The Unit Scheme 2002 (US 2002) has been formulated under section 21 of the Unit Trust of India Act 1963 (52 of 1963) by the Board of Trustees of Unit Trust of India (UTI).

This offer document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. The offer document should be retained for future reference. The offer document will remain effective for a period of not more than two years from the date of the offer document after which it shall be fully revised and updated. Till the time the offer document is revised and reprinted, for any changes of material nature made to the scheme, an addendum will be prepared and attached to the offer document. The addendum will also be circulated to the existing members.

The statutory provisions included in the offer document are general and indicative in nature and are neither exhaustive nor any particular investor specific.

This is an open-end balanced scheme. The scheme aims at providing income distribution/ cumulation of income and capital appreciation over a long term from a prudent portfolio mix of equity and fixed income securities.

It is confirmed that:

1. The Draft Offer Document forwarded to Securities And Exchange Board of India is in accordance with the SEBI (Mutual Funds )Regulations, 1996 and the guidelines and directives issued by SEBI from time to time;

Date: __/__/____ M Sebastian

Place : Mumbai Compliance Officer

In the scheme unless the context otherwise requires:

1. "Acceptance date" or "date of acceptance" with reference to an application made by an applicant to the UTI for sale or repurchase of units by the UTI means the day on which the branch office of UTI/ UTI Financial Centres/authorised collection centres of UTI with Cash Management Service (CMS) after being satisfied that such application is complete in all respects, accepts the same. The acceptance date in respect of applications received at the authorised collection centres of UTI where CMS facility is currently not available or any other authorised centre as prescribed by UTI from time to time, will be T + actual number of days but in any case will not be beyond the 5^th working day (T+5) from the date of receipt (T) of such applications at these offices/ centres.

2. The "Act" means the Unit Trust of India Act, 1963 (52 of 1963).

3. "Applicant" means an investor who is eligible to participate in the scheme as provided in clause VI (4) hereinafter and is not a minor or a mentally handicapped person and shall include the alternate applicant mentioned in the application form.

4. "Alternate applicant" in case of minor means the parent other than the parent who has made the application on behalf of a minor and in the case of mentally handicapped person, the alternate applicant mentioned in the application form.

5. "AMFI" means Association of Mutual Funds of India.

6. "Board" or "the Board" means the Board of Trustees of the Unit Trust of India.

7. "Eligible trust" means an eligible trust as defined in the Unit Trust of India General Regulations 1964.

8. "Firm", "partner" and "partnership" have the meanings assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression partner shall also include any person who being a minor is admitted to the benefits of the partnership.

9. "Member" or "unit holder" used as an expression under the scheme shall mean and include the applicant who has been allotted units under the scheme. "Member" also means a "unitholder" including the persons holding units in the depository mode and both the expressions can be read synonymously.

10. "Mentally handicapped person" means any individual who suffers from mental disability of such a nature which prevents him from carrying out normal activities of life.

11. "Non Resident Indian (NRI)" shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, "Non-Resident Indian (NRI)" means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a "person of Indian origin" if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.

12. "Number of units deemed to be in issue" means the aggregate of the number of units issued and still remaining outstanding.

13. "Overseas Corporate Bodies (OCBs)", means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty percent by NRIs and includes overseas trust in which not less than sixty percent beneficial interest is held by NRIs directly or indirectly but irrevocably.

14. "RBI" means the Reserve Bank of India, constituted under the Reserve Bank of India Act, 1934.

15. "Registrars" means a person whose services may be retained by UTI to act as the Registrar and Transfer Agents under the scheme from time to time.

16. "Regulations" means Unit Trust of India General Regulations, 1964 made under Section 43(1) of the Act.

17. "SEBI" means the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992).

18. "SEBI (MFs) Regulations" means the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time, framed by SEBI in exercise of powers conferred under Securities and Exchange Board of India, Act, 1992.

19. "Society" means a society established under the Societies Registration Act of 1860 or any other society established under any State or Central law for the time being in force.

20. "Sponsor" means any person who, acting alone or in combination with another body corporate, establishes a mutual fund;

21. "Time" all time referred to in the offer document stands for Indian Standard Time.

22. "Unit" means one undivided share of the face value of Rupees ten in the unit capital and includes, where the context so requires, a unit issued as fully paid up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserve formed or otherwise in respect of this scheme.

23. "Unit Capital" means the aggregate of the face value of units issued under the scheme and outstanding for the time being.

24. "Unit Trust" or "Trust" or "UTI" means the Unit Trust of India established under Section 3 of the Act.

25. "Working Day" means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under the scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI offices in Mumbai remain closed or (iv) a day on which sale and redemption/switching of unit is suspended by UTI.

26. All other expressions not defined herein but defined in the Act/ Regulations shall have the respective meanings assigned to them by the Act/ Regulations.

27. Words importing singular shall include the plural and all reference to masculine gender shall include the feminine gender and vice versa.

1. Unit Scheme 2002 (US 2002) is only the name of the scheme and does not in any manner indicate the quality of the scheme, its future prospects or returns.

2. Mutual Funds and securities investments are subject to market risks.

3. As with any investment in securities, the NAV of the units issued under the scheme can go up or down depending on the factors and forces affecting the capital markets.

4. Past performance of this scheme and previous schemes/plans is not necessarily an indication of future results. There is no assurance or guarantee that the objective of the scheme will be achieved.

5. Statements/ observations made in this offer document are subject to the laws of the land as they exist at any relevant point of time.

6. Income, growth and appreciation referred to in this offer document are subject to the tax laws and other fiscal enactments as they exist from time to time.

7. Credit Risk: Bonds /debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central/State governments have lesser to zero probability of credit/ default risk in view of the sovereign status of the issuer.

8. Interest -Rate Risk: Bonds/Government securities, which are fixed income securities, run price-risk, like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI, the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/ Government securities are also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the Rupee may also affect security prices. Such rise and fall in price of bonds/ government securities in the portfolio of the scheme may influence the NAV under both the options of the scheme as and when such changes occur.

9. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the fund might have to incur a significant "impact cost" while transacting large volumes in a particular security.

10. Investment in overseas markets: The success of investment in overseas markets depends upon the ability of the fund manager to understand conditions of those markets and analyse the information, which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides market risks of those markets.

11. Securities Lending: It is one of the means of earning additional income for the scheme with least risk. The risk could be in the form of non-availability of ready securities for sale during the period the securities remain lent. The scheme could also be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities. However, this risk would be adequately covered by taking in of suitable collateral from the borrower by the intermediary involved in the process. UTI will have a lien on such collateral. It will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

12. Trading in debt and equity derivatives involves certain specific risks like :

1. Credit Risk: This is the risk on default by the counter party. This is usually to the extent of difference between actual position and contracted position. This risk is eliminated where derivative transactions happen through clearing corporation.

2. Market Risk: Market movement may also adversely affect the pricing and settlement of derivative trades like cash trades.

3. Illiquidity Risk: The market risk that a derivative may not be sold or purchased at a fair price due to lack of liquidity in the market.

4. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the Fund Manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the scheme could be lower.

5. Interest Rate Swaps (IRS) and Forward Rate Agreements (FRA) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not the notional principal amount.

6. Participating in derivatives is a highly specialised activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing the overall market in these segments could be highly speculative due to action of other participants in the market.

1. The scheme aims at providing income distribution/cumulation of income and capital appreciation over a long term from a prudent portfolio mix of equity and fixed income securities.

2. Minimum and maximum asset allocation:

   Equity: Minimum 25% - Maximum 55%

   Debt : Not more than 75% assets under management will be invested in debt instruments. For investments in corporate debt the minimum rating would be of AA category (inclusive of AA minus). At least 7.5% of the total investment would be in Government of India securities.

    

3. Investment in Money Market Instruments:

   (i) No fixed allocation will normally be made for investment in money market instruments. Investment in money market instruments may be kept to the minimum generally to meet the liquidity needs of the scheme.

   (ii) Pending deployment of funds of the scheme in securities in accordance with its investment objective as stated above, the scheme may invest in money market instruments including short-term deposits of scheduled commercial bank.

4. UTI retains the option to alter the asset allocation for a short term period on defensive considerations.

5. On division of assets from existing US 64, it is estimated equity & Debt exposure under US-2002 as on the record date would be 65 % and 35 % respectively.

(a) "Fundamental attributes" in the context of the scheme will be

1. Type of scheme: Unit Scheme 2002 is an open-end balanced scheme.

2. Investment objective: as provided under clause V(1) above of this offer document.

3. Terms of issue: provisions in this offer document in respect of repurchase and expenses as indicated in this offer document.

(b) Any change in the fundamental attributes of the scheme will be carried out only if:

1. the existing unitholders are intimated by individual communication;

2. an advertisement is given in English daily newspaper having circulation all over India and also in a Marathi newspaper; and

3. the members are given an option to exit at prevailing NAV without any exit load.

3. The Board may from time to time add to or otherwise amend this scheme and any amendment/addition thereof will be notified in the Official Gazette as required in terms of section 21(4) of the Act.

    

4. Any change/amendment/modification of the fundamental attributes of the scheme will be made with the prior approval of the SEBI. In respect of other changes/amendments/modifications not being of fundamental nature and not affecting the interest of the member adversely, SEBI will be kept informed.

3. Investment Policies

Subject to SEBI (MFs) Regulations, guidelines on the investment from time to time:

1. The scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAV of scheme with the prior approval of the Board of Trustees/Executive Committee of the Board of Trustees of UTI. Provided that such limit shall not be applicable for investments in government securities and money market instruments.

2. The scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees/Executive Committee of the Board of Trustees of UTI. Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

3. No loans will be advanced by the scheme for any purpose.

4. UTI shall 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 shall in no case put itself in a position whereby it has to make short sale or carry forward transaction.

5. The scheme may enter into derivative transactions on a recognised stock exchange for the purpose of hedging and re-balancing the portfolio as may be permissible under guidelines issued by SEBI.

6. Assets of the scheme are currently held in the name of UTI. UTI shall, get the fresh securities purchased by the scheme transferred in the name of the scheme.

7. (I) The scheme will participate in the securities lending programme, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediary.

   (ii) The maximum exposure of the scheme to a single intermediary in the securities lending programme at any point of time would be 10% of the market value of the security class of the scheme or such limit as may be specified by SEBI.

   (iii) If mutual funds and UTI are permitted to borrow securities the scheme may in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

8. The scheme may invest in securities issued by overseas/foreign companies and listed abroad or securities issued by Indian Corporates to foreign/overseas investors and listed on foreign stock exchanges directly by subscribing to such issues or purchasing them on the foreign stock exchanges in accordance with the SEBI/RBI guidelines issued in that regard from time to time.

   UTI may invest in ADRs/GDRs within the overall limit of 10% of the net assets managed by UTI as on the date of the last audited balance sheet, subject to a maximum of US $50mn. The Foreign Debt securities can also be of foreign issuer, issued abroad.

9. The scheme shall not make any investment in any unlisted security of an associate or group company of UTI; or any security issued by way of private placement by an associate or group company of UTI; or the listed securities of group companies of UTI which is in excess of 25% of the net assets.

10. Investment in non publicly offered debt: Depending upon the available yields the scheme would be investing in non-publicly offered debt securities.

11. The aggregate value of "illiquid securities" of scheme, which are defined by SEBI 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.

The dealing and fund management functions at UTI are segregated into separate & independent functions. The broad procedure followed at UTI for taking investment decisions is summarised as follows:

(i). The investments of each scheme are managed by a designated Fund Manager on a regular basis. The fund manager constructs the appropriate portfolio in the light of the scheme objectives, prudential exposure norms, fund size, tenure of the scheme, and the liquidity required for income distribution considering the normal repurchases, redemption etc. All the investment decisions are based on scheme’s investment objectives, internal guidelines, regulatory restrictions etc. The portfolio is continuously monitored based on the research inputs, present & expected market conditions, future outlook on the economy/sectors/individual scrips and fresh inflows/outflows in the scheme with a view to optimise the return under the scheme. The Fund Manager's operational strategy and its implementation are reviewed by the Chief Investment Officer on an ongoing basis and by the Asset Management Committee consisting of external eminent persons at regular intervals.

(ii). Equity Research Cell (ERC) is an internal set-up with analysts tracking specific sectors, which provides regular inputs to the fund managers on stocks/industries/sectors, implication of Govt./RBI policies and trends in international markets. The fund managers and research analysts interact regularly through meetings and presentations. These inputs are discussed thoroughly in these meetings. The fund managers and equity analysts visit companies to obtain all publicly available information on company performance/management perspectives. The fund managers also attend company presentations as well as presentations by external research outfits / broking firms on company / industry performance.

(iii)Primary market investments: The investments in Initial Public Offerings and Private Placements in primary market are screened and scrutinised by a separate primary market team under Department of Dealing. On the basis of this team’s information and research reports, the fund managers give their recommendation on the proposals keeping in mind the schemes’ investment objectives, internal guidelines and SEBI guidelines. Such proposals are approved by Primary Market Investment Committee /Chairman / Executive Committee of the Board of Trustees / Board of Trustees.

(iv) Secondary market investments : Fund Managers also interact with research analysts of UTI and dealers on regular basis. The fund managers also have access to external sources of data from analysts, publicly available information about company / sector etc. The fund manager prepares a strategy paper for the scheme on periodic basis, which is discussed with senior management of UTI. Investment proposals are referred to senior management of UTI if it exceeds the limits laid down by the internal guidelines. Finally, these investment decisions made by the Fund Managers are executed by dealing department.

The inter-scheme buy and sale transactions are effected as per the SEBI (Mutual Funds) Regulations.

(vi) There are three Asset Management Committees (AMCs) to review the activities of the three fund management functions. The role of the AMC is to

1. Oversee from time to time that a scheme broadly adheres to its objectives, the guidelines laid down by UTI General Regulations, SEBI (Mutual Funds) regulations and the Prudential Guidelines laid down by UTI Board of Trustees.

2. Review scheme performance regularly and advise fund managers on the future course of action to be adopted.

3. Address other key issues such as product designing, marketing, investor servicing and compliance of the scheme

4. Examine and advise on the taxation and accounting policy related aspects of a scheme

5. Make recommendations to the Executive Committee/Board of Trustees as the AMC may consider necessary.

6. The proceedings of the AMCs are reported in the form of minutes to the Board of Trustees for its information and guidance, at regular intervals.

(q )Participating in Derivative Products:

1. The scheme may use hedging techniques including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS),forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

2. The scheme intends to use derivatives mainly for the purpose of hedging and/or rebalancing of the portfolio against any anticipated move in the equity and debt markets. A hedge is primarily designed to offset a loss on a portfolio with a gain in the hedge position.

3. The Fund Manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market. One of the strategies could be to use index futures with a view to increasing/decreasing the overall level of investment in equities.

4. The Fund Manager may sell the Index Forward by taking a short position in Index Futures to save on the cost of outflow of funds or in the event of negative view on the market.

5. As per the current norms laid down by the Board of Trustees of UTI, the value of derivative contracts outstanding at any point of time will be limited to 20% of the net assets of the scheme. The Board of Trustees may, in future, revise the limits within the SEBI (MFs) Regulations in keeping with the investment objectives of the scheme.

6. Numerical example to illustrate the risk and return ensuing from trading in equity derivatives:

(r) Debt market in India

1. Debt instruments are basically obligations undertaken by the issuer of the instrument as regards certain future cash flows representing interest and principal, which the issuer would pay to the legal owner of the instrument. Debt market is a platform for the investors to transact in debt market instruments.

2. The basic features of the debt market instrument are as follows:

1. Instruments - the instruments that are being traded in the debt market/ may not be traded.

2. Issuers - entities which issue these instruments.

3. Investors - entities which invest in debt instruments or trade in these instruments.

4. Interventionists or Regulators - the regulators and the regulations governing the market.

5. Intermediaries - merchant bankers and brokers who link the issuers/sellers and investors.

1. This scheme is called the Unit Scheme 2002 (US 2002). The scheme will offer Income and Growth options.

1. Under the Income option there is a provision for payment of income distribution or reinvestment of income distribution at NAV/NAV based price.

2. Under the Growth option no income distribution will be paid but income will be ploughed back and reflected in the NAV.

2. The scheme is an open-end balanced scheme.

3. The face value of each unit issued under the scheme is Rs.10/-.

4. Applicants :

1. a resident individual or an NRI either singly or jointly with another or up to two other individuals on joint/any one or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court.

2. a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. An application cannot be made by an adult and minor jointly,

3. an association of persons or body of individuals whether incorporated or not,

4. an eligible trust as defined under the scheme including private trust being irrevocable trust and created by an instrument in writing,

5. an individual for the benefit of another individual who is a mentally handicapped person,

6. a society as defined under the scheme,

7. a body corporate including a company formed under the Companies Act, 1956 and banks including co-operative banks and regional rural banks,

8. a Hindu Undivided Family (HUF) both resident and non-resident,

9. an Army/Navy/Air Force/Paramilitary Fund,

10. a partnership firm,

    (An application by a partnership firm shall be made by not more than three members of the firm and the first named person shall be recognised by UTI for all practical purposes as the member. The first named person in the application form should either be authorised by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.) and

11. an Overseas Corporate Body owned by NRIs to the extent of at least 60%.

5. Amount of investment

1. Application shall be made for a minimum of Rs.5,000/- . There is no upper limit.

   An existing member with outstanding balance of less than Rs.5000/- in a folio can continue in the scheme with the existing holding. Such investments that are less than Rs.5000/- will be considered under the growth option only. However, if the member tenders the units for repurchase thereby reducing the outstanding investment under the folio to less than Rs.5000/- part repurchase will not be permitted and the entire amount will have to be repurchased.

   Subsequent minimum investment is Rs.1,000/- per folio per application without any upper limit subject to a minimum balance of Rs.5000/- being maintained per folio.

2. Units will be allotted in fractions up to three places after the decimal.

3. In case of investment of Rs.50,000/- and above, the resident or a NRI investing out of non-resident ordinary account is advised to furnish Income Tax P.A.N./ G.I.R. number and I T Circle address if he/ she is having so. The P.A.N./ G.I.R. number if allotted at a later date may be informed to UTI.

6. Bank account particulars of applicant / member & Electronic Clearing Service (ECS):

1. In order to avoid fraudulent encashment of Income Distribution Warrants, SEBI has made it mandatory for members, to furnish their bank account particulars i.e. nature of account, account number and name and address of the bank branch. The members are also required to furnish the 9 digit bank and branch MICR code number in the application for payment to bank account of the member through ECS as indicated under (b) below. Those of the applicants/members who authorise payment of income/repurchase proceeds to their relatives in India will be required to furnish the bank account particulars together with MICR code number of such resident relative.

2. Income will be directly sent for credit to the member's account through ECS where such facility is currently available and other centres as and when such facility is made available at those centres. At all other centres income distribution will be sent by way of income distribution warrant (IDW) / cheques drawn on such banks as UTI may decide from time to time. If, however, the number of members at any centre are not found sufficient or for any other reasons it is found inconvenient to pay through ECS, UTI may decide to effect the payment by an alternate mode like credit to bank account or by issue of Income distribution warrants(IDW) / cheque/draft as may be decided from time to time. Currently, direct credit, if any, through ECS to the member’s bank account is made only if the amount of any single instrument does not exceed Rs.5,00,000/-.

3. The cheques/ drafts/IDWs as mentioned above at (b) will carry the details of the bank particulars as given by a member. While all due care will be taken by UTI while mailing the cheques/ drafts/ IDWs, it is clarified that in the event of any non-delivery by the postal department and/or wrongful encashment of the said cheques/ drafts/ IDWs so mailed, UTI will not at all be liable.

4. ECS facility is also available to NRI members who have their own bank accounts in the centres where the facility is currently available or any such other centre as may be added in future.

7. Statement of account (SOA)

1. For each sale, re-investment of income distribution under the scheme and partial repurchase UTI will issue a statement of account (SOA)/transaction statement indicating among other particulars, the date of acceptance, amount of investment, number of units issued/ repurchased/ rate of allotment/ repurchase of units.

2. SOA will be a valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft such issue of units will be cancelled and treated having not issued if the cheque/ draft is returned unpaid.

3. UTI shall send a SOA within 30 days from date of acceptance of the application.

4. If a member desires to have a unit certificate in lieu of SOA the same would be issued to him within 30 days from the date of receipt of such request.

5. An NRI applicant may choose any of the following options to receive the SOA or unit certificate/s in exchange of the SOA

1. At his Indian/foreign address, or

1. At his relative's address in India, or

1. SOA will be sent to the address given by the member and UTI will not incur any liability for the loss, damage, mis-delivery or non-delivery of the SOA, so sent.

2. Every member will be given a folio number, which will be appearing in MA/SOA for his initial investment. Further investments in the same name(s) would be registered under the same folio, if folio number is mentioned by the member.

6. In case a MA/SOA/ unit certificate is mutilated/defaced/lost the Trust issue a duplicate MA/SOA on receipt of a request to that effect from the member on a plain paper or in the manner as may be prescribed from time to time.

8. Periodic Investment Plan (PIP):

1. Investors can participate in the PIP by submitting the duly completed PIP form at any UTI branch/UTI Financial Centres (UFCs)/ any other authorised collection centres. Participation in the PIP does not assure or guarantee any returns.

2. All cheques must be dated the 5^th of a month. The cheques will be presented on the dates mentioned on the cheque. If case the date falls on a non-working day or falls during book closure period the cheque will be presented on the immediate next working day. The units will be allotted at the applicable sale price subject to realisation of the cheque.

3. Returned cheque(s) may not be presented again for collection. In case the returned cheques are presented again, the charges for the same are liable to be debited to the member.

4. An SOA will be despatched to the member within 30 working days of the allotment of units.

5. A member can withdraw from the PIP at any time by means of a written request to UTI branch/UTI Financial Centres (UFCs)/ any other authorised collection centres on such terms and conditions as may be specified by UTI from time to time. On termination of PIP balance post-dated cheques, if any, will be returned to the member.

9. Direct payment through employers

UTI may decide to temporarily suspend determination of NAV of the Scheme offered in this Document, and consequently sale and repurchase of units, in any of the following events:

g) If so directed by SEBI.

In the above eventualities, the limits indicated in the Offer Document, for processing of requests for sale and repurchase of units will not be applicable.

1. Members under the scheme may be permitted to switchover their investment partially or fully from the scheme to any other scheme/s of UTI or vice versa as may be allowed by UTI from time to time on such terms as may be announced.

2. In case of partial switchover from the scheme to other scheme/s or vice versa, the condition of investor holding minimum investment prescribed under both the schemes should be satisfied.

1. Listing

Steps are being taken to delist the units of the scheme from all the stock exchanges where it is presently listed as the units of the scheme are available for sale and repurchase throughout the year except during the book closure period/s.

1. Sale contract

(a) The price at which a unit will be sold by the UTI is hereinafter referred to as "Sale Price".

(e) For sale and repurchase price will be declared daily.

1. For applications tendered at other authorised collection centres without CMS or such other authorised collection centres as may be prescribed by UTI from time to time the applicable NAV will be that which is applicable for the date on which such application is received at the Registrars’ office, but not beyond the 5^th working day (T +5) from the date of receipt (T) of the application at these centres.

(f) Non-individual applications alongwith required documents will be accepted only at UTI offices or as may be decided from time to time.

2. Resident applicants – Mode of Payment

1. The payment for units by a resident applicant may be made by a cheque or draft or in cash to the extent permissible under Income Tax Act or by RBI or by any other mode as may be permitted by UTI.

2. Cheques / drafts should be drawn on a branch of the bank situated in the city / area of the UTI branch office/ UFC/ authorised collection centre where the application is tendered / submitted.

3. The bank draft charges, if any, will have to be borne by the applicant. However for investment made from areas where there are no branch offices of UTI/UFCs of UTI or Chief Representative Collection Centres/Franchise offices or authorised collection centres (where local cheques are accepted), UTI may, if it so decides, bear draft charges to the extent of Rs.250/- per application or the actual as is prescribed by banks, whichever is lower or such amount as may be decided by UTI from time to time. The investors have to attach proof of the DD charges paid to a bank (i.e. acknowledgement issued by the bank where DD is purchased). The reimbursement/ adjustment of DD charges is solely at the discretion of UTI and in case if it is found that such charges are unreasonably higher than normal market rates, such charges may not be admissible. The draft commission charges will form part of recurring expenses of the scheme. However in case of applications received along with local bank draft where UTI has its branch office/UFC/ or any other authorised collection centre, bank draft commission will have to be borne by the investors.

3. NRI/OCB applications

1. By a rupee draft issued by a bank/exchange house abroad on its Indian correspondent bank.

2. By a rupee cheque/draft issued out of NRE deposits of the applicant or purchased out of FCNR proceeds.

3. By a rupee cheque/draft issued out of NRO deposits of the applicant or out of the proceeds of the NRNR/NRSR deposits.

4. Nepalese and Bhutanese currencies and cash are not accepted.

(b) Submission of applications by NRIs/OCBs

1. At the NRI branch at Mumbai and also at Dubai Representative Office of UTI or any other place/s that may be decided by UTI from time to time.

2. At any of the offices of UTI/UFC/Franchise offices or any other authorised collection centre provided they are accompanied by cheque drawn on a NRE / NRO account or by a Rupee draft payable at the place where the application is submitted.

4. Right of UTI to accept or reject applications :

1. UTI shall have the right to accept and/or to reject at its sole discretion an application for issue of units under the scheme. An applications for issue of units is liable for being rejected under the following circumstances:

1. If an application is received with amount less than the minimum prescribed amount of investment;

2. If the application has not been signed by the first applicant;

3. If the application is found to be incomplete in any respect.

4. If the bank account particulars as required are not furnished.

5. If the applicant is not eligible to invest in the scheme.

6. If the cheque/demand draft deposited along with the sales application is rejected and payment is not received by the UTI.

1. Any decision of UTI about the eligibility or otherwise of a person to make an application under the scheme shall be final and binding on the applicant.

2. Refund of application money in a rejected case will be made without UTI incurring any liability whatsoever, for interest or any other sum(s) and at the cost of the applicant after the requisite operational and other procedural formalities as prescribed from time to time are complied with.

5. Requirement for admission in the scheme:

1. An adult, being a parent, step-parent or other lawful guardian of a minor may hold units and deal with them in accordance with and to the extent provided, in sub-section (2A) of Section 21 of the Act. Such adult if so required shall furnish to UTI, in such manner as may be specified, proof of the age of the minor and his capacity to hold and deal with units on behalf of the minor. UTI shall be entitled to act on the statements made by such adult in the application form without any further proof.

2. Where an application is made by an individual for the benefit if another individual who is a mentally handicapped person, UTI shall act on the statements furnished and in doing so UTI shall be deemed to be acting in good faith.

3. Persons applying for units under the scheme on behalf of a minor/mentally handicapped person shall satisfy UTI about their eligibility to make an application and comply with all requirements as laid down by UTI such as submission of the birth certificate, school leaving certificate/passport in case of minor or oculist or psychiatrist's certificate in case of mentally handicapped or such other certificates as issued by a statutory authority as decided by UTI from time to time.

4. UTI shall be entitled to deal only with the applicant and in the event of his death, the alternate applicant for all practical purposes and any payment in respect of the units by UTI to the said applicant or the alternate applicant shall be a good discharge to UTI.

5. Applications for units on behalf of bodies like Partnership Firms / Societies including Co-operative Societies / Bodies Corporate / Companies shall be accompanied by certified copy of Partnership Deed / Bye-Laws of the Society / Statute governing the Body Corporate / Memorandum and Articles of Association of the Company (if the same is already registered with any of the offices of UTI it is sufficient to quote the document registration number) together with Resolution of the governing Body authorising investment in the scheme/ declaration duly signed by all the partners that the partnership deed authorises investments in the units of UTI. Names of officials with their designation authorised to sign the application form and attested specimen signatures of the authorised officials should also be submitted.

6. In the case of non-individual investors, At the time of repurchase of units, in case of firms, authorised signatories, in case of society, body corporate & company, resolution of the governing body authorising repurchase and authorisation of the concerned official(s) of the Body and such other document as may decided from time to time to comply with the formalities and collect the repurchase cheque will have to be submitted

7. A firm shall be registered as a member and the SOA/membership advice shall be made in the name of the firm. In the event of any change in the constitution of the partnership firm, the same should be duly intimated to UTI along with the public notice, if any, issued in this regard at least within a month from the date of such change in the constitution of the firm.

8. OCB applicants are required to furnish a certificate about their ownership in form OAC or OAC-1 as may be applicable, duly certified by a Chartered Accountant / Public Accountant.

9. An individual applying for units in his official capacity shall be issued units in his official name.

6. Units held under false declaration:

1. Members who come to hold units under a false declaration /certificate shall be liable for having the unitholding cancelled and have their names deleted from the register of members.

2. In such cases UTI shall have the right to repurchase the outstanding unit holding at par or at NAV, whichever is lower, after deducting therefrom a sum equal to 25% of the repurchase price towards penalty.

3. UTI will also recover the amount of income distribution, if any, wrongly paid to such persons from out of the repurchase proceeds.

4. The amount paid to the applicant shall not carry any interest or any other sum irrespective of the period it takes UTI to effect the repurchase and to pay the repurchase proceeds.

1. Nomination facility is available to individual applicants applying on their own behalf i.e. singly or jointly.

2. Only one person, resident or NRI, including minors, can be nominated.

3. Nomination of an NRI is subject to requirements, if any, prescribed by RBI from time to time.

4. Nomination can be changed at any time during the currency of the investment.

5. Member being either parent or lawful guardian on behalf of a minor and an eligible institution, societies, bodies corporate, HUF, AoPs, BoIs, partnership firms and an applicant who has applied for units for the benefit of a mentally handicapped person shall have no right to make any nomination.

6. On registration of a nomination a suitable endorsement shall be made on the statement of account or in the form of a separate letter.

7. The facility of nomination is available to a member under SEBI (MFs) Regulations and guidelines issued by SEBI from time to time.

8. Where a nomination in respect of any units has been made in accordance with the Regulations, the units shall, on the death of the member(s), vest in the nominee subject to any right, title, claim or other interest of any other person to or in respect of the said units as provided in the regulations and subject to any charge or encumbrance over the said units. Nominee would be able to hold the units provided he is otherwise eligible to become a member of the scheme.

9. Where there are two or more members one of whom has expired the title to units shall vest in the surviving member(s) who may retain the nomination or change or cancel the same. However, non-expression of desire to change or substitute the nominee by surviving member shall be deemed to be the consent of surviving member for existing nomination.

10. Transmission made by UTI as aforesaid shall be a full discharge to UTI from all liability in respect of the said units.

1. Initial issue expenses:

2. Recurring expenses

2. Although currently UTI does not charge any investment management and advisory fees as provided in the SEBI (MFs) Regulations, it will ensure that the annual recurring expenses shall remain within the limits specified under regulation 52 of SEBI (MFs) Regulations.

3. The total annual recurring expenses of the scheme excluding redemption expenses but including contributions to General Fund (GF), Development Reserve Fund (DRF) and Staff Welfare Fund (SWF) shall be subject to the following limits :

1. On the first Rs.100 crore of the average daily net assets of the scheme- 2.50%

2. On the next Rs.300 crore of the average daily net assets of the scheme- 2.25%

3. On the next Rs.300 crore of the average daily net assets of the scheme- 2.00%

4. On the balance of the assets of the scheme - 1.75%

2. Contribution to GF, contribution to DRF and contribution to SWF will not exceed the limits specified under clause 2 of regulation 52 of SEBI (MFs) Regulations, namely:

1. One and quarter of one percent of the daily average net assets outstanding in each accounting year for the scheme as long as the net assets do not exceed Rs.100 crore, and

2. One percent of the excess amount over Rs.100 crore, where net assets so calculated exceed Rs. 100 crore.

3. Contribution to Development Reserve Fund (DRF)

1. A sum not exceeding 0.25% p.a. of the average daily net assets shall be set aside as contribution towards the DRF of UTI. DRF contribution will be part of the recurring expenses of the scheme.

2. UTI instituted this fund in the year 1983-84 as a common fund to enable UTI to meet the expenditure in respect of research & developmental work in connection with the introduction of new schemes, innovation of new systems and procedures at the conceptual stage and also various other promotional & developmental work not related to or linked with any particular scheme itself. The Fund is also utilised for Economic and Capital Market Research, Management & Professional Training, Surveys and Market Research for UTI, Marketing and Corporate image building efforts that are not connected to any specific scheme, Human Resource Development efforts with long term effects and which may relate to UTI's future activities and for meeting the shortfall, if any, in the assured rate of return of any of the schemes of UTI as well as the issue, marketing and sales promotional expenses for specified schemes.

4. Contribution to Staff Welfare fund (SWF)

2. Contribution to General Fund (GF)

1. Transfers to be effected only by and between transferors and transferees who are capable of holding units as given in clause VI (4). UTI shall not be bound to recognise any other transfer.

2. Every instrument of transfer shall be signed by the transferor (all the transferors in case of joint holding) and the transferee (all the transferees in case of joint purchase).

3. The transferor shall be deemed to hold units until the name of the transferee is entered into the register of members by UTI.

4. UTI may require such evidence as it may consider necessary in support of the title of the transferor or his right to transfer units.

5. Duly stamped prescribed transfer deed with the relative unit certificate are to be sent to UTI. Any instrument of transfer can be lodged with any of the offices of UTI or the Registrar appointed, if any, for the purpose. Provided, that under special circumstances, UTI may allow transfer of units without an instrument of transfer on such terms and conditions and on such transferee providing such proof as may be specified by UTI.

6. UTI may subject to compliance with such requirements as they deem necessary dispense with the production of the original unit certificate, should it be lost, stolen or destroyed.

7. Upon registration of a transfer of units all instruments of transfer and the unit certificate may be retained by UTI.

8. UTI on recognising and registering a transfer may endorse the original unit certificate or issue a fresh SOA /Membership Advice to the transferee.

9. If a transferee becomes a holder of units in an official capacity, by operation of law or a scheduled bank upon enforcement of a pledge, then UTI shall, subject to the production of such evidence which in their opinion is sufficient, proceed to affect the transfer if the intended transferee is otherwise eligible to hold units.

10. Under special circumstances, holding of units by a company or other body corporate with another company or body corporate or an individual/individuals, none of whom is a minor, may be considered by UTI.

11. Subject to the provisions contained herein above, UTI shall register the transfer and return the unit certificate along with income distribution warrants, if any, and where the transferee is eligible to get such dividend to the transferee within 30 days from the date of lodgement of the unit certificate together with the relevant instrument of transfer.

12. In case of joint transferees, the unit certificate will be sent to and all payments in respect of the unit certificate will be made only in the name of the first member.

2. Income Option

1. Though it is the intention of the scheme to make regular income distribution under the income option, there may be instances where no income distribution could be made.

2. Income distribution under the option may be made subject to availability of distributable surplus and other factors as approved by the Board of Trustees.

3. There is no assurance or guarantee to the members as to the rate of income distribution.

4. Such of the members whose names appear in the register of members as at the close of books prior to the declaration of income or record date/s to be announced from time to time shall be entitled to receive the income so distributed.

5. Income distribution warrant, where issued, shall have validity for not exceeding a maximum period of six months. However, UTI reserves the right to issue such instruments with validity for a period of any duration lesser than 6 months. UTI shall not be bound to pay interest in the event of any of the warrants not reaching the members before the expiry of the validity period or in the event of their becoming stale.

6. Despatch of the income distribution warrants or credit through ECS shall be made not later than 30 days from the date of declaration of any income distribution/ record date or within such number of days as may be prescribed by SEBI.

7. The income distributed under Income option may be directly credited to the member's bank accounts through ECS, wherever extendable, or paid by issue of cheque or income distribution warrant encashable at the branches of such bank/s as UTI may specify under pre-payment arrangements with the paying bank/s.

8. Income Distribution to NRI/OCB members

Ordinarily no income distribution will be made under this option.

All income generated and profits booked will be ploughed back and returns shall be reflected through the NAV.

A member may be permitted to change the mode of payment of income distribution from Payout to Reinvestment plan or vice versa.

Similarly members may be given an option to changeover from Income to Growth option or vice versa on such terms and conditions as UTI may specify in that regard.

Request for any changeover should be submitted in the prescribed Composite Service Form duly signed by all the members under the folio along with the duly discharged latest statement of account (SoA) or as may be decided by UTI from time to time.

The changeover between two options will be effected at the NAVs applicable for the respective options.

5. Capitalisation and issue of bonus units under Growth and Income Options

1. UTI may utilise any sums from reserves, unit premium or any such reserves including the amount of distributable surplus of the scheme to the extent of such amounts attributable to members under each option for issue of Bonus units.

2. Bonus units may be issued as may be decided by UTI from time to time.

3. Bonus units, when issued, will be in proportion to the unit holding of the member under the concerned option as on the record date to be fixed for that purpose.

4. UTI may accordingly make appropriations and applications of the sum decided by it to be so capitalised by allotment and issue of fully paid-up units as bonus units, and generally do all acts and things required to give effect thereto.

5. The bonus units so allotted and issued as aforesaid will as regards rights and entitlements rank pari passu with the units in existence on the record date in respect of which they are allotted and issued to all intents and purposes.

6. Interest created / options exercised by a member on the units under a folio by way of nomination, if any, will automatically apply to the bonus units.

7. Pursuant to allotment of bonus units the NAV of the option/s would fall in proportion to the bonus units allotted and as a result the total value of units held by the member would remain the same.

1. Members under Income option, if they so desire, will have facility to reinvest income payable to them, into further units of the scheme.

2. On exercising of such an option the full amount of such income payable to any member, after deduction of tax, if any, shall be reinvested into further units of the scheme at ex-dividend NAV/NAV based price as may be announced by UTI from time to time.

3. The reinvestment, if any, shall be treated as constructive payment of income to the members as also constructive receipt of payment of the amount by the members.

4. Applicants desiring to opt for the reinvestment facility at the time of joining the scheme may indicate the same on the application.

5. The members under the Income option can also join the reinvestment option at a later date by writing on a plain paper or by filling up the prescribed composite service form or in such other manner as may be prescribed from time to time.

6. In case a member who has opted for re-investment of income desires to receive the income by way of income distribution warrant, such member will have to give a request in writing on a plain paper or by filling up the prescribed composite service form and submit the same to UTI before the book closure date or such other date as may be decided and announced by UTI from time to time.

Repurchase will be as follows:
Upto and including 2 years from the date of investment	Not below 98% of NAV
After 2 years from the date of investment	At NAV
The actual load on repurchases would be decided by the Trust from time to time. Any change in load will be applicable for prospective investments. The change in load structure would be communicated to investors appropriately.

1. Operational and other details of Repurchase

   The contract for repurchase shall be deemed to have been concluded on the date of acceptance of the repurchase request duly completed in all respects.

   Explanation for `duly completed' - An application will be considered as duly completed if the sole holder (in the case of single holding) or all the holders (in the case of joint holdings) or one of the holders (in the case of anyone or survivor holdings) have signed the repurchase applications and have alongwith this submitted the relevant MAs/SOA/Unit Certificate/s. In case of the holders being non-individual, in addition to the MAs/SOA/Unit Certificate/s, the unitholder is also required to submit a resolution authorising repurchase and passed by the Board of Directors or Governing Board, as the case may be.

2. Repurchases will be open throughout the year except during the book closure period/s not exceeding 15 days in a year or such period as may be decided by UTI and as prescribed by SEBI from time to time.

9. Partial repurchase under a folio has to be for a minimum of Rs.1000/-. Partial repurchase shall be permitted subject to the member maintaining a minimum balance of Rs.5,000/- to be reckoned with reference to the repurchase price applicable as on the date of acceptance of the repurchase application. In case the partial repurchase request of the member is such that the residual balance of units in the folio is below Rs.5000/- the member will be required to revise the repurchase request such that the minimum balance of Rs.5000/- is maintained or the entire outstanding units is repurchased. Units will be repurchased on First-in-First-Out (FIFO) basis and the member's unitholding account will be debited to that extent.

10. No interest shall, on any account, except under sub clause 12 above be payable on the amount of repurchase due to the applicant as prescribed by SEBI.

1. The cost of remittance or of realisation of cheque or draft sent by UTI shall be borne by the applicant.

2. In case of NRI/ OCB members, repurchase proceeds will be paid in the manner indicated in clause XIII (9).

3. Restrictions on sale and repurchase of units :

14. Right to limit Redemptions

UTI may, in the general interest of the members 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 working day to 5% of the total number of units then in issue, or such other percentage as UTI may determine.

Any units, which by virtue of these limitations are not redeemed on a particular Working Day, will be carried forward for redemption to the next Working Day, in order of receipt by UTI. Redemption so carried forward will be priced on the basis of the applicable NAV of the Working Day on which redemption is made. Under such circumstances, to the extent multiple redemption requests are received at the same time on a single Working Day, redemptions will be made on a pro-rata basis, based on the size of each redemption request, the balance amount being carried forward for redemption to the next Working Day (s).

In case a member redeems units soon after making purchases the redemption cheque may not be despatched until sufficient time has elapsed to provide reasonable assurance that cheques or drafts for units purchased have been cleared.

In the event of the death of the unit holder/member, the joint holder(s)/nominee/legal representative of the member may if he is otherwise eligible for joining the scheme as member, be permitted to hold the units and become a member. In that event a fresh SOA /membership advice will be issued in his name in respect of units so desired to be held subject to the condition regarding minimum holding and compliance with the required procedure as may be prescribed by UTI from time to time.

If the joint holder/nominee/ legal representative of the member is not eligible to join the scheme or he though eligible, opts for repurchase and also in cases where no nomination is made, the claimant (i.e. joint holder/nominee/legal representative of the member, as the case may be) on surrender of the unit certificate/membership advice/latest SOA of the deceased member and on due compliance with the procedural requirements, as may be prescribed by UTI for recognition of such claims, shall be paid repurchase proceeds of the units outstanding to the credit of the deceased member as on the date of such surrender.

1. It is an open end balanced scheme. UTI may, however, wind up the scheme under the following circumstances:

1. on the happening of any event which in the opinion of UTI requires the scheme to be wound up, or

2. if 75% of the members of the scheme pass a resolution that the scheme be wound up; or

3. if the SEBI so directs in the interest of the members of the scheme; or

4. if the outstanding unit holding fall below a limit to be decided by UTI.

2. Where the scheme is wound up in pursuance of sub clause (1) above, UTI shall give notice of the circumstances leading to the winding up of the scheme to SEBI and also in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating in Mumbai at least a week before the termination is effected.

3. On and from the date of advertisement indicating the termination, UTI shall cease to carry on business activities in respect of the scheme and cease to issue, redeem and cancel units in the scheme.

4. The Board of Trustees shall call a meeting of the members of the scheme to consider and pass necessary resolution by simple majority of the members present and voting at the meeting for authorising the Trustees or any other person to take steps for winding up of the scheme.

5. The Board of Trustees or the person authorised under sub-clause (4) shall dispose of the assets of the scheme in the best interest of the members of the scheme.

6. The proceeds of sale made in pursuance of sub clause (5) above, shall, in the first instance be utilised towards discharge of such liabilities as are properly due under the scheme and after making appropriate provision for meeting the expenses connected with such winding up.

7. The balance shall be paid to the members in proportion to their respective interest in the assets of the scheme as on the date when the decision for winding up was taken.

8. UTI shall pay the repurchase value, as early as possible but not later than 10 working days after the date of duly discharged unit certificate / membership advice/ SOA alongwith the repurchase request or any other type of document as may be prescribed from time to time, duly discharged has been received by it and/or other procedural and operational formalities are complied with. The UC/MA/SOA, the repurchase request and other forms, if any, shall be retained by UTI for cancellation. UTI may at its discretion dispense with the requirement of calling back the UC/MA/ SOA.

9. Currently repurchase / terminal proceeds can be paid to NRI members in the manner indicated below:

1. Where units had been purchased by the member himself while he was a resident in India or out of funds held in his NRO Account or out of proceeds from his NRSR/ NRNR deposits, the proceeds can be sent to his bankers in India in rupee for credit to his NRO account.

2. If the investment had been made by the member out of funds in his NRE account or from proceeds of FCNR deposits or by rupee draft purchased from a bank / exchange house operating abroad or received as a gift from another NRI out of the donor’s NRE/FCNR account or by rupee draft purchased by him from a bank abroad, the repurchase proceeds could be credited to his NRE / NRO account provided he continues to be an NRI at the time of repurchase.

3. In other cases payment will be made in rupees for credit to his NRO a/c.

2. On completion of the winding up, UTI shall forward to the SEBI and the members a report on the winding up containing particulars such as circumstances leading to the winding up, the steps taken for disposal of assets of the scheme before winding up, expenses of the scheme for winding up, net assets available for distribution to the members and a certificate from the auditors of the scheme.

3. Notwithstanding anything contained herein above, the application of the provisions of SEBI (MFs) Regulations in respect of disclosures of half yearly reports and annual report shall continue until winding up is completed or the scheme ceases to exist.

4. After the receipt of the report referred to in item (10) above, if the SEBI is satisfied that all measures for winding up of the scheme have been completed, the scheme shall cease to exist.

Transfer of investments from /to this scheme to/from other schemes/plans of UTI shall be done only if-

1. such transfers are on spot basis and are at the prevailing market price for traded instruments.

   Explanation : "spot basis" shall have the same meaning as specified by the stock exchanges for spot transactions.

2. the securities so transferred are in conformity with the investment objective of the schemes/ plans to which such transfers are made; and

3. UTI shall not transfer illiquid securities from/to the scheme to /from other schemes/plans of UTI. Illiquid securities are defined as non traded, thinly traded and unlisted equity shares.

4. NPAs of other schemes will not be acquired by the scheme.

Purchase and sale of securities through UTI Securities Exchange Ltd. during a block of any three months shall not exceed 5% of aggregate purchase and sale of securities under all the schemes of UTI.

(Amount in Rs. Lacs)

1. The scheme shall not borrow except to meet temporary liquidity needs of the scheme for the purpose of repurchase, redemption of units or payment of interest or income to the members.

Provided that the scheme shall not borrow more than 20% of the net asset of the scheme and the duration of such a borrowing shall not exceed a period of six months.

2. As per section 20 of the Act UTI has the following borrowing powers:

1. UTI may borrow, whether in India or outside India from any authority or person, not being Government or the Reserve Bank, against such security and on such terms and conditions as may be agreed upon.

2. UTI may borrow money from the Reserve Bank-

1. repayable on demand or on the expiry of a fixed period not exceeding ninety days from the date on which the money is so borrowed, against stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India;

2. repayable on demand or within a period of eighteen months from the date on which the money is so borrowed, against the security of the bonds which UTI may issue with the approval of the Central Government;

3. on such terms and conditions and against the security of such other property of UTI as may be specified in this behalf by the Reserve Bank for the purposes of any scheme other than the first unit scheme:

1. five crore of rupees in respect of each such scheme; and

2. ten crore of rupees in respect of all such schemes in the aggregate.

1. The bonds issued by UTI under sub-section (ii) of section 20 shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central Government at the time the bonds are issued.

   XVI. CORPORATE INVESTMENTS IN UTI 's SCHEMES AND UTI’s INVESTMENTS IN SUCH CORPORATES.

   (1) The following companies had invested more than 5% of the net asset value of some of the UTI's scheme as on 30/06/2002.

   Sr. No.	Scheme Name	Name of Company holding > 5% of scheme assets	Amount invested by the company (Rs. crs.)	% to Total Net assets of the scheme
   1.	IISFUS 97 II	State Bank of India	100.00	21.70
   2.	MVUP	State Bank of India	25.00	20.01
   		Industrial Development Bank of India	20.00	16.01
   3.	IISFUS 98	The Peerless General Finance & Investment Co Ltd.	60.00	9.95
   4.	IISFUS 98 II	National Housing Bank	87.13	11.03
   5.	MIP 2000 II	Union Bank Of India	50.00	11.72
   		SBI Capital Markets Ltd.	30.00	7.03
   6.	MIP 2000 III	Union Bank Of India	38.00	6.87
   7.	MIF	Bank of Baroda	72.50	27.42
   		State Bank of India	19.63	7.42
   8.	MMMF	Stock Holding Corp.Ltd	6.27	7.31
   		UTI Bank Ltd	6.26	7.29
   		Industrial Investment Bank	4.33	5.04
   9.	G Sec Fund	Ircon International Limited	30.03	9.81
   10.	GSF Brand Value	State Bank of Hyderabad	8.98	23.07
   11.	GSF Pharma & Healthcare	The Peerless General Finance & Investment Co Ltd	7.66	11.59
   		State Bank of Hyderabad	4.21	6.37
   12.	GSF Software Fund	Bank of India	16.21	8.71
   13.	GSF Petro	Bajaj Auto Ltd.	2.84	6.88
   14.	GSF Services Fund	The Laxmi Vilas Bank Ltd.	3.65	6.27
   		Karur Vysya Bank Ltd.	3.48	5.97

   (2) As on 30/06/2002 the above Scheme and or such other Scheme/s of UTI had invested on an aggregate basis the amounts indicated below.

   Company Name	Equity (Cost)	Debt (Cost)	Total
   Bajaj Auto Ltd.	81.56	0.00	81.56
   Bank of Baroda	0.00	116.27	116.27
   Bank of India	0.15	26.79	26.94
   Industrial Development Bank of India (IDBI)	24.36	1645.92	1670.28
   IDBI Bank Limited (Subsidiary of IDBI)	0.00	46.16	46.16
   Industrial Investment Bank	0.00	85.96	85.96
   Ircon International Limited	0.46	0.00	0.46
   National Housing Bank	0.00	23.60	23.60
   State Bank of India	346.26	443.46	789.72
   SBI Capital Markets Ltd.(Subsidiary of SBI)	0.00	45.13	45.13
   Union Bank Of India	0.00	50.06	50.06
   UTI Bank Ltd	0.00	31.42	31.42
   TOTAL	452.79	2514.77	2967.56

   (3) These investments were made in the normal course of day to day operations of the said schemes and after considering the fund specific investment objectives and liquidity needs/ availability of the respective schemes.

   XVII. NAV DETERMINATION & VALUATION OF ASSETS

   1. Computation and disclosure of NAV

   (a) The Net Asset Value (NAV) of the Growth and Income options shall be calculated separately by determining the value of the assets of the respective options and subtracting therefrom the liabilities of that option taking into consideration the accruals and provisions.

   (b) The NAV per unit of an option shall be calculated by dividing the total NAV of that option by the total number of units issued and outstanding on the valuation day under each of the options. The NAV will be rounded off upto two decimal places.

   (c) A valuation day is a day other than (i) a day on which both the stock exchanges (BSE and NSE) and the banks in Mumbai are closed (which includes Saturday and Sunday) (iii) A day on which the sale and repurchase of units is suspended by UTI. If any working day in UTI Mumbai is not a valuation day as defined above then the NAV will be calculated on the next valuation day and the same will be applicable for the previous working day's transactions including all intervening holidays.

2. The NAVs shall be issued to the press for publication on a daily basis and will also be available on website of UTI, http://www.unittrustofindia.com/ and website of AMFI namely http://www.amfiindia.com/.

 2. Valuation of assets

l). Valuation of Convertible Debentures and Bonds (PCD(s) : Partly Convertible debentures, FCD(s): Fully Convertible debentures , OFCD(s) Optionally Convertible debentures) :

The convertible debentures as above is broadly classified into ‘performing assets’(where the servicing by the company is regular) and ‘non-performing assets’. All convertible NPAs are valued at cost till their conversion into equity and provisions as per the existing norms are made regularly. After conversion, the same shall be valued as ‘quoted’ or unquoted’ as the case may be. In respect of debentures (performing) where servicing is regular , the following norms are followed upto their conversion . After conversion the same shall be valued as ‘quoted’ or unquoted’ as the case may be.

(i) Conversion details available and underlying equity is quoted instrument

(ii) Conversion details available but underlying equity is unquoted instrument

(iii) Conversion details not available : Performing Assets :

(m) Capital Index bonds are valued at closing NSE market rates on the valuation date and in its absence the latest available quote within a period of thirty days prior to the valuation date. If no quotes are available for a period of thirty days prior to the valuation date, the same is valued based on whole sale price index.

n) Valuation Norms for unlisted equity shares :-

1. Investments in IPOs during the intervening period, if any, between the date of allotment and listing date will be valued at cost or fair value applicable for unlisted shares, whichever is lower.

(o) Valuation policies for Money Market instruments :-

(p) Valuation policies for derivatives :

1. Profit or loss on sale of investments is recognised on the trade dates on the basis of weighted average cost.

2. Profit or loss and premium on redemption of debentures/bonds are recognised on the due date.

In respect of schemes where units are sold/repurchased at NAV related prices, the amount of premium/discount on face value in the respective schemes is apportioned as under:

1. An ‘asset’ is classified as non-performing, if the interest and/or principal amount have not been received or remained outstanding for one quarter (90 days) from the day such income/instalment has fallen due. Once an asset is classified as NPA there is no further accrual of income on such asset.

1. Interest Provision:

# As a percentage to the investment (book value)

(b) Principal repayment remaining outstanding on NPA is provided for in full. Provisions for such asset is made individually. Such provisions are not made for other performing assets of the same company.

(i) In case a company has fully cleared all the arrears of interest, the interest provision to the extent made, is written back in full.

(ii) The provision made for the principal amount is written back in the following manner: -

(a) Where the provision on principal was made due to the interest defaults only such provision is written back at the end of the 2^nd calendar quarter from the date of payment.

(b) Where the provision on principal was made due to both interest and instalment defaults such provision is written back to the extent of 50% at the end of the 2^nd calendar quarter, and 25% after 3^rd calendar quarter and the balance at the end of 4^th calendar quarter from the date of payment.

An asset is reclassified as ‘performing asset’ only when the entire interest and/or instalment in default is repaid in full and the asset is serviced regularly over the next two quarters.

(i) The assets may be classified as NPA on satisfaction of any two of the following three criteria:

1. Rating of the asset becomes BB or lower

2. If any other asset of the company held by UTI, becomes an NPA.

3. Net worth becomes negative.

(ii) Investment Provision is made as per the norms at point no. a (ii) above as soon as the asset is classified as NPA. When the rating of a DDB, which is an NPA, is downgraded to `D’, the provisioning will be done in a phased manner as applicable for normal NPA securities. Once the asset is classified as NPA, the interest accrued is also provided for in the full.

In case any company defaults either interest or principal amount and UTI has accepted the proposal of revising the schedule payments, then the following norms are adhered to:

1. In case it is a first reschedulement and only interest is in default-the asset on reschedulement continues to be non-performing for a period of 2 quarters, even though the asset is serviced regularly during these 2 quarters. Thereafter, the asset is classified as ‘performing asset’ and all the existing provision is written back.

2. If the reschedulement is done due to default in interest and principal amount, the asset on reschedulement continues to be non-performing for a period of 4 quarters, even though the asset is serviced regularly during these 4 quarters. Thereafter, the asset is classified as ‘performing asset’ and all the existing provision is written back.

3. If the reschedulement is done for a second/third time or thereafter, the asset on reschedulement continues to be non-performing for a period of 8 quarters, even though the asset is serviced regularly during these 8 quarters. Thereafter, the asset is classified as ‘performing asset’ and all the existing provision is written back. This norm is also applicable to restructured asset i.e. issue of a new paper. However, in case of conversion into shares, entire provision is written back in full on such conversion as there are separate valuation norms for equity.

(g) Provision for non-performing assets are charged to Revenue Account and the write back of such provisions, if any, is credited to Revenue Account.

The aggregate value of investments as computed in accordance with clause XVII (2) above is compared to the aggregate cost of such investments and the resultant depreciation, if any, is charged/written back to Revenue Account from the year 2001-2002.

Before expiry of one month from the date of close of each half year that is as on 31^st December and 30^th June UTI will publish unaudited financial results in prescribed format by SEBI in one national English daily and one Marathi daily circulating in Mumbai. The same would also be made available on websites of UTI and AMFI. However, if financial year of UTI is changed to April – March the disclosures would be made accordingly.

1. The Gift Tax Act, 1958 has abolished the levy of Gift Tax in respect of gifts made on or after 1^st October, 1998. Thus, gifts of units on or after 1^st October, 1998 are exempt from Gift Tax.

1. Members under the scheme have a proportionate right in the beneficial ownership of the assets of the option and to the income declared by that option (applicable for the income option).

2. The members have a right to ask the Trustees any information, which may have an adverse bearing on their investments, and the Trustees shall be bound to disclose such information to the members.

3. The members have the right to have the SOA issued to them not later than 30 days from the date of acceptance of the application and unit certificates within 30 days from the date of receipt of request for issue of unit certificate in lieu of SOA or as may be decided by SEBI from time to time .

4. The members have the right to have the repurchase/redemption proceeds despatched to them within 10 working days (provided the application is in order) from the date of acceptance of the application (as defined in III(1)) at the office where the repurchase requests are processed. In the event of delay in despatch of redemption proceeds beyond 10 working days from the date of acceptance of the repurchase application at the processing centre, UTI shall pay interest @ 15 % per annum (or such rate as may be specified by SEBI) from the 11^th working day till the date of despatch.

5. The members (under the income option) would have the right to have their income distribution warrants/ECS credit advice mailed to them within 30 days from the date of declaration of the income distribution.

6. Before expiry of one month from the date of close of each half year that is as on 31st December and 30th June UTI will publish unaudited financial results in prescribed format by SEBI in one national English daily and one Marathi daily circulating in Mumbai. The same would also be made available on websites of UTI and AMFI. However, if financial year of UTI is changed to April – March the disclosures would be made accordingly.

7. An abridged annual report in respect of the scheme shall be mailed to the members not later than six months from the date of closure of the relevant accounting year. The full annual report shall be made available for inspection at the Central Investors’ Relation Cell. A copy thereof shall also be made available to the members on request on payment of nominal fee, if any.

8. The member shall be sent a complete statement of the portfolio before the expiry of one month from the close of each half-year. Provided that the statement of the scheme portfolio may not be sent to members if it is published by way of an advertisement in one English daily circulating in the whole of India and one Marathi news paper.

9. Any change in the fundamental attributes of the scheme will be carried out if the members are allowed to exit at NAV besides being intimated by individual communication and also by publishing in an English daily having nation wide circulation and a Marathi newspaper.

10. Under specified circumstances the approval of members will be sought by a Postal Ballot.

11. The members have the right to inspect the following documents at the Central Investors’ Relations Cell, Unit Trust of India, at Mumbai 400 020.

• The Act.

• The Regulations.

• The agreements with the custodians, registrars and collecting banks, if any.

• Copy of offer document of US 2002.

• SEBI (MFs) Regulations

Unit Trust of India is a statutory corporation constituted under the Act, with a view to encouraging saving and investment and participation in the income, profits and gains accruing to UTI from the acquisition, holding, management and disposal of securities. It started functioning with effect from 1st July, 1964.

2. In terms of the press release issued by the Government of India on 31^st August 2002 the following changes are proposed to the structure of UTI:

(a) UTI would be divided into two parts:

(i) Old protected UTI (UTI-I) comprising of US-64 for which assured repurchase prices have been announced and assured return schemes. It will be managed by Government appointed Administrator and a team of advisers nominated by Government. Government will meet its obligations annually to cover any deficit in UTI-I.

(ii) New UTI (UTI-II) comprising of all net asset value based schemes. UTI-II will for the time being be managed by professional Chairman and Board of Trustees and will be disinvested.

(b) The operational aspect including but not limited to distribution of assets and liabilities between UTI-I and UTI-II etc., would be worked out by the Ministry of Finance.

(c) UTI Act will be repealed through issue of an Ordinance and both UTI-I and UTI-II will be structured as per the SEBI (Mutual Funds) Regulations.

The Management of the affairs and business of UTI are vested in the Board of Trustees with a full time Chairman appointed by the Government of India. Besides the Board, there is a statutory Executive Committee comprising the Chairman and two other Trustees nominated by the Industrial Development Bank of India. This Committee is competent to deal with any matter within the competence of the Board.

(i) The powers of the Board of Trustees emanate from the Unit Trust of India Act, 1963 and Unit Trust of India General Regulations 1964. The powers are as under:

The Act vests the Board the general superintendence, direction and management of the affairs and business of the Trust. It also empowers the Board with all powers to do all such acts and things, in discharge of its functions under the Act, in the interest of the unitholders.

The Act empowers the Board to make regulations that are consistent with the Act. It also vests in the Board the power to entrust or delegate functions to the Chairman or Executive Trust. The Board is also empowered to constitute Committees for specific purposes. Within the ambit of its powers the Board can adopt the annual accounts, make decisions in regard to matters such as formation of unit schemes, amendments to existing schemes, allocation of interest and other expenses to various schemes, distribution of income, utilisation of reserve funds etc. and delegation to any officer of the Trust such of its powers and duties as it may consider necessary.

1. Fourteen meetings of the Board of Trustees were held during the period 1/7/2001 to 30/6/2002.

2. The minutes of the Asset Management Committee meetings are placed before the Trustees in the Board meetings immediately after confirmation by the respective Asset Management Committee.

3. According to Section 16 of the UTI Act, Trustees, other than the Chairman and the Executive Trustee, are paid such fees and allowances for attending the meetings of the Board or of any of its committees and for attending to any other work of the Trust, as may be prescribed;

(v) Board of Trustees *

1.Shri M Damodaran : Chairman, Unit Trust of India

2. Shri K L Khetarpaul : Executive Director, Reserve Bank of India

3. Shri U K Sinha : Joint Secretary DOEA, GOI

4.Shri P N Shah : Chartered Accountant

8.Shri K Narsimha : Chartered Accountant

Murthy

9.Shri Rajendra S : Chartered Accountant

Lodha

* The addresses and other current directorships of Trustees are as follows:

3. Shri U K Sinha

4. Shri P N Shah -

Chartered Accountant, Lodha & Co.

Director: (i) Alfred Herbert (India) Ltd., (ii) Birla Corporation Limited, (iii) Baroda Agents & Trading Co. Pvt. Ltd., (iv) Birla Management Centre Pvt. Ltd., (v) City Holdings Ltd. (Alternate), (vi) East India Investment Co. Pvt. Ltd., (vii) First Capital India Ltd., (viii) Gwalior Webbing Co. Ltd., (ix) Henry F Cockill & Sons Ltd., (x) Hindustan Gum & Chemicals Ltd., (xi) La Crème De La Crème Services Pvt. Ltd., (xii) Lodha Capital Markets Ltd., (xiii) National Securities Depository Ltd., (xiv) The Oriental Insurance Co. Ltd., (xv) The Punjab Produce & Trading Co. Ltd., (xvi) The Punjab Produce Holdings Ltd. (Formerly Mazbat Holdings Ltd.), (xvii) Swiss India Financial Services Co. Pvt. Ltd., (xviii) Thai Acrylic Fibre Co. Ltd., (xix) Tourism Finance Corpn. of India Ltd., (xx) Terriswood Limited, (xxi) Twenty-First Century Printers Ltd., (xxii) UTI Securities Exchange Ltd., (xxiii) Vindhya Telelinks Limited

Committee Member: (i) Federation of Indian Chambers of Commerce And Industry (FICCI), (ii) S. P. Jain Foundation (iii) Birla Medical Research & Education Foundation.

Age : 32 years

Graduate in Economics, Graduate in Law

3 years as Deputy Director General(Admn., Training and Vigilance Doordarshan

Stock Holding Corporation of India situated at Mittal Court, B-Wing, Nariman Point, Mumbai – 400021, have been functioning as custodian for all our schemes and plans as per the agreement entered into with them on January 17, 1994.

The custodians are required to take delivery of all securities belonging to schemes/funds/plans of UTI and hold them in its custody. The custodians will deliver the securities only as per instructions from UTI and on receipt of the consideration. The custodian shall be generally authorised to attend to all non-discretionary and procedural details for discharge of normal custodial functions in connection with the sale, purchase, transfer of and other dealings in the securities, other assets held by them as an agent except as may otherwise be directed by UTI.

Custodians shall provide all information, reports or any explanation sought by UTI or the auditors of UTI for the purpose of audit and for physical verification and reconciliation of securities belonging to the schemes/ funds / plans of UTI.

The SEBI registration number of SHCIL is IN/CUS/011

Tariff structure of SHCIL is as under:

2. Auditors

3. Registrar and Transfer agent:

4. Collecting Banker/ Paying Banker: UTI-Bank Ltd, and or such other banks registered with SEBI may be appointed as the collecting banker(s)/paying banker(s) under the scheme on such terms and conditions as may be decided by UTI from time to time.

1. All investors could refer their grievances giving full particulars of investment to concerned Investors' Relation Cell at the following addresses:

a) Complaints received, redressed and pending for the last three years are:

(b) Schemewise details of complaints received, redressed and pending for the period 01/09/2001 to 31/08/2002 are given below:

Reasons for pending complaints are:

1. Non-receipt of application/funds from the collecting banks.

2. Incomplete details of the investor in the application including address, name and signature of the investor.

3. Change of address of investor not informed/not updated.

4. Loss in transit.

5. Postal delay.

6. Non-submission of required documents in case of transfer/death claims/Repurchase.

7. Incomplete details while forwarding the complaints.

8. Non-receipt/ Delayed receipt of commission.

9. Letters/Documents sent to the wrong office/Registrars.

1) Cases of penalties awarded by SEBI under the SEBI Act or any of its regulations or by any stock exchanges (where the units of schemes of UTI are listed) against UTI/Board of Trustees or any of the Trustees or key personnel (specifically the fund managers) - NIL.

2) Any pending material litigation proceedings incidental to the business of UTI where UTI or Board of Trustees or key personnel is a party -

(i) An SLP is filed by Income Tax Department before the Hon’ble Supreme Court of India against the Judgement and Order of Hon’ble High Court of Bombay in the matter of applicability of Interest Tax Act and liability of UTI to pay interest tax for the period from accounting year 1991-92 to 1998-99.

(ii) UTI has received notices under Wealth Tax Act, 1957 from Income Tax Department calling upon UTI to file returns on net wealth chargeable to tax along with other particulars relating the assessment year 1993-94 to 1999-2000. UTI has been advised that it is not liable to pay any wealth tax in view of the provisions of section 32 of UTI Act. The matter is being contested at the appropriate forum.

(iii) 19 Writ Petitions are pending in various High Courts against UTI challenging the validity of the termination of Rajlakshmi Unit Scheme – 1992 by UTI. The Writ Petitions will be contested by UTI in the light of Writ Petitions already dismissed by the other High Courts and ruling given by Hon’ble Supreme Court in favour of UTI in one SLP filed by a unit holder against the Judgement and Order of Hon’ble Rajasthan High Court.

(iv)One Writ Petition is pending in High Court of Punjab & Haryana against suspension of sales and repurchase of units of US-64 by UTI. The Writ Petition is being contested by UTI.

(v) A Writ Petition has been filed by Shri Arun Kumar Dubey against Unit Trust of India in the High Court of Allahabad, Lucknow Bench praying, inter-alia, that Union of India investigate or conduct a probe into the affairs of the Securities market in relation to Unit Trust of India.

(vi)A unit holder has filed a complaint before the Consumer Dispute Redressal Forum, Kanpur against UTI and the Trustees against suspension of sale and repurchase of units of US-64. The case is being defended appropriately.

3) Any pending criminal cases against UTI, Board of Trustees or key personnel

(i) There are 31 pending criminal cases against the UTI or key personnel relating to normal operation of UTI such as non-transfer of units, non-receipt of unit certificates, non-receipt of repurchase proceeds or income distribution. These cases are not maintainable and it is experienced that such cases are either dismissed by Courts or withdrawn by the complainant. In most of the cases stay has been obtained from the High Courts.

(ii) Investigations are being made by the Central Bureau of Investigation in the matter of investments in Cyberspace Limited made by UTI. In the aforesaid enquiry, the role of Shri P. S. Subramanyam (Ex-Chairman), Late M. M. Kapur, Shri S. K. Basu and Smt. Prema Madhuprasad, officials of UTI are also being investigated.

4) Any deficiency in systems and operations of the UTI which SEBI has specifically advised to be disclosed in the Offer Document, or which has been notified by any other regulatory agency. - NIL

The condensed financial information for the years1999-2000, 2000-2001 and 2001-2002 for all the schemes launched during the last three years is annexed.

Notwithstanding anything contained in the offer document the provisions of the SEBI (Mutual Funds ) Regulations, 1996 and the Guidelines thereunder shall be applicable.

The Board of Trustees in its meeting held on 19^th September 2002 approved the scheme under this offer document.

For and on behalf of the Board of Trustees

of the Unit Trust of India

(A.K.Sridhar)

Chief Investment Officer

Place: Mumbai

Date:

Note: The investors may also like to ascertain about any further changes after the date of the offer document from the offices of UTI/ UTI Bank /Franchise offices /Authorised collection centres/Chief Representatives or Agents.

Factual details in this Offer Document will be updated as per requirement at regular intervals and the updated information will be notified through advertisement / press release besides displayed in our website for the benefit of investing public besides being incorporated in the reprint of the Offer Document.

Any further information/disclosure under the advise/directive of Government, Statutory or Regulatory Authority will be incorporated in the following reprint of the Offer Document in such form and in such manner as may be decided by the Executive Committee.

(i) HISTORICAL PER UNIT STATISTICS

12%

¶ 8.43.

9.02

£ Cumulative Option, ¶ Non Cumulative Option, ? Annual Income Option,

^ income distribution @9% paid upto 31.03.02 and at 5% from 01.04.02 to 30.06.02 under MIP 99 (II), MIP 2000(second) and MIP 2000(Third)

^^ income distribution @ 9% paid upto 31.03.02 and at 3% from 01.04.02 to 30.06.02 under MIP 2000.

^^^ income distribution @9.75% paid upto 31.03.02 and at 6% from 01.04.02 to 30.06.02 under MIP 2001.

& Recurring expenses exceeding the limits prescribed by SEBI are borne by DRF

** Growth Option * Income Option ++ Face value changed from Rs.100/- to Rs.10/- from 16.07.2001. Income distribution @ 10% paid as of 31.12.2001 and @ 5% as of 22.03.2002.

* NAV as on 16/09/2002