbai 400058 

Mr. Razdan is the Managing Director of the Prudential ICICI Asset Management Company Ltd. and is responsible for 

development of the business of the Company and its day-to-day management. 

Mr. Razdan has rich experience and knowledge in Sales, Distribution and Marketing. He began his career with the HMG 

Financial Services Limited as a Marketing Manager. He then joined Karvy Securities Limited where he worked for 5 years in 

its Distribution and Merchant Banking Division. Mr. Razdan joined Prudential ICICI Asset Management Co. Ltd. in April 

1998, as Vice President & Head – Sales and Distribution of West Zone of the Company. In 1999, he headed the Sales and 

Distribution of the Company in West and North Zone. He was promoted to become the Senior Vice President – Sales and 

23


Distribution in February 2000 and Senior Vice President – Sales and Marketing in 2001. In March 2003 he took over the 

post of Deputy CEO with a responsibility to oversee Sales, Distribution and Marketing for all India, Strategic Planning, 

Development and Customer Service. 

Mr. Razdan has a Bachelors degree in Electronics and has graduated in Engineering specializing in electronics. 

ii) Powers, Duties and Responsibilities of the AMC 

The duties and responsibilities of the AMC shall be governed by the Regulations and the Investment Management 

Agreement. The AMC, in the course of managing the affairs of the Mutual Fund, has the power, inter-alia: 

(a) to invest in, acquire, hold, manage or dispose of all or any securities and to deal with, engage in and carry out all 

other functions and to transact all business pertaining to the Fund; 

(b) to keep the moneys belonging to the Trust with scheduled banks and Custodians as it may deem fit; 

(c) to issue, sell and purchase Units under any Scheme; 

(d) to repurchase the Units that are offered for repurchase and hold, reissue or cancel them; 

(e) to formulate strategies, lay down policies for deployment of funds under various Schemes and set limits collectively or 

separately for privately placed debentures, unquoted debt instruments, securitised debts and other forms of variable 

securities which are to form part of the investments of the Trust Funds; 

(f) to arrange for investments, deposits or other deployment as well as disinvestment or refund out of the Trust Funds as 

per the set strategies and policies; 

(g) to make and give receipts, releases and other discharges for moneys payable to the Trust and for the claims and 

demands of the Trust; 

(h) to get the Units under any scheme listed on any one or more stock exchanges in India or abroad; 

(i) to open one or more bank accounts for the purposes of the Fund, to deposit and withdraw money and fully operate 

the same; 

(j) to pay for all costs, charges and expenses, incidental to the administration of the Trust and the management and 

maintenance of the Trust property, Custodian and/or any other entities entitled for the benefit of the Fund, audit fee, 

management fee and other fees; 

(k) to furnish compliance reports to the Trustees as prescribed by SEBI. 

(l) to provide or cause to provide information to SEBI and the Unitholders as may be specified by SEBI and 

(m) to generally do all acts, deeds, matters and things which are necessary for any object, purpose or in relation to the 

Prudential ICICI Mutual Fund in any manner or in relation to any scheme of the Prudential ICICI Mutual Fund. 

The Asset Management Company shall maintain high standards of integrity and fairness in all their dealings and in the 

conduct of their business. 

The Asset Management Company shall render at all times high standards of service, exercise due diligence, ensure proper 

care and exercise independent professional judgement. 

The independent directors of the Asset Management Company shall pay specific attention to the following as may be 

applicable, namely : 

i. The Investment Management Agreement and the compensation paid under the agreement. 

ii. Service contracts with affiliates – whether the company has charged higher fees than outside contractors for the same 

services. 

iii. Securities transactions involving affiliates to the extent such transaction are permitted. 

iv. Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection 

with personal securities transactions. 

v. The reasonableness of fees paid to sponsors, asset management company and any others for services provided. 

vi. Principal underwriting contracts and renewals 

vii. Any service contracts with the associates of the company. 

In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to an investment management 

fee at 1.25% per annum of the average net assets for a corpus up to Rs.100 crores and at 1.00% per annum for the 

corpus amount in excess of Rs.100 crores. 

24

iii) 

Key Employees of the AMC and relevant experience 


Name of the Employee Age Designation Educational Total No. of Assignments Held 

(Years) Qualifications Years of Experience During the Last 

/ Type & Nature of 10 Yrs 

Experience 

Mr. Pankaj Razdan 36 Managing Director BSc. (Electronics) Over 11 years of Deputy CEO – Prudential ICICI 

B. Tech (Electronics experience in sales AMC – March 2003 to December 

Engineering) and distribution. 2003. Vice President / Senior Vice 

President & Head - Sales & 

Distribution - Prudential ICICI AMC 

- 2000 February 2003. 

Vice President - West & North 

Zone Prudential ICICI AMC - 1999 

– 2000. 

Head -Distribution -Karvy Securities 

Limited - 1997 – 1998. 

Marketing Manager - HMG 

Financial Services Limited - 1992 – 

1993. 

Graduate Engineer Trainee / 

Design Engineer – Nelco Ltd. 1992. 

Mr. Nilesh Shah 35 Chief Investment B.Com, A.C.A. Over 12 years of Chief Investment Officer – Prudential 

Officer Grad C.W.A. experience in fund ICICI AMC Limited – June 2004 till 

management and 

portfolio management 

date. 

Director and Chief Investment Officer 

– Franklin Templeton AMC India Pvt. 

Ltd. – Sept 2002 to May 2004. 

Chief Investment Officer – Frankline 

Templeton AMC India Pvt. Ltd. – 

January 2000 to September 2002. 

Portfolio Manager – Fixed Income – 

Franklin Templeton AMC India Pvt. 

Ltd. – March 1997 to January 2000. 

Head – Structured Products – ICICI 

Securities and Finance Company 

Limited – April 1992 to February 

1997. 

Mr. Raj Raman 44 Senior Vice President PGDM – IIM, 18 years experience in Prudential ICICI Asset Management 

-Sales and Marketing Bangalore the areas of Sales Co. Ltd. From July 6, 2004 till date as 

and Marketing Sr. Vice President Sales & Marketing 

Quinnox Consultancy Services Limited, 

Mumbai From November, 2002 till 

June, 2004 as Country Manager & Sr. 

Vice President – Asia Pacific 

Tata AIG Insurance Services, Mumbai 

From March, 2001 till October, 2002 

as Sr. Vice President – Marketing Life 

& General Insurance 

Satyam Infoway, Chennai From April, 

2000 till March, 2001 as Vice 

President – Portals 

GE Countrywide Consumer Financial 

Services, Mumbai From June 1996 till 

December1998 as V.P. –Consumer 

Finance. 

From December 1998 till April 2000 

as Chief Operating Officer 

Marico Industries Ltd 

From September 1991 till April 1995 

as Regional Sales Manager – North 

From April 1995 to June 1996 – 

Business Development Manager 

Asian Paints India Limited From June 

1986 till September 1991 as Branch 

Manager, Kolkata 

25





Experience 

Mr. Vasant Sanzgiri 44 Senior Vice President BSc ( Life Sciences), Over 17 years Vice President / Senior Vice President 

& Head Human MMS (Personnel experience in area of & Head Human Resources Prudential 

Resources Management) Human Resources ICICI AMC - 2000 to date. 

Management 

General Manager - Human Resources 

- Owens Cornning India Limited - 1998 

– 2000. 

General Manager Human Resources 

– DCW Home Products - 1996 – 1998. 

Regional Human Resource & Quality 

Manager - Modi Xerox - 1995 –1996. 

Manager, Human Resources Cyanamid 

India - 1992 – 1995. 

Manager – Human Resources - Indian 

Hotels Limited - 1990 – 1992. 

Mr. Kalyan Prasath 38 Vice President – PGDSM(NIIT), B.Sc Over 19 years of Vice President – Information 

Information work experience in Technology - Prudential ICICI AMC 

Technology areas of Information June 2001 onwards. 

Technology 

Birla Global – Assistant Vice President 

from Feb’97 to April, 2001. 

DGP Windsor India Ltd. – Manager 

from Sept ’94 to Jan’97. 

Universal Luggage Mfg. Co. Ltd. - 

Asst. Manager from Nov’90 to 

Sept’94. 

NIIT/CCIT – Course Conductor from 

May ‘89 to Oct’90 

ECIL – System Developer from June 

’88 to April ‘89 

Associated Systems – Software 

Developer from July’85 to April ’88. 

Mr. Ranganath Athreya 39 Sr. Vice President – Associate -_Institute Over 16 yrs of Sr. Vice President 

Legal, Compliance of Company experience in – Legal, Compliance and Company 

and Company Secretaries of India. Compliance and Secretary, Prudential ICICI AMC Jan 

Secretary Bachelors Degree Company Secretarial 14, 02 onwards. 

(General Laws), functions Head Corporate Communication and 

PGDCP 

Company Secretary - IDBI Bank June 

1997 to 12 th Jan 2002 

Chief Manager Merchant Banking 

and Company Secretary - Karnataka 

Bank Ltd. from 1992-97 

Company Secretary Lakshmi Motor 

Credit (Now TVS Finance) 1989-92 

Mr. Mrugank Paranjape 38 Vice President PGDM from Over 15 yrs of May 2002 - to-date : Vice President - 

Operations and IIM, Ahmedabad experience in Prudential ICICI AMC Limited 

Project B. Tech. (Electrical) Operatios and April 2001 - May 2002 

from IIT, Powai projects Chief Technology Officer - Reliance 

Logistics Pvt. Limited 

Dec 1999 - March 2001 

Director - Infoline.com Limited & MD 

- India Infoline Securities Limited 

July 1997 - Nov 1999 

Regional Business Manager - 

Deutsche 

Bank A.G, Custody Services 

July 1996 to June 1997 

Director - WI Carr Securities Pvt. 

Limited 

Nov 1995 to July 1996 

Director - ING Barings Securities 

(India) 

Pvt. Limited 

Nov 1994 - Oct 1995 

Vice President Operations, IIT Invest 

Trust Limited 

May 1990 - Oct 1994 

Citibank N.A Global Consumer 

Business Manager 

26





Experience 

Mr. Sanjay Mehrotra 38 Associate Vice MMS, Marketing Over 14 years of Associate Vice President – Investments 

President - , B.Com experience in - Prudential ICICI AMC - 1999 to date. 

Investments Investment Manager – Investments -Prudential 

Management ICICI AMC - 1999. 

Dealer - Prudential ICICI AMC - 1998 

– 1999. 

Assistant Manager - ICICI AMC - 1993 

– 1998. 

Manager Sound Craft Marketing - 

1992 – 1993. 

Dealer – Treasury Tata Finance Limited 

- 1992. 

Executive – Growmore Research & 

Assets - 1990 – 1992. 

Mr. Pankaj Kaji 52 Senior Fund Manager B.Com 32 yrs Fund Manager- Prudential ICICI AMC- 

2002 till date. 

Deutsche Bank, Mumbai (Vice- 

President-Money Market) 1994-2002, 

ANZ Grindlays Bank (Funds Manager)- 

1986-1994 

Mr. Chaitanya Pande 33 Fund Manager PGDM from IMI, 9 yrs 5 Months Sept 16th 2002 till date – Fund 

New Delhi, Manager – Manager – Prudential ICICI AMC 

BSc from St. Fund Management Limited 

Stephens College, Jan 2000 to Sep 2002 

New Delhi 

Manager – Fund Management 

JF Asset Management (India) Pvt. 

Limited 

May 1995 to Jan 2000 

Investment Analyst 

JF Asset Management (India) Pvt. 

Limited 

Mr. Deepesh Pandey 32 Senior Fund Manager PGDM (IIM, Calcutta) 9 years Prudential ICICI asset Management 

B. Tech (IIT, Delhi) Fund Management From March 22, 2004 till date 

Senior Fund Manager 

Templeton Asset management India 

Pvt. Ltd. From January 2000 – March 

20, 2004 

Portfolio Manager 

SBI Funds Management India 

July 1995 – December 1999 

Investment Analyst 

Mr. Anil Sarin 38 Senior Fund Manager PGDBM, Institute of 10 years as Fund Prudential ICICI AMC Limited – April 

Management Management and 2004 till date as Senior Fund 

Technology (IMT) Portfolio Management Manager. 

Kotak Securities, Private Client Group 

– From October 2003 to March 2004 

as Vice President – Portfolio Manager 

Birla Sun Life AMC Ltd. – From 

January 1996 to September 2003 as 

Manager, Assistant Vice President, 

Fund Manager 

SBI Funds Management Ltd. From 

March 1994 to December 1995 – as 

Asst. Manager, Fund Manager 

Mr. Yogesh Bhatt 36 Associate Vice A.C.A. Grad C.W.A. 13 years as Equity Prudential ICICI Asset Management 

President – Dealer Co. Ltd. From June 28, 2004 till date 

Investments as Associate Vice President – 

Investments 

Sushil Finance Consultants Ltd. From 

1999 to June 2004 as Equity Dealer/ 

Strategist 

Falcon Brokerage Private Limited. – 

From 1996 to 1999 as Equity Dealer 

Sushil Finance Consultants Ltd. From 

1991 to 1996 as Equity Dealer/ 

Strategist 

27





Experience 

Mr. Rahul Goswami 31 Senior Fund Manager B Sc., 9 years – Fund Prudential ICICI Asset Management 

M.B. A. Management - Debt Co. Ltd. From July 6, 2004 till date as 

Senior Fund Manager Franklin 

Templeton Asset Management (I) 

Pvt. Ltd. from October 2002 to July 

2004 as Fund Manager. 

UTI Bank Ltd. from January 2000 to 

October 2002 as Manager – 

Investments and Merchant Banking 

SMIFS Securities Ltd. from June 1998 

to January 2000 as Senior Dealer – 

Debt Sales 

Khandwala Finances Ltd. from 

October 1997 to June 1998 as Senior 

Dealer – Debt Sales. 

RR Financial Consultants Limited from 

December 1995 to October 1997 as 

Manager – Debt Sales 

Mr. B. Ramakrishna 39 Chief Financial B’Com, A.C.A Over 16 years of Prudential ICICI AMC Ltd. from 

Officer Grad. CWA experience in September 23, 2004 till date. 

Corporate Planning, Marico Industries Ltd. as General 

Investor Relations, 

Financial Planning 

Manager – Corporate Finance from 

September, 1998 to September, 

2004. 

ITC Agrotech Ltd. as Commercial 

Manager from February, 1993 to 

August, 1998. 

Mr. S Naren 38 Vice President – B.Tech – IIT Over 15 years of Prudential ICICI AMC Ltd. from 

Investments Madras experience in Fund October, 2004 till date. 

PGDM – IIM Management, Equity Refco Sify Securities India Pvt. Ltd. as 

Calcutta Research, Head of Research from November, 

Operations etc. 2003 to October, 2004 

HDFC Securities Ltd. as Vice 

President from September, 2000 to 

March, 2002 and as Director & COO 

from March, 2002 to November, 

2003 

Yoha Securities as CEO from 

December, 1995 to September, 2000 

As indicated above, at present a team comprising of nine Fund Managers are involved in fund management/ research 

activities. The past experience of these employees is indicated above. 

All the above key personnel are based at the Corporate Office of AMC. 

iv) Fund Manager : 

The investments under the Plan will be managed by the Chief Investment Officer, Mr.Nilesh.Shah. His qualifications and 

experience are as under: 

Scheme Name Fund Manager Qualification Experience 

SENSEX Prudential ICICI Exchange Mr. Nilesh Shah B. Com, A.C.A. Grad C.W.A. Over 12 years of experience 

Traded Fund 

in fund management and 

portfolio management. 

v) Compliance Officer 

The Compliance Officer for the Fund is: 

Mr. Ranganath Athreya 

Sr. Vice President- Legal, Compliance and Company Secretary 

Prudential ICICI Asset Management Company Ltd. 

Contractor Building, 3 rd Floor 

41, R. Kamani Marg, Ballard Estate, 


vi) Investor Relations Officer 

Investor Relations Officer for the Fund is Mr. Ketan Mirchandani and he may be contacted at the corporate office of the 

AMC at Mumbai. 

28


d) Auditors 

Mr. N. M. Raiji & Co., Chartered Accountants, Mumbai have expressed their willingness to act as Auditors for the 

Scheme offered under this Offer Document and have been appointed as Auditors by the Trustee. 

e) Registrar 

Computer Age Management Services Private Limited, Unit: Prudential ICICI Mutual Fund, Floor IV, Tower 1, Rayala 

Towers, 158, Anna Salai, Chennai - 600 002 (CAMS) have been appointed as Registrar for the Scheme. The Registrar is 

registered with SEBI under registration No: INR000002813. As Registrar to the Scheme, CAMS will handle 

communications with investors, perform data entry services and dispatch Account Statements. The AMC and the Trustee 

have satisfied themselves that the Registrar can provide the services required and has adequate facilities and the system 

capabilities. 

f) Custodian 

HDFC Bank Limited, Mumbai has been appointed as Custodian for the Scheme mentioned in the Offer Document. The 

Custodian has been registered with SEBI and has been awarded registration No.IN/CUS/001 dated February 2, 1998. 

The Trustee have entered into a Custodian Agreement with the Custodian and the salient features of the said Agreement 

would be as under: 

(a) Provide post-trading and custodial services to the Mutual Fund. 

(b) Ensure benefits due on the holdings are received. 

(c) Provide detailed management information and other reports as required by the AMC. 

(d) Maintain confidentiality of the transactions. 

(e) Be responsible for the loss or damage to the assets belonging to the Scheme due to negligence on its part or on 

the part of its approved agents and 

(f) Segregate assets of each Scheme. 

Further, the Custodian shall not assign, transfer, hypothecate, pledge, lend, use or otherwise dispose any assets or property, 

except pursuant to instruction from the Trustee/AMC or under the express provisions of the Custodian Agreement. 

The Custodian shall also not deal, on its own account, in securities purchased or sold by the Mutual Fund without making 

an adequate disclosure to SEBI and the Trustee/AMC. 

The Custodian will be entitled to remuneration for its services in accordance with the terms of the Custodian Agreement. 

29


SECTION II 

INVESTMENT OBJECTIVES & POLICIES 

Fundamental Attributes of the Scheme 

a) Type of the Scheme 

An open-ended, exchange listed, index linked growth scheme seeking to track the returns of the SENSEX through 

investment in a basket of stocks drawn from the constituents of SENSEX. 

SENSEX Prudential ICICI Exchange Traded Fund, an exchange traded fund will track the BSE-30 Sensitive Index (the 

SENSEX). The units issued under the scheme will be referred to as “SPIcE”. The advantages of “SPIcE” units over the 

equity funds including passively managed index funds are: 

1. Its units can be traded like a share and therefore it provides the ability to buy and sell them quickly at the ruling 

market price unlike the units of other open-ended funds that can be traded only once a day. 

2. Price at which these units are traded reflects the net asset value through out the trading day. Thus, the premium 

and discount that are associated with close-ended funds may be avoided. 

3. Its cost of management is lesser than both actively managed funds and passively managed Index funds as the 

fund does not normally bear an impact cost and also other costs including management fees, etc. are minimal. 

4. Units of “SPIcE” will be issued (created) and repurchased (redeemed/cancelled) by Prudential ICICI Mutual Fund 

by swapping them with a mix of predefined securities and/ or cash or vice-versa. In the secondary market, “SPIcE” 

will be traded like any other equity shares on The Stock Exchange, Mumbai and Delhi Stock Exchange. 

About the Index: 

The Stock Exchange, Mumbai (BSE), started compiling and publishing the BSE 30 index number of equity prices from 2nd 

January, 1986. At present, all the scrips included in the Sensitive Index are part of the specified group shares. The selection 

has been made on the basis of market capitalisation, liquidity, depth, trading frequency and industry representation. 

The Index Committee of SENSEX meets every quarter to review the SENSEX. In case of a revision in the index constituent 

scrips, the announcement of the incoming and outgoing scrips is made six weeks in advance of the actual revision of the 

Index. 

The compilation of the index values is based on the ‘market capitalisation weighted aggregates’ method or such method 

as decided by The Stock Exchange, Mumbai. 

This method of compilation has the advantage that it has the necessary flexibility to adjust for price changes caused by 

various corporate actions. 

During market hours, prices of the index scrips, at which trades are executed, are automatically used by the trading computer 

to calculate the SENSEX every 15 seconds and continuously updated on all trading workstations connected to the BSE 

trading system in real time. 

Attributes of the index: 

The SENSEX comprising of, at present, thirty equity securities, the composition and the criteria of which are determined by 

The Stock Exchange, Mumbai from time to time. 

Constituents of SENSEX 

30 Constituents of SENSEX as on December 31, 2004 

Sr. No. 

Company Name 

1 INFOSYS TECH 

2 RELIANCE 

3 ICICI BANK 

4 ITC LTD. 

5 ONGC CORPN 

6 RANBAXY LAB. 

7 HDFC 

8 TATA STEEL 

9 HIND.LEVER 

10 STATE BANK 

11 SATYAM COM 

12 LARSEN & TOU 

13 HDFC BANK 

30


Sr. No. 

Company Name 

14 TATA MOTORS 

15 WIPRO LTD. 

16 HINDALCO 

17 GRASIM IND. 

18 BAJAJ AUTO 

19 BHARTI TELE 

20 HIND.PETRO 

21 BHEL 

22 CIPLA LTD. 

23 HERO HONDA 

24 A.C.C. 

25 TATA POWER 

26 GUJ.AMB.CEM 

27 DR.REDDY’S 

28 RELIANCE ENERGY 

29 MARUTIUDYOG 

30 ZEE TELE. 

b) Investment Objective 

The investment objective of the “SPIcE” is to provide investment returns that, before expenses, closely correspond to the 

total returns of the securities as represented by the SENSEX. However, the performance of Scheme may differ from that of 

the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of the 

Plan will be achieved. 

c) Investment Pattern 

Under normal circumstances, the asset allocation under the Scheme will be as follows: 

Type of security Approx. Allocation (% of Corpus) Risk Profile 

Securities comprising the SENSEX. Upto 100% Medium to High 

Money Market instruments, convertible Upto 10% Low 

bonds & other securities including cash at call. 

Investors may note that securities, which endeavours to provide higher returns typically, display higher volatility. Accordingly, 

the investment portfolio of the Scheme would reflect moderate to high volatility in its equity and equity related investments 

and low to moderate volatility in its debt and money market investments. 

Principal Investment Strategies 

The AMC uses a ‘‘passive’’ or indexing approach to try and achieve Scheme’s investment objective. 

The SENSEX ETF/ “SPIcE” will invest at least 90% of its total assets in the stocks of its Underlying Index. The SENSEX ETF/ 

“SPIcE” may hold upto 10% of their total assets in stocks not included in the corresponding Underlying Index. For example, 

the AMC may invest in stocks not included in the relevant Underlying Index in order to reflect various corporate actions 

(such as mergers) and other changes in the relevant Underlying Index (such as reconstitutions, additions, deletions and 

these holdings will be in anticipation and in the direction of impending changes in the underlying index). As long as a 

Scheme invests at least 90% of its total assets in the stocks of its Underlying Index, it may also invest its other assets in 

futures contracts, options on futures contracts, options, and swaps related to its Underlying Index, as well as cash and cash 

equivalents. 

In case of dissolution of the SENSEX, the Trustees reserve the right to modify / alter the terms of the Scheme to reflect any 

other index that may be deemed appropriate. 

Implementation of Policies 

The Scheme, in general, will hold all of the securities that comprise the underlying Index in the same proportion as the 

index. Expectation is that, over time, the tracking error of the Scheme relative to the performance of the Underlying Index 

will be relatively low. 

The Investment Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize 

tracking error to the maximum extent possible. There can be no assurance or guarantee that the Scheme will achieve any 

particular level of tracking error relative to performance of the Underlying Index. 

Investment Process 

The Scheme will track SENSEX and is a passively managed scheme. The investment Decisions will be determined as per 

31


SENSEX. In case of any change in the index due to corporate actions or change in the constituents of SENSEX (as 

communicated by BSE), relevant investment decisions will be determined considering the composition of the SENSEX. 

The Investment decision of the Fund will be carried out by the designated Fund Manager. 

Review by Board of AMC and Trustees 

A detailed review of the scheme of the fund will be placed before the Board of Directors of AMC and the Trustee Company 

on a quarterly basis. The review will contain information about the inflow in the scheme, outflow from the scheme and 

rebalancing of portfolio due to corporate actions or change in index compositions. 

d) Depository 

Securities underlying SPIcE will be held in dematerialized form only. In case the securities are held in dematerialized mode, 

the rules of SEBI (Depositories and Participant) Regulations, 1996 would apply. The service charges payable to the Depository 

Participant will form part of annual recurring expenses. 

e) Underwriting 

The Scheme will not accept underwriting and sub underwriting obligations. 

f) Portfolio Turnover 

Generally, turnover will be confined to rebalancing of portfolio on account of change in the composition and corporate 

actions of SENSEX. 

g) Trading in Derivatives 

The Scheme may use derivatives instruments like Stock Index Futures, stock options, stock futures, option contracts, warrants, 

convertible securities, swap agreements or such other derivative instruments as may be introduced from time to time for 

the purpose of hedging and portfolio balancing and as may be permitted under the Regulations and guidelines, and such 

investments shall be in accordance with the investment objectives of the Scheme. 

The Scheme shall under normal circumstances have exposure upto 99.75% of the corpus of the Scheme in the Equity 

Stocks drawn from the components of the SENSEX and the exchange-traded derivatives of SENSEX. 

Index futures are meant to be an efficient way of buying / selling an index compared to buying/selling a portfolio of 

physical shares representing an index for ease of execution and settlement. Index futures can be an efficient way of achieving 

the Scheme’s investment objectives. Notwithstanding the pricing, they can help in reducing the tracking error in the Scheme. 

Index futures may avoid the need for trading in individual components of the Index, which may not be possible at times in 

keeping in mind the circuit filter system (currently in existence) and the liquidity in some of the scrips. Index futures can 

also be helpful in reducing the transaction cost and the processing cost on account of ease of execution of one trade 

compared to several trades of shares of SENSEX and will be easy to settle compared to physical portfolio of shares 

representing an Index. Based on the future Regulations, the Trustee may allow the Scheme to put 100% of the Scheme’s 

assets in the Index futures keeping in mind the liquidity risks and the settlement risk. 

In case of investments in Index futures the risk/ reward would be the same as investments portfolio of shares representing 

an Index. However there is a cost attached to buying an Index future. There could be an element of settlement risk. This 

settlement risk in case of derivatives is minimised since the Exchange acts as the Clearing Corporation and the Counterparty 

as is the practice in the developed markets. However there is the risk attached to the liquidity and the depth of the index 

futures market as it is relatively new market. 

Exposure to Derivatives: 

The schemes shall, under normal circumstances, not have exposure of more than 25% of its net assets in the derivative 

instruments. The AMC in times of market volatility and other abnormal market conditions may increase such exposure in 

derivative instruments up to maximum of 50% of net assets of the scheme with a view to protecting the interests of the 

investors under the Schemes. 

Trustee of Prudential ICICI Mutual Fund (the Fund) has approved the following limits for participation in derivative trading 

by all equity schemes of Prudential ICICI Mutual Fund: 

Common Derivative Positions and Limits: 

Sr. no. Derivative Action Description Limit 

1 Index futures Buy Buy futures against cash to protect To the extent of cash / equivalents in 

against rising market 

the portfolio. Max. limit (50%) of 

portfolio 

2 Index futures Sell Hedging of portfolio against Up to (50%) of equity portion of the fund 

expected market downturn 

3 Index Options Buy Buy index calls against cash To the extent of cash / equivalents in the 

- Call (existing /expected) to protect portfolio. Max. limit (50%) of portfolio 

against rising market 

4 Index Options Sell Covered Call Sale- against existing Up to (50%) of equity portion of the fund 

- Call portfolio 

5 Index Options Buy Buy index puts to hedge existing Up to (50%) of equity portion of the fund 

- Put portfolio 

32


Sr. no. Derivative Action Description Limit 

6 Index Options Sell Covered Put Sale- Possible top sell To the extent of cash / equivalents in the 

- Put index puts against existing / portfolio. Max. limit (50%) of portfolio 

expected cash 

7 Stock futures Buy Buy against cash to protect against To the extent of cash / equivalents in the 

rising share prices 

portfolio. Max. limit (50%) of portfolio; 

per scrip limit (100%) 

8 Stock futures Sell Sell against existing stock – To the extent of the particular scrip 

Hedging against downside on holding in the portfolio; per scrip limit 100%) 

existing stock in the face of 

expected volatility in the stock price 

9 Stock options Buy Buy against cash to protect against To the extent of cash / equivalents in the 

- Call rising share prices portfolio. Max. limit (50%) of portfolio; 


10 Stock options Sell Sell against existing stock To the extent of the particular scrip 

- Call holding in the portfolio; per scrip limit 100%) 

11 Stock options Buy Purchase against existing stock. To the extent of the particular scrip 

- Put Hedging against downside on holding in the portfolio; per scrip limit 100%) 

existing stock in the face of 

expected volatility in the stock price 

12 Stock options Sell Covered Put Sale against cash To the extent of cash / equivalents in the 

- Put portfolio. Max. limit (50%) of portfolio; 


Note: The per scrip limit disclosed above is as % of the holding in the scrip and not as a % of the portfolio of the scheme. 

It may be noted that usage of derivatives will expose the Scheme to certain risks inherent to such derivatives, as 

more specifically mentioned on page 9. 

The following information provides a basic idea as to the nature of the derivative instruments proposed to be used by the 

Fund and the benefits and risks attached there with. 

i) Interest Rate Swaps and Forward rate Agreements 

Benefits 

Bond markets in India are not very liquid. Investors run the risk of illiquidity in such markets. Investing for short-term 

periods for liquidity purposes has its own risks. Investors can benefit if the Fund remains in call market for the liquidity and 

at the same time take advantage of fixed rate by entering into a swap. It adds certainty to the returns without sacrificing 

liquidity. 

Illustration 

The following are illustrations how derivatives work: 

Basic Structure of an Interest Rate Swap 

Floating Interest Rate 

Counter Party 1 Counter Party 2 

Fixed Interest Rate 

In the above illustration, 

Basic Details : Fixed to floating swap 

Notional Amount : Rs. 5 Crores 

Benchmark : NSE MIBOR 

Deal Tenor : 3 months (say 91 days) 

Documentation : International Securities Dealers Association (ISDA). 

Let us assume the fixed rate decided was 10%. 

At the end of three months, the following exchange will take place: 

Counter party 1 pays : compounded call rate for three months, say 9.90% 

Counter party 2 pays fixed rate : 10% 

In practice, however, the difference of the two amounts is settled. Counter party 2 will pay : 

Rs 5 Crores *0.10%* 91/365 = Rs. 12,465.75 

Thus the trade off for the Fund will be the difference in call rate and the fixed rate payment and this can vary with the call 

rates in the market. Please note that the above example is given for illustration purposes only and the actual returns may 

vary depending on the terms of swap and market conditions. 

33


34 

ii) Index Futures: 

Benefits 

a) Investment in Stock Index Futures can give exposure to the index without directly buying the individual stocks. 

Appreciation in Index stocks can be effectively captured through investment in Stock Index Futures. 

b) The Fund can sell futures to hedge against market movements effectively without actually selling the stocks it holds. 

The Stock Index futures are instruments designed to give exposure to the equity market indices. The Stock Exchange, Mumbai 

has started trading in index futures of 1, 2 and 3-month maturities. The pricing of an index future is the function of the 

underlying index and interest rates. 

Illustration 

Spot Index: 3000 

1 month SENSEX Future Price on day 1: 3030 

Fund buys 100 lots 

Each lot has a nominal value equivalent to 50 units of the underlying index 

Let us say that on the date of settlement, the future price = Closing spot price = 3100 

Profits for the Fund = (3100-3030)* 100 * 50 = Rs 350,000 

Please note that the above example is given for illustration purposes only. 

The net impact for the Fund will be in terms of the difference between the closing price of the index and cost price (ignoring 

margins for the sake of simplicity). Thus, it is clear from the example that the profit or loss for the Fund will be the difference 

of the closing price (which can be higher or lower than the purchase price) and the purchase price. The risks associated 

with index futures are similar to the one with equity investments. Additional risks could be on account of illiquidity and 

hence mispricing of the future at the time of purchase. 

iii) Buying Options: 

Benefits of buying a call option: 

Buying a call option on a stock or index gives the owner the right, but not the obligation, to buy the underlying stock / 

index at the designated strike price. Here the downside risks are limited to the premium paid to purchase the option. 

Illustration 

For example, if the fund buys a one month call option on Satyam Computers at a strike of Rs. 150, the current market price 

being say Rs.151. The fund will have to pay a premium of say Rs. 15 to buy this call. If the stock price goes below Rs. 150 

during the tenure of the call, the fund avoids the loss it would have incurred had it straightaway bought the stock instead 

of the call option. The fund gives up the premium of Rs. 15 that has to be paid in order to protect the fund from this 

probable downside. If the stock goes above Rs. 150, it can exercise its right and own Satyam Computers at a cost price of 

Rs. 150, thereby participating in the upside of the stock. 

Benefits of buying a put option 

Buying a put option on a stock originally held by the buyer gives him/her the right, but not the obligation, to sell the 

underlying stock at the designated strike price. Here the downside risks are limited to the premium paid to purchase the 

option. 

Illustration 

For example, if the fund owns Satyam computers and also buys a three month put option on Satyam Computers at a strike 

of Rs. 150, the current market price being say Rs.151. The fund will have to pay a premium of say Rs. 12 to buy this put. If 

the stock price goes below Rs. 150 during the tenure of the put, the fund can still exercise the put and sell the stock at Rs. 

150, avoiding therefore any downside on the stock below Rs. 150. The fund gives up the fixed premium of Rs. 12 that has 

to be paid in order to protect the fund from this probable downside. If the stock goes above Rs. 150, say to Rs. 170, it will 

not exercise its option. The fund will participate in the upside of the stock, since it can now sell the stock at the prevailing 

market price of Rs. 170. 

(iv) Writing Options 

(a) Benefits of writing an option with underlying stock holding (Covered call writing) 

Covered call writing is a strategy where a writer (say the fund) will hold a particular stock, and sell in the market a call 

option on the stock. Here the buyer of the call option now has the right to buy this stock from the writer (the fund) at 

a particular price which is fixed by the contract (the strike price). The writer receives a premium for selling a call, but if 

the call option is exercised, he has to sell the underlying stock at the strike price. This is advantageous if the strike 

price is the level at which the writer wants to exit his holding / book profits. The writer effectively gains a fixed premium 

in exchange for the probable opportunity loss that comes from giving up any upside if the stock goes up beyond the 

strike price. 

Illustration 

Let us take for example Infosys Technologies, where the fund holds stock, the current market price being Rs. 3600. 

The fund manager holds the view that the stock should be sold when it reaches Rs. 3700. Currently the one month 

3700 calls can be sold at say Rs.150. Selling this call gives the call owner the right to buy from the fund Infosys at Rs. 

3700.


Now the fund by buying / holding the stock and selling the call is effectively agreeing to sell Infosys at Rs. 3700 when 

it crosses this price. So the fund is giving up any possible upside beyond Rs. 3700. However, the returns on the fund 

are higher than what it would have got if it just held the stock and decided to sell it at Rs. 3700. This is because the 

fund by writing the covered call gets an additional Rs. 150 per share of Infosys. In case the price is below Rs. 3700 

during the tenure of the call, then it will not be exercised and the fund will continue to hold the shares. Even in this 

case the returns are higher than if the fund had just held the stock waiting to sell it at Rs. 3700. 

(b) Benefits of writing put options with adequate cash holding: 

Writing put options with adequate cash holdings is a strategy where the writer (say, the fund) will have an amount of 

cash and will sell put options on a stock. This will give the buyer of this put option the right to sell stock to the writer 

(the fund) at a pre-designated price (the strike price). This strategy gives the put writer a premium, but if the put is 

exercised, he has to buy the underlying stock at the designated strike price. In this case the writer will have to accept 

any downside if the stock goes below the exercise price. The writer effectively gains a fixed premium in exchange for 

giving up the opportunity to buy the stock at levels below the strike price. This is advantageous if the strike price is the 

level at which the writer wants to buy the stock. 

Illustration 

Let us take, for example, that the fund wants to buy Infosys Technologies at Rs. 3500, the current price being Rs. 

3600. Currently the three month 3500 puts can be sold at say Rs. 100. Writing this put gives the put owner the right 

to sell to the fund Infosys at Rs. 3500. Now the fund by holding cash and selling the put is agreeing to buy Infosys at 

Rs. 3500 when it goes below this price. The fund will take on itself any downside if the price goes below Rs. 3500. 

But the returns on the fund are higher than what it would have got if it just waited till the price reached this level and 

bought the stock at Rs. 3500, as per its original view. This is because the fund by writing the put gets an additional 

Rs. 100 per share of Infosys. In case the price stays above Rs. 3500 during the tenure of the put, then it will not be 

exercised and the fund will continue to hold cash. Even in this case the returns are higher than if the fund had just 

held cash waiting to buy Infosys at Rs. 3500. 

v) Risks attached with the use of derivatives: 

As and when the schemes trade in the derivatives market there are risk factors and issues concerning the use of derivatives 

that investors should understand Derivative products are specialized instruments that require investment techniques and 

risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not 

only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls to 

monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to 

forecast price or interest rate movements correctly. There is the possibility that a loss may be sustained by the portfolio as a 

result of the failure of another party (usually referred to as the “counter party”) to comply with the terms of the derivatives 

contract. Other risks in using derivatives include the risk of mis pricing or improper valuation of derivatives and the inability 

of derivatives to correlate perfectly with underlying assets, rates and indices. 

Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have a 

large impact on their value. Also, the market for derivative instruments is nascent in India. 

Valuation of Derivative Products : 

i. The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 

1 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended 

from time to time. 

ii. The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments 

prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and Exchange Board of India 

(Mutual Funds) Regulations, 1996 as amended from time to time. 

h) Change in Investment Pattern 

Subject to the Regulations, the asset allocation pattern as indicated above may change from time to time, keeping in view 

market conditions/ volatility, market opportunities, applicable regulations and political and economic factors. It must be 

clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially 

depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests 

of the Unitholders. AMC will have discretion to take aggressive decisions by staying invested in equity and equity linked 

securities/instruments or in debt securities and money up to 100% 

Such changes in the investment pattern towards debt instruments will be for defensive considerations. 

There will be no prior intimation or prior indication given to the Unit holders when the composition/ asset allocation 

pattern under the Plan changes. 

i) Tracking Error 

The performance of the Scheme may not be commensurate with the performance of SENSEX on any given day or over 

any given period. Such variations are commonly referred to as the tracking error. Tracking errors as defined elsewhere 

in this offer document may result from a variety of factors including but not limited to : 

any delay experienced in the purchase or sale of shares due to illiquidity of the market, settlement and realisation 

of sale proceeds and the registration of any securities transferred and any delays in receiving cash and scrip dividends 

and resulting delays in reinvesting them. 

35


the SENSEX reflect the prices of securities at close of business hours. However, the Fund may buy or sell the securities 

at different points of time during the trading session at the then prevailing prices which may not correspond to 

the closing prices on the BSE. 

The Stock Exchange, Mumbai undertakes the periodical review of the scrips that comprise the SENSEX and may 

either drop or include new securities. In such an event, the Fund will endeavour to reallocate its portfolio but the 

available investment/ disinvestment opportunities may not permit precise mirroring of the SENSEX immediately. 

the potential for trades to fail which may result in the Scheme not having acquired shares at a price necessary to 

track the index. 

the holding of a cash position and accrued income prior to distribution and accrued expenses. 

Disinvestments to meet redemptions, recurring expenses, dividend payouts etc. 

Under normal circumstances, such tracking errors are not expected to exceed 2% per annum. However, this may vary 

when the markets are very volatile. 

j) Terms of the Scheme 

Issue of Units 

1. Each unit of SENSEX ETF / “SPIcE” will be approximately equal to 1/100th of the SENSEX closing on the date of allotment. 

2. As SENSEX ETF/ “SPIcE” is listed on BSE and DSE, subsequent buying or selling by investors can be made from the 

secondary market on the BSE and DSE. The minimum number of units that can be bought or sold is 1 (one) unit. 

Alternatively Authorised Participant and large Institutional Investors can directly buy / sell in blocks from the fund in 

‘Creation Unit’ Size, as defined below. 

Rounding off of Units: 

After the Initial Offer Period while allotting the Units, based on the Allotment Price, the number of Units will be rounded 

off to the nearest one on the lower side (ignoring the decimal points). The amount due to rounding off may be adjusted 

against the expenses to be charged to the Scheme. 

Creation Unit 

‘Creation Unit’ is a fixed number of SENSEX ETF/ “SPIcE”, which is exchanged for a predefined basket of shares underlying 

the index called the “Portfolio Deposit” and a “Cash Component”. The facility of creating / redeeming units in Creation 

Unit size is available to the Authorised Participants and large Institutional Investors. 

The number of SENSEX ETF/ “SPIcE” that investors can create / redeem in exchange of the Portfolio Deposit and Cash 

Component is 25000 Units and in multiples thereof. The Portfolio Deposit and Cash Component are defined as follows:- 

a. Portfolio Deposit: This is a pre-defined basket of securities that represent the SENSEX and will be defined and 

announced by the Fund on allotment date and on all Business Days thereafter. Portfolio Deposit can change from time 

to time. 

b. Cash Component for Creation Unit: The Cash Component represents the difference between the applicable net 

asset value of a Creation Unit and the market value of the Portfolio deposit. This difference may include accrued 

dividends, accrued annual charges including management fees and residual cash in the scheme. In addition the Cash 

Component may include transaction cost as charged by the Custodian/Depository Participant, equalization of dividend, 

effect of rounding-off of number of shares in portfolio Deposit and other incidental expenses for Creating Units. The 

cash component will vary from time to time and will be computed and announced by the AMC on its website every 

Business Day. 

c. Cash Component for Redemption in Creation Unit Size: The Cash Component represents the difference between 

the applicable net asset value of a creation unit and the market value of the Portfolio deposit. This difference may 

include accrued dividend, accrued annual charges including management fees and residual cash in the scheme. Any 

transaction cost charged by the Custodian/DP, equalization of dividend and other incidental expenses for redeeming 

units may also form part of Cash Component. The cash component for redemption may vary from time to time and 

will be computed and announced by the AMC on its website. 

Example of Creation and Redemption of Units 

As explained above, the Creation Unit is made up of 2 components i.e. the Portfolio Deposit and the Cash Component. 

The Portfolio Deposit will be determined by the Fund as per the weightages of each security in the SENSEX. The value of 

this portfolio deposit will change due to change in prices during the day. The number of shares of each security that 

constitute the portfolio deposit will remain constant unless there is any corporate action in the SENSEX/ change in the 

constituents of the SENSEX. 

36


Column A Column B Column C Column D Column E Column F Column G 

Name Weightage in Value of Each Closing Prices No. of shares Rounded off Actual Value 

SENSEX (%) company’s as on in 1 Lot of to lower side of Shares to be 

stock in December 13, 25000 ETFs bought/sold 

basket (Rs.) 2002 for creation/ 

redemption of 

ETFs 

INFOSYS TECH 11.69 195788.46 2089.00 93.72 93 194277.00 

RELIANCE 10.70 179305.57 533.80 335.90 335 178823.00 

ICICI BANK 7.12 119285.50 370.75 321.74 321 119010.75 

ITC LTD. 5.94 99463.30 1309.80 75.94 75 98235.00 

ONGC CORPN 4.58 76668.28 819.55 93.55 93 76218.15 

RANBAXY LAB. 4.25 71234.12 1251.40 56.92 56 70078.40 

HDFC 4.20 70391.66 766.10 91.88 91 69715.10 

TATA STEEL 4.18 70029.47 385.45 181.68 181 69766.45 

HIND.LEVER 4.12 69077.97 143.50 481.38 481 69023.50 

STATE BANK 4.03 67583.70 652.45 103.58 103 67202.35 

SATYAM COM 3.06 51303.19 409.90 125.16 125 51237.50 

LARSEN & TOU 3.00 50187.10 982.00 51.11 51 50082.00 

HDFC BANK 2.91 48768.84 518.85 93.99 93 48253.05 

TATA MOTORS 2.86 47905.95 505.15 94.84 94 47484.10 

WIPRO LTD. 2.73 45792.10 748.00 61.22 61 45628.00 

HINDALCO 2.58 43281.24 1426.80 30.33 30 42804.00 

GRASIM IND. 2.53 42414.98 1322.35 32.08 32 42315.20 

BAJAJ AUTO 2.09 35050.40 1131.45 30.98 30 33943.50 

BHARTI TELE 2.09 34953.44 215.60 162.12 162 34927.20 

HIND.PETRO 1.77 29719.69 400.50 74.21 74 29637.00 

BHEL 1.72 28846.48 769.90 37.47 37 28486.30 

CIPLA LTD. 1.49 24965.25 317.25 78.69 78 24745.50 

HERO HONDA 1.49 24939.23 571.10 43.67 43 24557.30 

A.C.C. 1.42 23763.92 338.70 70.16 70 23709.00 

TATA POWER 1.41 23662.76 390.55 60.59 60 23433.00 

GUJ.AMB.CEM 1.39 23291.52 401.55 58.00 58 23289.90 

DR.REDDY’S 1.30 21719.35 865.30 25.10 25 21632.50 

RELIANCE ENERGY 1.27 21283.16 524.40 40.59 40 20976.00 

MARUTIUDYOG 1.04 17485.16 461.25 37.91 37 17066.25 

ZEE TELE. 1.01 16978.20 171.10 99.23 99 16938.90 

TOTAL 100.00 1675140.00 - - - 1663495.90 

As SENSEX Value as on December 31, 2004 is 6602.69, value of 1 ETF being 1/100th of SENSEX = Rs. 66.03. In a Lot of 

“Creation Unit size no. of units would be 25000. So value of 1 Lot of 25000 ETFs = (Rs.) 1675140.00. 

Based on the Scrips’ weightages in SENSEX (as per column B), value of each scrip is ascertained from a value of 1 lot of 

25000 ETFs (i.e. Rs. 1675140.00) as calculated in column C above. Further based on the closing price of the scrip on 

December 31, 2004, No. of shares in 1 Lot of 25000 ETFs are arrived at in column F. 

Based on rounded off number of shares, total Value of Shares to be bought/sold for creation/redemption of ETFs (calculated 

from above table) is Rs. 1663495.90 (as per column G above) 

In view of the above, the Value of Cash Component (arising out of rounding off of shares) = Rs. 11644.1 (will be defined 

by the Fund everyday). 

1. Listing 

SENSEX ETF is listed and traded on The Stock Exchange, Mumbai (BSE) and The Delhi Stock Exchange(DSE). The trading 

will be as per the normal settlement cycle. 

37


2. Fees and Expenses 

a. Initial issue expenses 

Initial issue expenses to be charged under the Scheme have been borne by AMC. 

b. Recurring Expenses 

The details of recurring expenses of the Scheme, on an annual basis, are as given below. As per the Regulations, 

the maximum recurring expenses that can be charged to the Plans shall be subject to a percentage limit of weekly 

net assets as in the table below: 

First Rs. 100 crore Next Rs. 300 crore Next Rs. 300 crore Over Rs. 700 crore 

2.50 % 2.25% 2.00% 1.75% 

Subject to Regulations, expenses over and above the prescribed limit shall be borne by the Asset Management 

Company. 

3. Load 

There will be no entry/ exit load on “SPIcE” created or redeemed through the secondary market on the BSE. 

In case, there are no quotes on the BSE for five trading days consecutively, an investor can sell directly to the Fund with 

an exit load of 2.5% of applicable NAV. The payout for such redemption will be on the respective pay-out day of the 

relevant stock exchange. 

Further, the Trustee reserves the right to modify/alter the load structure under the Plan and the terms for redemption 

by the Fund and may decide to charge an entry load/exit load or a combination of entry/exit loads or introduce a 

differential load structure on the Units subscribed/redeemed, subject to a maximum as prescribed under the Regulations. 

For further details, please refer page 38 on Load. 

Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and the terms 

for redemption by the Fund and under the Scheme and may decide to introduce a differential load structure 

on the Units subscribed/redeemed on any Business Day / terms for redemption. Such changes will be applicable 

for prospective investments. The Trustee shall arrange to display a notice in the Customer Service Centers of 

the AMC before the change of the then prevalent load structure. The addendum detailing the changes in load 

structure will be attached to offer documents and abridged offer documents. The addendum will also be 

circulated to all the distributors / brokers so the same can be attached to all the offer documents and abridged 

offer documents in stock. This addendum will also be sent along with the newsletter to the unitholders 

immediately after the changes. Changes in the load structure may be stamped in the acknowledgement slip 

issued by the Fund and may also be disclosed in the statement of accounts issued after the changes in load 

structure. The load collected from the Unitholders under the Scheme will be credited to a separate account 

and will be offset against distribution and marketing expenses. Surplus of load, if any, charged over planned 

marketing and distribution expenses to be defrayed will be credited to the Scheme whenever felt appropriate 

by the AMC. 

k) Changes in Fundamental Attributes: 

The Trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fee and expenses 

payable or any other change which would modify the scheme and affects the interests of unit holders is carried out unless: 

• written communication about the proposed change is sent to each unitholder and an advertisement is given in one 

English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region 

where the Head Office of the mutual fund is situated; and 

• the unitholders are given an option to exit at the prevailing Net Asset Value without any exit load. 

l) Procedure followed for investment decisions: 

a) The Fund Manager of each scheme is responsible for making buy/sell decisions in respect of the securities in the 

respective scheme portfolios, subject to final approval by the Chief Investment Officer. The investment decisions are 

made and approved on daily basis keeping in view the market conditions and all relevant aspects. 

The AMC has an Internal Investment Committee comprising of the Managing Director, the Chief Investment Officer, 

Fund Managers and the Research Analyst who meet at periodic intervals. The Investment Committee, at its meetings, 

reviews the performance of the schemes and general market outlook and formulates broad investment strategy. 

The Chief Executive Officer who chairs the Investment Committee Meetings guides the deliberations at Investment 

Committee. He, on an ongoing basis, reviews the portfolios of the schemes and gives directions to the Chief Investment 

Officer, where considered necessary. It is the ultimate responsibility of the Chief Investment Officer to ensure that the 

investments are made as per the internal/Regulatory guidelines, Scheme investment objectives and in the best interest 

of the unitholders of the respective schemes. 

The AMC has a team comprising of nine Fund Managers and one Research Analyst. All of these are involved in 

preparation of research reports. 

b) The Managing Director makes a presentation to the Board of AMC at each of its meetings indicating the performance 

of the schemes. The performance of the schemes is reviewed by the Board with reference to the appropriate benchmarks 

as also the performance of the schemes of the competition. 

38


The corpus of SENSEX Prudential ICICI Exchange Traded Fund will be invested predominantly in stocks constituting the 

BSE SENSEX and in exchange traded derivatives on SENSEX and subject to tracking errors, the Scheme would endeavour 

to attain returns comparable to SENSEX. This would be done by investing in almost all the stocks comprising the 

SENSEX in approximately in the same weightage that they represent in the SENSEX. In view of the same, for SENSEX 

Prudential ICICI Exchange Traded Fund, the performance of the scheme will be benchmarked with BSE SENSEX. 

c) The Managing Director brings to the notice of the Board specific factors, if any, which are impacting the performance 

of any individual scheme. The Board on consideration of all relevant factors may, if necessary, give directions to AMC. 

Similarly, the performance of the schemes is submitted to the Trustees. The Managing Director explains to the Trustees 

the details on Schemes’ performance vis-à-vis the benchmark returns. 

d) The AMC has been recording investment decisions since the receipt of instructions from SEBI, in terms of SEBI’s circular 

no. MFD/CIR/ 6 / 73 /2000 dated July 27, 2000. 

m) Risk Factors: 

• Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the 

objectives of the Plan will be achieved. 

• As with any securities investment, the NAV of the Units issued under the Plan can go up or down depending on the 

factors and forces affecting the capital markets. 

• Past performance of the Sponsors, AMC/Fund does not indicate the future performance of the Schemes of the Fund. 

• The Sponsors are not responsible or liable for any loss resulting from the operation of the Plan beyond the contribution 

of an amount of Rs 22.2 lakhs collectively made by them towards setting up the Fund and such other accretions and 

additions to the corpus set up by the Sponsors. 

• SENSEX Prudential ICICI Exchange Traded Fund /“SPIcE” is the name of the Plan and does not in any manner indicate 

either the quality of the Plan or its future prospects and returns. Investors are therefore urged to study the terms of 

offer carefully and consult their Investment Advisor before they invest in the Scheme. 

• SENSEX ETF/“SPIcE” is an Exchange Traded Fund (ETFs). There can be no assurance that an active secondary market will 

develop or be maintained. 

• The NAV of the Plan may be affected by changes in the general level of interest rates and trading volumes. 

• The NAV of the Plan may be affected by settlement periods and transfer procedures. 

• In the event of receipt of inordinately large number of redemption requests or of a restructuring of the Plan’s portfolios, 

there may be delays in the redemption of Units 

• The Liquidity of the Plan’ investments is inherently restricted by trading volumes. 

• Investors in the Plan are not being offered any guaranteed returns. 

• The Fund may use derivatives instruments like index futures, stock futures and options contracts, warrants, convertible 

securities, swap agreements or any other derivative instruments for the purpose of hedging and portfolio balancing, 

as permitted under the Regulations and guidelines. Usage of derivatives will expose the Plan to certain risks inherent 

to such derivatives. As and when the schemes trade in the derivatives market there are risk factors and issues concerning 

the use of derivatives that investors should understand. Derivative products are specialized instruments that require 

investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative 

requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the 

maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative 

adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is the possibility that a 

loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counter 

party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mis 

pricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, 

rates and indices. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying 

security could have a large impact on their value. Also, the market for derivative instruments is nascent in India. 

• Mutual funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee 

against loss resulting from investing in the Schemes. The various factors which impact the value of the Plan’s investments 

include, but are not limited to, fluctuations in interest rates, prevailing political and economic environment, changes 

in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, 

settlement periods, trading volumes etc. 

• The past performance of the mutual funds managed by the Sponsors and their affiliates/associates is not indicative of 

the future performance of the Schemes. 

• Investment decisions made by the AMC may not always be profitable. 

• From time to time and subject to the Regulations, the Sponsors, the Mutual Funds and investment companies managed 

by them, their affiliates, their associate companies, subsidiaries of the Sponsors, and the AMC may invest either directly 

or indirectly in any or all the Schemes. The funds managed by these affiliates, associates, the Sponsors, subsidiaries of 

the Sponsors and /or the AMC may acquire a substantial portion of the Plan’s Units and collectively constitute a major 

investor in the Plan. Accordingly, redemption of Units held by such funds, affiliates/associates and Sponsors might 

have an adverse impact on the Units of the Schemes because the timing of such redemption may impact the ability of 

other Unit holders to redeem their Units. 

• As per the Regulations, in case the AMC invests in any of the Plans managed by it, it shall not be entitled to charge 

any fees on such investments. 

39


40 

Purchase of SENSEX ETF / “SPIcE” by the AMC 

The AMC may in the interest of the unit-holders of the Scheme consider to buy the SENSEX ETF/ “SPIcE” from the 

market to enhance the value of the Scheme as permitted under the SEBI (Mutual Funds) Regulations, 1996. 

• As per SEBI circular dated December 12, 2003, ref SEBI/IMD/CIR No. 10/22701/03 and AMFI’s communication having 

ref. No.35/MEM-COR/55/04-05 dated December 31, 2004, each scheme and individual plan(s) under the schemes should 

have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such 

scheme/plan(s). In case of non-fulfillment with either of the above two conditions in a three months time period or the 

end of succeeding calendar quarter, whichever is earlier, from the close of the Initial Public Offering (IPO) of open 

ended schemes or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound up by following 

the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV. 

RISK FACTORS SPECIFIC TO THE SCHEME 

• The Scheme is subject to the principal risks described below. Some or all of these risks may adversely affect Scheme’s NAV, 

trading price, yield, total return and/or its ability to meet its objectives. 

Market Risk 

• The Scheme’s NAV will react to the stock market movements. The Investor could lose money over short periods due to 

fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest 

rates and perceived trends in stock prices market movements, and over longer periods during market downturns. 

Market Trading Risks 

• Absence of Prior Active Market: Although “SPIcE” described in this Document are to be listed on the Exchange, 

there can be no assurance that an active secondary market will develop or be maintained. 

• Lack of Market Liquidity: Trading in “SPIcE” on the Exchange may be halted because of market conditions or for 

reasons that in the view of the Market Authorities or SEBI, trading in “SPIcE” is not advisable. In addition, trading in 

“SPIcE” is subject to trading halts caused by extraordinary market volatility and pursuant to BSE and SEBI ‘‘circuit filter’’ 

rules. There can be no assurance that the requirements of the Market necessary to maintain the listing of “SPIcE” will 

continue to be met or will remain unchanged. 

• “SPIcE” may trade at Prices Other than NAV: “SPIcE” may trade above or below its NAV. The NAV of “SPIcE” will 

fluctuate with changes in the market value of Scheme’s holdings. The trading prices of “SPIcE” will fluctuate in 

accordance with changes in their NAVs as well as market supply and demand of “SPIcE”. However, given that “SPIcE” 

can be created and redeemed only in Creation Units directly with the fund, it is expected that large discounts or 

premiums to the NAVs of “SPIcE” will not sustain due to arbitrage possibility available. 

• Regulatory Risk: Any changes in trading regulations by the Stock Exchange/s or SEBI may affect the ability of marker 

maker to arbitrage resulting into wider premium/ discount to NAV. 

• Although, “SPIcE” are proposed to be listed on The Stock Exchange, Mumbai and the Delhi Stock Exchange, AMC and 

the Trustees will not be liable for delay in listing of Units of the Scheme on the stock exchanges / or due to connectivity 

problems with the depositories due to the occurrence of any event beyond their control. 

• Right to Limit Redemptions: The Trustee, in the general interest of the Unit holders of the Scheme offered in this 

Document and keeping in view of the unforeseen circumstances / unusual market conditions, may limit the total number 

of Units which can be redeemed on any Business Day depending on the total “Saleable Underlying Stock” available 

with the fund. 

Redemption Risk 

• Investors may note that even though this is an open-ended scheme, the scheme would ordinarily repurchase units in 

creation unit size. Thus unit holdings less than the creation unit size can only be sold through the secondary market 

unless no quotes are available on the BSE for 5 trading days consecutively. 

Asset Class Risk 

• The returns from the types of securities in which a Scheme invests may under perform returns from the various general 

securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance 

and under performance in comparison of the general securities markets. 

Passive Investments 

• The Scheme is not actively managed. The Scheme may be affected by a general decline in the Indian markets relating 

to its Underlying Index. The Scheme invests in the securities included in its Underlying Index regardless of their investment 

merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets. 

Tracking Error Risk 

• Factors such as the fees and expenses of the Scheme, Corporate Actions, Cash balance, changes to the Underlying 

Indices and regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying Index of each 

Scheme. The Scheme’s returns may therefore deviate from those of its Underlying Index. “Tracking Error” is defined as 

the standard deviation of the difference between daily returns of the index and the NAV of the Scheme. Tracking Error 

may arise due to the following reasons: - 

1. Expenditure incurred by the Scheme. 

2. The funds may not be invested at all times as it may keep a portion of the funds in cash to meet redemptions or for 

corporate actions of securities in the index.


3. Securities trading may halt temporarily due to circuit filters. 

4. Corporate actions such as rights, merger, change in constituents etc. 

5. Rounding off quantity of shares underlying the index 

6. Dividend payout. 

Given the structure of SENSEX ETF/ “SPIcE”, the AMC expects the tracking error to be lower. The AMC will endeavor to 

keep the tracking error as low as possible. Under normal circumstances, such tracking errors are not expected to exceed 

2% per annum. However this may vary when the markets are very volatile. 

Investments in Derivative Instruments 

The risk of loss associated with futures contracts is potentially unlimited due to the low margin deposits required and the 

extremely high degree of leverage involved in futures pricing. As a result, a relatively small price movement in a futures 

contract may result in an immediate and substantial loss or gain. However, the Scheme will not use futures contracts, 

options or swap agreements for speculative purposes or to leverage its net assets and the Fund will comply with applicable 

SEBI requirements. However, there may be a cost attached to buying index futures. Further there could be an element of 

settlement risk, which could be different from the risk in settling physical shares, and there is a risk attached since Indian 

market for derivative instruments is untried and untested. The possible lack of a liquid secondary market for a futures 

contract or listed option may result in inability to close futures or listed option positions prior to their maturity date. 

Investments in Overseas Financial Assets 

The Plan shall, with the approval of SEBI/Reserve Bank of India as appropriate, invest in Foreign Debt Securities as provided 

in SEBI Circular No. MFD/CIR/17/419/02 dated 30 th March 2002 and any subsequent instructions or guidelines that may be 

issued by SEBI/Reserve Bank of India in this regard. As per prevailing rules mutual funds are permitted to invest in ADRs/ 

GDRs and Foreign Debt Securities upto 10% of net assets of each mutual fund as on January 31, 2004, subject to a 

maximum of $ 50 million. 

The Mutual Fund had applied to SEBI seeking approval for investment in ADRs/GDRs and Foreign Debt Securities up to US 

dollar equivalent of Rs. 243.65 crores and the same has been forwarded by SEBI and approved by RBI vide its letter ref. No. 

EC.CO.OID7407/19.16.151/2001-2002 dated May 16, 2002. 


mutual funds for their overseas investments within the overall cap - US $ 1.0 billion, once SEBI’s approval has been obtained. 

This general permission will be available until further notice. 

It is the Investment Manager’s belief that investment in ADRs/GDRs/ overseas securities offer new investment and portfolio 

diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional 

risks. Such investment opportunities may be pursued by the Investment Manager provided they are considered appropriate 

in terms of the overall investment objectives of the Scheme. Since the Scheme would invest only partially in ADRs/GDRs/ 

overseas securities, there may not be readily available and widely accepted benchmarks to measure performance of the 

Scheme and the Plans thereunder. To manage risks associated with foreign currency and interest rate exposure, the Fund 

may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be 

stipulated by SEBI/RBI from time to time. 

To the extent that the assets of the Schemes will be invested in securities denominated in foreign currencies, the Indian 

Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of 

certain foreign currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in 

regulations concerning exchange controls or political circumstances as well as the application to it of the other restrictions 

on investment. 




intermediaries of repute as advisors, custodian/ sub-custodians etc. for managing and administering such investments. The 

appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the 



costs. 

Political Risks 

Whereas the Indian market was formerly restrictive, a process of deregulation has been taking place over recent years. This 

process has involved removal of trade barriers and protectionist measures, which could adversely affect the value of 

investments. It is possible that the future changes in the Indian political situation, including political, social or economic 

instability, diplomatic developments and changes in laws and regulations could have an effect on the value of investments. 

Expropriation, confiscatory taxation or other relevant developments could affect the value of investments. 

Tax Issues : Conversion of the underlying stocks to “SPIcE” may attract capital gains tax depending on acquisition cost 

and holding period of each individual stock to the investor. Repurchase of “SPIcE” by the Fund or sale of “SPIcE” on the 

Stock Exchange may attract short or long term capital gain tax depending upon the holding period of the units. 

Investors are urged to study the terms of the Scheme and this document carefully before investing in this Plan, 

and to retain this Document for future reference. 

41


n) Investment Restrictions for the Scheme 

Pursuant to the Regulations and amendments thereto, the following investment restrictions are presently applicable to the 

Scheme and the Plans there under: 

1) The initial issue expenses in respect of any Scheme will not exceed 6% of the Funds raised under that Scheme. 

2) The Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights. 

3) Transfer of investments from one scheme to another scheme in the same Mutual Fund is permitted provided: 

a) Such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall have the 

same meaning as specified by a Stock Exchange for spot transactions); and 

b) The securities so transferred shall be in conformity with the investment objective of the scheme to which such 

transfer has been made. 

4) The Scheme may invest in other schemes under the same AMC or any other Mutual Fund without charging any fees, 

provided the aggregate inter-scheme investment made by all the schemes under the same management or in schemes 

under management of any other asset management company shall not exceed 5% of the Net Asset Value of the Fund. 

5) The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned scheme, 

wherever investments are intended to be of a long-term nature. 

6) The Fund may buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of 

relative securities and in all cases of sale, deliver the securities and will not make any short sales or engage in carry 

forward transaction or badla finance. Provided that mutual funds shall enter into derivatives transactions in a recognised 

stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by SEBI. 

7) All the Scheme’s investments will be in transferable securities (whether in capital markets or money markets) or bank 

deposits or in money at call as in privately placed debentures as securitized debt. 

8) No loans for any purpose can be advanced by the Scheme. 

9) The Fund may lend securities in accordance with stock lending scheme of SEBI. 

10) No mutual fund scheme shall make any investments in ; 

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

b) any security issued by way of private placement by an associate or group company of the Sponsor; or 

c) the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of the scheme of 

the Mutual Fund. 

11) The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of repurchase/ 

redemption of units or payment of interest. Such borrowings shall not exceed more than 20% of the net assets of the 

individual scheme and the duration of the borrowing shall not exceed a period of 6 months. 

12) Investments by index funds shall be in accordance with the weightage of the scrips in the specific index. 

13) Pending deployment of funds of a scheme in securities in terms of investment objectives of the Scheme, the AMC can 

invest the funds of the Scheme in short term deposits of scheduled commercial banks or in call deposits. 

14) The Scheme may also use various hedging and derivative products from time to time, as are available and permitted by 

SEBI, in an attempt to protect and enhance the interests of the Unitholders at all times. 

15) The Mutual Fund having an aggregate of securities which are worth Rs.10 crores or more, as on the latest balance 

sheet date, shall subject to such instructions as may be issued from time to time by the Board, settle their transactions 

entered on or after January 15, 1998 only through dematerialised securities. Further all transactions in government 

securities shall be in dematerialised form. 

o) Computation of Net Asset Value 

The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units 

outstanding on the valuation date. The Fund shall value its investments according to the valuation norms, as specified in 

Schedule VIII of the Regulations, or such norms as may be prescribed by SEBI from time to time. The broad valuation norms 

are detailed below: 

1. Traded Securities: 

(i) Traded equity securities shall be valued at the last quoted closing price on The Stock Exchange, Mumbai. 

(ii) When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the last 

quoted closing price on the stock exchange where the security is principally traded. 

(iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange, the value at which 

it is traded on another stock exchange may be used. 

(iv) When a security (other than debt securities) is not traded on any stock exchange on a particular valuation day, the 

value at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be 

used provided such date is not more than thirty days prior to valuation date. 

42


When a debt security (other than Government Securities) is not traded on any stock exchange on any particular 

valuation day, the value at which it was traded on the principal stock exchange or any other stock exchange, as the 

case may be, on the earliest previous day may be used provided such date is not more than fifteen days prior to 

valuation date. When a debt security (other than Government Securities) is purchased by way of private placement, 

the value at which it was bought may be used for a period of fifteen days beginning from the date of purchase. 

2. Thinly Traded Securities: 

(i) Thinly Traded Equity/Equity Related Securities: 

“When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.) in a month 

is both less than Rs. 5 lacs and the total volume is less than 50,000 shares, it shall be considered as a thinly traded 

security and valued accordingly”. 

For example, if the volume of trade is 100,000 and value is Rs. 400,000, the share does not qualify as thinly traded. 

Also if the volume traded is 40,000, but the value of trades is Rs. 600,000, the share does not qualify as thinly traded. 

In order to determine whether a security is thinly traded or not, the volumes traded in all recognised stock exchanges 

in India may be taken into account. 

3. Non Traded Securities: 

When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days 

prior to the valuation date, the scrip must be treated as a ‘non traded’ security. 

VALUATION OF NON-TRADED / THINLY TRADED SECURITIES 

Non traded/ thinly traded securities shall be valued “in good faith” by the asset management company on the basis of 

the valuation principles laid down below: 

(i) Non-traded / thinly traded equity securities: 

(a) Based on the latest available Balance Sheet, net worth shall be calculated as follows: 

(b) Net Worth per share = [share capital + reserves (excluding revaluation reserves) – Misc. expenditure and Debit 

Balance in P&L A/c] Divided by number of Paid up Shares. 

(c) Average capitalisation rate (P/E ratio) for the industry based upon either BSE data (which should be followed 

consistently and changes, if any noted with proper justification thereof) shall be taken and discounted by 

75% i.e. only 25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio). Earnings per 

share of the latest audited annual accounts will be considered for this purpose. 

(d) The value as per the net worth value per share and the capital earning value calculated as above shall be 

averaged and further discounted by 10% for ill-liquidity so as to arrive at the fair value per share. 

(e) In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning. 

(f) In case where the latest balance sheet of the company is not available within nine months from the close of 

the year, unless the accounting year is changed, the shares of such companies shall be valued at zero. 

(g) In case an individual security accounts for more than 5% of the total assets of the scheme, an independent 

valuer shall be appointed for the valuation of the said security. 

To determine if a security accounts for more than 5% of the total assets of the scheme, it should be valued by 

the procedure above and the proportion which it bears to the total net assets of the scheme to which it 

belongs would be compared on the date of valuation. 

(ii) Valuation of Unlisted Equity Shares: 

Unlisted equity shares of a company shall be valued “in good faith” on the basis of the valuation principles laid 

down below: 

(a) Based on the latest available audited balance sheet, net worth shall be calculated as lower of (i) and (ii) below: 

i. Net worth per share = [share capital plus free reserves (excluding revaluation reserves) minus Miscellaneous 

expenditure not written off or deferred revenue expenditure, intangible assets and accumulated losses] 

divided by Number of Paid up Shares. 

ii. After taking into account the outstanding warrants and options, Net worth per share shall again be 

calculated and shall be = [share capital plus consideration on exercise of Option/Warrants received/ 

receivable by the Company plus free reserves(excluding revaluation reserves) minus Miscellaneous 

expenditure not written off or deferred revenue expenditure, intangible assets and accumulated losses] 

divided by {Number of Paid up Shares plus Number of Shares that would be obtained on conversion/ 

exercise of Outstanding Warrants and Options} 

The lower of (i) and (ii) above shall be used for calculation of net worth per share and for further calculation 

in (c) below. 

(b) Average capitalisation rate (P/E ratio) for the industry based upon either BSE data (which should be followed 

consistently and changes, if any, noted with proper justification thereof) shall be taken and discounted by 

75% i.e. only 25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio). Earnings per 

share of the latest audited annual accounts will be considered for this purpose. 

43


(c) The value as per the net worth value per share and the capital earning value calculated as above shall be 

averaged and further discounted by 15% for illiquidity so as to arrive at the fair value per share. 

The above methodology for valuation shall be subject to the following conditions: 

i. All calculations as aforesaid shall be based on audited accounts. 

ii. In case where the latest balance sheet of the company is not available within nine months from the close of 

the year, unless the accounting year is changed, the shares of such companies shall be valued at zero. 

iii. If the net worth of the company is negative, the share would be marked down to zero. 

iv. In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning. 

v. In case an individual security accounts for more than 5% of the total assets of the scheme, an independent 

valuer shall be appointed for the valuation of the said security. To determine if a security accounts for more 

than 5% of the total assets of the scheme, it should be valued in accordance with the procedure as mentioned 

above on the date of valuation. 

At the discretion of the AMC and with the approval of the trustees, an unlisted equity share may be valued at 

a price lower than the value derived using the aforesaid methodology. 

(iii) Illiquid Securities: 

(a) Aggregate value of “illiquid securities” of scheme, which are defined as non-traded, thinly traded and unlisted 

equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 

15% of the total assets shall be assigned zero value. 

Provided that in case any scheme has illiquid securities in excess of 15% of total assets as on September 30, 

2000 then such a scheme shall within a period of two years bring down the ratio of illiquid securities within 

the prescribed limit of 15% in the following time frame: 

(i) all the illiquid securities above 20% of total assets of the scheme shall be assigned zero value on 

September 30, 2001. 

(ii) All the illiquid securities above 15% of total assets of the scheme shall be assigned zero value on 

September 30, 2002. 

(b) All funds shall disclose as on March 31 and September 30 the scheme-wise total illiquid securities in value 

and percentage of the net assets while making disclosures of half yearly portfolios to the unitholders. In the 

list of investments, an asterisk mark shall also be given against all such investments, which are recognised as 

illiquid securities. 

(c) Mutual Funds shall not be allowed to transfer illiquid securities among their schemes w.e.f. October 1, 2000. 

(d) In respect of closed ended funds, for the purposes of valuation of illiquid securities, the limits of 15% and 

20% applicable to open-ended funds should be increased to 20% and 25% respectively. 

(e) Where a scheme has illiquid securities as at September 30, 2001 not exceeding 15% in the case of an openended 

fund and 20% in the case of closed fund, the concessions of giving time period for reducing the 

illiquid security to the prescribed limits would not be applicable and at all time the excess over 15% or 20% 

shall be assigned nil value. 

(iv) Value of “Rights” entitlement 

a) Until they are traded, the value of the “rights” entitlement would be calculated as: 

Vr = n/m x (P ex 

– P of 

) 

where 

Vr = Value of rights 

n = no. of rights Offered 

m = no. of original shares held 

P ex 

= Ex-Rights price 

P of 

= Rights Offer price 

b) Where the rights are not traded pari-passu with the existing shares, suitable adjustments would be made to 

the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations 

are being traded, the rights would be valued at the renunciation value. 

(v) Expenses and Incomes Accrued 

All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this 

purpose, major expenses like management fees and other periodic expenses would be accrued on a day-to-day 

basis. The minor expenses and income will be accrued on a periodic basis, provided the non daily accrual does not 

affect the NAV calculations by more than 1%. 

(vi) Changes in securities and in number of units : 

Any changes in securities and in the number of units will be recorded in the books not later than the first valuation 

date following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording 

may be delayed up to a period of seven days following the date of the transaction, provided as a result of such non 

recording, the NAV calculation shall not be affected by more than 2%. 

44


The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change from time to 

time in conformity with changes made by SEBI. 

(vii) Valuation of Derivative Products : 

(i) The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to 

(v) of clause 1 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 

1996. 

(ii) The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded 

investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and 

Exchange Board of India (Mutual Funds) Regulations, 1996. 

NAV of units under the Scheme shall be calculated as shown below : 

Market or Fair Value of Scheme’s investments + Current Assets – Current Liabilities and Provision 

NAV (Rs.) = 

No. of Units outstanding under Scheme 

The NAV of the Scheme will be calculated as of the close of every Business Day. The valuation of the Scheme’s assets 

and calculation of the Scheme’s NAV shall be subject to audit on an annual basis and such regulations as may be 

prescribed by SEBI from time to time. 

p) Accounting Policies & Standards 

In accordance with the Regulations, the AMC will follow the accounting policies and standards, as detailed below: 

a) The AMC, for each Scheme and its Plans, shall keep and maintain proper books of account, records and documents, so 

as to explain its transactions and to disclose at any point of time the financial position of the Scheme and, in particular, 

give a true and fair view of the state of affairs of the Fund. 

b) For the purposes of the financial statements, the Scheme and its Plans shall mark all investments to market and carry 

investments in the balance sheet at market value. However, since the unrealized gain arising out of appreciation on 

investments cannot be distributed, provision shall be made for exclusion of this item when arriving at distributable 

income. 

c) Dividend income earned by the Scheme and its Plans shall be recognized, not on the date the dividend is declared, but on 

the date the share is quoted on an ex-dividend basis. For investments, which are not quoted on the stock exchange, 

dividend income would be recognized on the date of declaration of dividend. 

e) In determining the holding cost of investments and the gains or loss on sale of investments, the “average cost” method 

shall be followed for each security. 

f) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the settlement 

date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial 

statements for that year. Where investment transactions take place outside the stock market, for example, acquisition 

through private placement or purchases or sales through private treaty, the transaction would be recorded, in the event 

of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay the price or, in the event of 

a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to 

deliver the instruments sold. 

g) Bonus shares to which the Scheme and the Plans thereunder becomes entitled shall be recognized only when the original 

shares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights 

entitlements shall be recognized only when the original shares on which the right entitlement accrues are traded on the 

stock exchange on an ex-right basis. 

h) Where income receivable on investments has accrued but has not been received for the period specified in the guidelines 

issued by the Board, provision shall be made by debiting to the revenue account the income so accrued in the manner 

specified by guidelines issued by the Board. 

i) When units are sold in the Scheme and its Plans, an appropriate part of the sale proceeds shall be credited to an 

Equalization Account and when units are repurchased an appropriate amount shall be debited to Equalization Account. 

The net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization 

Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund but is only 

an adjustment to the distributable surplus. It shall therefore be reflected in the Revenue Account only after the net 

income of the Fund is determined. 

j) When units are sold, after considering the equalization as above, the difference between the sale price and the face value 

of the Unit, if positive, shall be credited to reserves and if negative, shall be debited to reserve, the face value being 

credited to Capital Account. Similarly, when the Units are repurchased, after considering the equalization as above, the 

difference between the purchase price and face value of the Unit, if positive, shall be debited to reserves and, if negative, 

shall be credited to reserves, the face value being debited to the Capital Account. 

k) The cost of investments acquired or purchased shall include brokerage, stamp charges and any charge customarily 

included in the broker’s bought note. In respect of privately placed debt instruments any front-end discount offered shall 

be reduced from the cost of the investment. 

l) Underwriting commission shall be recognized as revenue only when there is no devolvement on the Scheme and its Plans. 

Where there is devolvement on the Scheme and the Plans thereunder, the full underwriting commission received and not 

merely the portion applicable to the devolvement shall be reduced from the cost of the investment. 

The accounting policies and standards outlined above are as per the existing Regulations and are subject to change as per 

changes in the Regulations. 

45


SECTION III 

UNITS & INVESTING ON ONGOING BASIS 

General Information 

a) Investing On An Ongoing Basis 

An investor can buy / sell units on a continuous basis in the normal market segment of the Stock Exchange, Mumbai/ Delhi 

Stock Exchange during the trading hours like any other publicly traded stock at prices which may be close to the actual 

NAV of the Scheme. There is no minimum investment, although units are purchased in lots of 1. 

b) Dematerialization 

1. SENSEX ETF/ “SPIcE” will be available only in the Dematerialized form. 

2. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL/ 

CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account 

number with DP. 

3. Since SENSEX ETF are to be issued / repurchased and traded compulsorily in dematerialized form, no request for 

rematerialisation of SENSEX ETF/ “SPIcE” will be accepted. 

c) Transfer 

1. Units of the Scheme are transferable. 

2. Transfer would be only in favor of transferees who are capable of holding units. The Fund shall not be bound to 

recognize any other transfer. 

3. The Fund will affect transfer only in electronic form provided the intended transferee is otherwise eligible to hold the 

units under the Scheme. 

4. The delivery instructions for transfer of units will have to be lodged with the DP in the requisite form as may be 

required from time to time and transfer will be effected in accordance with such rules/regulations as may be in force 

governing transfer of securities in dematerialized mode. 

d) Listing 

“SPIcE” is listed on the Stock Exchange, Mumbai and Delhi Stock Exchange (DSE). 

e) Initial Issue Expenses 

Initial issue expenses to be charged under the Scheme have been borne by AMC. 

f) Options offered under the Scheme 

The Trustees reserve the right to introduce/ alter/ extinguish any of the option at a later date. 

g) Pledge of Units for loans 

The Units can be pledged by the Unitholders as security for raising loans subject to the conditions of the lending institution 

and the terms and conditions laid down by the Depositories. The Registrar will take note of such pledge / charge in its 

records. 

h) Who can Invest? 

The following persons are eligible and may apply for subscription to the Units of the Scheme (subject, wherever relevant, 

to purchase of units of Mutual Funds being permitted under respective constitutions and relevant statutory regulations): 

Resident adult individual either singly or jointly (not exceeding three) 

Minor through parent/lawful guardian 

Companies, Bodies Corporate, Public Sector Undertakings, association of persons or bodies of individuals and 

societies registered under the Societies Registration Act, 1860 (so long as the purchase of units is permitted under 

the respective constitutions) 

Religious and Charitable Trusts under the provisions of 11(5)(xii) of Income-tax Act, 1961 read with Rule 17C of 

Income-Tax Rules, 1962 

Partnership Firms 

Karta of Hindu Undivided Family (HUF) 

Banks & Financial Institutions 

Non-resident Indians/Persons of Indian origin residing abroad (NRIs) on full repatriation basis (subject to RBI approval, 

if any) or on non repatriation basis, as per applicable regulations notified by RBI from time to time. 

Foreign Institutional Investors (FIIs) registered with SEBI on full repatriation basis (subject to RBI approval, if any). 

46


 

 

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

Scientific and Industrial Research Organizations 

Mutual fund schemes 

i. Price of SENSEX ETFs/ “SPIcE” 

Investors can purchase “SPIcE” at market prices, which may be above or below their actual NAV of the Scheme depending 

upon supply and demand of “SPIcE” at that point of time. 

ii. Entry / Exit Load 

There will be no entry/exit load on “SPIcE” bought or sold through the secondary market on the BSE/DSE. However, an 

investor would be paying cost in the form of a bid and ask spread and brokerage, as charged by his broker, for buying / 

selling “SPIcE”. 

In case, there are no quotes on the BSE/DSE for five trading days consecutively, an investor can sell directly to the fund with 

an exit load of 2.5% of NAV. The payout of such redemptions will be as per the pay-out day, as defined by respective 

exchange. 

iii. Settlement of Purchase / Sale of “SPIcE” on the BSE/DSE 

Buying / Selling “SPIcE” on the BSE/DSE is just like buying / selling any other normal listed security. If an investor has bought 

units, an investor has to pay the purchase amount to the broker / sub-broker such that the amount paid is realised before the 

funds pay-in day of the settlement cycle on the BSE/DSE. If an investor has sold units, an investor has to deliver the units to 

the broker / sub-broker before the securities pay-in day of the settlement cycle on the BSE/DSE. The units (in the case of units 

bought) and the funds (in the case of units sold) are paid out to the broker on the pay-out day of the settlement cycle on the 

BSE/DSE. The Stock Exchange regulations generally stipulate that the trading member should pay the money or units to the 

investor within 48 hours of the pay-out. 

If an investor has bought units, he should give Standing Instructions for ‘Delivery-In’ to his/her DP for accepting units in his/ 

her beneficiary account. An investor should give the details of his/ her beneficiary account and the DP-ID of his/her DP to his/ 

her trading member. The trading member will transfer the units directly to his/her beneficiary account on receipt of the same 

from the Clearing House. 

An investor who has sold units should instruct his/her Depository Participant (DP) to give ‘Delivery Out’ instructions to 

transfer the units from his/her beneficiary account to the Pool Account of his/her trading member through whom he/she 

have sold the units. The details of the Pool A/C (CM-BP-ID) of his/her trading member to which the units are to be 

transferred, unit quantity etc. should be mentioned in the Delivery Out instructions given by him/her to the DP. The instructions 

should be given well before the prescribed securities pay-in day. SEBI has advised that the Delivery Out instructions should be 

given at least 24 hours prior to the cut-off time for the prescribed securities pay-in to avoid any rejection of instructions due 

to data entry errors, network problems, etc. 

iv. Rolling Settlement 

The Fund intends to follow the same settlement pattern and practices of the Stock Exchange, Mumbai. 

All the underlying constituents of SENSEX are now in rolling settlement on T+2 basis. The Pay-in and Pay-out of funds and 

the units will take place 2 working days after the trading date. 

The pay-in and pay-out days for funds and securities are prescribed as per the Settlement Cycle. A typical Settlement Cycle of 

Rolling Settlement is given below: 

Day Activity 

Day 

Activity 

T 

The day on which the transaction is executed by a trading member. Issue of provisional funds and delivery 

obligations in the evening. 

T+1 Deadline for custodial settlement, confirmations. Issue of funds and delivery obligation statement to 

the trading member 

T+2 Pay-in and Pay-out of funds and securities 

T+3 Auction of securities not settled on day T+2 

T+4 Pay-in and pay-out of auction funds and securities 

While calculating the days from the Trading day (Day T), weekend days (i.e. Saturday and Sundays) and bank holidays are 

not taken into consideration. 

v. CREATION/REDEMPTION OF UNITS DIRECTLY FROM THE FUND 

The Authorised Participants and Large Institutional Investors can directly buy/sell with the funds in Creation Unit Size as 

follows:- 

The Fund creates / redeems SENSEX ETF / “SPIcE” in large blocks known as “Creation Unit”. The value of the “Creation 

Unit” is the basket of underlying index securities called as the “Portfolio Deposit” and a “Cash Component” which will be 

exchanged for a fixed number of SENSEX ETF/ “SPIcE”. The Portfolio Deposit and the Cash Component, which defines the 

Creation Unit are defined separately. The Portfolio Deposit and Cash Component may change from time to time and will 

be announced by AMC/Fund through its website and other data providers. 

Note: SENSEX ETF/ “SPIcE” if less than Creation Unit cannot be purchased / redeemed directly with the fund except where 

there are no quotes on the Market for five trading days consecutively. In case of redemptions by NRIs, requisite TDS will be 

deducted from the respective redemption proceeds. 

47


vi. Procedure for Creating SENSEX ETF/ “SPIcE” in Creation Unit Size 

The requisite securities constituting the Portfolio Deposit have to be transferred to the funds DP account while the Cash 

Component, if any; has to be paid to the AMC. On confirmation of the same by the Custodian / AMC, the AMC will 

endeavour to create and credit the equivalent number of SENSEX ETF/ 

“SPIcE” into the investor’s DP account within 3 business days from the date of receipt of credit of the Portfolio Deposit to 

the extent of such Deposit. The AMC may create “Creation Unit” prior to receipt of all or a portion of the relevant Portfolio 

Deposit and Cash Component in certain circumstances where the purchaser, among other things, posts collateral to secure 

its obligation to deliver such outstanding Portfolio Deposit Securities and Cash Component. 

The Portfolio Deposit and Cash Component for SENSEX ETF / “SPIcE” may change from time to time due to changes in the 

underlying Index on account of corporate actions and changes to the index constituents. 

AMC reserves the right to adjust the number of Units to be credited/credited in case the instrument towards the cash 

component is not honoured. 

In certain circumstances the Fund may allow cash purchases of SENSEX ETF/ “SPIcE” in creation units size by institutional 

investors, subject to the minimum application amount as may be decided by Trustees/ AMC from time to time. Purchase 

request for creation units shall be made by such investor to the Fund/AMC where upon the Fund/AMC will arrange to buy 

the underlying portfolio securities. In such circumstances, Applicable NAV for Creation Units will be the Net Asset Value per 

Unit at the close of the Business Day on which the proceeds are made available to the Fund for investments by the Bank, in 

the normal course of clearing. 

The creation request can be made to the fund in a duly filled application form. Application Forms for Creation of SENSEX 

ETF / “SPIcE” can be obtained from the office of AMC. It may be noted that the application for Creation of Units can be 

made only at the Corporate Office of the AMC at Mumbai initially and at other centres as the Trustees may decide from 

time to time. 

vii. Redemption of units of SENSEX ETF 

In case of redemption through the Authorised Participant: 25,000 Units. 

In case, there are no quotes on the BSE for five trading days consecutively, an investor can sell directly to the Fund with an 

exit load of 2.5% of Applicable NAV. Minimum Units to be redeemed in such a case is 1000 Units provided that minimum 

balance under a particular folio should not fall below Rs. 25,000. In case of redemptions by NRIs, requisite TDS will be 

deducted from the respective redemption proceeds. In case of Authorised Participants and Large Institutional Investors 

would be allowed to redeem/ switch SPIcE units directly with the Prudential ICICI Mutual Fund (the Fund) in case the Unit 

size is 100,000 Units or more and AMC is authorized in such cases to make payments from the Scheme at applicable NAV 

instead of refunding the basket of securities to such investors. 

Important 

1. All cheques and bank drafts accompanying the application form should contain the application form number on its 

reverse. As per the directive issued by SEBI vide their letter IIMARP/CIR/07/826/98 dated April 15, 1998, it is mandatory 

for applicants to mention their bank account numbers in their applications for purchase or redemption of units. This 

is to prevent fraudulent encashment of dividend / redemption / refund cheques. If the data is not provided, neither the 

fund (or the Trustees) nor the AMC will be liable for any delay/non receipt of refund, redemption/dividend payments. 

2. Further The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of 

NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account 

number with DP. In absence of the information in respect of DP ID/ Client ID the applications are liable to be rejected 

without any reason. 

viii. Procedure for Redeeming SENSEX ETF in Creation Unit Size 

The requisite number of SENSEX ETF equalling the Creation Unit has to be transferred to the funds DP account and the 

Cash Component, if any; to be paid to the AMC / Custodian. On confirmation of the same by the AMC, the AMC will 

create and credit the Portfolio Deposit to the investor’s DP account and pay the Cash Component, if applicable. 

The Portfolio Deposit and Cash Component for the SENSEX ETF/ “SPIcE” may change from time to time due to changes in 

the underlying Index on account of corporate actions and changes to the index constituents. 

The Fund shall ensure that the Redemption Price is not lower than 93% of the NAV and the Purchase Price is not higher 

than 107% of the NAV, provided that the difference between the Redemption Price and Purchase Price of the Units shall 

not exceed the permissible limit of 7% of the Purchase Price, as provided for under the Regulations. 

ix. Dividend Policy 

The Fund will record the dividend received from companies in a separate account. The fund will debit the expenses of the 

Scheme to this account. The Trustees may decide to declare the dividend in the Scheme. The dividend so declared may be 

reinvested in the Scheme. The minimum reinvestment, if any, will be for one unit per folio. In case of fractional units the 

units will be rounded up to the lower decimal and the balance, if any, may be paid by cash. No units will be created if the 

fractional unit is less than one per folio. 

The Trustees reserve the right to revise the accounting treatment for dividend received from time to time, in the interest of 

the Unitholders of the Scheme. 

48 

x. Application under Power of Attorney/ Body Corporate/Registered Society/ Trust/ Partnership 

In case of an application under Power of Attorney or by a limited company, body corporate, registered society, trust or 

partnership, etc., the relevant Power of Attorney or the relevant resolution or authority to make the application as the case 

may be, or duly certified copy thereof, along with the memorandum and articles of association/bye-laws must be lodged at 

the Registrar’s Office within seven days from the date of application.


xi. Joint Applicants 

In the event an Account has more than one registered owner, the first-named holder (as determined by reference to the 

original Application Form) shall receive the Account Statement, all notices and correspondence with respect to the Account, 

as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such Unitholders shall 

have the voting rights, as permitted, associated with such Units, as per the applicable guidelines. 

Applicants can specify the ‘mode of holding’ in the Application Form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of 

holding specified as ‘Jointly’, Redemptions and all other requests relating to monetary transactions would have to be 

signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unitholders will 

have the power to make Redemption requests, without it being necessary for all the Unitholders to sign. However, in all 

cases, the proceeds of the Redemption will be paid to the first-named holder. 

xii. Nomination Facility 

The Scheme provides for the nomination facility as permitted under the Regulations. 

Nomination Forms are available alongwith the application forms at any of the Customer Service Centres of the AMC. 

It may, however, be noted that in the event of death of the Unitholder and in the event a nominee has been named, the 

nominee shall stand transposed in respect of the Units held by the Unit holder. Such nominee (new Unit holder) will hold 

the Units in trust for and on behalf of the estate of the original Unit holder and his / her legal heirs. Such payments made 

by the AMC shall be full and valid discharge of the AMC / Fund from all further liabilities in respect of the sums so paid. 

The AMC shall have the right to ask for any additional information / documentation as it may deem necessary to satisfy 

itself as to the identity of the Nominee/ Claimant including but not limited to procuring an Indemnity Bond. 

Where the units are held by more than one person jointly, the joint unitholders may together nominate a person in whom 

all the rights in the units shall vest in the even of death of all the joint unit holders. 

i) Issuance of Units/Account Statement 

Under normal circumstances, an Account Statement/Transaction Confirmation will be mailed to the investor, indicating the 

number of Units purchased within 7 Business Days of the acceptance of a valid application for purchase of Units. 

With the prior consent of the Unitholder, the account statement will be sent by e-mail only.In the event of non-realization 

of any cheque or other instrument remitted by the investor, the transaction of crediting the Unitholder’s account will be 

reversed. 

Allotment of Units and despatch of Account Statements to FIIs will be subject to RBI approval. 

j) Right to Limit Redemptions 

After complying with the regulatory requirements, the Trustee and the Board of Directors of the AMC may, in the general 

interest of the Unitholders of the Scheme offered under this Offer Document and keeping in view the unforeseen 

circumstances/unusual market conditions, limit the total number of Units which may be redeemed on any Business Day to 

5% of the total number of Units then in issue, or such other percentage as the Trustee may determine. 

Any Units, which by virtue of these limitations are not redeemed on a particular Business Day, will be carried forward for 

Redemption to the next 

Business Day, in order of receipt. Redemptions so carried forward will be priced on the basis of the Applicable NAV (subject 

to the prevailing load) of the Business Day on which Redemption is made. Under such circumstances, to the extent multiple 

Redemption requests are received at the same time on a single Business Day, Redemptions will be made on pro-rata basis, 

based on the size of each Redemption request, the balance amount being carried forward for Redemption to the next 

Business Day(s). 

k) Suspension of Sale and Redemption of Units 

The Trustee and the Board of Directors of the AMC may decide to temporarily suspend determination of NAV of the Scheme 

offered under this Document, and consequently sale and redemption of Units, in any of the following events: 

1. When one or more stock exchanges or markets, which provide basis for valuation for a substantial portion of the 

assets of the Scheme are closed otherwise than for ordinary holidays. 

2. When, as a result of political, economic or monetary events or any circumstances outside the control of the Trustee 

and the AMC, the disposal of the assets of the Scheme is not reasonable, or would not reasonably be practicable 

without being detrimental to the interests of the Unitholders. 

3. In the event of breakdown in the means of communication used for the valuation of investments of the Scheme, 

without which the value of the securities of the Scheme cannot be accurately calculated. 

4. During periods of extreme volatility of markets, which in the opinion of the AMC are prejudicial to the interests of the 

Unitholders of the Scheme. 

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

6. In the event of any force, majeure or disaster that affects the normal functioning of the AMC or the Registrar. 

7. If so directed by SEBI. 

In the above eventualities, the time limits indicated above, for processing of requests for purchase and redemption of 

Units will not be applicable. 

Suspension or restriction of repurchase/ redemption facility under any scheme of the mutual fund shall be made applicable 

only after obtaining the approval from the Boards of Directors of the AMC and the Trustees. After obtaining the approval 

from the AMC Board and the Trustees, an intimation would be sent to SEBI in advance providing details of circumstances 

and justification for the proposed action shall also be informed. 

49


SECTION IV 

FEES, EXPENSESE & LOAD STRUCTURE 

50 

A) LOAD STRUCTURE OF THE SCHEME 

The purchase and sale price of SENSEX ETF/ “SPIcE”, on an ongoing basis, will be based on the Applicable NAV subject to 

prevalent load, if any. 

There is no entry / exit load for creation / redemption of SENSEX ETF / “SPIcE” in Creation Unit Size. 

However, during the process of creation/redemption there may be transaction costs and/or other incidental expenses (forming 

part of the Cash Component), which are liable to be borne by the investors/APs. 

Exit Load for Redemptions in Cash 

In case of redemption of SENSEX ETF / “SPIcE” for less than Creation Unit Size, directly with the fund, where there have 

been no quotes on the Market for five trading days consecutively, an investor can sell to the fund with an exit load of 2.5% 

of NAV. The payout of such redemptions in cash will be on the respective payout day. In case of redemptions by NRIs, 

requisite TDS will be deducted from the respective redemption proceeds. 

The redemption price will be calculated using the following formula: 

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

Example for calculation of Redemption Price 

If the Applicable NAV is Rs.100 and a 2.5% exit load is charged, the redemption price will be calculated as follows: 

Redemption Price = Rs.100 * [1-0.025] 

= Rs.100 *0.975 

= Rs. 97.5 per unit 

Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and the terms for 

redemption by the Fund and under the Scheme and may decide to introduce a differential load structure on the 

Units subscribed/redeemed on any Business Day / terms for redemption. Such changes will be applicable for 

prospective investments. The Trustee shall arrange to display a notice in the Customer Service Centers of the 

AMC at least 10 days before the change of the then prevalent load structure. The addendum detailing the changes 

in load structure will be attached to offer documents and abridged offer documents. The addendum will also be 

circulated to all the distributors / brokers so the same can be attached to all the offer documents and abridged 

offer documents in stock. This addendum will also be sent along with the newsletter to the unitholders immediately 

after the changes. Changes in the load structure may be stamped in the acknowledgement slip issued by the Fund 

and may also be disclosed in the statement of accounts issued after the changes in load structure. The load collected 

from the Unitholders under the Scheme will be credited to a separate account and will be offset against distribution 

and marketing expenses. Surplus of load, if any, charged over planned marketing and distribution expenses to be 

defrayed will be credited to the Scheme whenever felt appropriate by the AMC. 

B) FEES AND EXPENSES OF THE SCHEME 

As per the provisions of the Regulations, read with the amendments thereto, the following fee and expenses will be charged 

to the Scheme: 

i) Initial Issue Expenses 

The total Initial Issue expenses chargeable to the Scheme as per current Regulations are subject to a maximum of 6% 

of the amount collected during the Initial Offer Period. However, Initial issue expenses to be charged under the Scheme 

have been borne by AMC. 

ii) Estimated Recurring Expenses 

(% per annum of average net assets) 

Description 


Investment Management & Advisory fees 0.60 

Trustee Fees 0.01 

Custodian Fees 0.05 

Marketing & Selling Expenses 0.17 

Registrar & Transfer Agent Fees 0.10 

Audit Fees 0.01 

Costs related to investor communications 0.03 

Index Licensing Fee 0.03 

Total Annual Recurring Expenses 1.00% 

The purpose of the above table is to assist the investor in understanding the various costs and expenses that an investor in 

the Scheme will bear. These estimates are based on a corpus size of Rs.1 crore under the Scheme, and would change; to


the extent assets are lower or higher. If the corpus size is in excess of Rs.1 crore, the above mentioned recurring expenses 

in the Scheme would change. The above expenses are subject to inter-se change and may increase/decrease as per actual 

and/or any change in the Regulations. 

These estimates have been made in good faith as per information available to the AMC and the total expenses may be 

more than as specified in the table above. However, as per the Regulations, the total recurring expenses that can be charged 

to the Scheme in this Offer Document shall be subject to the applicable guidelines. Expenses over and above the permitted 

limits will be borne by the AMC. 

The recurring expenses of the Schemes, and the additional management fee shall be as per the limits prescribed under 

Sub-Regulations (6) of Regulations 52 of the Regulations and shall not exceed the limits prescribed thereunder. 

As per the Regulations, the maximum recurring expenses that can be charged to the Scheme shall be subject to a percentage 

limit of weekly net assets as in the table below: 

First Rs. 100 crore Next Rs. 300 crore Next Rs. 300 crore Over Rs. 700 crore 

2.50 % 2.25% 2.00% 1.75% 

Subject to Regulations, expenses over and above the prescribed limit shall be borne by the Asset Management Company. 

C) FEES AND EXPENSES OF THE EXISTING SCHEMES 

(i) ICICI Mutual Fund, prior to the joint venture with Prudential, had launched two closed ended growth schemes, ICICI 

Premier, launched on November 30, 1993 and ICICI Power, launched on August 24, 1994 (since converted into an openended 

scheme). Subsequent to the joint venture with Prudential, the Fund launched three open-ended schemes (Prudential 

ICICI Growth Plan, Prudential ICICI Income Plan and Prudential ICICI Liquid Plan) on June 4, 1998 and one open ended 

scheme (Prudential ICICI FMCG Fund) on February 15, 1999. The Fund also launched Prudential ICICI Tax Plan, Prudential 

ICICI Gilt Fund, Prudential ICICI Balanced Fund, Prudential ICICI Technology Fund, Prudential ICICI Monthly Income Plan, 

Prudential ICICI Fixed Maturity Plan Prudential ICICI Child Care Plan, Prudential ICICI Index Fund, Prudential ICICI Dynamic 

Plan, SENSEX Prudential ICICI Exchange Traded Fund, Prudential ICICI Advisor Series, Prudential ICICI Income Multiplier 

Fund, Prudential ICICI Discovery Fund, Prudential ICICI Emerging S.T.A.R. (Stocks Targetted At Returns) Fund on July 9,1999, 

July 21, 1999, September 20,1999, January 7, 2000, September 28, 2000, December 20, 2000, July 16, 2001, February 15, 

2002, October 7, 2002, January 6, 2003, November 10, 2003, February 16, 2004, July 9, 2004 & September 6, 2004 

respectively. The following are the additional Plans under the existing Schemes of the Fund: 

Sr. Additional Plan Existing Scheme Launch date 

No. 

1 Prudential ICICI Gilt Fund - One Year Plus Plan Prudential ICICI Gilt Fund April 26, 2001 

2 Prudential ICICI Short Term Plan Prudential ICICI Income Plan October 18, 2001 

3 Prudential ICICI Long Term Plan Prudential ICICI Income Plan March 26, 2002 

4 Prudential ICICI Sweep Plan Prudential ICICI Liquid Plan February 27, 2002 

5 Prudential ICICI Fixed maturity Plan – Yearly 5 Prudential ICICI Fixed Maturity Plan March 22, 2002 

6 Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan June 27, 2002 

One Year Plus Plan 

7. Prudential ICICI FMP Yearly- Series 7 Prudential ICICI Fixed Maturity Plan August 19, 2002 

8. Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan September 16, 2002 

One Year Plus Plan - Series 8 

9. Prudential ICICI Flexible Income Plan Prudential ICICI Income Plan September 16, 2002 

10. Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan March 17, 2003 

One Year Plus Plan - Series 12 

11. Prudential ICICI Floating Rate Plan Prudential ICICI Income Plan March 28, 2003 

12. Prudential ICICI Flexible Income Plus Plan Prudential ICICI Income Plan May 22, 2003 

13 Prudential ICICI Deposit Plus NRI Series Prudential ICICI Fixed Maturity Plan October 3, 2003 

14 Prudential ICICI Gilt Fund Investment Plan – Prudential ICICI Gilt Fund Investment Plan November 3, 2003 

PF Option 

15 Prudential ICIC Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan December 15, 2003 

Yearly Series 23 

16 Prudential ICICI Gilt Fund Treasury– PF Option Prudential ICICI Gilt Fund Treasury Plan January 19, 2004 

17 Prudential ICIC Fixed Maturity Plan –Series 24 Prudential ICICI Fixed Maturity Plan March 15, 2004 

18 PRUDENTIAL ICICI Fixed Maturity Plan Series 25- Prudential ICICI Fixed Maturity Plan 10 th August 2004 

Quarterly Plan 

19 PRUDENTIAL ICICI Fixed Maturity Plan Series 25- Prudential ICICI Fixed Maturity Plan 6 th September 2004 

Yearly Plan 

20 PRUDENTIAL ICICI Fixed Maturity Plan Series 26- Prudential ICICI Fixed Maturity Plan 31 st August 2004 

Quarterly Plan 

21 PRUDENTIAL ICICI Fixed Maturity Plan Series 25- Prudential ICICI Fixed Maturity Plan 10 th August 2004 

15 Months Plan 

22 PRUDENTIAL ICICI Long Term Floating Rate Plan Prudential ICICI Income Plan August 24, 2004 

51


(ii) Past schemes 

The details of the schemes launched prior to the date of this document and the Initial Issue Expenses charged thereunder 

are as follows: 

Name of the Scheme Date of launch Initial Issue Expenses charged 

to the Scheme (as per the disclosure 

made in the Offer Documents) 

Prudential ICICI Income Plan June 4, 1998 Nil 

Prudential ICICI Growth Plan June 4, 1998 Nil 

Prudential ICICI Liquid Plan June 4, 1998 Nil 

Prudential ICICI FMCG Fund February 15, 1999 1% 

Prudential ICICI Tax Plan July 9, 1999 1% 

Prudential ICICI Gilt Fund July 21, 1999 Nil 

Prudential ICICI Balanced Fund September 20, 1999 1% 

Prudential ICICI Technology Fund January 7, 2000 1.75% 

Prudential ICICI Monthly Income Plan September 28, 2000 Nil 

Prudential ICICI Fixed Maturity Plan December 20, 2000 Nil 

Prudential ICICI Gilt Treasury - 1 Year Plus Plan April 26, 2001 Nil 

Prudential ICICI Child Care Plan July 16, 2001 Gift Plan : 2.50% 

Study Plan: 1.50% 

Prudential ICICI Short Term Plan October 18, 2001 Nil 

Prudential ICICI Index Fund February 15, 2002 1.50% 

Prudential ICICI Sweep Plan February 27, 2002 Nil 

Prudential ICICI FMP Yearly- Series 5 March 22, 2002 Nil 

Prudential ICICI Long Term Plan March 26, 2002 Nil 

Prudential ICICI FMP 1 Year Plus Plan – Series 6 June 27, 2002 Nil 

Prudential ICICI FMP One Year Plus Plan - Series 7 August 19, 2002 Nil 

Prudential ICICI FMP One Year Plus Plan – Series 8 September 16, 2002 Nil 

Prudential ICICI Flexible Income Plan September 16, 2002 Nil 

Prudential ICICI Dynamic Plan October 7, 2002 2.50%* 

Sensex Prudential ICICI Exchange Traded Fund January 6, 2003 Nil 

Prudential ICICI FMP One Year Plus Plan – Series 12 March 17, 2003 Nil 

Prudential ICICI Floating Rate Fund March 28, 2003 Nil 

Prudential ICICI Flexible Income Plus Plan May 22, 2003 Nil 

Prudential ICICI Deposit Plus NRI Series October 3, 2003 Nil 

Prudential ICICI Gilt Fund Investment Plan – PF Option November 3, 2003 Nil 

Prudential ICICI Advisor Series November 10, 2003 2.40% 

Prudential ICICI Gilt Fund - Treasury Plan – PF Option 19 th January, 2004 Nil 

Prudential ICICI Fixed Maturity Plan – Yearly Series 23 December 15, 2003 Nil 

Prudential ICICI Fixed Maturity Plan – Series 25 - 

Quarterly August 10, 2004 Nil 

Prudential ICICI Fixed Maturity Plan –Series 25 15 

months August 10, 2004 Nil 

Prudential ICICI Fixed Maturity Plan –Series 25 1 

Year Plus 6 th September 2004 Nil 

Prudential ICICI Fixed Maturity Plan – Series 26 Quarterly August 31, 2004 Nil 

Prudential ICICI Fixed Maturity Plan – Series 24 – Yearly March 15, 2004 Nil 

Prudential ICICI Fixed Maturity Plan – Series 24 – 

Quarterly March 15, 2004 Nil 

Prudential ICICI Discovery Plan July 9, 2004 Nil 

Prudential ICICI Long Term Floating Plan August 24, 2004 Nil 

Prudential ICICI Income Multiplier Fund February 16, 2004 Nil 

Prudential ICICI Emerging S.T.A.R. Fund September 6, 2004 3.75%** 

*Actual expenses charged to this scheme were limited to 1.33%. 

** Actual expenses charged to this scheme were limited to 0.30% 

52


Given below are the details of estimated and actual Initial Public Issue expenses in respect of the above schemes: 

Initial Issue Expenses – Comparison of Estimated to Actual 

Description ICICI Premier ICICI Power 

Estimated - % to Actuals - % to Estimated - % to Actuals - % to 

Target Amount Subscription Target Amount Subscription 

Advertising Expenses 1.75 1.48 1.50 1.61 

Commission to agents & brokers 2.00 1.36 1.75 2.53 

Registrar Expenses 0.75 0.10 1.25 0.07 

Printing & Mailing 1.00 0.24 1.00 0.42 

Miscellaneous 0.50 0.36 0.50 0.40 

Total 6.00 3.54 6.00 5.03 

Target Amount/ Amount Mobilised Rs.100 crore Rs.159 crore Rs.50 crore Rs.90.28 crore 

# For close-ended scheme 

The Initial Issue Expenses relating to Liquid Plan, Income Plan, Growth Plan, Gilt Plan, Monthly Income Plan, Fixed 

Maturity Plan, Gilt Treasury- 1 Year Plus Plan, Short Term Plan, Sweep Plan, Long Term Plan, Fixed Maturity Plan- 

Yearly 5, Fixed Maturity Plan – One Year Plus Plan – Series 6, 7, 8 & 12,Prudential ICICI Flexible Income Plan, SENSEX 

Prudential ICICI Exchange Traded Fund, Prudential ICICI Floating Rate Fund, Prudential ICICI Income Plus Plan and 

Prudential ICICI Discovery Fund were borne by the AMC. 

Initial Issue Expenses - Prudential ICICI FMCG Fund, Prudential ICICI Tax Plan, Prudential ICICI Balanced Fund, Prudential 

ICICI Technology Fund, Prudential ICICI Child Care Plan, Prudential ICICI Index Fund, Prudential ICICI Dynamic Plan, 

Prudential ICICI Advisor Series. 

The Initial Issue Expenses charged to the Investors under Prudential ICICI FMCG Fund, Prudential ICICI Tax Plan, and Prudential 

ICICI Balanced Fund were limited to 1% of the amount mobilized during the Initial Offer Period. The initial issue expenses 

charged to Investors under Prudential ICICI Technology Fund were limited to 1.75% of the corpus mobilized under the 

Initial Offer Period. In respect of Prudential ICICI Child Care Plan, initial issue expenses to be charged to the Scheme are 

limited to 2.50% of the amount mobilised during the initial offer period under Gift Plan and 1.50% under Study Plan. 

Under Prudential ICICI Index Fund, the initial issue expenses to be charged to the Scheme is limited to 1.50% of the 

amount mobilized during the initial offer period. Under Prudential ICICI Dynamic Plan, the initial issue expenses to be 

charged to the Scheme is limited to 2.50% of the amount mobilized during the initial offer period(as mentioned in the 

offer document), whereas the actual initial issue expenses charged to the scheme were limited to 1.33%. Under Prudential 

ICICI Advisor Series, the initial issue expenses to be charged to the Scheme is limited to 2.40% of the amount mobilized 

during the initial offer period (as mentioned in the offer document), whereas the actual initial issue expenses charged to 

the scheme were limited to 0.79%. Under Prudential ICICI Emerging S.T.A.R. Fund, the initial issue expenses to be charged 

to the Scheme is limited to 3.75% of the amount mobilized during the initial offer period (as mentioned in the offer 

document), whereas the actual initial issue expenses charged to the scheme were limited to 0.30% 

The details of estimated Vs actual expenses are as under: 

Description FMCG Fund Tax Plan Gilt Fund Balanced Fund Technology Fund 

Estimated Actual Estimated Actual Estimated Actual Estimated Actual Estimated Actual 

- % to - % to - % to - % to - % to - % to - % to - % to - % to - % to 

Target Subscri- Target Subscri- Target Subscri- Target Subscri- Target Subscri- 

Amount ption Amount ption Amount ption Amount ption Amount ption 

Advertising, printing and other 

marketing expenses 0.50 1.40 0.90 0.33 1.00 0.15 0.65 0.45 0.75 0.27 

Collection, Registrar and Bank charges 0.25 0.12 0.60 0.04 0.25 0.01 0.25 0.01 0.25 0.04 

Selling Commissions 1.00 0.93 1.00 1.06 - 0.02 1.00 1.01 1.00 1.49 

Total 1.75 2.45 2.50 1.43 1.25 0.18 1.90 1.47 2.00 1.80 

Target Amount/Amount Mobilised Rs. 1.00 Rs. 1.59 Rs.10.00 Rs.50.76 Rs.1.00 Rs.150.01 Rs.1.00 Rs.197.58 Rs.1.00 Rs.509 

crore crore lacs crores crore crore crore crores crores crores 

Description Child Care Child Care Child Care Index Fund Dynamic Plan 

Plan – Plan – Plan – Gift & 

Gift Plan Study Plan Study Plan 

Estimated - % Estimated - % Actual - % to Estimated - % Actual - % to Estimated - % Actual - % to 

to Target to Target Subscription to Target Subscription to Target Subscription 

Amount Amount Amount Amount 

Advertising, printing and other 1.85 2.28 11.86 1.25 Nil 0.75 Nil 

marketing expenses 

(includes Selling 

Commission) 

Collection, Registrar and Bank charges 0.35 0.35 0.63 0.25 Nil 0.25 Nil 

Selling Commissions 1.00 1.00 1.42 - Nil 1.50 1.33 

Total 3.20 3.63 13.91 1.50 Nil 2.50 1.33 

Target Amount/Amount Mobilised Rs. 1.00 Rs. 1.00 Rs.10.62 Rs.1.00 Rs.7.86 Rs.7.86 Rs.17.64 

crore crore crores crore crores crores crores 

53


Description Advisor Series Emerging S.T.A.R 

Estimated - % to Estimated - % to Estimated - % to Estimated -% to 

Target Amount Target Amount Target Amount Target Amount 

Advertising, printing and other 

marketing expenses 1.05 0.17 * 0.00 

Collection, Registrar and Bank charges 1.00 0.04 * 0.03 

Selling Commissions 0.35 0.58 * 0.27 

Total 2.40 0.79 3.75 0.30 

Target Amount/Amount Mobilised Rs.5 Lakhs Rs.310.62 Rs.1 Lakh Rs.198.38 

Croes 

crores 

Note: 1. The Initial Issue Expenses under FMCG Fund were more due to higher advertisement costs. 

2. As disclosed in the offer document of Child Care plan, expenses to the extent or 3.63% for Study Plan and 

3.20% for Gift Plan have been charged to the Scheme and the balance expenses have been borne by the AMC. 

* The Initial Issue expenses charged to the Scheme, as per Offer Document were limited to 3.75% of the amount 

mobilised under the Initial Offer Period 

ESTIMATED RECURRING EXPENSES- OPEN ENDED SCHEMES 

As per the Offer Document for the Liquid Plan, Income Plan, Growth Plan, FMCG Fund, Tax Plan, Gilt Fund, Balanced Fund, 

Technology Fund, Monthly Income Plan, Gilt Treasury 1 Year Plus Plan, Fixed Maturity Plan, Short Term Plan, Child Care 

Plan, Index Fund, Prudential ICICI Power, Long Term Plan, Sweep Plan, Flexible Income Plan, Dynamic Plan, SPIcE, Floating 

Rate Plan, Flexible Income Plus Plan, Prudential ICICI Advisor series, Prudential ICICI Income Multiplier Fund, Prudential 

ICICI Discovery Fund, Long Term Floating Rate Plan and Prudential ICICI Emerging S.T.A.R. Fund, the following were the 

estimated recurring expenses. 


Description Growth Income Liquid FMCG Tax Gilt Fund Balanced 

Plan Plan Plan Fund Plan Fund 

Treasury Invest- 

Option ment 

Option 

Investment management & 

Advisory fees 1.25 1.25 0.70 1.25 1.25 0.75 0.75 1.25 

Additional Fees (if any) - - - - - - - - 

Trustee Fees 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 

Custodian Fees 0.30 0.15 0.08 0.30 0.30 0.04 0.04 0.15 

Advertising, Marketing & 

Selling Expenses 0.50 0.25 0.03 0.50 0.50 0.02 0.02 0.20 

Registrar & Transfer Agents Fees 0.10 0.10 0.10 0.10 0.10 0.04 0.04 0.10 

Transaction Costs 0.05 0.05 0.02 0.05 0.05 - - 0.05 

Audit Fees 0.01 0.01 0.01 0.01 0.01 - - 0.01 

Cost related to Investor 

communications 0.04 0.04 0.01 0.04 0.04 0.02 0.02 0.03 

Cost of funds transfer 0.05 0.025 0.00 0.05 0.05 - - 0.05 

Cost of providing Account 

Statements, dividend 

distributions, etc. 0.05 0.025 0.00 0.05 0.05 0.05 0.05 0.03 

Cost of statutory advertisements 0.05 0.025 0.00 0.05 0.05 0.01 0.01 0.04 

Other Expenses 0.05 0.025 0.00 0.05 0.05 0.02 0.02 0.04 

Total Annual Recurring Expenses 2.50 2.00 1.00 2.50 2.50 1.00 1.00 2.00 

54



Description Techno- Monthly Gilt Fund- Fixed Short Child Care Plan Index 

logy Income Treasury Maturity Term Fund 

Fund* Plan 1 Year Plan Plan Gift Study 

Plus Plan Plan Plan 


Advisory fees 1.25 1.25 0.75 0.70 0.75 1.25 1.25 0.70 

Additional Fees (if any) - - - - - - - - 

Trustee Fees 0.05 0.05 0.04 0.05 0.05 0.05 0.01 0.05 

Custodian Fees 0.30 0.20 0.04 0.05 0.04 0.16 0.10 0.10 


Selling Expenses 0.47 0.20 0.02 0.03 0.02 0.08 0.04 0.15 ** 

Registrar & Transfer Agents Fees 0.08 0.12 0.04 0.08 0.05 0.12 0.10 0.10 

Transaction Costs 0.05 - - - - - - - 

Audit Fees 0.01 0.01 - 0.01 0.01 0.01 0.01 0.05 


communications 0.08 0.12 0.02 0.01 0.02 0.12 0.08 - 

Cost of funds transfer 0.05 0.14 - 0.01 - 0.10 0.10 0.05 

Cost of providing Account 

Statements, dividend 

distributions, etc. 0.08 0.11 0.05 0.02 0.04 0.11 0.11 - 

Cost of statutory advertisements 0.04 0.01 0.01 0.02 0.01 0.05 0.01 - 

Other Expenses 0.04 0.04 0.02 0.02 0.01 0.45* 0.44* 0.05 

Total Annual Recurring 

Expenses 2.50 2.25 1.00 1.00 1.00 2.50 2.25 1.25 

*Includes insurance premium payable under Child Care Plan. 

** Includes Cost related to investor communication, A/c. Statement, dividend distribution and Statutory advertisement. 


Description Prudential Long Term Sweep Flexible Dynamic SPIcE 

ICICI Power Plan Plan Income Plan Plan 


Advisory fees 1.25 1.25 0.75 1.00 1.00 0.60 

Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 - 

Trustee Fees 0.05 0.05 0.05 0.05 0.02 0.01 

Custodian Fees 0.20 0.15 0.04 0.02 0.15 0.05 


Selling Expenses 0.47 0.25 0.02 0.30 0.95 0.17 

Registrar & Transfer Agents Fees 0.10 0.10 0.04 0.06 0.08 0.10 

Transaction Costs 0.00 0.05 0.00 0.00 0.05 - 

Audit Fees 0.01 0.01 0.00 0.01 0.01 0.01 


communications 0.12 0.04 0.05 0.06 0.05 0.03 

Cost of funds transfer 0.14 0.025 0.00 0.00 0.05 - 

Cost of providing Account Statements, 

dividend distributions, etc. 0.11 0.025 0.08 0.00 0.05 0.03 

Cost of statutory advertisements 0.01 0.025 0.02 0.00 0.05 - 

Other Expenses 0.04 0.025 0.20 0.00 0.04 0.03 

Total Annual Recurring Expenses 2.50 2.00 1.25 1.50 2.50 1.00 

55



Description Floating Rate Flexible Income Advisor Income Multiplier 

Plan Plus Plan Series Fund 

Investment management & Advisory fees 0.45 0.50 0.50 1.00 

Additional Fees (if any) 0.00 0.00 0.00 0.00 

Trustee Fees 0.05 0.05 0.01 0.05 

Custodian Fees 0.02 0.02 0.01 0.20 

Advertising, Marketing & Selling Expenses 0.07 0.30 0.15 0.47 

Registrar & Transfer Agents Fees 0.06 0.06 0.02 0.10 

Transaction Costs 0.00 0.00 0.00 0.05 

Audit Fees 0.01 0.01 0.01 0.01 

Cost related to Investor communications 0.03 0.06 0.01 0.12 

Cost of funds transfer 0.00 0.00 0.01 0.09 


dividend distributions, etc. 0.00 0.00 0.01 0.11 

Cost of statutory advertisements 0.00 0.00 0.01 0.01 

Other Expenses 0.06 0.00 0.01 0.04 

Total Annual Recurring Expenses 0.75 1.00 0.75 2.25 


Description Prudential ICICI Long Term Floating Prudential ICICI 

Discovery Fund, Rate Plan Emerging 

S.T.A.R. Fund 

Plan A Plan B Plan C 

Investment management & Advisory fees 1.25 0.75 0.60 0.50 1.25 

Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 

Trustee Fees 0.05 0.00 0.00 0.00 0.05 

Custodian Fees 0.20 0.00 0.00 0.00 0.20 

Advertising, Marketing & Selling Expenses 0.50 0.00 0.00 0.00 0.47 

Registrar & Transfer Agents Fees 0.10 0.00 0.00 0.00 0.10 

Transaction Costs 0.00 0.00 0.00 0.00 0.00 

Audit Fees 0.01 0.00 0.00 0.00 0.01 

Cost related to Investor communications 0.12 0.00 0.00 0.00 0.12 

Cost of funds transfer 0.10 0.00 0.00 0.00 0.14 


dividend distributions, etc. 0.11 0.00 0.00 0.00 0.11 

Cost of statutory advertisements 0.01 0.00 0.00 0.00 0.01 

Other Expenses 0.05 0.50 0.30 0.25 0.04 

Total Annual Recurring Expenses 2.50 1.25 0.90 0.75 2.50 

56


iii) Condensed Financial Information: 

a. Condensed Financial Information for the period ended March 31, 2002. 

Premier Power Growth Income Liquid FMCG 

Historical Per Unit Statistics 

Date of Allotment February 7, October 1, July 9, July 9, une 24, March 31, 

1994 1994 1998 1998 J1998 1999 

NAV at the beginning of the year (Rs.) 

Growth Option 10.10 10.22 17.67 13.85 12.9252 9.06 

Dividend Option - - 9.27 10.21 11.8316 8.30 

Net Income per unit 0.82 (2.37) (1.91) 1.85 1.06 (2.15) 

Dividends - - 0.80 @1.5428 @0.8994 - 

Transfer to Reserves - - - - - - 

Compounded Annualised Returns 

(Based on NAVs of Growth Option) 2.82% 2.39% 20.40% 13.83% 9.21% -4.24% 

Benchmark Index Nifty Nifty Nifty N.A N.A CNX FMCG 

Return compared to Benchmark Index ### ### 4.43% N.A N.A -7.43% 

Net Assets end of period (Rs.crore) 51.08 29.87 350.22 2711.89 1372.62 53.60 

NAV at the end of the period 

Growth Option 11.54# 11.94 19.98 16.21 13.9383 8.78 

Dividend Option - - 9.71 10.33 11.8273 8.05 

Ratio of Recurring Exps to Net Assets 2.50% 2.50% 2.33% 1.60% 0.99% 2.04% 

Tax Plan Gilt Fund Gilt Fund Balanced Technology Monthly Gilt Treasury 

Treasury Investment Fund Fund Income 1 Year Plus 

Plan 

Plan 


Date of Allotment Aug. 19, Aug. 19, Aug. 19, Nov. 03, Mar. 3, Nov. 10, Apr. 30, 

1999 1999 1999 1999 2000 2000. 2001. 

NAV at the beginning of the 

year (Rs.) 

Growth Option 10.33 12.0590 12.5063 8.32 3.30 10.5504 # 

Dividend Option 7.54 10.3315 10.5267 7.69 3.30 

Monthly Option - - - - - 10.0910 - 

Quarterly Option - - - - - 10.1817 - 

Half Yearly Option - - - - - 10.1823 - 

Net Income per unit (0.30) 1.92 2.20 (0.85) (1.81) 0.97 0.87 

Dividends 

Dividend Option - @1.2452 @2.5897 - - - @0.8321 

Monthly option - - - - - @1.0230 - 

Quarterly option - - - - - @1.0800 - 

Half Yearly Option - - - - - @1.0965 - 

Transfer to Reserves - - - - - - - 

Compounded Annualised 

Returns (Based on NAVs of 

Growth Option) 10.55% 12.23% 20.06% -3.01% -41.80% 12.44% 8.69%* 

Benchmark Index Nifty N.A N.A Nifty ET Mindex N.A N.A 

Return compared to 

Benchmark Index -6.45% N.A N.A -6.45% -51.05% N.A N.A 

Net Assets end of period 

(Rs. Crore) 72.46 80.58 466.50 189.52 160.09 123.58 185.93 


Growth Option 13.00 13.5238 16.1344 9.29 3.25 11.7643 - 

Dividend Option 9.48 10.2799 10.8319 8.58 3.25 - 10.0213 

Monthly Option - - - - - 10.1792 - 

Quarterly Option - - - - - 10.2228 - 

Half Yearly Option - - - - - 10.2187 - 

Ratio of Recurring Exps to 

Net Assets 2.14% 1.08% 1.13% 2.30% 2.41% 2.00% 0.30% 

57


Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity 

Plan - Plan – Half Plan –Yearly 1 Plan - Plan – 

Quarterly 1 Yearly 1 Quarterly 2 Quarterly 3 


Date of Allotment December 20, December 20, December 20, January 22, February 20, 

2000 2000 2000 2001 2001 


year (Rs.) 

Growth Option 10.3045 10.2803 10.3352 10.1812 10.1020 


Net Income per unit 32.49 2.48 1.05 4.17 2.05 

Dividends @0.8781 @0.9015 @1.0473 @0.8543 @0.9234 

Transfer to Reserves - - - - - 



Growth Option) 9.34% 9.27% 9.77% 8.69% 9.49 

Benchmark Index N.A N.A N.A N.A N.A 


Benchmark Index N.A N.A N.A N.A N.A 


(Rs. Crore) 3.52 10.22 8.65 17.71 16.92 


Growth Option 11.2079 11.1988 11.2644 11.0390 11.0555 



Net Assets 0.51% 0.55% 0.60% 0.54% 0.53% 

Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity 

Plan - Half Yearly 2 Plan - Yearly 2 Plan – Yearly 3 Plan – Yearly 4 


Date of Allotment March 22, 2001 March 22, 2001 June 21, 2001 Sept. 20, 2001 


Growth Option 10.0093 10.0356 # # 

Dividend Option 10.0093 10.0356 # - 

Net Income per unit 50.46 0.99 0.67 0.39 

Dividends @0.7765 @0.9231 - - 

Transfer to Reserves - - - - 


(Based on NAVs of Growth Option) 8.15% 10.03% 6.75%* 4.38%* 

Benchmark Index N.A N.A N.A N.A 

Return compared to Benchmark Index N.A N.A N.A N.A 

Net Assets end of period (Rs. Crore) 0.16 102.28 7.80 6.36 


Growth Option 10.8363 11.0292 10.6753 10.4381 

Dividend Option 10.0388 10.0110 10.6753 10.4381 

Ratio of Recurring Exps to Net Assets 0.55% 0.60% 0.60% 0.60% 

58


Child Care Plan- Child Care Plan- Short Term Plan Fixed Maturity 

Gift Option Study option Plan – Yearly 5 


Date of Allotment August 31, 2001 August 31, 2001 October 25, 2001 March 22, 2002 


Growth Option # # # # 

Dividend Option - - - - 


Dividends - - 0.3430@ - 



(Based on NAVs of Growth Option) 11.60%* 8.90%* 3.92%* 0.35%* 

Benchmark Index Nifty N.A N.A N.A 

Return compared to Benchmark Index 7.19 N.A N.A N.A 

Net Assets end of period (Rs. Crore) 7.38 7.85 418.32 85.40 


Growth Option 11.16 10.89 10.3915 10.0354 

Dividend Option - - 10.0433 - 


Index Fund Long term Plan Sweep Plan 


Date of Allotment February 26, 2002 March 28, 2002 March 6, 2002 


Growth Option 10.0000 10.0000 10.0000 

Dividend Option - - - 

Net Income per unit 0.01 0.01 0.03 

Dividends - - - 

Transfer to Reserves - - - 


(Based on NAVs of Growth Option) -4.80%* 0.10%* 0.52%* 

Benchmark Index Nifty N.A N.A 

Return compared to Benchmark Index -5.03% N.A N.A 

Net Assets end of period (Rs. Crore) 7.73 50.05 5.31 


Growth Option 9.52 10.0096 10.0520 

Dividend Option - - - 

Ratio of Recurring Exps to Net Assets 1.25% 0.80% 1.25% 

Notes: 

1) Returns since inception are for the growth plan in each case except for Prudential ICICI Gilt Fund – One Year Plus Plan 

in which Growth Option is not available. 

2) From current year, while arriving at Net Income per unit, Income Equalisation Reserve and marked to market has not 

been considered and it is calculated on the basis of closing units as on March 31, 2002. 

* Prudential ICICI Fixed Maturity Plan- Yearly 3,4 &5, Prudential ICICI Gilt Treasury 1 Year Plus Plan, Prudential ICICI 

Child Care Plan – Gift Plan & Study Plan, Prudential ICICI Short Term Plan, Prudential ICICI Long Term Plan, Prudential 

ICICI Sweep Plan and Prudential ICICI Index Fund have not completed one year since the date of their launch. Returns 

are computed in absolute terms and for Growth Options only from the date of allotment. The NAV on the date of 

allotment is taken as Rs.10 for computation of returns. 

@ Including distribution tax. 

# These Schemes were launched during the year and these schemes were not in existence at the beginning of the year. 

## Dividend was declared under ICICI Premier for all the unitholders as on July 25, 1995 @Rs. 0.80 per unit. For 

computation of returns NAV of ICICI Premier has been considered after adjusting the dividend declaration. 

### As these schemes were launched before the launch of Nifty, Benchmark index returns are not provided 

59


b) Condensed Financial Information for the period ended March 31, 2003. 

Monthly Fixed Fixed Fixed Gilt 

Income Maturity Maturity Maturity Treasury 

Plan Plan- Plan-Half Plan – 1 Year 

Qtly 1 Yearly 1 Yearly 1 Plan*** 


Date of Allotment November 10, December 20, December 20, December 20, April 30, 

2000 2000 2000 2000 2001 


Growth Option 11.7643 11.2079 11.1988 11.2644 - 

Dividend Option - 10.0378 10.2373 10.1970 10.0213 

Monthly Option 10.1792 - - - 

Quarterly Option 10.2228 - - - - 

Half Yearly Option 10.2187 - - - - 


N.A. 

Dividends - - - - 

Monthly option 0.6692 - - - - 

Quarterly option 0.6963 - - - - 

Half-Yearly Option 0.7346 - - - - 



(Based on NAVs of Growth Option) 10.69% 7.99% 7.97% 8.27% - 

Benchmark Index Crisil MIP $ $ $ - 

Blended Index 

Return compared to Benchmark Index 1.60% # # # - 

Net Assets end of period (Rs. Crore) 275.36 34.98 0.51 0.43 - 


Growth Option 12.7427 11.9131 11.9083 11.9840 - 

Dividend Option - 10.6695 10.8855 10.8482 - 

Monthly Option 10.3323 - - - - 


Half Yearly Option 10.3177 - - - - 

Institutional Option – Monthly Dividend 10.6701 

Ratio of Recurring Exps to Net Assets 1.58% 0.55% 0.55% 0.60% 0.30% 

Ratio of Recurring Exps to Net Assets- 

Institutional Plan-Annualised 0.25% 

60


Fixed Fixed Fixed Fixed Fixed Fixed Child Child Short 

Maturity Maturity Maturity Maturity Maturity Maturity Care Care Term 

Plan - Plan - Plan-Half Plan- Plan - Plan - Plan- Plan- Plan 

Qtrly 2 Qtrly 3 Yearly 2 Yearly 2 Yearly 3 Yearly 4 Gift Study 

Option Option 


Date of Allotment Jan. 22, Feb. 20, Mar. 22, Mar. 22, Jun. 21, Sep. 20, Aug. 31, Aug. 31, Oct. 25, 

2001 2001 2001 2001 2001 2001 2001 2001 2001 

NAV at the beginning of 

the year (Rs.) 11.16 10.89 

Growth Option 11.0390 11.0555 10.8363 11.0292 10.6753 10.4381 10.3915 

Dividend Option 10.1450 10.0855 10.0388 10.0110 10.6753 10.4381 - - 10.0433 

Net Income per unit 3.00 1.69 2.25 0.61 0.69 269.99 0.20 0.57 1.14 

Dividends 0.1847 0.1788 - - - - - - 0.0924 

Transfer to Reserves - - - - - - - - - 


Returns (Based on NAVs 

of Growth Option) 7.68% 7.86% 6.84% 8.44% 8.22% 7.48% 4.16% 8.76% 8.47% 

Benchmark Index $ $ $ $ $ $ Crisil Crisil MIP Crisil 

Balanced Blended Composite 

Fund Index Bond 

Index 

Fund 


Benchmark Index $ $ $ $ $ $ -0.76% -1.88% -2.49% 


(Rs. Crore) 0.92 5.51 0.04 10.51 20.41 0.01 10.72 12.36 1078.83 

NAV at the end of the 

period 10.67 11.42 

Growth Option 11. 7551 11.7293 11.4328 11.7817 11.5055 11.1635 11.2323 

Dividend Option 10.6074 10.5122 10.5916 10.6939 11.5055 11.1635 - - 10.7561 

Institutional Option Growth - - - - - - - - 11.2345 

Ratio of Recurring Exps 

to Net Assets 0.55% 0.55% 0.55% 0.60% 0.60% 0.60% 2.00% 1.50% 1.00% 

Ratio of Recurring Exps 

to Net Assets-Institutional 

Plan-Annualised - - - - - - - - 0.80% 

Fixed Index Fund Long term Sweep Plan Fixed Fixed 

Maturity Plan Maturity Maturity 

Plan – One Year One Year 

Yearly 5 Plan – Plan – 

Series 6 Series 7 


Date of Allotment Mar. 22, Feb. 26, Mar. 28, Mar. 6, Jun. 28, Aug. 19, 

2002 2002 2002 2002 2002 2002 

NAV at the beginning of the year (Rs.) 9.5200 10.0520 # # 

Growth Option 10.0354 10.0096 

Dividend Option - - - - - - 

Net Income per unit 0.85 (0.44) 0.79 0.20 0.66 0.32 

Dividends - - - - - - 




Growth Option) 8.43% -15.45% 13.52% 5.15% 6.55%* 3.14%* 

Benchmark Index $ Nifty Crisil Crisil $ $ 

Composite Liquid 

Bond Fund Fund Index 

Return compared to Benchmark Index # 0.89% 3.16% -1.10% # # 

Net Assets end of period (Rs. Crore) 93.77 13.51 234.34 22.86 139.96 1.27 

NAV at the end of the period 8.3278 11.3634 10.5508 10.6555 10.3140 

Growth Option 10.8643 - - - - - 

Dividend Option 10.8643 - - - - - 



Institutional Plan-Annualised - - - - - - 

61


Fixed Flexible Dynamic SPICE Fixed Floating 

Maturity Income Plan Maturity Rate Plan 

Plan – Plan Plan – 

Yearly 8*** Yearly 12 


Date of Allotment Sept. 17, Sept. 27, Oct. 31, Mar. 21, Mar. 29, Jan. 10, 

2002 2002 2002 2003 2003 2003 


year (Rs.) # # # # # # 

Net Income per unit NA 0.73 (0.15) (0.04) 0.01 0.004 





Growth Option) Nil 7.74%* 2.80%* -9.40%* 0.19%* 0.05%* 

Benchmark Index $ I-Sec Si-Bex Nifty SENSEX $ CRISIL 

Liquid 

Fund Index 

Return compared to Benchmark Index # 4.20% 0.14% -0.16% # @@ 


NAV at the end of the period - 10.7745 10.2799 30.4342 10.0046 

Growth Option 10.0191 

Dividend Option - - - - - - 

Institutional Option Growth 10.0208 



Institutional Plan-Annualised - - - 0.20% - 

Notes: 

1. Returns since inception are for the growth plan in each case. 

2. While arriving at Net Income per unit, Income Equalisation Reserve and mark to market has not been considered and it is 

calculated on the basis of closing units as of March 31, 2003. 

3. The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of the 

period of the respective condensed financial information whereas the returns compared to benchmark index are computed 

for the financial year. 

* Fixed Maturity One Year Plan – Series 6, 7, 8, Fixed Maturity Plan – Yearly 12, Prudential ICICI Flexible Income Plan, 

Prudential ICICI Dynamic Plan, SENSEX Prudential ICICI Exchange Traded Fund and Prudential ICICI Floating Rate Plan 

have not completed one year since the date of their launch. Returns are computed in absolute terms and for Growth 

Options only from the date of allotment. The NAV on the date of allotment is taken as Rs.10 for computation of returns 

*** All the units holders under the schemes- Prudential ICICI Gilt Fund Treasury 1 Year Plus Plan and Prudential ICICI Fixed 

Maturity Yearly Plan Series 8 have redeemed their unit holdings and units are nil as on 31/03/03 


$ Appropriate benchmark index is not available. 

@@ Since the units under Scheme were allotted on March 29, 2003 the return compared to Benchmark Index detail is not 

provided. 

62


c) Condensed Financial Information for the period ended March 31, 2004 

Fixed Maturity Fixed Maturity Child Care Plan- Child Care Plan- 

Plan – Yearly 3^ Plan - Yearly 4^ Gift Option Study Option 


Date of Allotment June 21, 2001 Sept 20, 2001 August 31, 2001 August 31, 2001 

NAV at the beginning of the year (Rs.) 10.67 11.42 

Growth Option 11.5055 11.1635 - - 


@@ Net Income per unit N.A. N.A. 1.45 1.10 

Dividends 0.7908 - - - 



(Based on NAVs of Growth Option) N.A N.A. 29.52% 14.32% 

Benchmark Index $ $ Nifty Crisil MIP 

Blended 

Index 

Return compared to Benchmark Index $ $ 1.81% 5.02% 

Net Assets end of period (Rs. Crore) N.A N.A. 25.10 21.87 

NAV at the end of the period - - 19.51 14.13 

Growth Option - - - - 



63


Short Term Fixed Index Long Sweep Fixed Fixed 

Plan Maturity Fund term Plan Maturity Maturity 

Plan – Plan One Year One Year 

Yearly 5 Plan – Plan – 

Series 6 @ Series 7^ 


Date of Allotment Oct. 25, Mar. 22, Feb. 26, Mar. 28, Mar. 6, Jul. 21, Aug. 19, 

2001 2002 2002 2002 2002 2003 2002 


year (Rs.) 8.3278 10.5508 10.6555 10.3140 

Growth Option 11.2323 10.8643 - 11.3634 - - - 

Dividend Option 10.7561 - - - - - - 

Institutional Option - Growth 11.2345 - - - - - - 

@@ Net Income per unit 1.1672 0.4563 1.9315 1.2781 0.2800 1,269.5603 NA 

Dividends 0.8039 - - - - - - 

Fortnightly Dividend Option 0.5644 - - - - - - 

Institutional Fortnightly 


Institutional Dividend Option 0.6027 - - - - - - 




Growth Option) 7.58% 6.19% 22.07% 11.26% 4.53% 29.37%* NA 

Benchmark Index Crisil Short $ Nifty Crisil Crisil $ $ 

term Bond Composite Liquid 

Fund Bond Fund Fund 

Index Index 


Benchmark Index 0.51% $ 1.13% 0.12% -0.45% $ $ 


(Rs. Crore) 1,176.93 5.72 21.88 245.28 59.90 0.02 N.A. 

NAV at the end of the period - 11.2941 15.1811 12.3924 10.9616 12.9370 N.A 

Growth Option 11.9441 - - - - - - 


Institutional Option Growth 11.9703 - - - - - - 

Institutional Option - Dividend 10.8415 

Institutional Fortnightly 

Option –Dividend 10.8443 - - - - - - 

Dividend (Fortnightly) 10.6052 - - - - - - 


Net Assets 1.00% 0.60% 1.25% 0.60% 1.00% 0.60% 0.60% 


Net Assets-Institutional 

Plan-Annualised 0.80% - - - - - - 

64


Flexible Flexible Dynamic SPICE Fixed Floating Fixed Fixed 

Income Income Plan Maturity Rate Plan Maturity Maturity 

Plan Plus Plan – Plan – NRI Plan – 

Plan^ Yearly 12 Series 4 – NRI Series 4 – 

Half Yearly Quarterly^ 


Date of Allotment Sept. 27, May 22, Oct. 31, Jan. 10, Mar. 17, Mar. 28, Oct. 21, Oct. 21, 

2002 2003 2002 2003 2003 2003 2003, 2003, 


year (Rs.) 10.7745 # 10.2799 30.4342 10.0046 # # 

Growth Option - - - - 10.0191 - - - 

Institutional Option - Growth - - - - 10.0208 - - - 

@@ Net Income per unit 1.4298 

N.A. 8.6880 19.3355 0.6369 0.1441 0.2498 N.A. 

Dividends 0.1200 - - - - 0.0182 0.1090 

Dividend Option (Quarterly) 0.4000 

Divide4nd Option (fortnightly) - - - 

Transfer to Reserves - - - - - - - - 



Growth Option) 12.48% N.A. 55.75% 52.60% 5.97% *5.04% *2.50% N.A. 

Benchmark Index I-Sec N.A. Nifty BSE $ CRISIL $ $ 

Composite SENSEX Liquid 

Index 



Benchmark Index -2.26% N.A. 1.06% 1.60% $ 0.66% $ $ 


(Rs. Crore) 822.16 N.A. 109.35 15.67 44.90 512.71 65.10 N.A. 

NAV at the end of the period N.A. - 56.2998 - - 10.2498 

Growth Option 11.9432 18.7310 10.6156 10.5040 

Dividend Option 10.6894 - 8.0733 - - 10.0421 N.A. 

Quarterly Option 10.6894 - - - - - - - 

Institutional Option Growth - - - - 10.6762 - - - 


Net Assets 1.00% 0.50% 2.08% 0.80% 0.75% 0.75% 0.10% 0.55% 


Net Assets-Institutional Plan- 

Annualised - - - - 0.20% - 

65


Fixed Gilt Fund Fixed Fixed Gilt Fund Income 

Maturity Investment Maturity Maturity Treasury Multiplier 

Plan – NRI Plan - PF Plan – Plan – Plan - PF Fund 

Series 6 – Option NRI Series 8 – Series 23 Option 

Quarterly^ 

Quarterly ^ 


Date of Allotment Nov. 21, Nov. 19, Dec. 17, Dec. 15, Feb. 11, Mar. 30, 

2003 2003 2003 2003 2004 2004 


year (Rs.) # # # # # # 

@@ Net Income per unit NA 0.1975 NA 0.1635 0.0435 -0.0132 

Dividends 0.1103 - 0.1121 - - - 

Option A - - - 0.1375 - - 



(Based on NAVs of Growth Option) NA *2.91% NA *1.53% *1.63% *-0.76% 

Benchmark Index $ I-Sec $ $ I-Sec CRISIL 

Li Bex Si Bex Composite 

Bond Fund 

Index 

Return compared to Benchmark 

Index $ 0.36% $ $ 0.64% -0.80% 

Net Assets end of period (Rs. Crore) NA 111.14 NA 66.04 43.31 238.70 

NAV at the end of the period NA 10.2906 NA 10.1633 9.9240 

Option B - - - 10.1532 - - 

Option C - - - 10.1342 - - 

Option D - - - 10.1342 - - 

Option E - - - 10.1354 - - 

Option F - - - 10.1238 - - 

Option G - - - 10.1371 - - 

Option H - - - 10.1336 - - 


Net Assets 0.56% 1.10% 0.55% 0.49% 1.50% 2.09% 

66


Fixed Fixed Advisor Advisor Advisor Advisor Advisor 

Maturity Plan – Maturity Series – Series – Series – Series – Series – 

Series 24 – Plan – Aggressive Cautious Moderate Very Very 

Yearly Series 24 - Plan Plan Plan Aggressive Cautious 

Quarterly Plan Plan 


Date of Allotment Mar. 20, Mar. 20, Dec. 18, Dec. 18, Dec. 18, Dec. 18, Dec. 18, 

2004 2004 2003 2003 2003 2003 2003 

NAV at the beginning of the year (Rs.) # # # # # # # 

@@ Net Income per unit 0.0174 0.0163 0.0712 0.1110 0.0502 0.3141 0.2754 

Dividends - - - - - - - 



(Based on NAVs of Growth Option) *0.18% *0.17% *-0.02% *2.75% *1.64% *-1.41% *1.42% 

Benchmark Index $ $ $$ $$ $$ $$ $$ 

Return compared to Benchmark Index $ $ -1.07% 1.53% 0.55% -2.34% 0.20% 

Net Assets end of period (Rs. Crore) 71.09 91.95 30.12 130.00 49.39 28.41 25.24 

NAV at the end of the period 10.0176 10.0169 9.9982 10.2753 10.1643 9.8586 10.1419 

Dividend Plan – NRI Option - - 9.5898 9.9692 9.7985 - - 

Ratio of Recurring Exps to Net Assets 0.20% 0.22% 0.53% 0.33% 0.43% 0.66% 0.19% 

Notes: 

1) Returns since inception are for the growth plan in each case except in case of Fixed Maturity Plan – NRI Series 4 – Half 

Yearly where there is no Growth Option. For Fixed Maturity Plan – Yearly Series 23 the returns have been calculated on the 

basis of the NAV of Option H. 

2) While arriving at Net Income per unit, Income Equalisation Reserve and mark to market has not been considered and it is 

calculated on the basis of closing units as of March 31, 2004. 

3) The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of the 

period of the respective condensed financial information whereas the returns compared to benchmark index are computed 

for the financial year. 

* Fixed Maturity One Year Plan – Series 6, Prudential ICICI Floating Rate Plan, Fixed Maturity Plan – NRI Series 4 – Half Yearly, 

Prudential ICICI Gilt Fund Investment Plan & Treasury Plan – PF Option, Fixed Maturity Plan – NRI Series 8 – Quarterly, Fixed 

Maturity Plan – Yearly Series 23, Prudential ICICI Income Multiplier Fund, Fixed Maturity Plan – Series 24 – Quarterly and 

Yearly and Prudential ICICI Advisor Series – Aggressive, Cautious, Moderate, Very Aggressive and Very Aggressive Plans 

have not completed one year since the date of their launch. Returns are computed in absolute terms and for Growth 

Options only from the date of allotment. The NAV on the date of allotment is taken as Rs.10 for computation of returns 

** Un-audited. 



@ All the unitholders under Prudential ICICI Fixed Maturity Plan – One Year Plus Series – 6 have redeemed their units on July 

14, 2003 and there was fresh subscription on July 21, 2003 at Rs. 10.00, hence, simple absolute returns have been 

calculated. 

@@ The Net Income per unit mentioned has excluded Income equalisation & marked to market calculated on the basis of 

market value of net assets of the Scheme on the valuation date, divided by the number of units outstanding on that date. 

It may be noted that, as it merely indicates the net income per unit on the valuation date calculated based upon 

outstanding units of the scheme on the given date, it is subject to vary from time to time and does not reflect any income 

/ loss of the scheme. 

^ All the unit holders under Prudential ICICI Fixed Maturity Yearly Plan Series 3, 4 & 7, Fixed Maturity Plan – NRI Series 4, 6 

& 8 –Quarterly Option and Prudential ICICI Flexible Income Plus Plan have redeemed their units and unit balance are nil 

as on the date of this report. 

$$ As provided in the offer document the Benchmark Indices for various Plans under Prudential ICICI Advisor Series are as 

given below: 

67


Benchmark Aggressive Cautious Moderate Very Very 

Indices Plan Plan Plan Aggressive Cautious 

Nifty 65 % 20% 50 % 90 % NA 

Crisil Composite Bond Fund Index 30% 60 % 35 % NA 40% 

Crisil Liquid Fund Index 5 % 20 % 15 % 10 % 60% 

d) Condensed Financial Information for the period ended December 31, 2004. 

Child Care Child Care Short Index Long Sweep Fixed 

Plan- Plan- Term Fund term Plan Maturity 

Gift Study Plan Plan One Year 

Option Option Plan – 

Series 6@ 


Date of Allotment Aug. 31, Aug. 31, Oct. 25, Feb. 26, Mar. 28, Mar. 6, Jul. 21, 

2001 2001 2001 2002 2002 2002 2003 

NAV at the beginning of the year 

(Rs.) 19.51 14.13 15.1811 10.9616 12.9370 

Growth Option 11.9440 - 12.3924 - - 

Dividend Option 10.6050 - - - - 

Fortnightly Dividend Option 10.6052 - - - - 

Institutional Option - Growth 11.9703 - - - - 

Institutional Option – Dividend 10.8415 - - - - 

Institutional Option – Fortnightly 

Dividend 10.8443 - - - - 



Monthly Option 0.3381 - 2.00 - - 

Fortnightly Dividend Option 0.3564 - - - - 

Institutional Fortnightly Dividend 

Option 0.3854 - - - - 

Institutional Monthly Dividend 

Option 0.3595 - - - - 



(Based on NAVs of Growth Option) 28.87% 12.82% 6.93% 22.25% 10.60% 4.26% *2.10% 

Benchmark Index Nifty Crisil MIP Crisil Nifty Crisil Crisil $ 

Blended Short term Composite Liquid 

Index Bond Fund Bond Fund Fund 

Return compared to Benchmark 

Index 3.21% 4.73% 2.04% -0.68% 8.02% -0.39% $ 


NAV at the end of the period - - - - - 

Growth Option 23.31 14.95 12.3800 17.7154 13.2132 11.2491 10.2102 

Dividend Option 10.6475 - - - - 

Dividend (Fortnightly) 10.6290 

Institutional Option Growth 12.4259 - - - - 

Institutional Option – Dividend 10.8878 

Institutional Fortnightly Option – 

Dividend 10.8638 - - - - 



Institutional Plan-Annualised 0.80% - - - - 

68


Flexible Dynamic SPICE Fixed Gilt Fund 

Income Plan Maturity Investment 

Plan Plan – Plan - 

Yearly 12^ PF Option 


Date of Allotment September 27, October 31, January 10, March 17, November 19, 

2002 2002 2003 2003 2003 


Growth Option 11.9432 18.7310 - 10.6156 - 

Dividend Option 10.6894 8.0733 - - - 

Dividend Option (Qtrl) 10.6894 - - - - 

Institutional Option - Growth - - - 10.6762 - 

@@ Net Income per unit 0.1346 0.2112 511.6633 NA 0.0971 

Dividends 0.4000 - - - - 

Dividend Option (Quarterly) 0.4000 - - - 

Dividend Option (fortnightly) - - - - - 



(Based on NAVs of Growth Option) 8.46% 55.94% 41.85% NA 2.69% 

Benchmark Index CRISIL Nifty BSE SENSEX $ I-Sec Li Bex 

Composite 

Bond Fund 

Return compared to Benchmark Index 1.80% 20.47% 0.92% $ 3.85% 

Net Assets end of period (Rs. Crore) 166.67 218.65 0.90 NA 128.27 

NAV at the end of the period - - 

Growth Option 12.0176 26.2238 67.0056 - 10.3008 

Dividend Option 10.3541 11.3058 - - - 


Institutional Option Growth - - - - - 



Institutional Plan-Annualised - - - 0.20% - 

Ratio of Recurring Exps to Net Assets-Plan A 

Ratio of Recurring Exps to Net Assets-Plan B 

Ratio of Recurring Exps to Net Assets-Plan C 

69


Fixed Maturity Gilt Fund Income 

Plan- Yearly 23 Treasury Multiplier 

Plan -PF 


Option 


Date of Allotment December 15, February 11, March 30, 

2003 2004 2004 


Option B – Dividend 10.1532 - - 

Option C 10.1342 - - 

Option D 10.1342 

Option E 10.1354 - - 

Option F 10.1238 - - 

Option G 10.1371 - - 

Option H 10.1336 - - 

@@ Net Income per unit 0.2741 0.1470 0.1118 

Dividends - - 

Option B 0.1878 - - 

Option C 0.2015 - - 

Option D 0.2401 

Option E 0.2827 

Transfer to Reserves - - - 


(Based on NAVs of Growth Option) *3.06% 3.36% 7.98% 

Benchmark Index $ I-Sec Si CRISIL MIP 

Bex Blended 

Return compared to Benchmark Index $ -0.95% 7.56% 

Net Assets end of period (Rs. Crore) 29.06 86.09 127.51 

NAV at the end of the period - - 

Growth Option - 10.336 10.7976 

Option F 10.2759 - - 

Option G 10.2999 - - 

Option H 10.3055 - - 

Ratio of Recurring Exps to Net Assets 0.50% 1.50% 2.13% 

70


Fixed Fixed Advisor Advisor Advisor Advisor Advisor 

Maturity Maturity Series – Series – Series – Series – Series – 

Plan – Plan – Aggressive Cautious Moderate Very Very 

Series 24 – Series 24 - Plan Plan Plan Aggressive Cautious 

Yearly Quarterly Plan Plan 


Date of Allotment March 20, March 20, Dece. 18, Dece. 18, Dece. 18, Dece. 18, Dece. 18, 

2004 2004 2003 2003 2003 2003 2003 

NAV at the beginning of the year (Rs.) 10.0176 10.0169 9.9982 10.2753 10.1643 9.8586 10.1419 

Growth/Cumulative Option - - 9.9982 10.2753 10.1643 - - 

NRI Dividend Option - - 9.5898 9.9692 9.7985 - - 


Dividends - 0.3565 - - - - - 


Compounded Annualised Returns 3.96% 1.39% 16.80% 6.24% 10.39% 22.48% 4.58% 

(Based on NAVs of Growth Option) 

Benchmark Index $ $ $$ $$ $$ $$ $$ 

Return compared to Benchmark Index $ $ 9.84% 1.34% 5.78% 13.20% 2.55% 


NAV at the end of the period - - - - - - - 

Growth Option 10.3958 10.0251 11.7497 10.6487 11.0813 12.3436 10.4761 

Dividend Option - - 11.7497 10.6487 11.0813 12.3436 10.4761 


Discovery Long Term Fixed Fixed Fixed Fixed 

Plan Floating Plan Maturity Maturity Maturity Maturity 

Plan- Plan Plan Plan 

Series 25 Series 25 Series 25- Series 26 - 

Quarterly (15months) Yearly Plan Quarterly 

plan 

plan 


Date of Allotment August 16, September 15, August 10, August 17, September 10, August 31, 

2004 2004 2004 2004 2004 2004 

NAV at the beginning of the year (Rs.) # # # # # # 

Growth/Cumulative Option 

NRI Dividend Option 

@@ Net Income per unit 0.7953 0.1194 0.1329 0.2813 0.2486 0.0942 

Dividends 

Dividend Option - - 0.1182 - - - 

Transfer to Reserves 

Compounded Annualised Returns 28.80% 1.54% 2.07% 1.51% 1.30% 1.69% 

(Based on NAVs of Growth Option) 

Benchmark Index S&P CNX CRISIL $ $ $ $ 

Nifty Liquid 

Fund Index 

Return compared to Benchmark Index -1.30% 0.19% $ $ $ $ 


NAV at the end of the period - - - - - - 

Growth Option 12.88 10.1393 10.0879 10.1511 10.1304 10.0518 

Dividend Option 12.88 10.1393 - - - - 

Institutional Growth Option - 10.1538 - 10.1643 - - 


Ratio of Recurring Exps to Net Assets - 0.75% - 0.25% - - 

for Institutional Option 

Ratio of Recurring Exps to Net Assets - 0.75% - - - - 

71


Floating Rate Plan 


Date of Allotment March 28, 2003 


Growth Option 10.5040 

Dividend Option 10.0421 

@@ Net Income per unit 

0.2490 

Dividend Option – Plan A 0.1905 

Dividend Option – Plan B 0.3570 

Dividend Option – Plan C 0.2048 

Daily Dividend Option – Plan A 0.1739 

Daily Dividend Option – Plan B 0.1811 

Daily Dividend Option – Plan C 0.1834 

Transfer to Reserves - 

Compounded Annualised Returns (Based on NAVs of Growth Option) 

4.92% 

Benchmark Index 

CRISIL Liquid Fund 

Return compared to Benchmark Index 0.58% 

Net Assets end of period (Rs. Crore) 2,608.21 


- 

Plan A - Growth 10.196 

Plan A- Dividend 10.0042 

Plan B - Growth 10.8225 

Plan B- Dividend 10.0481 

Plan C - Growth 10.2111 

Plan C- Dividend 10.0043 

Daily Dividend Option – Plan A 10.0012 

Daily Dividend Option – Plan B 10.0012 

Daily Dividend Option – Plan C 10.0013 

Ratio of Recurring Exps to Net Assets 

Ratio of Recurring Exps to Net Assets-Plan A 1.00% 

Ratio of Recurring Exps to Net Assets-Plan B 0.75% 

Ratio of Recurring Exps to Net Assets-Plan C 0.65% 

Notes: 

1) Returns since inception are for the growth plan in each case except under Fixed Maturity Plan – Quarterly Series 

24, Fixed Maturity Plan – Quarterly Series 25, Fixed Maturity Plan – Quarterly Series 26 for which returns have 

been calculated after adjusting declaration of dividend. For Fixed Maturity Plan – Yearly Series 23 the returns have 

been calculated on the basis of the NAV of Option H. 

2) The additional Plan viz. Plan A, Plan B & Plan C were introduced in Prudential ICICI Floating Rate Plan on July 29, 

2004. The existing option was assigned as Plan B and returns for the scheme has been computed using Plan B - 

Growth Option. 

3) While arriving at Net Income per unit, Income Equalization Reserve and mark to market has not been considered 

and it is calculated on the basis of closing units as of December 31, 2004. 

4) The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of 

the period of the respective condensed financial information whereas the returns compared to benchmark index 

are computed for the financial year. 

72


* Prudential ICICI Gilt Fund Investment Plan & Treasury Plan– PF Options, Fixed Maturity Plan Yearly Series 23, Prudential 

ICICI Income Multiplier Plan, Fixed Maturity Plan Series 24 – Quarterly, and Yearly Options and Prudential ICICI 

Advisor Series, Prudential ICICI Discovery Fund, Prudential ICICI long Term Floating Rate Plan, Fixed Maturity Plan 

Series 25 – Quarterly, Yearly, 15 Months Plan, Fixed Maturity Plan Series 26 – Quarterly plan have not completed 

one year since the date of their launch. Returns are computed in absolute terms and for Growth Options only 

from the date of allotment. The NAV on the date of allotment is taken as Rs.10 for computation of returns 

** Un-audited. 

# These Schemes were launched during the year and these schemes were not in existence at the beginning of the 

year. 


@ All the unitholders under Prudential ICICI Fixed Maturity Plan – One Year Plus Series – 6 and Prudential ICICI Fixed 

Maturity Plan – Quarterly Series – 24 have redeemed their units on July 28, 2004 & September 21, 2004 respectively 

and there was fresh subscription on July 29, 2004 & September 28, 2004 at Rs. 10.00, hence, simple absolute 

returns have been calculated. 

@@ The Net Income per unit mentioned has excluded Income equalisation & marked to market calculated on the basis 

of market value of net assets of the Scheme on the valuation date, divided by the number of units outstanding on 

that date. It may be noted that, as it merely indicates the net income per unit on the valuation date calculated 

based upon outstanding units of the scheme on the given date, it is subject to vary from time to time and does 

not reflect any income / loss of the scheme. 

^ All the unit holders under Prudential ICICI Fixed Maturity Plan Series 12 & Prudential ICICI Fixed Maturity Plan 

Series 23 have redeemed their units and unit balance are nil as on the date of this report. 

$$ As provided in the offer document the Benchmark Indices for various Plans under Prudential ICICI Advisor Series 

are as given below: 

Benchmark Indices Aggressive Cautious Moderate Very Very 

Plan Plan Plan Aggressive Plan Cautious Plan 

Nifty 70 % 15% 40 % 90 % NA 

Crisil Composite Bond Fund Index 25% 70 % 40 % NA 30% 

Crisil Liquid Fund Index 5 % 15 % 20 % 10 % 70% 

73


SECTION VI 

UNITHOLDERS RIGHTS & SERVICES 

a) Investor Services 

The Fund believes in providing the investors with a superior service to make the investors’ experience in dealing with the 

Fund an efficient and satisfactory one. In order to achieve these goals, the Fund will endeavour to continuously establish 

and upgrade systems to handle transactions efficiently and resolve any investor grievances promptly. 

b) Ease of Transactions 

The Fund intends to make every transaction for the investor a simple and convenient one. The Fund plans to provide the 

following services:- 

i) Customer Service Centres in major metros 

The AMC presently has Customer Service Centres in five main cities and various other cities the details in respect 

of which are stated on the last page of this Offer Document. Over a period of time, the AMC will endeavour to 

add further Customer Service Centres and/or sales offices in other cities. Unit holders can go to these Service 

Centres / Sales Offices for enquiries and transactions during business hours. 

ii) Process transactions in a timely manner 

Under the Regulations, the Fund/ the Registrar / AMC shall despatch to the Unit holders the dividend warrants, if 

any, within thirty days of the date of declaration of dividend and the Redemption proceeds within ten Business 

Days from the date of acceptance / deemed acceptance of the request for Redemption or repurchase proceeds, as 

the case may be. 

Under normal circumstances, the Fund will endeavour to complete all monetary transactions within three Business 

Days from the date of acceptance of a transaction request at the Customer Service Centres. 

Ordinarily, non-monetary transactions or requests (including dispatch of statement of accounts) will be processed, 

(with the exception of issue of Unit certificates) within 7 (seven) Business Days. Investors should note that completion 

of monetary/ non-monetary transactions within the Business Days as indicated above would be done on “best 

efforts” basis and completion of all such transactions are subject to the time limits as prescribed under the 

Regulations. 

c) Problem Resolution 

The Fund will follow-up with Customer Service Centres and Registrar on complaints and enquiries received from investors 

for resolving them promptly. 

For this purpose, Mr. Ketan Mirchandani has been appointed the Customer Relations Officer. He can be contacted at the 

following address: 

Construction House, Ground Floor, 

Walchand Hirachand Marg, 

Ballard Estate, Mumbai 400 001 

Phone: (91)(22) 2679676/ 2697989 

Fax : (91)(22) 2695933 

e-mail: enquiry@pruicici.com 

d) Information about the Scheme 

An abridged scheme wise annual report shall be mailed to all Unitholders, not later than six months from March 31 of 

each year. The abridged annual report shall contain such details as are required under the Regulations. 

The Fund shall before the expiry of one month from the close of each half year, that is as on March 31 and September 30, 

publish its unaudited financial results in one English daily newspaper circulating all India and in a newspaper published 

in the language of the region where the Head Office of the Fund is situated and update the same on AMC’s website at 

www.pruicici.com within 30 days and 60 days in two different formats prescribed in terms of SEBI’s circular dated April 

20, 2001 and on AMFI web site (www.amfiindia.com) before the expiry of one month from the close of each half-year, in 

the prescribed format. 

Further the Fund shall also disclose the half-yearly scheme portfolios on its web site at www.pruicici.com and on AMFI 

web site (www.amfiindia.com) in the prescribed format before the expiry of one month from the close of each half-year. 

The Fund shall before the expiry of one month from the close of each half year (31 st March and 30 th September) send to 

the Unitholders a complete statement of Plan’s portfolios or if such statement is not sent to the Unitholders, it will be 

published by way of an advertisement in one English daily circulating in the whole of India and in a newspaper published 

in the language of the region where the head office of the mutual fund is situated. 

The AMC will disclose the NAV of the Scheme on every Business Day. 

74


e) NAV Information 

The NAV of the Scheme will be calculated daily and announced by the Fund on each Business Day. The information on NAV 

may be obtained by the Unitholders, on any day, by calling the office of the AMC or any of the Investor Service Centres. 

The Fund will use its best endeavour to publish NAVs daily, in at least two daily newspapers. Further, the AMC shall 

endeavour to publish the Purchase & Redemption prices of Units daily in a newspaper with all India circulation. 

AMC shall update the NAVs on the website of Association of Mutual Funds in India - AMFI (www.amfiindia.com) by 8.00- 

p.m. everyday. In case of any delay, the reasons for such delay would be explained to AMFI and SEBI by the next day. If the 

NAVs are not available before commencement of business hours on the following day due to any reason, the Fund shall 

issue a press release providing reasons and explaining when the Fund would be able to publish the NAVs. 

f) Disclosure of information under the Regulations 

The Fund will, not later than six months after the close of each financial year (March 31), mail to the Unitholders an 

abridged scheme wise annual report. It is anticipated that the first such publication will be for the period ending March 

31, 2003. Further, the full text of the Annual Report will be available for inspection at the office of the Fund. A copy of the 

Annual Report will be sent to Unit holders, free of cost, on specific request. 

The Fund shall before the expiry of one month from the close of each half year, that is as on March 31 and September 30, 

publish its unaudited financial results in one English daily newspaper having all India circulation and in a newspaper 

published in the language of the region where the Head Office of the Fund is situated and update the same on AMC’s 

website at www.pruicici.com within 30 days and 60 days in two different formats prescribed in terms of SEBI’s circular 

dated April 20, 2001 and on AMFI’s website at www.amfiindia.com within 30 days from the close of each half year, in the 

prescribed formats. 

Further the Fund shall also disclose the half-yearly scheme portfolios on its web site at www.pruicici.com and on AMFI 

web site (www.amfiindia.com) in the prescribed format before the expiry of one month from the close of each half-year. 

g) Rights of Unitholders of the Scheme and the Plans thereunder 

1. Unitholders of a Plan have a proportionate right in the beneficial ownership of the assets of that Plan. 

2. In terms of the Regulations, the Redemption proceeds will be dispatched within ten Business Days from the date 

of acceptance / deemed acceptance of the request for Redemption or repurchase proceeds, as the case may be. 

3. The Trustee is bound to make such disclosures to the Unitholders as are essential in order to keep them informed 

about any information known to Trustee which may have an adverse bearing on their investments. 

4. The appointment of an AMC for the Fund can be terminated by majority of the Trustee or by 75% of the 

Unitholders of the Scheme of the Fund and any change in the appointment of the AMC shall be subject to the 

prior approval of SEBI and the Unitholders of the Scheme and the Plans thereunder. 

5. The Trustee is obliged to convene a meeting on a requisition of 75% of the Unitholders of the Scheme and the 

Plans thereunder. 

6. 75% of the Unitholders of a Scheme and the Plan thereunder can pass a resolution to wind up the Scheme and 

the Plans thereunder. 

7. Unitholders have the right to inspect all the documents listed under “Documents Available for Inspection”. 

8. The Trustee shall obtain the consent of the Unitholders: 

a) whenever required to do so by SEBI, in the interest of Unitholders 

b) whenever required to do so on the requisition made by three-fourths of the Unitholders of the Scheme and 

the plans thereunder. 

c) when the Trustee decides to wind up or prematurely redeem the units. 

9. The Trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fee and 

expenses payable or any other change which would modify the scheme and affects the interests of unit holders is 

carried out unless: 

– a written communication about the proposed change is sent to each Unitholder and 

– an advertisement is given in one English daily newspaper having nationwide circulation as well as in a 

newspaper published in the language of the region where the Head Office of the mutual fund is situated; 

and the Unitholders are given an option to exit at the prevailing Net Asset Value without any exit load. 

Subject to the Regulations and the guidelines issued by SEBI, the consent of the Unitholders of the Plans will be 

obtained through voting, by mail. Detailed modalities of the same, including the principles for entitlement of 

votes for each Unitholder will be finalized in consultation with and after obtaining the approval of SEBI and the 

Trustee. 

10. Annual report containing accounts of the AMC would be displayed on the websites of the Fund (i.e. 

www.pruicici.com) Unitholders, if they so desire, may request for the annual report of the AMC. 

75


h) Duration of the Scheme/ Winding up. 

The duration of the Scheme is perpetual. The AMC, the Fund and the Trustee reserve the right to make such changes/ 

alterations the Scheme (including the charging of fees and expenses) offered under this Offer Document to the extent 

permitted by the applicable Regulations. However, in terms of the Regulations, a Scheme may be wound up after repaying 

the amount due to the Unitholders: 

1. On happening of any event, which in the opinion of the Trustee, requires the Scheme to be wound up, OR 

2. If seventy five percent (75%) of the Unitholders of the Schemes pass a resolution that the Scheme be wound up, OR 

3. If SEBI so directs in the interest of the Unitholders 

Where the Scheme is so wound up, the Trustee shall give notice of the circumstances leading to the winding up of the 

Scheme to: 

1. SEBI and, 

2. In two daily newspapers with circulation all over India and in one vernacular newspaper with circulation in Mumbai. 

On and from the date of the publication of notice of winding up, the Trustee or the Investment Manager, as the case may 

be, shall: 

1. Cease to carry on any business activities in respect of the Scheme so wound up; 

2. Cease to create or cancel Units in the Scheme; 

3. Cease to issue or redeem Units in the Scheme. 

i) Procedure and manner of Winding up 

The Trustee shall call a meeting of the Unitholders to approve by simple majority of the Unitholders present and voting 

at the meeting for authorising the Trustee or any other person to take steps for the winding up of the Scheme. 

The Trustee or the person authorised above, shall dispose of the assets of the Scheme concerned in the best interest of 

the Unitholders of the Scheme. 

The proceeds of sale realised in pursuance of the above, shall be first utilised towards discharge of such liabilities as are 

due and payable under the Scheme, and after meeting the expenses connected with such winding up, the balance shall 

be paid to Unitholders in proportion to their respective interest in the assets of the Scheme, as on the date the decision 

for winding up was taken. 

On completion of the winding up, the Trustee shall forward to SEBI and the Unitholders a report on the winding up, 

detailing the circumstances leading to the winding up, the steps taken for disposal of the assets of the Scheme before 

winding up, net assets available for distribution to the Unitholders and a certificate from the auditors of the Fund. 

Notwithstanding anything contained above, the provisions of the Regulations in respect of disclosures of half-yearly 

reports and annual reports shall continue to be applicable. 

After the receipt of the report referred to above, if SEBI is satisfied that all measures for winding up of the Scheme have 

been complied with, the Scheme shall cease to exist. 

j) Tax benefits of investing in the Mutual Fund 

The following information is provided only for general information purpose. In view of the individual nature of tax 

benefits each investor is advised to consult with his or her own tax consultant with respect to the specific tax implications 

arising out of their participation in the scheme. 

The Scheme’s auditors, N. M. Raiji and Co. have confirmed that based on the law in force, the following benefits may 

accrue to the respective assesses: 

TO THE FUND 

The Income of the Fund registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations 

made there under will be exempt from income tax in accordance with the provisions of section 10(23D) of the Act. The 

income received by the Fund is not liable for deduction of tax at source. 

As per section 115R, the Mutual Funds are liable to pay additional income tax on the income distributed by it. 

The Finance (No. 2) Act 2004 has amended the provisions of section 115R of the Act, whereby additional tax is payable at 

different rates on income distributed to different class of unitholders. The Mutual Funds will be liable to pay additional 

income tax at the rate of 12.50% plus applicable surcharge on the income distributed by the Fund to Individuals and Hs 

and at the rate of 20% plus applicable surcharge on the income distributed to any other assessees. The aforesaid rates are 

applicable in respect of income distributed by the fund on or after July 09, 2004. Levy of education cess at the rate of 2% 

is also applicable on total tax payable. However, in respect of open-ended equity oriented funds, no additional income tax 

is payable on income distributed by the Fund. 

76


SECURITIES TRANSACTION TAX 

The Finance (No. 2) Act 2004 has introduced Securities Transaction Tax (STT), which is made applicable to transactions of 

purchase or sale of units of Equity Oriented Fund entered into on a recognized stock exchange or sale of units of Equity 

Oriented Fund to the Mutual Fund. The Securities Transaction Tax shall come into force from such date as may be notified 

in the Official Gazette by the Central Government. The Securities Transaction Tax (STT) has come into force from October 

01, 2004. 

The STT rates as would be applicable from the aforesaid date are given in the following table: 

Taxable Securities Transaction Rate Payable by 

Purchase of a unit of an equity oriented fund, where - 

the transaction of such purchase is entered into in a recognised 0.075% Purchaser 

stock exchange; and 

the contract for the purchase of such unit is settled by the actual 

delivery or transfer of such unit. 

Sale of a unit of an equity oriented fund, where - 

the transaction of such sale is entered into in a recognised stock 0.075% Seller 

exchange; and 

the contract for the sale of such unit is settled by the actual delivery 

or transfer of such unit. 

Sale of a unit of an equity oriented fund, where - 

the transaction of such sale is entered into in a recognised stock 0.015% Seller 

exchange; and 

the contract for the sale of such unit is settled otherwise than by the 

actual delivery or transfer of such unit. 

Sale of unit of an equity oriented fund to the Mutual Fund itself. 0.15% Seller 

Mutual Fund is responsible for collecting the STT from every person who sells the unit to it at the rate of 0.15%. The STT 

collected by Mutual Fund during any month will have to be deposited with the Central Government by the seventh day of 

the month immediately following the said month. 

The term “Equity Oriented Fund” for the purpose of STT, has been defined to mean a fund where the investible funds are 

invested by way of equity shares in domestic companies to the extent of more than 50% of the total proceeds of such fund 

and which has been set up under a scheme of a Mutual Fund. Further, it is provided that the percentage of equity share 

holding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and 

closing figures. 

TO THE UNITHOLDERS 

2.1 INCOME RECEIVED FROM MUTUAL FUND 

According to section 10(35) of the Act, any income received in respect of units of Mutual Fund specified under 

section 10(23D) will be exempt from income tax in the hands of the unit holders. Further, it has been clarified that 

income arising from transfer of units of Mutual Fund shall not be exempt under section 10(35). 

2.2 LONG TERM CAPITAL GAINS ON TRANSFER OF UNITS 

The Finance (No. 2) Act 2004 has inserted Section 10(38) whereby Long Term Capital Gain on sale of units of 

Equity Oriented Funds will be exempt from Income Tax in the hands of unit holders after introduction of STT, 

provided such transactions are entered into a recognised stock exchange or such units are sold to the Mutual 

Fund. 

In respect of capital gains not exempted under section 10(38), the provisions for taxation of long-term capital 

gains for different categories of assessees are explained hereunder: 

i) For Individuals and HUFs 

Long-term Capital Gains in respect of Units of Mutual Fund held for a period of more than 12 months will be 

chargeable under section 112 of the Act, at a rate of 20% plus surcharge, as applicable and cess. Capital 

Gains would be computed after taking into account cost of acquisition as adjusted by Cost Inflation Index 

notified by the Central Government and expenditure incurred wholly and exclusively in connection with such 

transfer. In the case where taxable income as reduced by long term capital gains is below the exemption limit, 

the long term capital gains will be reduced to the extent of the shortfall and only the balance long term 

capital gains will be charged at the flat rate of 20% plus surcharge, as may be applicable and cess. 

It is further provided that an assessee will have an option to apply concessional rate of 10% plus applicable 

surcharge and cess, provided the long term capital gains are computed without substituting indexed cost in 

place of cost of acquisition. 

ii) For Partnership Firms, Non-Residents, Indian Companies/Foreign Companies 

Long-term Capital Gains in respect of Units held for a period of more than 12 months will be chargeable 

under section 112 of the Act at a rate of 20% plus surcharge, as may be applicable and cess. Capital gains 

77


would be computed after taking into account cost of acquisition as adjusted by Cost Inflation Index notified 

by the Central Government and expenditure incurred wholly and exclusively in connection with such transfer. 

It is further provided that an assessee will have an option to seek concessional rate of 10%, plus applicable 

surcharge and cess to long-term capital gains computed without adjusting for cost for indexation. 

(iii) For Non-resident Indians 

Under section 115E of the Act for non-resident Indians, income by way of long-term capital gains in respect 

of Units is chargeable at the rate of 20% plus applicable surcharge and cess. Such long-term capital gains 

would be calculated without indexation of cost of acquisition. 

Non-resident Indians may opt for computation of long term capital gains as per section 112, which is more 

beneficial. 

(iv) For Overseas Financial Organisations, including Overseas Corporate Bodies and Foreign Institutional 

Investors fulfilling conditions laid down under section 115AB (Offshore Fund) 

Under section 115AB of the Act, income by way of long-term capital gains in respect of units purchased in 

foreign currency held for a period of more than 12 months will be chargeable to tax at the rate of 10%, plus 

applicable surcharge and cess. Such gains would be calculated without indexation of cost of acquisition. 

2.3 SHORT TERM CAPITAL GAINS ON TRANSFER OF UNITS 

The Finance (No. 2) Act 2004 has inserted Section 111A, whereby short-term capital gains arising on sale of units 

of Equity Oriented Funds after introduction of STT would be chargeable to income tax at a concessional rate of 

10% plus applicable surcharge and cess provided such transactions are entered into on a recognised stock exchange 

or such units are sold to the Mutual Funds. Further, Section 48 has been amended to provide that no deduction 

shall be allowed in respect of STT paid for the purpose of computing Capital Gains. 

In respect of capital gains not chargeable under section 111A, the provisions for taxation of short-term capital 

gains for different categories of assessees is explained hereunder: 

Short term Capital Gains in respect of Units held for a period of not more than 12 months is added to the total 

income. Total income including short-term capital gains is chargeable to tax as per the relevant slab rates. 

Income Tax Rates 

The maximum tax rates applicable to different categories of assessees are as follows: 

Resident individuals and HUF 

30% plus surcharge and cess 

Partnership Firms 


Indian companies 


Non Resident Indians 


Foreign Companies 


A surcharge of 2.5% on the income tax would be levied on all categories of assesses except in the case of individuals 

and HUF. With regards to individuals and HUF having a total income exceeding Rs. 850,000, a surcharge of 10% 

would be applicable. Further, education cess at the rate of 2% on the income tax (including applicable surcharge) 

would be applicable for all categories of assessees. 

2.4 CAPITAL LOSSES 

Losses under the head “Capital Gains” cannot be setoff against income under any other head. Further within the 

head “Capital Gains”, losses arising from the transfer of long-term capital assets cannot be adjusted against 

gains arising from the transfer of a short-term capital asset. However, losses arising from the transfer of shortterm 

capital assets can be adjusted against gains arising from the transfer of either a long-term or a short-term 

capital asset. 

Finance Act, 2004 has inserted Section 10(38), whereby Long term Capital gain on sale of units of Equity Oriented 

Fund will be exempt from Income Tax provided certain conditions are fulfilled. Hence, losses arising from such 

type of transaction of sale of units of Equity Oriented Fund would not be eligible for set-off against taxable 

capital gains. 

Unabsorbed long-term capital loss can be carried forward and set off against the long-term capital gains arising 

in subsequent eight assessment years. 

Unabsorbed short-term capital loss can be carried forward and set off against the income under the head Capital 

Gains in subsequent eight assessment years. 

According to section 94(7) of the Act as amended by the Finance (No. 2) Act, 2004, if any person buys or acquires 

units within a period of three months prior to the record date fixed for declaration of dividend or distribution of 

income and sells or transfers the same within a period of nine months from such record date, then losses arising 

from such sale to the extent of income received or receivable on such units, which are exempt under the Act, will 

be ignored for the purpose of computing his income chargeable to tax. 

Further, Finance (No. 2) Act, 2004 has inserted sub-section (8) in Section 94 which provides that, where additional 

units have been issued to any person without any payment, on the basis of existing units held by such person 

then the loss on sale of original units shall be ignored for the purpose of computing income chargeable to tax, if 

78


the original units were acquired within 3 months prior to the record date fixed for receipt of additional units and 

sold within 9 months from such record date. However, the loss so ignored shall be considered as cost of acquisition 

of such additional units held on the date of sale by such person. 

2.5 TAX DEDUCTION AT SOURCE 

For Income in respect of units: 

No tax shall be deducted at source in respect of any income credited or paid in respect of units of the Fund as per 

the provisions of section 10(35), section 194K and section 196A. 

For Capital Gains: 

(i) In respect of Resident Unit holders: 

No tax is required to be deducted at source on capital gains arising to any resident unit holder (under section 

194K) vide circular no. 715 dated August 8, 1995 issued by the Central Board for Direct Taxes (CBDT). 

(ii) In respect of Non- Resident Unit holders: 

Under section 195 the Act, tax shall be deducted at source in respect of capital gains as under: 

a. In case of non resident other than a company - 

Long term capital gains 1 20% plus surcharge and cess 

Short term capital gains 30% plus surcharge and cess 

b. In case of foreign company - 


Short term capital gains 40% plus surcharge and cess 

c. In case of Offshore Fund as defined in 115AB – 


1 

Except for gains arising from sale of unit of Equity Oriented Funds, which are exempt under section 10(38) 

of the Act. 

As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a country with which a 

Double Taxation Avoidance Agreement (DTAA) is in force, the tax should be deducted at the rate provided in 

the Finance Act of the relevant year or at the rate provided in DTAA whichever is more beneficial to the 

assessee. 

2.6 EXEMPTION FROM TAX ON CAPITAL GAINS ARISING ON TRANSFER OF UNITS HELD FOR MORE THAN 12 

MONTHS 

Under section 54EC of the Act 

As provided under section 54EC, and subject to the conditions specified therein, where an assessee has made 

capital gains from the transfer of units held in Mutual Fund Scheme for a period exceeding 12 months and the 

assessee has any time within a period of 6 months after the date of such transfer, invested the whole of the 

capital gains in the long term specified assets i.e., in bonds redeemable after 3 years issued by the National Bank 

for Agriculture and Rural Development, or by the National Highways Authority of India or by the Rural Electrification 

Corporation Limited or by National Housing Bank or by the Small Industries Development Bank of India, such 

capital gains shall be exempted from tax on capital gains under section 54EC of the Income Tax Act, 1961. However, 

if the assessee has invested only a part of the capital gains, he will be eligible for the proportionate exemption. 

Under section 54ED of the Act 

Under Section 54ED and subject to the conditions specified therein, capital gains arising from the transfer of 

units held in the Mutual Fund Scheme for a period exceeding 12 months will be exempt, if the assessee has, any 

time within a period of 6 months after the date of such transfer, invested the whole of the capital gains in acquiring 

equity shares forming part of an eligible issue of capital. However, if the assessee has invested only a part of the 

capital gains, he will be eligible for the proportionate exemption. An eligible issue of capital means an issue of 

equity shares offered for subscription to the public by a public company formed and registered in India. 

2.7 INVESTMENTS BY CHARITABLE AND RELIGIOUS TRUSTS 

Units of a Mutual fund Scheme referred to in clause 23D of section 10 of the Income Tax Act, 1961, constitute an 

eligible avenue for investment by charitable or religious trusts per rule 17C of the Income Tax Rules, 1962, read 

with clause (xii) of sub-section (5) of section 11 of the Income Tax Act, 1961. 

2.8 WEALTH TAX 

Units held under the Mutual Fund Scheme are not treated as assets within the meaning of section 2(ea) of the 

Wealth Tax Act, 1957 and are, therefore, not liable to Wealth-Tax. 

2.9 GIFT TAX 

Units of the Mutual Fund may be given as a gift and no gift tax will be payable either by the donor or the donee, 

as the Gift Tax Act has been abolished. 

79


3. TO THE AUTHORISED PARTICIPANTS 

Authorised Participants and large Institutional Investors can directly convert SPIcE into the underlying stock or can convert 

“portfolio of underlying stock” into SPIcE with the Fund. 

Authorised Participant means the Member of the Stock Exchange, Mumbai, who is appointed by the AMC/Fund to act as 

Authorised Participant or any other person appointed by AMC/Fund. 

The process of exchange of SPIcE with underlying stocks amount to transfer of units. The same could be either subject to 

tax as Capital Gains or Business Income in the hands of Authorized Participants / Large Institutional Investors, depending 

upon whether the transaction was in the nature of investment or in the nature of trade for the authorised participants. 

As only the members of the Stock Exchange can be Authorised Participants and in view of their business of regular 

trading in securities, income arising from conversion of SENSEX ETF / SPIcE into underlying stock and vice versa, is likely to 

be taxed under the Profits and Gains of Business or Profession. 

k) Unclaimed redemption amount 

The unclaimed Redemption amount may be deployed by the Mutual Fund in call money market or money market 

instruments only and the investors who claim these amounts during a period of three years from the due date 

shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred to a 

pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income 

earned on such funds will be used for the purpose of investor education. The AMC will make a continuous efforts 

to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee 

charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points. 

Unclaimed Dividend / Redemptions in respect of the open ended funds ormally represent the time lag between 

funding of the respective accounts (with bank) by the AMC and the time taken for presentation of redemption/ 

dividend warrants by the investors. No significant delay in the process is noticed. Hence the details in respect of 

open-ended funds is not mentioned. 

Details in respect of Prudential ICICI Premier are given below - 

As of March 31, 2004 As of December 31, 2004 

Unclaimed Redemption Amount – Rs. 9.53 Crores in respect Rs.5.93 crores 

Premier Redeemed of 30,737 investors of 27125 Investors 

Unclaimed Redemption Amount – Rs. 4.64 Crores in respect Rs. 3.65 Crores of 

Premier Rolled Over Redeemed of 6,854 investors 5538 investors 

Unclaimed Dividend Amount Rs.0.03 Crores Rs.0.03 Crores 

80


SECTION VI 

OTHER MATTERS 

a) UNITHOLDER GRIEVANCES REDRESSAL MECHANISM 

Investor grievances are normally received at AMC office or at the Customer Service Centres or directly by the Registrar. All 

grievances are forwarded to the Registrar for their necessary action. The complaints are closely followed up with the 

Registrar to ensure timely redresses and prompt investor service. Given below is the complaint history for the last three 

fiscal years: 

ICICI Premier ICICI Power # 

01/04/2001 to 31/03/2002 

Complaints/ Requests received during the period 1011 1209# 

Redressed during the period 1011 1215# 

Pending as on March 31, 2002 4 Nil 

01/04/2002 to 31/03/2003 

Complaints/ Requests received during the period 700 Not applicable 

Redressed during the period 699 Not applicable 

Pending as on March 31, 2003 5 Not applicable 

01/04/2003 to 31/3/2004 



Pending as on March 31, 2004 3 Not applicable 

01/04/2004 to 31/12/2004 



Pending as on November 22, 2004 2 Not applicable 

#Status reported till the Record Date of Conversion. Name changed to Prudential ICICI Power with effect from 

September 27, 2001. The status on investor complaints consequent to conversion is reported separately. 

The above two funds were launched in 1994. . ICICI Power has been converted in to an open-ended fund w.e.f. 

September 27, 2001. Consequent to conversion its name is changed to Prudential ICICI Power. Further, ICICI Premier was 

rolled over for a further period of 5 years each in February 1999 and February 2004. Thereafter it was rolled-over for one 

year and is getting redeemed now in February 2005. The pending investor complaints / requests pertain to, inter-alia, 

Issue of duplicate certificates, non receipt of certificates, non receipt of redemption/dividend warrants, revalidation of 

dividend warrants, name correction, change of address of the Unitholder, registration of death cases, registration of 

Power of Attorney, transfer/transmission of Units etc. All investor grievances are normally redressed within a period of 15 

days of their receipt, subject to the information furnished by the Unitholder is complete and accurate. If such information 

is not provided/not available with the Registrars to the above Schemes, the matter is further followed up with the 

investors. Investor complaints are continuously monitored with the Registrar to the Schemes. 

81


The details relating to the nineteen open ended schemes launched by the Fund are as under: 

Data relating to the period July 1998 to December 31, 2004 

Scheme Complaints Complaints Complaints 

Received redressed pending 

Prudential ICICI Growth Plan 513 513 Nil 

Prudential ICICI Income Plan 1039 1039 Nil 

Prudential ICICI Liquid Plan 150 150 Nil 

Prudential ICICI FMCG Fund 403 403 Nil 

Prudential ICICI Tax Plan 412 412 Nil 

Prudential ICICI Gilt Fund 130 130 Nil 

Prudential ICICI Balanced Fund 483 483 Nil 

Prudential ICICI Technology Fund 1997 1997 Nil 

Prudential ICICI Monthly Income Plan 121 121 Nil 

Prudential ICICI Fixed Monthly Plan 18 18 Nil 

Prudential ICICI Child Care Plan 178 178 Nil 

Prudential ICICI Power 149 149 Nil 

Prudential ICICI Short Term Plan 3 3 Nil 

Prudential ICICI Long Term Plan 0 0 Nil 

Prudential ICICI Sweep Plan 0 0 Nil 

Prudential ICICI Flexible Income Plan 10 10 Nil 

Prudential ICICI Dynamic Plan 14 14 Nil 

Prudential ICICI Floating Rating Plan 3 3 Nil 

Prudential ICICI Index Fund-S&P CNX Nifty Plan 8 8 Nil 

Sensex Prudential ICICI Exchange Traded Fund 0 0 Nil 

Prudential ICICI Advisory Series 3 3 Nil 

Prudential ICICI Income Multiplier Fund 5 5 Nil 

Prudential ICICI Discovery Fund 4 4 Nil 

Prudential ICICI Emerging S.T.A.R. Fund 1 1 Nil 

Prudential ICICI Long Term Floating Rate 0 0 Nil 

Total 5644 5644 Nil 

82


b) ASSOCIATE TRANSACTIONS 

INVESTMENT IN GROUP COMPANIES: 

Details of investments made by the schemes in securities of Sponsor i.e. ICICI Bank Ltd. (erstwhile ICICI Ltd.) during 

the previous three financial years are as follows: 

(Amount in Rupees) 

Scheme name/Nature of investment April 1, 2004 to 

December 31, F.Y 2003-2004 F.Y 2002-2003 F.Y. 2001-2002 

2004 

Investment in Bonds of ICICI Bank Ltd. 

Prudential ICICI Income Plan 217,149,092 15,00,00,000 818,794,702 1,027,466,435 

Prudential ICICI Balanced Fund - - - 17,991,012 

Prudential ICICI Liquid Plan - 10,00,00,000 10,891,898 39,359,762 

Prudential ICICI Short Term Plan - - 58,913,072 61,800,122 

Prudential ICICI Fixed Maturity Plan – 217,149,092 - - - 

Yearly Plan- Series 12 

Investment in NSE Linked Mibor 

Deposits /Term Deposit of ICICI Bank Ltd 

Prudential ICICI Liquid Plan 3,045,309,726 13,250,000,000 200,000,000 1,500,000,000 

Prudential ICICI Monthly Income Plan 513,160,959 

Prudential ICICI Short Term Plan - 1,250,000,000 - - 

Prudential ICICI Power - - - 20,000,000 

ICICI Premier - - - 20,000,000 

Prudential ICICI Balanced Fund - - - 80,000,000 

Prudential ICICI Fixed Maturity Plan – - 16,000,000 5,000,000,000 - 


Prudential ICICI Fixed Maturity Plan – - 21,700,000 50,000,000 - 


Prudential ICICI Fixed Maturity Plan – - 200,000,000 - - 


Prudential ICICI Fixed Maturity Plan – - 127,000,000 - - 

NRI Series 4 – Half Yearly 

Prudential ICICI Long Term Floating 200,031,507 - - - 

Rate Plan 

Prudential ICICI Floating Rate Plan 750,000,000 - - - 

Prudential ICICI Flexible Income Plan 82,117,260 - - - 

Investment in equity shares of 

Erstwhile ICICI Ltd 

Prudential ICICI Index Fund - - 1,031,715 

Investment in equity shares of ICICI 

Bank Ltd 

Prudential ICICI Index Fund 164,325 4,094,680 3,491,370 592,862 

Sensex Prudential ICICI Exchange 5,847,377 4,144,321 6,327,798 - 

Traded Fund 

TOTAL 5,030,929,338 15122939001 6,148,418,840 2,768,241,908 

% to the net assets of the Mutual Fund 2.92% 10.55% 6.77% 4.19% 

83


Underwriting obligations with respect to issues of Associate Companies: 

The AMC has, till date, not entered into any underwriting contracts in respect of any public issue made by any of its 

associate companies. 

Subscription in issues lead managed by ICICI Securities Ltd. [erstwhile ICICI Securities & Finance Company Limited 

(I-Sec)] 


ICICI Securities Ltd. (erstwhile ICICI Securities April 1, 2004 

and Finance Co. Ltd.) F.Y. 2001- F.Y 2002- F.Y 2003- to December 

Brokerage 2002 2003 2004 31, 2004 

Prudential ICICI Power Nil Nil *41,080,800 156304614 

Prudential ICICI Income Plan 50,000,000 200,000,000 Nil Nil 

Prudential ICICI Liquid Plan 250,000,000 Nil Nil 750,000,000 

Prudential ICICI Growth Plan Nil Nil *47,483,650 129255776 

Prudential ICICI Tax Plan Nil Nil *2,187,500 3829124 

Prudential ICICI Child Care Plan – Gift Plan Nil Nil Nil 3576778 

Prudential ICICI Child Care Plan – Study Plan Nil Nil Nil 2521438 

Prudential ICICI Monthly Income Plan Nil Nil *21,828,505 364712588 

Prudential ICICI Balanced Fund Nil Nil *12,968,855 26462354 

Prudential ICICI Dynamic Plan Nil Nil *11,610,665 30681414 

Prudential ICICI Technology Fund Nil Nil Nil 6613818 

Prudential ICICI Income Multiplier Fund Nil Nil 3,932,175 112104202 

Prudential ICICI Discovery Fund Nil Nil Nil 11678382 

Prudential ICICI Flexible Income Plan Nil Nil Nil 250,000,000 

Prudential ICICI Floating Rate Plan Nil Nil Nil 250,000,000 

Prudential ICICI Short Term Plan Nil Nil Nil 250,000,000 

Prudential ICICI Long Term Plan Nil Nil Nil 150,000,000 

Prudential ICICI Emerging S.T.A.R. Fund Nil Nil Nil 5131512 

TOTAL 300,000,000 200,000,000 141,092,150 2,432,402,000 

* Includes Prudential ICICI Mutual Fund’s subscription to the issue of Maruti Udyog Ltd. through JM Morgan Stanley 

Securities Pvt. Ltd. This declaration has been made as a matter of disclosure to the investors. 

Subscription in issues lead managed by ICICI Bank Limited 



April 1, 2004 to 

F.Y. 2001- F.Y 2002- F.Y 2003- December 31, 

2002 2003 2004 2004 

Prudential ICICI Income Plan 72,728,496 Nil Nil Nil 

Prudential ICICI Liquid Plan 23,142,034 1,450,000,000 Nil Nil 

Prudential ICICI Short Term Plan Nil 603,220,568 Nil Nil 

Prudential ICICI Monthly Income Plan 36,628,268 445,762,855 Nil Nil 

Prudential ICICI Flexible Income Plan Nil 300,000,000 Nil Nil 

Subscription in issues lead managed by ICICI Capital Services Limited 





2002 2003 2004 2004 

Prudential ICICI Income Plan 540,000,000 Nil Nil Nil 

Prudential ICICI Short Term Plan 10,000,000 Nil Nil Nil 

The above investments were considered sound. Before making an investment, AMC evaluated the same on merits and on 

arms’ length basis and in accordance with the objectives of the scheme. 

84


Transactions with Associate Companies: 




2002 2003 2004 2004 

ICICI Bank Limited – Bank Charges 

Prudential ICICI Monthly Income Plan 901065 825,665 945,772 1,045,304.11 

Prudential ICICI Balanced Fund 724479 825,500 935,260 575,752.84 

Prudential ICICI FMCG Fund 674,607 427,000 63,040 88,035.76 

Prudential ICICI Gilt Fund – Investment 949,692 889,297 811,421 498,844.00 

Prudential ICICI Gilt Fund – Treasury 901,716 825,762 185,029 232,993.52 

Prudential ICICI Growth Plan 755,177 827,049 958,392 624,365.44 

Prudential ICICI Income Plan 1,724,925 1,326,708 1,133,115 765,426.33 

Prudential ICICI Liquid Plan 1,839,595 889,394 688,562 1,092,568.71 

Prudential ICICI Power 3345 15 958,588 739,656.48 

Prudential ICICI Tax Plan 620,145 1501 470,030 102,268.78 

Prudential ICICI Technology Fund 879,799 831,405 145,052 273,876.84 

Prudential ICICI Child Care Plan-Gift Plan 3,644 350 56,396 138,913.97 

Prudential ICICI Child Care Plan-Study Plan 12,681 730 15,689 45,244.44 

Prudential ICICI Short Term Plan 423,699 825,715 1,012,692 518,575.70 

Prudential ICICI Long Term Plan Nil Nil 68,619 63,709.85 

Prudential ICICI Flexible Income Plan Nil 398,750 933,012 514,625.70 

Prudential ICICI Dynamic Plan Nil 112 770,817 281,484.75 

Prudential ICICI Floating Rating Plan Nil Nil 333,309 554,327.66 

Prudential ICICI Gilt Fund – Investment - PF Option Nil Nil 200 259,043.00 

Prudential ICICI Gilt Fund – Treasury - PF Option Nil Nil Nil 253,163.00 

Prudential ICICI Income Multiplier Fund Nil Nil Nil 233,646.00 

Prudential ICICI Discovery Fund Nil Nil Nil 318,357.91 

Prudential ICICI Fixed Maturity –Quarterly Plan-Series 24 Nil Nil Nil 14.00 

Prudential ICICI Long term floating Plan Nil Nil Nil 21,387.50 

Prudential ICICI Emerging S.T.A.R. Fund Nil Nil Nil 150,000.00 

Prudential ICICI Agressive Plan Nil Nil Nil 6,089.00 

Prudential ICICI Cautious Plan Nil Nil Nil 1,575.00 

Prudential ICICI Moderate Plan Nil Nil Nil 1,108.00 

Prudential ICICI Very Aggressive Plan Nil Nil Nil 3,328.00 

Prudential ICICI very Cautious Plan Nil Nil Nil 6,860.00 

ICICI Premier 470 Nil 38,341 Nil 

Prudential ICICI Index Fund Nil Nil 73 Nil 

Prudential ICICI Gilt Fund –1 Year plus 150 Nil Nil Nil 

Prudential ICICI Fixed Maturity Plan 37,707 Nil Nil Nil 

Quarterly series 1 

Prudential ICICI Fixed Maturity Plan 4,979 50 Nil Nil 


Prudential ICICI Fixed Maturity Plan 15,748 Nil Nil Nil 


Prudential ICICI Fixed Maturity Plan Half- 150 Nil Nil Nil 

Yearly series 1 

Prudential ICICI Fixed Maturity Plan Half- 150 Nil Nil Nil 


85




2002 2003 2004 2004 

Prudential ICICI Fixed Maturity Plan Yearly series 1 150 Nil 82 Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 2 150 Nil Nil Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 3 200 661 Nil Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 5 248 Nil Nil Nil 

Prudential ICICI Sweep Plan Nil Nil 1,174 Nil 

Prudential ICICI Fixed Maturity Plan – Yearly Series 23 Nil Nil 46 Nil 

ICICI Bank Limited – Brokerage 

Prudential ICICI Growth Plan 945,779 1287401 4,921,497 965,132 

Prudential ICICI FMCG Fund 9,095 36,865 342,403 5,346 

Prudential ICICI Balanced Fund 64,065 371,333 1,228,809 181,428 

Prudential ICICI Tax Plan 104,654 182,185 317,554 74,098 

Prudential ICICI Technology Fund 103,779 688,780 1,141,174 182,050 

Prudential ICICI Power 360 82,382 19,893,911 2,204,505 

Prudential ICICI Child Care Plan-Study Plan 49,857 240,792 331,695 78,291 

Prudential ICICI Child Care Plan-Gift Plan 93,326 368,251 440,987 139,521 

Prudential ICICI Dynamic Plan Nil 1,402,785 3,995,832 305,236 

Prudential ICICI Income Plan 1,396,509 18,404,188 19,652,833 2,208,296 

Prudential ICICI Monthly Income Plan 119,431 2,178,352 3,794,594 1,532,868 

Prudential ICICI Income Multiplier Fund Nil Nil 346,122 150,104 

Prudential ICICI Liquid Plan 3,530,911 13,452,007 14,253,329 3,826,752 

Prudential ICICI Short Term Plan Nil 15,237,064 8,976,641 900,778 

Prudential ICICI Flexible Income Plan Nil 2,512,861 6,755,437 1,018,827 

Prudential ICICI Long Term Plan Nil 137 636 163 

Prudential ICICI Gilt Fund – Treasury 26,546 147,943 67,126 33,539 

Prudential ICICI Gilt Fund Treasury – PF Option Nil Nil 157,604 Nil 

Prudential ICICI Gilt Fund – Investment 145,086 4,448,085 5,051,182 955,344 

Prudential ICICI Gilt Fund Investment Plan – Nil Nil 1,893,378 293,922 

PF Option 

Prudential ICICI Floating Rate Plan Nil 995 349,724 480,795 

Prudential ICICI Fixed Maturity Plan – Series 24 – Nil Nil 4,781 36,451 

Quarterly 

Prudential ICICI Very Cautious Plan Nil Nil 285,110 112,058 

Prudential ICICI Cautious Plan Nil Nil 345,285 275,999 

Prudential ICICI Moderate Plan Nil Nil 1,189,032 49,888 

Prudential ICICI Agressive Plan Nil Nil 1,283,833 70,921 

Prudential ICICI Very Aggressive Plan Nil Nil 1,741,893 37,456 

Prudential ICICI Fixed Maturity Plan Half- 15,815 39,558 809 Nil 


Prudential ICICI Fixed Maturity Plan Half- 949 977 305 Nil 


Prudential ICICI Fixed Maturity Plan Quarterly series 1 11,171 11,929 1,944 Nil 

Prudential ICICI Fixed Maturity Plan Quarterly series 2 1,308 11,668 6,709 Nil 

Prudential ICICI Fixed Maturity Plan Quarterly series 3 139,294 4676 270 Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 2 Nil 8,611 809 Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 3 Nil 98,754 145,555 Nil 

86




2002 2003 2004 2004 

Prudential ICICI Fixed Maturity Plan Yearly series 4 33 88 66 Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 6 Nil 378,438 Nil Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 7 Nil 600 Nil Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 1 239 109,263 1,262 Nil 

Prudential ICICI Fixed Maturity Plan Yearly series 5 1,719 156,198 46,342 Nil 

Prudential ICICI Index Fund Nil 29,945 33,828 Nil 

Prudential ICICI Fixed Maturity Plan – Nil Nil 107,638 Nil 

Deposit Plus NRI Series 4 – Quarterly Plan 





Prudential ICICI Sweep Plan Nil Nil 831,586 Nil 


Series 24 – Yearly 

ICICI Infotech Services Limited – Service Charges 

ICICI Premier 583,330 1,597,609 1,030,481 Nil 

Prudential ICICI Balanced Fund Nil Nil 202,835 94,838.66 

Prudential ICICI Discovery Fund 2,270.82 

Prudential ICICI Dynamic Plan Nil Nil 426,905 202,725.69 

Prudential ICICI Flexible Income Plan Nil Nil 483,577 132,305.83 

Prudential ICICI Floating Rate Plan Nil Nil 8,765 113,464.72 

Prudential ICICI FMCG Fund Nil Nil 73,357 36,543.47 

Prudential ICICI Child Care Plan – Gift Option Nil Nil 67,493 100,344.93 

Prudential ICICI Gilt fund – Investment Option Nil Nil 112,830 50,661.05 

Prudential ICICI Gilt Fund Investment Plan –PF Option Nil Nil 12,916 9,356.83 

Prudential ICICI Gilt Fund – Investment Plan - Nil Nil 11,584 11,885.67 

Treasury Option 

Prudential ICICI Gilt Fund – Treasury Option– Nil Nil 11,584 5,862.14 

PF Option 

Prudential ICICI Growth Plan Nil Nil 490,222 267,988.55 

Prudential ICICI Income Multiplier Fund Nil Nil Nil 162,342.54 

Prudential ICICI Income Plan Nil Nil Nil 947,307.36 

Prudential ICICI Liquid Plan Nil Nil 683,225 608,337.90 

Prudential ICICI Long Term Plan Nil Nil 523 2,746.06 

Prudential ICICI Monthly Income Plan Nil Nil 630,504 596,595.37 

Prudential ICICI Power Nil Nil 1,182,127 804,016.71 

ICICI Premier Redeemed 19,930 671,043 376,805 25,922.52 

Prudential ICICI Short Term Plan Nil Nil 233,911 74,132.94 

Prudential ICICI Child Care Plan – Study Plan Nil Nil 60,391 39,095.52 

Prudential ICICI Tax Plan Nil Nil 231,565 271,738.07 

Prudential ICICI Technology Fund Nil Nil 519,188 255,000.52 

Prudential ICICI Fixed Maturity Plan – Half Yearly Nil Nil 190 Nil 

Prudential ICICI Fixed Maturity Plan – Half Yearly 2 Nil Nil 552 Nil 

Prudential ICICI Fixed Maturity Plan – Quarterly Nil Nil 1,216 Nil 

87




2002 2003 2004 2004 

Prudential ICICI Fixed Maturity Plan – Nil Nil 281 Nil 

Quarterly Series 2 







Prudential ICICI Income Plan Nil Nil 1,809,367 Nil 



Prudential ICICI Flexible Income Plus Plan Nil Nil 56 Nil 

Prudential ICICI Fixed Maturity Plan- Nil Ni l Nil 618.83 


Prudential ICICI Fixed Maturity Plan – Yearly Series 1 Nil Nil 247 112.35 

Prudential ICICI Fixed Maturity Plan – Yearly Series 12 Nil Nil 3,946 151.86 

Prudential ICICI Fixed Maturity Plan – Yearly Series 2 Nil Nil 972 32.98 

Prudential ICICI Fixed Maturity Plan-Yearly Series 24 Nil Nil Nil 259.89 

Prudential ICICI Fixed Maturity Plan – Yearly Series 5 Nil Nil 2,199 48.60 

Prudential ICICI Agressive Plan Nil Ni l Nil 33,223.68 

Prudential ICICI Cautious Plan 34,199.76 

Prudential ICICI Moderate Plan Nil Ni l Nil 34,421.13 

Prudential ICICI Very Aggressive Plan Nil Ni l Nil 187,383.70 

Prudential ICICI Very Cautious Plan Nil Ni l Nil 12,328.63 

ICICI Capital Services Limited – Brokerage 

Prudential ICICI Power 93 297 Nil Nil 

Prudential ICICI Income Plan 13,376,665 54,912 Nil Nil 

Prudential ICICI Liquid Plan 6,894,164 Nil Nil Nil 

Prudential ICICI Growth Plan 775,807 89,950 Nil Nil 

Prudential ICICI FMCG Fund 53,229 508 Nil Nil 

Prudential ICICI Tax Plan 75,314 774 Nil Nil 

Prudential ICICI Gilt Fund – Treasury 538,777 Nil Nil Nil 

Prudential ICICI Gilt Fund – Investment 2,248,509 Nil Nil Nil 

Prudential ICICI Balanced Fund 407,530 1,281 Nil Nil 

Prudential ICICI Technology Fund 1,954,540 8,648 Nil Nil 

Prudential ICICI Monthly Income Plan 1,350,164 2,849 Nil Nil 

Prudential ICICI Fixed Maturity Plan Quarterly series 1 282,228 Nil Nil Nil 



Prudential ICICI Fixed Maturity Plan Half-Yearly series 1 263,080 Nil Nil Nil 

Prudential ICICI Fixed Maturity Plan Half-Yearly series 2 40,312 Nil Nil Nil 

Prudential ICICI Child Care Plan – Gift Plan Nil 1,656 Nil Nil 

Prudential ICICI Child Care Plan – Study Plan Nil 2,176 Nil Nil 

88




2002 2003 2004 2004 

ICICI Brokerage Service Limited – 

brokerage on secondary market transactions 

Prudential ICICI Balanced Plan 9,000 666,606 133,467 471,648 

Prudential ICICI Dynamic Plan Nil 148,729 933,145 344,449 

Prudential ICICI FMCG Fund Nil 181,297 90,180 67,422 

Prudential ICICI Child Care Plan – Gift Plan Nil 4736 42,294 98,237 

Prudential ICICI Growth Plan 191,000 958,939 800,418 411,938 

Prudential ICICI Income Multiplier Plan Nil Nil Nil 44,988 

Prudential ICICI Monthly Income Plan Nil 185,121 894,866 497,844 

Prudential ICICI Power 2,000 188,388 1,199,499 920,463 

Prudential ICICI Child Care Plan – Study Plan Nil 7,329 4,200 1,565 

Prudential ICICI Technology Plan 72,000 70,270 131,250 270,730 

Prudential ICICI Tax Plan 2,000 131,833 64,383 28,830 

Prudential ICICI Discovery Fund Nil Nil Nil 420,214 

Prudential ICICI Emerging Star Nil Nil Nil 279,312 

The percentage of brokerage paid to ICICI Brokerage Services Limited (IBSL) was @0.26% and for ICICI Web Trade Ltd. 

@0.15% of transaction value and the same was in line with the norms relating to brokerage payments for secondary 

market transactions of the Fund. The total business given to IBSL amounted to Rs.14.098 lakhs, Rs.1,391.54 lakhs, 

Rs.8,106.27 lakhs, 12,927.72 lakhs and Rs. 15,603.41 lakhs during the year 1999-2000, 2000-2001, 2001-2002, 

2002-2003 and 2003-2004 respectively. Further, during the period from April 1, 2004 to December 31, 2004, total 

business given to IBSL amounted to Rs. 19,610 lakhs. Further, IBSL was paid a sum of Rs. 307,712 in connection with the 

rollover of ICICI Premier scheme towards service charges, in the year 1998-99. 

During the period from April 1, 2000 to December 31, 2004, total business given to ICICI Web Trade Ltd. and ICICI 

Securities Limited amounted to Rs. 449.52 lakhs and 30.05 lakhs respectively. 

Dealings with Associate Companies 

The AMC may, from time to time, for the purpose of conducting its normal business, use the services of the Sponsor, 

subsidiaries of its Sponsors/ associate companies of AMC. Such entities as on the date of this document include ICICI 

Bank, a scheduled commercial bank, ICICI Infotech Services Limited, a registrar and transfer agent; ICICI Brokerage 

Services Limited, a brokerage house, ICICI Venture Funds Management Company Limited, a venture funds management 

company, ICICI Securities and Finance Company Limited (I Sec), an investment bank, ICICI Prudential Life Insurance 

Company Limited carrying out insurance business, ICICI Web Trade Limited an online brokerage firm and Way2Wealth 

Securities Private Limited. The AMC may utilize the services of these group companies and any other subsidiary or 

associate company of the Sponsors/AMC established or to be established at a later date in case such an associate 

company is in a position to provide the requisite services to the AMC. The AMC will conduct its business with the 

aforesaid companies on commercial terms and on an arm’s length basis and at the then prevailing market rates 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. 

Associate transactions, if any carried out, will be as per the Regulations and the limits prescribed thereunder. The 

Regulations currently prescribe the following limits: 

The mutual fund scheme shall not make any investment in; 

1. any unlisted security of an associate or group company of the Sponsor; or 

2. any security issued by way of private placement by an associate or group company of the Sponsor; or 

3. the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of such scheme. 

The above restrictions and limits are also applicable to this Scheme. The AMC will, before investing in the securities of the 

group companies of the sponsor, evaluate such investments, the criteria for the evaluation being the same as is applied 

to other similar investments to be made under the Scheme. Investments under the Scheme in the securities of the group 

companies will be subject to the limits under the Regulations. 

89


C) Details of investments in companies that hold more than 5% of NAV of Schemes managed by the AMC, as on 31 st 

December 2004. 

Hindustan Zinc Limited 

Name of Scheme Quantity Amount (Rs.) % of NAV 

Equity 

Prudential ICICI Dynamic Plan 641,867 98,077,278 4.61 

Prudential ICICI Tax Plan 98,804 15,097,251 3.25 

Prudential ICICI Power 56,163 8,581,706 0.11 

Prudential ICICI Monthly Income Plan 183,984 28,112,755 0.37 

Thermax Limited 


Equity 

Prudential ICICI Dynamic Plan 39995 21859267.25 1.03 

Prudential ICICI Emerging S.T.A.R. Fund 71854 39271804 2.15 

Prudential ICICI Power 355435 194262999 2.57 

Prudential ICICI Child Care Plan – Gift Plan 20000 10931000 2.73 

Prudential ICICI Discovery Fund 51115 27936903 1.59 

Prudential ICICI Monthly Income Plan 101705 55586868 0.73 

Tata Sons Lmited 


Debt - Debentures / Bonds 

Prudential ICICI Fixed Maturity Plan – yearly series 5 10 99744188 7.90 

Hindalco Industries Limited 


Equity 

Prudential ICICI Balanced Fund 60000 85362000 2.06 

Prudential ICICI Income Multiplier 15000 21340500 1.69 

Prudential ICICI Index Fund 81 115239 0.76 

Prudential ICICI – MIP 38717 55082676 0.72 

Prudential ICICI Spice Fund 161 229715 2.56 

ICICI Power 254,487 362,058,655 4.79 


Prudential ICICI Short Term Plan 2,500,000 263,301,000 7.83 

Prudential ICICI – MIP 500,045 513,680,121 6.74 

Prudential ICICI Income Dividend P1 35 346230254 6.58 

Prudential ICICI Income Multiplier 10 100,931,702 7.99 

Prudential ICICI Long Term Floating Rate Plan 500,000 52,660,200 1.76 

Prudential CICI Balanced Fund 15 150,393,167 3.63 

Indian Aluminium Company Limited 



Prudential ICICI Short Term Plan 15 156946544 4.67 

90


Mahindra & Mahindra Limited 


Prudential ICICI Balanced Fund 73,000 39,817,850.00 0.96 

Prudential ICICI -Child Care Gift 14,995 8,179,022.75 2.04 

ICICI Power. 609,978 332,712,500.10 4.40 

Prudential ICICI - Discovery Fund 118,000 64,363,100.00 3.67 

Prudential ICICI Income Multiplier 30,004 16,365,681.80 1.30 

Prudential ICICI - MIP 134,519 73,373,388.55 0.96 

Prudential ICICI Index Fund 102 55,635.90 0.37 

Prudential ICICI Growth Plan 200,000 109,090,000.00 3.70 

Dynamic Plan 50,005 27,275,227.25 1.28 

Maruti Udyog Limited 


Equity 



Videsh Sanchar Nigam Limited 


Equity 


Hero Honda Limited 


Debt 



ICICI Bank Ltd. 


Equity 


Prudential ICICI Power 354200 131532170 1.74 


Prudential ICICI Dynamic Plan 59000 21909650 1.03 


Prudential ICICI Growth Plan 295200 109622520 3.72 

Prudential ICICI Balanced Fund 44300 16450805 0.40 


Prudential ICICI Liquid Plan 29,200,000 2,920,000,000 4.18 

Prudential ICICI Flexible Income Plan 800000 80000000 5.01 

Prudential ICICI Fixed Maturity Plan – Series 25 – 15 Months Plan 10000 54003592 3.14 


91


Tata Motors Limited 


Equity 



Debt – Debentures / Bonds 

Prudential ICICI Short Term Plan 11 16664 0.00 

Prudential ICICI Liquid Plan 35 294,102,563 0.42 

Hindustan Lever Limited 


Equity 




Prudential ICICI Liquid Plan 7619621 45723060 0.07 

Grasim Industries Limited 


Equity 

Prudential ICICI Growth Plan 110000 145491500 4.93 





Prudential ICICI Power 339,300 448,775,145 5.94 

Prudential ICICI Dynamic Plan 45,850 60,643,503 2.85 


Prudential ICICI Income Dividend P1 20 199,593,313 3.79 

Prudential ICICI Fixed Maturity Plan- Yearly .Series 24 6 30,558,701 4.40 

Prudential ICICI Balanced Fund 50 52,100,797 1.26 

Prudential ICICI –MIP 74 170,222,942 2.23 


92


d) PENALTIES & PENDING LITIGATIONS 

Cases of penalties awarded by SEBI under the SEBI act or any of its regulations or any other regulatory body against the 

sponsor of the mutual fund or any company associated with the sponsor in any capacity such as the asset management 

company, trustee company/board of trustees, or any of the directors or key personnel of the asset management company 

and trustee company: 

ICICI Bank : Nil. 

ICICI : Nil 

AMC : Nil 

Prudential Plc. 

Date Company Description of Sanction 

27 January 1997 Prudential Personal Equity Plans PPEPL was reprimanded and fined £75,000 by 

Limited (PPEPL) IMRO for breaches of IMRO rules relating to its 

PEP business: 

- failed to carry out reconciliations and 

corrections of PEP client money accounts 

- failed to notify IMRO that these had not been 

done 

- failed to have adequate compliance 

arrangements in specific areas of its business. 

April 1999 M&G Financial Services Limited (M&GFSL) Following a regular Inland Revenue PEP audit, 

M&GFSL have reached agreement to pay the 

following: 

- missing application forms - £550 

- incorrect handling of void PEPs - £3,250 

- accepting “paid for” as well as “free” shares 

during the take-on of Norwich Union windfall 

shares - £600 plus repayment of any wrongly 

claimed tax credits. 

29 October 2001 The Prudential Assurance Company Limited PAC was fined £650,000 by PIA for failures in 

(PAC) 

its pensions review procedures relating 

specifically to delays in making payments of 

redress to supplement pension policy benefits 

of those who had retired and beneficiaries of 

those who had died; and its record-keeping. 

6 March 2003 Scottish Amicable Life plc (SAL) SAL was fined £750,000 by the FSA in respect 

of sales of mortgage endowments by its tied 

agents in 2000. Advisers did not place 

appropriate emphasis on identifying whether 

customers were prepared to take the risk that 

the endowment might not perform well 

enough to pay off the mortgage. 

NB: Some fines and cost orders of $1000 and below made by State Insurance Departments in the US are excluded from 

the above 

Any pending material litigation proceedings, other than ordinary routine litigation incidental to the business of the 

mutual fund to which the sponsor of the mutual fund or any company associated with the sponsor in any capacity such 

as the AMC, Board of trustees/trustee company or any of the directors or key personnel is a party. Any pending criminal 

cases or economic offence cases against the sponsor or any company associated with the sponsor in any capacity such as 

AMC, Board of Trustees/Trustee Company or any of the directors or key personnel. 

AMC: One of the Investors under Prudential ICICI Growth Plan had made investment to the tune of Rs. 50,00,000 under 

section 54EB of the Income Tax Act, 1961. In accordance with the legal opinion of the counsel of the Fund, the Fund is of 

the view that investments under section 54EB of the Income Tax Act, 1961 read with CBDT notification no. 10247 dated 

December 19, 1996 and the Offer Document of Prudential ICICI Growth Plan, the units had to be locked-in for a period 

of seven years from the date of investment. However, the Investor had disputed this stand and had filed a petition against 

Prudential ICICI Asset Management Company Limited as one of the respondents in the Honourable Delhi High court 

seeking the direction of the Court for premature redemption of units. SEBI vide its order dated September 4, 2000, 

rejected the petitioner’s claim for premature redemption of units. 

The Petitioner has subsequently approached the Securities Appellate Tribunal seeking release of money due upon 

redemption of units and payment of interest there on. The matter has been heard by the Tribunal and the Tribunal 

93


dismissed the petition of the investor. 

The investor has, once again, filed a writ in the High Court of Delhi challenging the order of the Tribunal. This matter was 

listed before Hon’ble Delhi High court for final arguments in the regular hearing list. 

ICICI Bank Ltd.: 

There are no litigations whose likely outcome will have a material adverse effect on the operations of the Company. 

However, following are the pending litigation/disputes/defaults etc. against ICICI Bank as on June 30, 2004, listing out 

criminal prosecutions launched against ICICI Bank and/or its working Directors and Suits filed against ICICI Bank involving 

a claim amount of Rs. 10 lacs and more. (Claims involving an amount of less than Rs. 10 lacs are produced in the table 

below). 

1. ICICI Ltd had instituted legal proceedings against Mardia Chemicals Limited (MCL), bearing suit number 3874 of 

1999. MCL filed a counter-claim (278 of 2002) in the DRT, Mumbai in 2002 for an amount of Rs. 56.31 billion. 

The Tribunal passed an order directing MCL to withdraw its counter-claim and forfeited the court fees paid by 

MCL as the counter claim was wrongly filed in the application made by the guarantor for MCL. This matter was 

dismissed. MCL then made an application in the High Court of Gujarat to seek extension of time for filing a 

counter claim in the DRT, Mumbai. The High Court of Gujarat held that it did not have jurisdiction in the matter 

and observed that the matter was to be decided by the DRT, Mumbai on merits. The DRT, Mumbai has now 

admitted the counter claim filed by MCL. 

2. The guarantors for Mardia Chemicals Ltd – Mr. Rasiklal Mardia, Mr. Rakesh Mardia and Mr. Rajiv Mardia filed a 

suit (1431 of 2003) in the City Civil Court, Ahmedabad against us (ICICI Bank) and have claimed an amount of Rs. 

20.78 billion. We have filed our reply seeking dismissal of the suit. The matter is posted for hearing in the City 

Civil Court, Ahmedabad and is pending disposal. 

3. ICICI Ltd filed a recovery suit (105 of 2001) in the DRT, Mumbai against Dynamic Logistics Limited (DLL) for Rs. 

350.0 million. DLL filed a counter-claim for Rs. 1,250.0 million in the DRT, Mumbai and the matter is pending 

disposal. The case is posted on 9 th July 2004 for hearing on the interim applications on jurisdiction, production of 

documents etc. 

4. ICICI Ltd filed a suit (107 of 1999) in the DRT, Delhi against Esslon Synthetics Limited (ESL) and its managing 

director (in his capacity as guarantor) for recovery of dues payable to ICICI. The guarantor filed a counter-claim in 

the DRT, Delhi in 2001 for an amount of Rs. 1.00 billion against ICICI and other parties to the suit, all of whom 

were signatories to the hiving-off arrangement of ESL’s Fibres Division and LML Limited’s Scooters Division into 

separate companies. ESL has moved an application for amending the counter-claim in January 2004. We have 

filed our reply to the application for amendment. 

5. ICICI Ltd filed a recovery suit (584 of 2000) for Rs. 70.0 million against Camson Agritech Limited (CAL) and its 

guarantor in the DRT, Bangalore. The case was filed ex parte. Subsequently CAL came on record and filed objections 

and also made a counter-claim for Rs. 300.0 million. We have our objections filed on May 19, 2004. DRT has 

posted the matter for leading evidence of the Applicant (ICICI Bank) on the main Application. The matter is pending 

hearing. 

6. ICICI Ltd filed a recovery suit (3635 of 2000) in the DRT, Mumbai against Medtech Products Limited (MPL) for Rs. 

270.6 million. MPL filed a counter-claim for set-off for an amount of Rs. 270.6 million in the DRT, Mumbai. We 

are in the process of filing our reply and the matter pending hearing. 

7. ICICI Ltd filed a recovery suit (3074 of 1987) in the Bombay High Court (since transferred to the DRT, Mumbai) 

against Punalur Paper Mills Limited (PPL) for Rs. 36.0 million. Subsequently, PPL has claimed damages from certain 

lenders (including us), of an aggregate amount of Rs. 236.4 million. The matter has not come up for final hearing. 

8. ICICI Bank filed a suit (192 of 2001) in the DRT, Ahmedabad against Vision Organics Limited (VOL) for recovery of 

Rs. 312.7 million. VOL has filed a counter claim against us for Rs. 230.0 million to which we have filed our replies. 

The matter has been argued for our claim. The arguments of IDBI are going on. The suit is pending disposal. 

9. The Peerless General Finance & Investment Company Limited, a debenture holder of Essar Oil Limited, filed a suit 

(434 of 2001) against Essar Oil Limited and others in the City Civil Court, Kolkata in 2001 for non-receipt of 

redemption amount and interest of Rs. 112.3 million. ICICI Ltd in its capacity as debenture trustee was impleaded 

as a defendant. We are in the process of filing our written statement. The suit is pending disposal. 

10. Kalpana Lamps and Components Limited (KLCL) had availed of financial assistances from ICICI, IIBI and UTI and 

the said assistances are secured by a first charge and mortgage on pari-passu basis in respect of the company’s 

properties. During 1995, Anchor Electronics and Electricals Limited (AEEL) has paid the outstanding dues to ICICI, 

IIBI and UTI on behalf of KLCL and requested us to assign the securities created in favour of IIBI and UTI in their 

favour. AEEL filed a suit (bearing CS No.1559 of 1998) before Bombay High Court praying, inter-alia for a declaration 

that they are entitled to assignment and transfer of rights under the various loan / security agreements entered 

into between the company and ICICI, IIBI and UTI. As we are holding the title deeds on behalf of Canara Bank, a 

second charge holder, we requested AEEL/KLCL to furnish a no-objection letter from Canara Bank. Canara Bank 

has refused to give their no-objection letter. Subsequently, AEEL amended the specific performance suit to a money 

suit claiming Rs.10,67,65,000 with interest thereon from ICICI Bank and the same is pending before Bombay 

High Court. KLCL has now discharged Canara Bank’s liability and Canara Bank has given their no-objection letter. 

94


Now, AEEL has to withdraw their suit. Now AEEL has filed an application for release of title deeds of KLCL’s properties 

at Ranipet. Without prejudice to the rights and contentions in the Suit, ICICI and IIBI have given their no-objection 

to the above subject to the condition that the suit claim shall be proportionately reduced by Rs.20.0 million 

which is sale consideration for Ranipet Unit. UTI is yet to give their NOC for the above. 

11. Anagram Finance Limited, subsequently amalgamated with ICICI Ltd, filed a suit (3879 of 1998) in the City Civil 

Court, Ahmedabad in 1998 for recovery of a sum of Rs. 68.3 million from Ezy Slide Fasteners Limited (ESFL). ESFL 

filed a separate suit (2243 of 1999) in the City Civil Court, Ahmedabad for recovery of Rs. 71.8 million from 

Anagram Finance Limited, being the loss allegedly suffered by ESFL on account of breach of a subscription agreement 

dated April 4, 1995 between Anagram Finance Limited and ESFL pursuant to which Anagram Finance Limited had 

subscribed to 420,000 zero interest fully convertible debentures. The suit is pending disposal. 

12. Shin-Etsu Chemicals Private Limited (Shin-Etsu) filed a suit (603711 of 2002) in the Supreme Court of New York 

for compensatory damages of US$ 1,000,000 together with interest for the alleged dishonour by us of a letter of 

credit issued by us in favour of Shin-Etsu. We have not agreed to make payments under the letter of credit as one 

of the terms of the letter of credit has not been complied with. We moved a petition that the courts of New York 

do not have jurisdiction and is a “forum non convenienes”. The New York Court has dismissed our preliminary 

objections on the grounds of jurisdiction and has also given a summary judgment against us and the matter is to 

be now heard only for determining the quantum of damages. We have filed an appeal in the Court of Appeal, 

New York and the determination of damages is stayed till disposal of appeal. The judgement is awaited. 

13. Walsons Industries Products Incorporated (WIPL) filed a suit (3408 of 1999) against ICICI Ltd in the Bombay High 

Court for recovery of US$ 653,000 alleging that three bills received through Bank of Nova Scotia should be paid 

by ICICI in terms of a letter of credit as done in the case of five previous bills since they formed part of the same 

transaction. ICICI, in its statement of defence, stated that all documents received through Bank of Nova Scotia 

were on collection basis, and each one was an independent transaction by itself without any supporting 

commitment from ICICI through the letter of credit. The court has granted us unconditional leave to defend the 

case. The suit is pending disposal. 

14. C D Industries - ICICI Bank has filed O.A. No. 373/2002 against the Company and guarantors before the Debt 

Recovery Tribunal, Mumbai in respect of credit facilities granted to the Company. ICICI has claimed a sum of Rs. 

2.09 crs as on December 31, 2001 in the said O.A. The Company and one of the guarantors Mr. Vinod Kumar 

Agarwal have filed Set Off/Counter Claim in the said O.A. claiming a sum of Rs. 3.41 crores. The Defendants have 

also filed written statement in the matter. ICICI has also issued notice under the SARFAESI Act, 2002 to the Company 

and guarantors. The Company filed Writ Petition no. 2513/2003 before the Bombay High Court against the said 

notice. 

15. M.B. Industries Limited (MBIL) filed a suit (130A of 1997) in the High Court at Kolkata claiming an aggregate 

amount of Rs. 102.5 million from ICICI, IDBI and IFCI out of which approximately Rs. 20.0 million was claimed 

from ICICI. The High Court at Kolkata did not grant any relief to MBIL. However, ICICI, IDBI and IFCI were granted 

leave to file recovery suits against MBIL. The matter was kept pending sine die. IDBI, as the lead lender, filed a 

joint suit (319 of 1998) with ICICI and IFCI in the DRT, Kolkata against MBIL. Our claim in the suit is Rs. 19.1 

million. The Board for Industrial and Financial Reconstruction has recently granted consent to continue with recovery 

proceedings against MBIL. The hearing of evidence has been concluded and the matter has been fixed for judgment 

16. A suit (19 of 2002) was filed against ICICI Bank before the District Judge, Alipore, by Mr. Sunil Joshi, an exemployee, 

for alleged wrongful dismissal from its services praying for a decree of Rs 15.5 million and for loss of 

Rs. 42,602.74 per day with effect from April 11, 2001 till the date of realisation. ICICI Bank has filed a written 

statement and the suit is pending disposal. 

17. Bank of India has filed a suit before High Court Madras against K S Computers and K A Systems for an amount of 

Rs 111 lakhs and has also made us a party to the suit alleging that we have collected forged instruments. The suit 

has been transferred to DRT and is pending. Yet to be posted for final hearing. 

18. O.R.J.Electronic Oxides Ltd - Lease Finance of US $ 72,00,000 (INR Rs. 2578.00 lakhs) was granted to the Company 

against 25% margin money for purchase of solar energy based machineries secured by Corporate Guarantee of 

ETKIF. The Company committed default in the repayment of Lease rentals. Also Customs Authorities took up certain 

investigation. 

On knowing of the Investigations we adjusted the FCNR Deposit to the Lease Finance account and entire dues 

under the Lease Finance account were wiped out. The remaining amount of Rs.400.00 lacs has been frozen by 

DRI. The Commissioner of Customs on adjudication imposed a fine of Rs.100.00 lacs on the Bank and Fined 

other persons for evasion of Custom Duty. We have filed an appeal before CEGAT and obtained an unconditional 

interim stay. 

DRI under the Customs Act referred the case to CBI, Directorate of Enforcement under FERA and Income Tax. 

Based on that CBI filed charge sheet against M/s V.Nachiappan, GM ICICI Bank, K.M.Thyagarajan, then Chairman 

of Bank of Madura Ltd. and N.Narayanan, then AGM of Bank of Madura Ltd. for the alleged offence of criminal 

conspiracy in securing the Lease Finance. Enforcement Directorate also initiated proceedings under FERA for violation 

of FERA Rules and on adjudication imposed fine on the Bank for Rs.10.00 lacs and Rs.1.00 lac on M/s V.Nachiappan, 

RM.Ramanathan, Loganathan and N.Nrayanan. We filed an appeal against the order before FERA Board at Delhi 

95


seeking unconditional stay of order. The Income Tax Department also disallowed the depreciation and we filed an 

appeal before IT Appellate Tribunal and obtained stay. 

We have obtained interim stay of the order passed by the Commissioner of Custom imposing fine on the Bank 

and the Individuals. We are also seeking waiver of deposit of the fine amount imposed by the Enforcement 

Directorate on the Bank and other persons and the matter is pending 

19. Gokula Education Foundation (Medical) V/s ICICI Bank Limited - Complaint No. 88/2003 before the Karnataka 

State Consumers Disputes Redressal Commission, Basava Bhavan, High Grounds, Bangalore. The monetary claim 

is - Rs.79,30,067/-. The complainant has filed this Complaint for refund of Front end fees, Guarantee commission 

etc as the loan was not disbursed after the same was sanctioned. Case was posted for April 18, 2004 for our 

objections. Objections have been filed. The case was posted to 25/6/2004 for the filing of affidavits by way of 

evidence. Now, the matter is on 27/8/ 2004 for marking of documents by the Complainant. 

20. J.G. FINANCE Ltd. raised a public issue on 23.05.1995 & erstwhile Bank of Madura was one of the collecting 

bankers to the issue. Due to some dispute a suit was filed at Madras High Court by First Leasing Company of 

India Ltd. against J.G.Finance Ltd and 11 others including Bank of Madura and three other collecting bankers. 

Madras High Court vide APP No.623 of 1995 in C.S. No.832 of 1995 passed an injunction on 13.06.1995 

restraining the banks from making any payment to J.G.Finance Ltd. with regard to the public issue. Subsequently 

on 13.09.1995, Madras High Court revised the earlier order and restricted the injunction up to Rs.70 lacs only. 

Accordingly on 17.11.1995 erstwhile Bank of Madura has paid Rs.23 lacs. Since then the bank has kept a fixed 

deposit of Rs.1,25,41,323/- as there was no instruction from the Hon’ble High Court at Madras regarding the 

payment of interest on frozen account. The matter is still pending with Madras High Court 

21. Shri Bhalchandra Shinde, Proprietor of Mandar Travels in the year 1999 filed suit in the Bombay High Court for 

termination of bus services for transportation of the staff members. The amount involved is Rs.66 lacs. The services 

of Mandar Travels were temporarily hired till final selection of the contractor. The matter is pending disposal. 

22. Jitesh Pradhan is an account holder of ICICI Bank, Cuttack, having S/B Account No. 63420100520. Shri Pradhan 

had filed a case bearing no. 313 of 2003 before the State Commission, Cuttack. Shri Pradhan had issued a self 

cheque no. 045244 for Rs. 30,000/- dated February 13, 2004. The said instrument was brought and presented by 

Shri Pitambar Mishra, peon of Shri Pradhan for encashment. However, Shri Pradhan filed a case against ICICI 

Bank, inter alia, claiming Rs. 60.0 lacs towards harassment and mental agony. Our advocate has opined that as 

the amount (Rs. 30,000/-) has already been withdrawn by the complainant’s representative and the same had 

been handed over to him, which s duly supported by the affirmation given by Shri Mishra before the Executive 

Magistrate. Hence, the claim of Rs. 60.0 lacs is not justifiable and maintainable under the above mentioned 

circumstances and as such ICICI Bank is not liable for payment of Rs. 60.0 Lacs to Shri Pradhan. 

23. M/s Venkateswara Eng. Corporation has filed a suit before High Court Madras against us claiming an amount of 

Rs 52 lakhs towards fixed deposits. We have filed our written statement. Evidence is completed and posted for 

Argument. Yet to be listed. 

24. Shri Ashok Kumar Kanwar has filed Suit no. 1476 of 2002 in the Delhi High Court. The said suit is a suit for 

possession, declaration and recovery of Rs. 40,74,000/- as mesne profits, damages permanent and mandatory 

injunction. The Plaintiffs therein are seeking a decree of possession in their favour in respect of the premises 

comprising of first floor of property bearing no. 13, Pratap Nagar, Mayur Vihar, Phase –1, Delhi – 110091. The 

matter is listed for admission and denial of documents on 17/8/04 

25. M/s Quality Foils Ltd has filed a complaint before the State Consumer Forum, on account of return of letter of 

credit with the wrong reason. The forum allowed the complaint and directed us to pay Rs 24 lakhs to the 

complainant. We have filed an appeal before the National Commission, Delhi and have obtained a conditional 

order on deposit of Rs 24 lakhs. The case is pending for hearing. Yet to be taken up for final disposal 

26. Shri Kailashchand Deoli has filed a case bearing No. 197 of 2002 before the District Consumer Forum, Dehradun 

against the Branch Manager, ICICI Bank alleging deficiency of service against the ICICI Bank and claiming a sum 

of Rs. 20 lacs as compensation on account thereto. 

27. Mahendra Jogani has filed a complaint against ICICI Bank Limited before the District Consumer Forum, Chennai. 

As per the complaint, he had opened an online account with ICICI Bank, Cenotaph Road Branch, Chennai on 

June 23, 2000. The Complainant had issued a cheque for Rs.50,000/- dated December 18, 2003 and the same 

was returned by our Bangalore Branch for the reason “Account Dormant”. The case is that he had deposited 

Rs.50,000/- before issue of cheque and the same was accepted by the Branch and the same was not refused for 

the reason “Account Dormant”. Further a sum of Rs.200/- was debited for dishonour of cheque though the 

funds were available in the account. The Complaint is filed claiming Rs.10 lacs towards negligence, deficiency in 

service and unfair trade practice, Rs.10 lacs towards mental agony and medical expenses and refund Rs.200 which 

was the debit charges for bouncing of cheques. We have filed vakalat and are filing a counter. 

28. Mrs. Tasneem Adhikari has filed a civil suit on 14/11/2003 in the Mumbai High Court for wrongful sale of her 

truck. In the said suit , she is praying for payment of compensation for a sum of Rs. 12,20,000/-. Her Interim 

Application has been rejected and our written statement has been filed. The matter is pending disposal. 

29. Kisan Sahakari Chini Mills Limited has filed a suit suit bearing No. 6 of 2001 before the Hon’ble State Commission, 

UP in the year 2001 claiming interest and compensation amounting to Rs. 13 lacs on delayed payment of refund 

96


amount of Rs. 25 lacs from the date of allotment advice i.e. May 1997 in the March 1997 (Series I) of the ICICI 

Bond Issue. The next hearing date is August 13, 2004. The suit is pending disposal. 

30. M/s Vijay Bhargavi Chit Fund Private Limited has filed a petition in the year 2002 before the Andhra Pradesh 

Consumer Disputes Redressal Commission for damages of Rs. 20 lacs for deficiency of service arising from wrongful 

dishonour of cheque. ICICI Bank has filed its written statement before the State Commission. 

31. Shri Mahesh Madanlal Navandar of Pune has filed a complaint before Addl. Consumer Dispute Redressal Forum, 

Pune on July 21, 2003 against The Baramathi Sahakari Bank Ltd and ICICI Bank for deficiency of service and 

claimed an amount of Rs.18,65,234/- with interest as damages. ICICI Bank has filed its reply statement before 

said Forum. The matter is pending before the said Forum. 

32. M/s Fidelity Finance Ltd. has filed a suit before the High Court Madras claiming an amount of Rs 12 lakhs from us 

on the ground for not honouring a letter of credit issued in favour of M/s Vijaya Chemagro India P. Ltd. The suit is 

pending for hearing. Yet to be listed. 

33. Mr R M Kanappan, our ex-employee has filed a writ petition before the High Court Madras for wrongful dismissal 

from services. The writ petition has not yet come up for hearing. Yet to be posted for final disposal 

34. Shri R.N. Shetty has filed a compliant on July 22, 2003 before Consumer Dispute Redressal Forum, Pune against 

ICICI Bank for deficiency of service and claimed an amount of Rs. 12,28,212/-. We have filed our Affidavit in Reply 

.The matter is pending disposal. 

35. Mr. S Srinivasagam, our ex employee has filed a suit before the Sub Court Madurai claiming an amount of Rs 11 

lakhs (notional claim) for wrongful suspension from employment. The suit has become infructuous and will be 

dismissed when taken up for final disposal. Yet to be posted for final disposal 

36. A joint suit was filed by ICICI (since merged with ICICI Bank) & IFCI with IFCI as the lead against Best Boards 

Limited for recovery of dues in DRT, Delhi on January 29, 2001. The company has filed a counter claim of Rs. 10 

lacs against all lenders (including ICICI Bank) on the ground that IFCI, as the lead institution, refused to give its 

consent for sale of the plant & machinery and has alleged that there were prospective buyers who were willing to 

pay a higher sum thereby causing loss to the company. The suit is pending disposal. 

37. M/s G R Pharma has filed a complaint before the State Consumer Forum Chennai claiming an amount of Rs 11 

lakhs from us towards unauthorised debit from his current account. The suit is pending hearing. Yet to be taken 

up for final disposal. 

38. In the account of Muthu Meenal Alagappan complaint has been filed against two individuals who were our 

Officials of our Bank and against our Bank claiming Rs.10.00 Lakhs jointly and severally.Hence we have not 

construed as claim against our Bank above Rs.10.00 Lakhs. Hence no letter has been obrtained from our Advocate. 

Yet to be taken up for effective hearing. 

39. Dabhol Power Co. - Certain offshore lenders (including ABN Amro Bank N.V. and others) to a large private sector 

power generation project in the State of Maharashtra have initiated arbitration proceedings in London in April 

2003 against certain Indian lenders to the project company, including us, in relation to disputes under the Inter- 

Creditor Agreement, claiming from the Indian lenders (including us), inter alia, damages in an aggregate amount 

of US$ 534 million (together with interests and costs). 

40. Three criminal complaints (2412/S/2003, 2413/S/2003 and 2414/S/2003) were filed in the year 2000 against 

erstwhile ICICI Limited (Since merged into ICICI Bank) (“ICICI”) before the Metropolitan Magistrate, Mumbai, 

under the Maharashtra Private Security Guards Act, 1981 on the grounds that security guards were engaged from 

exempted security agencies even though ICICI was registered with the Security Guards’ Board. The earlier notices 

in this regard were replied to stating that registration is only in respect of residential quarters for employees and 

not in respect of other establishments. The complaints are pending disposal. 

41. Two criminal complaints (2415/S/2003 and 2416/S/2003) were filed in the year 2000 against ICICI Bank before 

the Metropolitan Magistrate, Mumbai, under the Maharashtra Private Security Guards Act, 1981, on the grounds 

that security guards have been engaged from unexempted security agencies. ICICI Bank has taken a stand that 

the exemption of security agencies continued on account of a previous High Court Order in the writ petition filed 

by certain security agencies. The complaints are pending disposal. 

42. A case (39/2002) was filed against ICICI in the Industrial Court by the Union of Security Guards of its Corporate 

Office at Bandra-Kurla Complex, Mumbai, claiming difference in wages on the ground that ICICI employed security 

guards. Thereafter the matter was referred to the Industrial Tribunal, where the Union of Security Guards is yet to 

file the details of their claim. 

43. A writ petition (6813/ 2003) was filed against ICICI Bank in the Bombay High Court by the Union of Security 

Guards against the engagement of security guards by ICICI Bank despite registration with the Security Guards 

Board. A detailed reply has been filed, in particular, pointing out that that the registration had been obtained by 

ICICI only in respect of residential quarters for employees. The writ petition is pending disposal. 

44. Two criminal complaints (2347/S/2003 and 2349/S/2003) were filed against ICICI Bank before the Metropolitan 

Magistrate, Mumbai, under the Maharashtra Private Security Guards Act, 1981 on the grounds that security guards 

have been engaged from unexempted security agencies. ICICI Bank has replied stating that the Security Guards 

were deployed on trial basis and are being replaced by Armed Guards. The complaint is pending disposal. 

97


45. Five criminal complaints (9419/S/2002 to 9423/S/2002) were filed against ICICI Bank before the 39th Court of 

Presidency Metropolitan Magistrate at Mumbai by the Municipal Corporation of Greater Mumbai (BMC) for violation 

of Section 471 of the BMC Act read with Section 328-A thereof on grounds of non-payment of licence fees for 

the illuminated signboards at its ATM centres. ICICI Bank filed a writ petition (2377 of 2002) in the Bombay High 

Court challenging the applicability of the provisions of Sections 328 & 328-A of the BMC Act in respect of the 

ATM centres. The writ petition was dismissed. In appeal, ICICI Bank filed an SLP (24215 of 2002) in the Supreme 

Court. The Supreme Court has granted a stay against all prosecutions and proceedings by BMC in this regard. 

The Metropolitan Magistrate stayed the proceedings before it till the final disposal of this SLP. Further, the BMC 

has also filed two similar complaints (88/M/2003 and 89/M/2003) before the 27th Court of Presidency Metropolitan 

Magistrate at Mumbai, against ICICI Bank. ICICI Bank submitted a copy of the Supreme Court’s order to the 

Magistrate. The matter is pending disposal. 

46. A criminal complaint (2064(C) of 2000) was filed against ICICI and its officials including Mr. K.V. Kamath, its 

Managing Director & Chief Executive Officer before the Court of Chief Judicial Magistrate, Patna, by a debenture 

holder of Lloyds Finance & Investment Company Limited (LFICL). Summons were issued for the personal appearance 

of Mr. Kamath against which ICICI filed an application under Section 205 of the Criminal Procedure Code (CrPC) 

in the Magistrate Court, which was allowed. ICICI also filed a criminal revision petition (2064(2) of 2000) before 

the Sessions Judge, who has admitted the revision application and called for the records from the Magistrate 

Court. Hence, the proceedings in the Magistrate Court have been stayed. The matter is posted for hearing on July 

19, 2004. 

47. A criminal complaint (614 of 2001) was filed in the year 2001 against ICICI Bank by Pelicorp Limited upon 

termination of the Direct Selling Agent Agreement between itself and ICICI Bank pursuant to certain RBI guidelines. 

ICICI Bank filed a criminal petition (4147 of 2001) under Section 482 of the Criminal Procedure Code for quashing 

the complaint in the Karnataka High Court, which has granted interim stay in the matter. The matter is pending 

disposal. 

48. A criminal complaint (1648 of 2001) was filed against ICICI Bank before the Chief Judicial Magistrate, Jaipur for 

wrongful dishonour of cheques. ICICI Bank has filed a revision petition (15 of 2002) in the High Court at Jaipur 

for quashing the order passed by the lower court. The High Court has admitted the petition and has stayed the 

proceedings pending before the Chief Judicial Magistrate. The matter is pending disposal. The Revision filed by 

ICICI Bank in the High Court at Jaipur against the criminal case (1648/01) filed by Rajiv Aggarwal is listed for final 

arguments on August 25, 2004. 

49. A writ petition (2181/04) was also filed by Rajiv Aggarwal in the High Court at Jaipur against SEBI and ICICI Bank 

interalia seeking directions against SEBI to initiate appropriate proceedings against ICICI Bank for failure to disclose 

details of the criminal proceedings filed by him in the prospectus. ICICI Bank has forwarded its comments to the 

counsel to prepare draft reply. As yet the matter is at the stage of service of notice. 

50. A criminal complaint (2175(C) of 2001) was filed against ICICI and its officials including Mr. N Vaghul, its Chairman, 

by a debenture holder of Modern Denim Limited (MDL). Summons were issued for personal appearance of Mr. 

Vaghul against which ICICI filed an application under Section 205 of the Criminal Procedure Code in the Magistrate 

Court and the same was allowed. ICICI also filed a criminal revision petition (2175(2) of 2001) before the Sessions 

Judge, who has admitted the petition and called for the records from the Magistrate Court. The proceedings in 

the Magistrate Court have been stayed. The matter is scheduled for hearing on July 19, 2004. 

51. A criminal complaint (1876 of 2003) was filed against ICICI Bank and all of its Directors in the Judicial Magistrate 

Court, First Class, Pune by Ms. Seema Mungale alleging that in response to the notice under Section 138 of the 

Negotiable Instruments Act, issued by ICICI Bank for return of cheque of Rs. 1,500/-, given towards payment of 

her credit card dues, she made the payment within the notice period of 15 days but inspite of ICICI Bank’s 

acknowledging the payment, it filed a false criminal compliant against her by making false statements. There are 

no averments in the complaint against the Directors. ICICI Bank filed a writ petition (2645 of 2003) in the Bombay 

High Court for quashing the complaint against the Directors and an interim order has been passed staying the 

criminal proceedings in the lower court at Pune against eleven Directors. A separate writ petition (3228 of 2003) 

has been filed in respect of the remaining Directors. The criminal case before the Magistrate at Pune is scheduled 

for hearing on August 3, 2004. 

52. A criminal complaint (353 of 2003) was filed before the Additional Chief Metropolitan Magistrate, New Delhi by 

Mr. Anoop G. Chaudhury for an order under section 156(3) of the Criminal Procedure Code against ICICI Bank’s 

Managing Director & Chief Executive Officer for sale of a vehicle which had been involved in an accident. The 

investigation officer has filed the investigation report in the Court. The matter is pending hearing. 

53. A complaint (752 of 1997) was filed against ICICI Infotech Services Limited (now called ICICI Infotech Limited) in 

the Consumer Redressal Forum, Hyderabad District, by a shareholder of ICICI regarding transfer of five shares 

inspite of a stop transfer request having been made by him. The District Forum dismissed his complaint. The 

shareholder appealed against the Order of the District Forum vide appeal number 311 of 2000 and the appeal 

was admitted by the A.P State Consumer Disputes Redressal Commission, which directed ICICI to pay compensation 

and costs. An amount of Rs. 12,500/- was accordingly paid to the complainant. The complainant filed a petition 

98


(83 of 2001) in District Forum for non-compliance of the order. However, the District Forum dismissed the petition 

as the order of the A. P. State Consumer Disputes Redressal Commission was complied with. The complainant 

filed a revision petition (136 of 2003) before the Commission against the order of the District Forum, which was 

dismissed. A criminal complaint (152 of 2001) was also filed in the year 2001 against ICICI and ICICI Infotech 

Limited before the XI Metropolitan Magistrate, Secunderabad by the shareholder. The Magistrate has referred the 

matter to Marredpally Police Station, Secunderabad for investigation. ICICI filed a petition (1719 of 2002) in the 

Andhra Pradesh High Court for quashing the criminal complaint filed before the XI Metropolitan Magistrate, 

Secunderabad and the High Court has granted a stay on the investigations being undertaken by the police 

department till further orders. 

54. A criminal complaint (1472/ of 2002) was filed against ICICI Home Finance Company Limited (ICICI HFC) and also 

against certain of ICICI Bank’s Directors before the Metropolitan Magistrate’s 26 th Court at Borivli, Mumbai, by 

Ms. Dipali Gopani for alleged wrongful recovery of Rs. 3,150/- and non-return of title deeds. A Criminal Application 

was filed on behalf of all the accused before the Bombay High Court on November 11, 2002 for quashing the 

complaint and in the interim for stay of the complaint against the Directors. The High Court disposed of this 

application after recording the statement of the complainant that she would withdraw the complaint against all 

Directors except those who were Directors of ICICI HFC. Accordingly the complaint has been withdrawn against 

three directors and is now pending against Ms. Lalita D. Gupte, Ms. Kalpana Morparia and Mr.S.Mukherjee. ICICI 

HFC has filed the discharge application on behalf of the above mentioned three Directors which matter was 

scheduled for hearing on June 4, 2004 for arguments on the discharge application. On June 4 th the matter could 

not be heard and the matter now stands for August 31, 2004 for arguments on discharge application. 

55. A suit (3874 of 1999) was filed in the year 1999 against Mardia Chemicals Limited (MCL) in the Bombay High 

Court by ICICI for recovery of an outstanding amount of approximately Rs. 1.35 billion. Thereafter, in 2002, ICICI 

issued a notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest 

Ordinance, 2002 demanding payment of an outstanding amount of Rs. 2.93 billion. Subsequently, a suit (3189 

of 2003) was filed against Mr K. V. Kamath and Ms. Lalita D. Gupte by MCL in the City Civil Court at Ahmedabad 

for a purported amount of Rs. 56.31 billion. An application has been filed under Order 7 Rule 11 of the Code of 

Civil Procedure for the dismissal of the suit on the grounds of limitation, jurisdiction and no cause of action 

against Mr. Kamath and Ms. Gupte. 

56. A criminal complaint (C/3606/03) was filed against Mr K.V. Kamath, ICICI Bank’s Managing Director and Chief 

Executive Officer, before the Metropolitan Magistrate, Kolkata, for violation of the Equal Remuneration Act 1976. 

ICICI Bank is taking up the matter with the concerned authorities for withdrawing the prosecution in view of 

compliance with the requirement. The matter is fixed for hearing on September 22, 2004. 

57. A criminal complaint (64 of 2002) was filed against 36 individuals including Mr. K. V. Kamath before the Court of 

the Chief Metropolitan Magistrate, Patiala House, New Delhi by Mr. M. M. Sehgal, the promoter of Sehgal Papers 

Limited (SPL). ICICI as part of a consortium of lenders led by IFCI limited as lead institution had extended financial 

assistance to SPL . The basic complaint is against Mr. Davar and other officials of IFCI alleging that the institutions 

conspired to help Ballarpur industries take over SPL. No summons has been issued to ICICI so far. Only a copy of 

the complaint filed by the Complainant has been served on ICICI recently, despite the same having been filed in 

the Court almost two years ago. 

58. A case (1356 0f 2003) under Sections 420/467/468 and 471 of the IPC was filed against Ms. Urmil Gupta and Mr. 

Jyotin Mehta, ICICI Bank’s General Manager and Company Secretary, before the Chief Judicial Magistrate, Rampur, 

by Mr. Sudeep Kumar Aggarwal alleging inter alia, that shares held by him had been illegally transferred to Ms. 

Urmil Gupta. Summons had been issued to Mr. Mehta in this regard. ICICI Bank has filed a Criminal Revision 

bearing No. 87 of 2004 before the District and Sessions Judge, Rampur, challenging the issuance of summons to 

Mr. Mehta. The Orders issuing summons passed by Chief Judicial Magistrate, Rampur, have been stayed by the 

District and Sessions Judge, Rampur. 

59. A consumer complaint (349/03) was filed against ICICI Bank’s Chairman, Managing Director and all other working 

directors before the District Consumer Disputes Redressal Forum, Kolhapur, by Mr. Pradeep Balaso Kole claiming 

compensation for a sum of Rs.11, 772/- for taking back possession of his two wheeler without giving him proper 

notice. ICICI Bank has filed affidavit in Reply & Statement of Objections through its Collection Manager for 

Respondent No. 1. The matter is kept for hearing on July 12, 2004 

99


As on June 30, 2004 

(Rs. in crores) 

Nature of claim Cases with Amount of possible 

Monetary Claim liability on the basis of Cases 

assessment of the with no 

branch/in house specific 

legal department monetary 

opinion 

claim 

Sr. No. Amount No. of cases Amount Number 

No. (Rs.) (Rs.) 

1. Suits/legal proceedings filed by 33 0.0321 24 0.1520 407 

shareholders/bond holders of ICICI Bank. 

2. Suits/legal proceedings filed by debenture 119 0.3319 105 0.3005 11 

holders against ICICI Bank as Debenture 

Trustees. 

3. Suits filed by lessees/hirers seeking 148 0.9500 13 0.0800 43 

injunction against ICICI Bank taking 

possession of vehicles pursuant to lease/ 

hire purchase agreements and other suits 

filed by retail customers. 

4. Miscellaneous suits/ legal proceedings in 267 6.3700 122 6.6500 87 

the course of business. 

5. Counter claims filed by Borrower/s 1 7.1800 0 0 0 

or Guarantor/s. 

6. Writ Petitions filed by employees/ 0 0 0 0 21 

ex employees 

Total 568 14.8640 264 7.1825 569 

Any deficiencies in the systems and operations of the sponsor of the mutual fund or any company associated 

with the sponsor in any capacity such as the AMC or the trustee company which SEBI has specifically advised to 

be disclosed in the offer document, or which has been notified by any other regulatory agency. 

ICICI Bank: 

Capital Markets: North Star Gems Limited (NSGL) filed a suit (53 of 2003) in the City Civil Court, Ahmedabad, pertaining 

to an alleged transfer of funds from the current account maintained by NSGL with Bank of Madura, of an amount of Rs. 

70.0 million. NSGL had earlier filed a complaint in the National Consumer Commission, which was dismissed. In appeal 

from the decision of the National Commission, NSGL filed a Special Leave Petition (SLP) bearing number 645 of 2003 in 

the Supreme Court of India, which has also been dismissed. The suit in the City Civil Court is pending disposal. An application 

under Order 7 Rule 11 of the CPC was filed for dismissal fo the suit on the grounds of limitation. The said application filed 

by us has been rejected. We are in the process of filing an appeal against the same. In the meantime we are also in the 

process of filing our written statement to the suit. 

Debenture Trusteeship: The erstwhile ICICI Limited had provided debenture trusteeship services since 1983, and acted as 

trustee for the holders of convertible and non-convertible debentures issued in the public and private markets. During 

SEBI’s inspection of the Debenture Trustee operations of the erstwhile ICICI Limited, observations on certain shortcomings 

were made by SEBI in its inspection report. The erstwhile ICICI Limited had initiated suitable action based on SEBI report 

and had submitted a detailed reply to SEBI. The matter is being examined by SEBI. The erstwhile ICICI Limited had 

subsequently, with a view to exit this business, been divesting the portfolio of debenture trusteeship in favor of other 

debenture trustees. ICICI Bank continues to act as a debenture trustee for the remaining companies for which the erstwhile 

ICICI Limited were debenture trustees. ICICI Bank has been permitted by SEBI to act as a debenture trustee. 

100


SUBSIDIARIES 

1. ICICI Securities and Finance Company Limited (ICICI Securities): ICICI Securities was set up in February 1993 to provide 

investment-banking services to investors. ICICI Securities has three main business lines- 

Corporate advisory and Mergers and Acquisitions 

Fixed income; and 

Equities 

With the merger of erstwhile ICICI Limited with ICICI bank becoming effective, ICICI Bank holds 99.92% of the share 

capital of ICICI Securities. ICICI Securities is a Merchant Banker, Underwriter and Portfolio Manager registered with SEBI. 

Also ICICI Securities is a Primary Dealer registered with RBI engaged in acquisition and trading of Government Securities. 

Currently ICICI Securities provides services such as issue management underwriting, placement of debt and equity, 

corporate advisory services including mergers, amalgamations and spin offs, capital structuring, valuations and fairness 

opinion reports and as a Primary Dealer actively involved in money market operations, and trading in securities. It also 

provides specialised services in the areas of private equity syndication and privatisation of government entities. In 

addition, ICICI Securities has a research team, which identifies investment opportunities and provides timely investment 

advice to clients. ICICI Securities is amongst the largest arranger of funds in Debt and Equity segments and also amongst 

the leading advisors in Mergers and Acquisitions. It is also amongst the highest capitalized Investment Banks in India 

with net worth of Rs.3,191.80 million as on March 31, 2002. 

ICICI Securities was awarded two penalty points by SEBI for non-submission of Letter of Offer in the Rights issues of 

Siroplast Limited and Thane Electricity Supply Co. Ltd. during 1995 and one penalty point for non-submission of postissue 

report in the Public Issue for Shree Rajasthan Texchem Ltd. Further, warning letters were issued by SEBI on October 

2, 1998 for lack of due diligence in the issue of Hindustan Motors Ltd. and on July 11, 2000 in connection with 

dissemination of information to investors in the issue of Cadila Healthcare Limited. 

ICICI Securities was issued a warning letter by RBI on May 30, 2001 on the bouncing of SGL form on a government 

securities transaction on May 4, 2001. Before this, RBI had issued four such letters on January 9, 1997, February 23, 

1999, June 13, 2000 and January 18, 2001. However penal action is initiated by RBI only in case of three consecutive 

instances of bouncing in the period of six months i.e. April-Sept. and /or October-March. Hence no penal action was 

taken in above instances. 

RBI reduced the liquidity support limit for ICICI Securities by Rs.25 crore for a period of three months from October 7, 

2002 until January 6, 2003, for delayed submission of bid in the treasury bill auction conducted on September 25, 2002. 

Earlier, a reduction in the liquidity support limit by Rs.1.50 crore was imposed for shortfall in bidding commitment on 

April 7, 2000, which was reset to original level with effect from October 9, 2000. 

2. ICICI Investment Management Company Limited: ICICI Investment Management Company Limited (“ICICI Investment 

Management”) had been incorporated on March 9, 2000 as a 100% subsidiary of erstwhile ICICI Limited (ICICI) and 

obtained certificate of commencement of business on March 14, 2000. The authorised share capital of ICICI Investment 

Management is Rs.25 crore and the paid-up share capital is Rs.10,00,07,000. Consequent to the amalgamation of ICICI 

with ICICI Bank becoming effective on May 3, 2002, ICICI Investment Management has become a 100% subsidiary of 

ICICI Bank. 

The main object of ICICI Investment Management is to carry on the business activities in respect of the management of 

mutual funds, unit trusts, offshore funds, pension funds, provident funds, venture capital funds, insurance funds, and to 

act as managers, consultants, advisors, administrators, attorneys, agents, or representatives of or for mutual funds, unit 

trusts, offshore funds, pension funds, provident funds, venture capital funds or insurance funds formed or established 

in India or elsewhere by ICICI Investment Management or any other person (whether incorporated or not) or by any 

government, state, local authority, association, institution (whether incorporated or not) or any other agency or organisation 

and to act as Financial Advisors and Investment Advisors, and to render such financial management, financial consultancy 

and advisory services to individuals, companies, corporations, trusts and other entities as supplemental activities of ICICI 

Investment Management and as do not conflict with the fund management activities. 

ICICI Investment Management is the asset management company of “ICICI Securities Fund”, a Mutual Fund registered 

with the Securities and Exchange Board of India. 

SEBI had issued a warning letter on May 22, 2000 to ICICI Investment Management for lack of due diligence while 

submitting the offer document for ICICI CBO Fund-I. 

Prudential plc. 


1995 Prudential Corporation plc (PC) PC was publicly criticised by the London Stock 

Exchange for the manner in which it dealt with 

authorisation of a dealing in Prudential shares by 

its then Chief Executive. 

December 1997 The Prudential Assurance Company The FSA issued a section 60 notice and a public 

Limited (PAC) statement criticising PAC’s compliance 

arrangements with respect to its direct sales force. 

101


Any enquiry/adjudication proceedings under the SEBI Act and the regulations made there under, against the sponsor of 

the mutual fund or any company associated with the sponsor in any capacity such as the AMC, Board of Trustees/Trustee 

Company or any of the directors or key personnel of the AMC: 

Prudential Corporation plc 


April 1994/ The Prudential Assurance Company Has the company been investigated by 

March 1995 Limited (PAC) an inspector appointed under companies 

legislation or other securities enactments or by 

any other regulatory body, or been required to 

produce books and papers to the Secretary of State 

in relation to any matter? 

Yes, in relation to The Prudential Assurance 

Company Limited (PAC). LAUTRO approached PAC 

in April 1994 with a request for its co-operation 

in an informal review to validate LAUTRO’s pension 

rules for the future. Prudential agreed to cooperate. 

LAUTRO subsequently expressed various 

concerns about the Prudential’s approach to 

pension transfers. The review was placed on a 

formal footing in March 1995. Following further 

discussions with LAUTRO, LAUTRO agreed not to 

take any disciplinary action and no charges were 

brought. 

1995-1997 The Prudential Assurance Company A number of writs were issued by SIB from 1995 

Limited (PAC) 

to 1997 in connection with the mis-selling of 

personal pensions, mainly where a personal 

pension was taken out in preference to 

occupational scheme membership but in some 

cases where an occupational scheme benefit was 

transferred to a personal pension. 

Some were for protective purposes pending review 

of the sale under the SIB guidance; others 

proceeded and many have reached settlement via 

consent orders on the basis of payment of full 

compensation but without an admission of 

liability. 

November/ Pru Banking ITC Advertising Complaints Reports. Complaints 

December 1997 

were received from 3 viewers. An advertisement 

for a Prudential 60 Day Notice Account offered a 

rate of 7.5% gross per annum on £10,000 and 

included the statement “you won’t find a better 

rate of interest for £10,000.” 

Two viewers objected that a “better rate” of 7.6% 

could be obtained on £10,000 in a Legal & General 

60 Day Notice Account. The third viewer objected 

that the rate of 7.5% in fact including a 1% loyalty 

bonus which only applied after £10,000 had been 

held in the account for 12 months. 

Assessment: Following a complaint on 17 October 

1997, the ITC drew Teletext’s attention to a higher 

rate of interest that was apparently being paid on 

a Legal & General account comparable to the 

Prudential’s. Teletext immediately removed the 

Prudential advertisement from air pending 

investigations. These revealed that whilst Legal & 

General had introduced a rate of 7.6% on 10 

October 1997, Prudential had not matched this 

rate until 17 October 1997. In addition, whilst 

Prudential’s advertising agency had on 15 October 

1997 requested Teletext to amend the rate to 

7.6% from 20 October 1997, press advertising 

for the Prudential account had reflected the higher 

rate on 17 October 1997. 

102


Teletext confirmed that the headline rate was 

stated gross of a 1% loyalty bonus which was 

only paid if the account was still open after 12 

months and only two withdrawals had been made. 

They agreed that this was a significant condition 

which should have been made clear and instructed 

that subsequent advertising for this Prudential 

account should include details. 

The ITC agreed that the advertising had been 

misleading during the period that Legal & General 

had been offering a higher rate than Prudential 

and considered that the omission of details about 

the 1% loyalty bonus had also rendered the 

advertisement misleading. 

Teletex had already removed the advertisement 

from air and would not permit it to return until 

the relevant amendments were made. 

Decision: Complaints upheld. 

August 1998 The Prudential Assurance Company Following an article in The Guardian concerning 

possible pensions mis-selling, the PIA will be 

investigating 2 cases. 

1998 The Prudential Assurance Company 

An objection was received via the Trading 

Standards Department to a leaflet that claimed 

“Save around £100 on home insurance”. The 

complainant, who was given a quote for £16 more 

than his existing policy, challenged whether the 

savings were generally attainable. 

Adjudication: The complaint was upheld. The 

advertisers submitted a summary of their research 

which showed that nine-tenths of customers who 

had switched their home insurance to Prudential 

had saved an average of £97.99. They argued that 

the claim was neither a price promise nor a 

guarantee that Prudential would always be the 

cheapest. The Authority noted that the leaflet 

stated elsewhere that “You could save money ...”. 

It considered, however, that the claim implied that 

switching to the advertisers’ household insurance 

policies always saved customers money. Because 

that was not true, the Authority asked the 

advertisers not to use the claim again. 

1998 The Prudential Assurance Company 2 Complaints about advertisements in the 

Limited (PAC) 

national press: 

1. An objection to a national press advertisement that was headlined “Prudential announce a 

rate change of great interest to savers” and featured a table of interest rates for the advertisers’ 

60 Day Notice Account . One column of the table was headed “Monthly Rates (inc loyalty 

bonus)” and quoted annual interest rates for those who have their interest paid monthly. A 

footnote stated “The rates include a loyalty bonus of 1% gross pa (0.8% net pa) calculated 

daily and paid annually on the anniversary date. This is paid provided the account is still open 

and in the preceding 12 months no more than two withdrawals have been made and the 

balance has not been less than £2,000.” The complainant objected that the advertisement 

was misleading because the loyalty bonus was not paid until the anniversary date. 

Adjudication: Complaint upheld. The advertisers said they believed the footnote explained that 

monthly interest was calculated excluding the loyalty bonus but accepted that the presentation 

of the advertisement could be confusing. The Authority considered that the advertisement was 

misleading and it welcomed the advertisers’ intention to amend 

future advertisements to state monthly interest rates without the loyalty bonus, which they will 

show separately. 

103


2. An objection to a national press advertisement that was headlined “Why you’ll be better 

off with Prudential because we’re No. 1 in our field”. The complainant challenged the claim. 

Adjudication: Complaint upheld. The advertisers submitted evidence that showed they were 

number one in some but not all the aspects of their pension and life insurance business. The 

Authority accepted that the advertisers claim was acceptable in relation to pensions and life 

insurance but considered that their information did not adequately substantiate the general 

claim that the advertisers were “No. 1” in their field. The Authority asked the advertisers to 

specify in future the sectors in which they could show they were “No. 1”. 

May 2001 National Planning Corporation (NPC) State of Florida (Division of Securities & Finance) 

fined NPC $10,000 for failing to register two 

branch offices. NPC were also required to sign a 

Stipulation and Consent Agreement. 

December 2001 National Planning Corporation (NPC) NPC have established a $6m claimants’ fund after 

agreement with New York Attorney General 

(NYAG). This follows HYAG investigation into sale 

of payphones and leaseback arrangements of ETS 

payphones by representatives of NPC. NYAG 

allege that the sale constituted an unregistered 

securities offering. 

January 2002 Prudential Nominees Limited (PNL) PNL was fined £5,000 by OPRA following a 

determination regarding the Ledo Limited 

Pension Plan (a SSAS) for which PNL is pensioner 

trustee. The fine is in respect of failing to appoint 

an auditor and other procedural failures. 

January 2002 Jackson National Life (JNL) JNL have reached a settlement of Haggan case 

and the Andrews, Dunn and Gales cases linked 

to it for a sum of $10m. Finalised in January 

2002, the terms of the settlement are confidential 

and should not be disclosed to third parties. 

To be noted: 

- Despite the Haggan settlement above, further 

litigation regarding Ultimate interest sensitive 

policies continues in Michigan, Illinois, 

Mississippi and Louisiana. JNL continue to try and 

resolve Ultimate ‘vanishing premium’ complaints 

on a fair and reasonable basis in order to avoid 

litigation where possible. 

104


e) BORROWING BY THE MUTUAL FUND 

Under the Regulations, the Fund is allowed to borrow to meet its temporary liquidity needs of the Fund for the purpose 

of repurchase, redemption of units or payment of interest or dividend to the Unitholders. Further, as per the Regulations, 

the Fund shall not borrow more than 20% of the Net Assets of the Scheme and the duration of such borrowing shall not 

exceed a period of six months. The Fund may raise such borrowings after approval by the Trustee from any of its Sponsors/ 

Associate/Group Companies/Commercial Banks in India or any other entity at market related rates prevailing at the time 

and applicable to similar borrowings. The security for such borrowings, if required, will be as determined by the Trustee. 

Such borrowings, if raised, may result in a cost, which would be dealt with in consultation with the Trustees. 

No borrowings have been raised under any of the Schemes of the Fund, as of the date of this Offer Document. 

f) POLICY ON OFFSHORE INVESTMENTS BY THE SCHEME 

SEBI Regulations currently permit mutual funds to invest in ADRs/GDRs issued by Indian companies and notified foreign 

securities subject to certain prescribed limits. SEBI vide its circular no. SEBI/MFD/CIR No.02 /6855/ 03 dated April 4, 2003 

have allowed the mutual funds to make investments in equity of listed overseas companies which have a shareholding of 

at least 10% in an Indian company listed on a recognised stock exchange in India (as on January 31 of the year of 

investment). 

Accordingly, SEBI has permitted each mutual fund to invest up to 10% of their net assets as on January 31, 2003 for 

investment in foreign securities, subject to a maximum of US$ 50 million for each mutual fund irrespective of the size of 

the assets as specified in SEBI circular MFD/CIR/18/21826/2002 dated November 7, 2002 remains unchanged. 


mutual funds for their overseas investments within the overall cap - US $ 1.0 billion, once SEBI’s approval has been 

obtained. This general permission will be available until further notice. 

It is the Investment Manager’s belief that investment in ADRs/GDRs/ overseas securities offer new investment and 

portfolio diversification opportunities into multi-market and multi-currency products. However, such investments also 

entail additional risks. Such investment opportunities may be pursued by the Investment Manager provided they are 

considered appropriate in terms of the overall investment objectives of the Scheme and the Plans thereunder. Since the 

Scheme and the Plans thereunder would invest only partially in ADRs/GDRs/overseas securities, there may not be readily 

available and widely accepted benchmarks to measure performance of the Scheme and the Plans thereunder. To manage 

risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio 

management including hedging and in accordance with conditions as may be stipulated by SEBI/RBI from time to time. 




intermediaries of repute as advisors, custodian/ sub-custodians etc. for managing and administering such investments. 

The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the 



costs. 

g) INTER-SCHEME TRANSFERS 

The Fund may undertake inter-Scheme transfers under the Scheme. If such transfers are done they will be effected based 

on the closing prices of the Principal Stock Exchange and in conformity with Regulations. In case of securities which are 

not traded on the Principal Stock Exchange / any other exchange, the inter-Scheme transfers will be affected based on fair 

valuation to be arrived at by the AMC with the approval of the Trustee. 

The inter scheme transfer of equity shares will be done at the weighted average traded price of the day of transfer either 

on the National Stock Exchange or the Bombay Stock Exchange, where ever the volumes are higher. 

h) GENERAL INFORMATION 

Power to make Rules 

Subject to the Regulations, the Trustee may, from time to time, prescribe such terms and make such rules for the 

purpose of giving effect to the Scheme with power to the AMC to add to, alter or amend all or any of the terms 

and rules that may be framed from time to time. 

Power to remove Difficulties 

If any difficulties arise in giving effect to the provisions of the Scheme, the Trustee may, subject to the Regulations, 

do anything not inconsistent with such provisions, which appears to it to be necessary, desirable or expedient, for 

the purpose of removing such difficulty. 

Scheme to be binding on the Unitholders 

Subject to the Regulations, the Trustee may, from time to time, add or otherwise vary or alter all or any of the 

features of investment plans and terms of the Scheme after obtaining the prior permission of SEBI and Unitholders 

(where necessary), and the same shall be binding on all the Unitholders of the Scheme and any person or persons 

claiming through or under them as if each Unitholder or such person expressly had agreed that such features and 

terms shall be so binding. 

105


DOCUMENTS AVAILABLE FOR INSPECTION 

1. Memorandum and Articles of Association of the Trustee Company and the AMC 

2. Custodian Agreement between Trustee and HDFC Bank 

3. Investment Management Agreement 

4. Trust Deed and amendments thereto 

5. Mutual Fund Registration Certificate 

6. Consent of Registrar to act in the said capacity 

7. Consent of Auditors to act in the said capacity 

8. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereof from 

time to time. 

9. Indian Trust Act, 1882. 

Notwithstanding anything contained in this document, the provisions of the SEBI (Mutual Funds) Regulations, 

1996 and the Guidelines thereunder shall be applicable. 

Note : The Scheme under this Offer Document was approved by the Directors of Prudential ICICI Trust Limited by 

circulation on September 24, 2002. 

Place : Mumbai 

Date : December 31, 2004 

For and behalf of the Board of Directors of 

PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY LIMITED 

Sd/- 

Pankaj Razdan 

Managing Director 

106


107

• Ahmedabad: 401, Sears Towers, Nr. Panchawati, Gulbai 

Tekra, Ahmedabad 380 006. Tel: (079) 26421095/96 

• Bangalore: 15/16, Vayudooth Chambers, Ground Floor, 

Trinity Circle, M. G. Road, Bangalore 560 001. Tel: 

(080) 25323789, 25323675 

• Baroda: 203 Dwarkesh Complex, RC Dutt Road, Baroda 

390 007. Tel: (0265) 2322283 / 84 

• Bhubaneswar: 2nd Foor, Epari Plaza, Plot No. C-653, 

Unit-3, Janpath, Bhubaneswar, Orissa. Tel: (0674) 

2535805, 2535806 

• Chandigarh: SCO 137-138 Ist Floor, Sector 9-C, 

Chandigarh 160 017. Tel: (0172) 2745302/3 

• Chennai: No. 22/4, Aashika Chambers, Chamiers 

Road, Teynampet, Chennai 600018. Tel: (044) 

24338228/9 

• Coimbatore: Old No:58, New No.126, 1st floor, TV 

Swamy Road (West), R.S. Puram, Coimbatore 641 002. 

Tel: (0422) 2543380/2543382 

• Durgapur: Mezzanine Floor, Lokenath Mansion, Sahid 

Khudiram Sarani, City Centre, Durgapur, Dist: Burdwan, 

West Bengal 713216. Tel: (0343) 2544682. Fax: (0343) 

2544683 

• Goa: Shop No. 7, Ground Floor, Kamat Chambers, 

Opp. Hotel Neptune, Menezes Braganza Road, Panjim 

403 001. Tel: (0832) 2424511/20 

• Guwahati: Jadavbora Complex, M. Dewan Path, 

Ullubari, Guwahati 781007. Mobile: 9864025593 

Prudential ICICI Mutual Fund Official Points of Acceptance 

• Hyderabad: L.B. Bhavan, 6-3-550 Somajiguda, (Opp. 

Medinova), Hyderabad 500082. Tel: (040) 55510099/ 

100 

• Indore: 213-A City Center, 570 M.G. Road, Indore- 

452 001. Tel: (0731) 5043003 / 5043004 

• Jaipur: 305, 3rd floor, Ganpati Plaza, M.I. Road, Jaipur 

302 001. Tel: (0141) 2388724, 2362257 

• Kanpur: 516-518, Krishna Tower, 15/63 Civil Lines, 

Opp. U.P. Stock Exchange, Kanpur-208001. Tel: (0512) 

2303505/ 2303520 

• Kochi: No. 6, 3rd floor, Emgee Square, M.G. Road, 

Kochi 682 035. Tel: (0484) 2353199/2371809 

• Kolkata: 124, Lords, 1st Floor, 7/1 Lord Sinha Road, 

Kolkata 700 071. Tel: (033) 2282 4077/82 

• Lucknow: Office No.6, Ground Floor, Saran Chambers-I, 5 

Park Road, Lucknow 226 001. Tel: (0522) 2237923/ 

717/711 

• Ludhiana: SCO 147, 4th Floor, Feroze Gandhi Market, 

Ludhiana 141 001. Tel: (0161) 2413102/4 

• Mangalore: 1st Floor, S. L. Chambers, Near Bunt’s 

Hostel Road, Karangalpady, Mangalore 575003. Tel: 

(0824) 2492179, 2491666 

• Mumbai-Corporate Office: Peninsula Tower, 5th Floor, 

503, Peninsula Corporate Park, Ganpatrao Kadam Marg, 

Off. Senapati Bapat Marg, Lower Parel, Mumbai 

400 013. Tel: (022) 24999777 Fax: (022) 2499 7029 

Other Cities: Additional official transaction acceptance points 

• Mumbai - Branch Office (Bandra): 101, Deccan House, 

Off Turner Road, Behind Copper Chimney, Near Bandra 

Station, Bandra (W), Mumbai-400 050. Tel: (022) 

26404065/66 

• New Delhi: 206, Ashoka Estate, 2nd floor, 24, 

Barakhamba Road, New Delhi 110 001. Tel: (011) 

23752515/16 

• Patna: 306, Ashiana Harnivas, Dak Bungalow Road, 

Patna 800 001. Tel: (0612) 2230 483, 2213632 

• Pune: 1184/4, 3& 4 Ground Foor, Gokul Nagar, 

Dyaneshwar Paduka Chowk, Fergusson college Road, 

Pune 411005. Tel: (020) 56028844 

• Rajkot: 103, Star Plaza, Phul Chaab Chowk, Rajkot 

360 001. Tel: (0281) 2294299 

• Ranchi: C/o. Bytes Care, I / 103, Sainik Market, Main 

Road, Ranchi 834 001. Tel: (0651) 2331572 

• Surat: 419, Lalbhai Contractor Complex, Nanpura, 

Surat 395001, Gujarat. Tel. (0261) 2460362, 2475467 

• Vijayawada: 40-1-52/5,Ground Floor, Sai Nag 

Complex, Near Benz Circle, M.G.Road, Vijayawada 

520 010. Tel: (0866) 5518882, 5516662 

• Visakhapatanam: G-8, Rams Plaza, Diamond Park 

Lane, Dwarkanagar, Visakhapatanam 530 016. Tel: 

(0891) 5566 333, 5566 318 

• Agra: CAMS Transaction Point, F-39/203, Sky Tower, 

Sanjay Place, Agra 282 002 

• Allahabad: CAMS Transaction Point, 1st Floor, 

Chandra Shekhar Azad Complex (Near Indira 

Bhawan), 5, S.P. Marg, Civil Lines, Allahabad 211 

001. Tel: 0532-260 1602 

• Amritsar: CAMS Transaction Point, 378-Majithia 

Complex, 1st Floor, M. M. Malviya Road, Amritsar 

143 001. Tel: 0183-221 1194 

• Aurangabad: CAMS Transaction Point, Office No. 1, 

1st Floor, Amodi Complex, Juna Bazar, 

Aurangabad 431 001. 

• Belgaum: CAMS Transaction Point, No. 21, Ground 

Floor, Arvind Complex, 1552 Maruti Galli, Belgaum 

590 002 

• Bhilai: CAMS Transaction Point, 209 , Khichariya 

Complex, Opp IDBI Bank, Nehru Nagar Square, 

Bhilai 490 020 

• Bhopal: CAMS Transaction Point, C-12, 1st Floor, 

Above Life Line Hospital, Zone-I, M.P.Nagar, Bhopal 

462011 (M.P.). Tel: 0755-528 5266 

• Calicut: Cams Transaction Point, 17/28 H 1st 

Floor, Manama Building, Marvor Road, Calicut 673 

001. 

• Dehradun: CAMS Transaction Point, 81, Chakrata 

Road, Dehradun 248 001. Tel: 0135-271 3233 

• Guntur: CAMS Transaction Point, Shyamsunder 

Golden Towers, Ground Floor, 3rd Lane, Brodipet, 

Adjacent to Over-bridge, Guntur 522 002. 

• Hubli: CAMS Transaction Point, B -1, Laxmi 

Complex, Club Road, Hubli 580 029. Tel: 0836- 

2254568/2351533, Fax No: 0836-2351756 

• Jalandhar: CAMS Transaction Point, 367/8, Central 

Town, Opp. Gurudwara Diwan Asthan, Jalandhar 

144 001. Tel: 0181-2456336 

• Jamnagar: CAMS Transaction Point, 207/209, K.P. 

Shah House I, K.V. Road, Jamnagar 361 001 

• Jamshedpur: CAMS Transaction Point, Panch 

Bhawan, ‘R’ Road, Bistupur, Gr. Floor, (Near 

Rajasthan Bhawan), Jamshedpur 831 001. Tel: 

0657-310 5930 

• Jodhpur: Cams Transaction Point, 1/5 Nirmal Tower, 

1st Chopasani Road, Jodhpur - 342003 

• Madurai: CAMS Transaction Point, No.56, Naicker 

New Street, Madurai 625 001. Tel: 0452-2622 682 

• Manipal: CAMS Transaction Point, Academy Annex, 

First Floor, Opposite Corporation Bank, Upendra 

Nagar, Manipal 576 104 

• Mumbai: Prudential ICICI Transaction Point, 

Construction House, Ground Floor, 5, Walchand 

Hirachand Marg, Ballard Estate, Mumbai-400 001. 

Tel: (022) 22613952 

• Mysore: CAMS Transaction Point, No.3, 1st Floor, 

CH.26 7th Main, 5th Cross (Above Trishakthi 

Medicals), Saraswati Puram, Mysore 570 009. Tel: 

0821-309 1244 / 234 2182 

• Nagpur: CAMS Investor Service Centre, 145 Lendra 

Park, Behind Shabari, New Ramdaspeth, Nagpur 440 

010. Phone: (0712) 253 2447, 253 7321 

• Nasik: CAMS Transaction Point, Rahakar Chambers, 

2nd floor, 431 Vakil Wadi, Ashok Stambh, Nasik 

422 001. Tel: 0253-257 7449 

• Patiala: CAMS Transaction Point, 3, Ajit Nagar, 

Patiala 147 001 

• Pondicherry: CAMS Transaction Point, 25, First 

Floor, Jawaharlal Nehru Street, Pondicherry 605 001 

• Raipur: CAMS Transaction Point, C-23, Sector 1, 

Devendra Nagar, Raipur 492004. Tel: 0771-309 

0830 

• Rajahmundry: CAMS Transaction Point, D.No 7-27- 

4 Krishna Complex, Baruvari Street, T Nagar, 

Rajahmundry 533 101 

• Salem: CAMS Transaction Point, 28, I Floor, 

Advytha Ashram Road, Salem 636 004 

• Siliguri: CAMS Transaction Point, No 8, Swamiji 

Sarani, Ground Floor, Hakimpara, Siliguri 734 401 

• Trichur: CAMS Transaction Point, VIII/350/15, O K 

John Memorial Building, Ekkanda Warrier Road, 

Trichur 686 001. Tel: 0487-242 0646 

• Trichy: CAMS Transaction Point, No 8, I Floor, 8th 

Cross West Extn., Thillainagar, Trichy 620 018 

• Thiruvananthapuram: Ms. Bindu Alwin, CAMS 

Transaction Point, 15/181, Chennakara Buildings, 

Althara Junction, Vellayambalam, 

Thiruvananthapuram 695 015. 

• Udaipur: CAMS Transaction Point, 32, Ahinsapuri, 

Fatehpura Circle, Udaipur 313 004 

• Valsad: CAMS Transaction Point, C/o CAD House, 

1st Floor, Opp LIC Office, Halar Road, Valsad 396001 

• Varanasi: CAMS Transacation Point, C 27/249 - 

22A, Vivekanand Nagar Colony, Maldhaiya, Varanasi 

221 002. Tel: 0542-220 8546/ 311 3810

SENSEX Prudential ICICI Exchange Traded Fund (“SPIcE”)

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