GENERAL OBLIGATIONS OF THE MUTUAL FUNDS

Regulation 50 lays down that every AMC for each scheme shall keep and maintain proper books of accounts,
records and documents, for each scheme so as to explain its transactions and to disclose at any point of time
the financial position of each scheme and in particular, give a true and fair view of the state of affairs of the fund
and intimate to SEBI the place where such books of accounts, records and documents are maintained. All these
documents shall be preserved by the AMC for a period of 8 years.

The AMC shall follow the accounting policies and standards as specified in Ninth Schedule to provide appropriate
details of the scheme-wise disposition of the assets of the fund at the relevant accounting date and the performance during that period together with information regarding distribution or accumulation of income accruing to the unit holder in a fair and true manner.

Regulation 51 provides that the financial year for, all the schemes shall end as on March, 31 of that financial
year.

Regulation 51A provides for the credit of exit load to scheme. The exit load charged, if any, shall be credited to
the scheme.

Regulation 52 lays down that all expenses should be clearly identified and apportioned to the individual schemes.

The asset management company may charge the scheme with investment and advisory fees which shall be
fully disclosed in the offer document.

Regulation 52A provides that a mutual fund may declare dividends in accordance with the offer document and
subject to such guidelines as may be specified by SEBI.

Regulation 53 lays down that every mutual fund and AMC shall despatch to the unitholders the dividend warrants

within 30 days of the declaration of the dividend and despatch the redemption or repurchase proceeds within 10
working days from the date of such redemption or repurchase. If AMC failed to dispatch the redemption or
repurchase proceeds within 10 working days from the date of such redemption or repurchase, it shall be liable
to pay interest to the unit holders at such rate as may be specified by SEBI for the period of delay. Besides this,
the AMC may also be liable for penalty in respect of the delay.

Regulations 54 to 57 deal with the annual report, auditors report, publication thereof and forwarding to SEBI. Every mutual fund or AMC shall prepare in respect of each financial year an annual report and an annual statement of accounts of the schemes and the fund as specified in these Regulations. Every mutual fund shall have the annual statement of accounts audited by a practising Chartered Accountant who is not in any way associated with the auditor of the AMC. The auditor shall be appointed by the trustees to whom the auditor shall forward his report. It shall be included as part of the annual report of the mutual fund.

Regulation 56 requires that the schemewise Annual Report of a mutual fund or an abridged summary thereof shall be mailed to all unitholders as soon as may be but not later than four months from the date of closure of the relevant accounts year. However, the scheme wise annual report or abridged summary thereof may be sent to investors in electronic form on their registered e-mail address in the manner specified by SEBI. The report mailed in abridged summary form shall carry a note that for unitholder of a scheme full Annual Report shall be available for inspection at the head office of the mutual fund and a copy therof shall be made available to unitholder on payment of such nominal fees as may be specified by the mutual fund. The asset management company shall display the link of the full scheme wise annual reports prominently on their website.

Regulation 57 requires that every mutual funds shall annual report forward its to SEBI within 4 months from the
date of closure of each financial year.

Regulations 58 and 59 indicate the periodical and continual disclosures as well as half yearly disclosures to be made by the mutual fund, AMC and others closely connected to them.Regulation 60 enjoins that the trustee shall be bound to make all essential disclosures to unit holders to keep them informed about any information which may have an adverse bearing on their investments.