SUNDER TABLE OF CONTENTS. Item No. Contents Page No. HIGHLIGHTS 4

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2 TABLE OF CONTENTS Item No. Contents Page No. HIGHLIGHTS 4 I INTRODUCTION A. Risk Factors 5 B. About the Index 7 C. Definitions 8 D. Due Diligence by the Asset Management Company 11 II. INFORMATION ABOUT THE SCHEME A. Type of the Scheme 12 B. What is the investment objective of the Scheme? 12 C. How will the Scheme allocate its assets? 12 D. Where will the Scheme invest? 12 E. What are the Investment Strategies? 16 F. Fundamental Attributes 16 G. How will the Scheme Benchmark its performance? 16 H. Who manages the scheme? 16 I. What are the Investment Restrictions? 17 J. How has the Scheme performed? 18 III. UNITS AND OFFER A. Ongoing Offer Details 19 B. Periodic Disclosures 28 C. Computation of NAV 29 IV. FEES AND EXPENSES A. Annual Scheme Recurring Expenses 30 B. Load Structure 30 C. Waiver of load for Direct Applications 31 V. RIGHTS OF UNITHOLDERS 31 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 31 2

3 S&P CNX NIFTY is a trademark of India Index Services & Products Limited (IISL) which has been licensed for use by UTI MF for. This use of trademark agreement is solely for use in and not applicable for any other scheme of UTI MF except for its UTI Nifty Index Fund or when it is expressly permitted by IISL. Though the S&P CNX NIFTY is compiled, calculated and maintained by the India Index Services & Products Limited, the net asset value of is not compiled by NSE and no representation is made regarding the accuracy of NAV calculation. NSE makes no representation regarding the advisability of investing in products that utilise any such index as a component or basis of any fund. scheme is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL) or Standard & Poor s, a division of The McGraw-Hill Companies Inc. (S&P). Neither IISL nor S&P makes any representation or warranty, express or implied to the owners of the or any member of the public regarding the advisability of investing in securities generally or in the scheme particularly or the ability of the S&P CNX NIFTY Index to track general stock market performance in India. The relationship of S&P and IISL to the UTI MF is in respect of the licensing of certain trademarks and trade names of their Index which is determined, composed and calculated by IISL without regard to the UTI MF or the scheme. Neither IISL nor S&P has any obligation to take the needs of UTI MF the owners of the scheme into consideration in determining, composing or calculating the S&P CNX NIFTY Index. Neither IISL nor S&P is responsible for or has participated in the determination of the timing of, prices at, or quantities of the to be issued or in the determination or calculation of the equation by which the is to be converted into cash. Neither S&P nor IISL has any obligation or liability in connection with the administration, marketing or trading of the. S&P and IISL do not guarantee the accuracy and/or the completeness of the S&P CNX NIFTY Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. Neither IISL nor S&P makes any warranty, express or implied, as to the results to be obtained by the UTI MF, owners of the, or any other persons or entities from the use of the S&P CNX NIFTY Index or any data included therein. IISL and S&P make no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall IISL or S&P have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. Standard & Poor s and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by India Index Services & Products Limited. The S&P CNX NIFTY Index is not compiled, calculated or distributed by Standard & Poor s and Standard & Poor s makes no representation regarding the advisability of investing in products that utilise any such Index as a component, or such similar language as may be approved in advance by S&P, it being understood that such notice need only refer to the specific S&P Marks referred to in the Informational Material Standard & Poor s and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by IISL, which has sublicensed such marks to the UTI MF. The S&P CNX NIFTY Index is not compiled, calculated or distributed by Standard & Poor s and Standard & Poor s makes no representation regarding the advisability of investing in products that utilise any such Index as a component. Exchange Traded Funds (ETF) Exchange Traded Funds are passively managed funds tracking a benchmark index and provide exposure to the performance of that index. They have the flexibility of trading like a share and offer the best features of open and close end funds. S&P CNX NIFTY UTI Notional Depository Receipts Scheme (), an exchange traded fund, will passively track the securities underlying the S&P CNX NIFTY Index. The units issued under the scheme will be referred to as share. The ETFs have two markets: a. The primary market where large players swap creation units for a mix of securities and cash, in large multiples. b. The secondary markets where the ETFs are traded like shares of common securities on the stock exchange(s) during the trading hours. The advantages of share over the equity funds including passively managed index funds are: 1. Investors get instantaneous exposure to a diversified portfolio that is a replica of the index. 2. Its units can be traded like a share and therefore it provides the ability to buy and sell them quickly at the ruling market price unlike the units of other open end funds that can be traded only once a day. 3. Price at which these units are traded reflects the net asset value through out the trading day. Thus, the premium and discount that are associated with close end funds are avoided. 4. Its cost of management is lower than both actively managed funds and passively managed Index funds as the fund does not bear an impact cost and also other costs including management fees, etc. are minimal. 5. Minimum investment in ETF in secondary markets is one unit. 6. Protects long term investor from the inflows and outflows of short term investors. Units of in creation unit size will be issued (created) and redeemed/cancelled by the UTI AMC by swapping them with a Portfolio Deposit (basket of securities comprising in the S&P CNX NIFTY Index) and Cash Component and vice-versa. In the secondary market, share will be traded like any other equity share on the National Stock Exchange and other exchanges on listing as may be decided. 3

4 HIGHLIGHTS 1. is an open-ended fund listed on the Stock Exchange(s) in the form of Exchange Traded Fund (ETF) tracking the S&P CNX NIFTY Index. 2. is a passively managed exchange traded fund designed to track the performance, price and yield of the basket of securities underlying the S&P CNX NIFTY Index. 3. Each unit will represent an undivided ownership interest in the Scheme. 4. Investment objective: Investment objective of the fund is to endeavour to provide returns that, before expenses, closely track the performance and yield of basket of securities underlying S&P CNX NIFTY Index. If any part of the consideration is accepted in cash, pending deployment of such funds in securities as per the investment objective as stated above, it may be invested in short term deposits with scheduled commercial banks and/or in other money market instruments. 5. Each unit will have a face value of Rs.100/-. 6. Each unit of will be approximately equal to 1/10th of the value of S&P CNX NIFTY. The issue and redemption of units will be linked to the prevailing NAV. 7. has all benefits of index funds such as diversification, low cost and a transparent portfolio. 8. The Trustee may decide to declare the dividend in the scheme net of fees and expenses associated with the operation of the scheme and taxes if applicable, subject to such distributable amount together with reserves of the scheme being found sufficient to pay dividend at the minimum rate that may be decided from time to time. The Trustee may after taking into consideration the dividend amount, operational feasibility and the cost implications of distributing dividend may decide that Dividend distribution, if any, by the scheme may be automatically reinvested in the scheme to issue further units to be credited to the unitholders beneficiary account with a Depository Participant (DP). The minimum reinvestment, if any, will be for one unit per folio. In case of fractional units the units will be rounded of to the lower decimal and the balance, if any, will be retained / treated as income of the scheme. Whenever distribution of dividend is disbursed in cash the same may be directly credited to the unitholder s account preferably through ECS only. Request for Dividend Distribution in physical mode will be kept to the minimum. 9. UTI AMC will issue and redeem the share only in creation unit size of 10,000 units and in multiples of 1 unit (both in case of Authorised Participants and other investors) in exchange for S&P CNX NIFTY Index securities (Portfolio deposit), Cash Component and Balancing amount (if any). 10. shares is currently listed on the NSE. Sunder shares may be listed on any other stock exchange(s) as may be decided by the UTI AMC. Investors will be able to enter or exit the fund through transactions in the secondary market. Authorised Participants and other Investors can purchase or redeem units directly with UTI AMC in creation unit size in exchange for portfolio deposit, cash component and balancing amount (if any). 11. Minimum trading lot for share in the markets will be 1 unit. 12. UTI AMC will appoint Authorised Participants who are expected to give two way quotes (buy and sell quotes) in the secondary market(s) for ensuring liquidity in units. 13. As can be bought/sold directly from UTI AMC in exchange for Portfolio deposit and Cash Component, this mechanism provides efficient arbitrage between the traded prices and the NAV, thereby reducing the incidence of being traded in the markets at premium/discounts to NAV. 14. The entire initial issue expenses of the scheme was borne by UTI AMC. 15. The structure of is such that it would not hurt long term investors from inflow/outflow of short-term investors. This is because the fund does not bear the burden of extra transaction cost, impact cost and the tax implications on Mutual Fund (if any) when buying/ selling due to frequent subscriptions and redemptions. 16. is flexible and can be used for hedging or arbitraging with cash and futures market. 17. Acceptance / delivery of the underlying securities and issue and redemption of shares by UTI AMC will be done only in electronic (dematerialised) form and no request, if any, for rematerialisation of units will be entertained by UTI AMC. 18. NAV of Share would be declared on a daily basis and would be a function of the closing value of the underlying shares of S&P CNX NIFTY Index, recurring expenses, accrued dividends etc. 19. A transaction fee as may be prescribed by UTI AMC from time to time will be collected from every applicant for any issue / redemption of shares by the fund. 20. As the scheme has minimal transaction charges, expenses to the scheme are relatively low thereby directly benefiting the investor. 21. Minimum amount for Application by Authorised Participants & Other Investors Application for issue of units shall be made for a minimum of 10,000 units plus in multiples of 1 unit. 22. S&P CNX Nifty Total Return Index is the benchmark index for the scheme. 4

5 23. Load Structure: There is no entry/exit load for creation/redemption of in creation unit size in exchange for the securities underlying the S&P CNX NIFTY Index (together with cash component and balancing amount if any). However, in case there are no quotes available in the market for five trading days consecutively, an investor can tender his units to UTI AMC for redemption. The cutoff time applicable in such cases would be 3.00 p.m. The consideration for application in such cases for less than 2,000 units will be paid in cash after deducting an exit load of 2.5% of NAV. The consideration for applications greater than 2,000 units will be paid in Index securities along with Cash component after deducting an exit load of 2.5% of NAV. The UTI AMC at its own discretion may pay in cash for units in excess of 2,000 units after deducting an exit load of 2.5%. There will be no entry/exit load on bought or sold through the secondary markets. However an investor may have to incur brokerage or commission as charged by his broker and may have to bear the impact cost while selling/buying the share/units. - Investors in the scheme are not being offered any guaranteed returns. - Investors are advised to consult their Legal/ Tax and other Professional Advisors in regard to tax/ legal implications relating to their investments in the scheme and before making decision to invest in the scheme or redeem the units in the scheme. I. INTRODUCTION A. RISK FACTORS Standard Risk Factors: 1. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. 2. As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down 3. Past performance of the Sponsors/AMC/Mutual Fund does not guarantee future performance of the scheme. 4. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns. 5. The sponsors are not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs.10000/- made by them towards setting up the Fund. 6. The present scheme is not a guaranteed or assured return scheme. 7. Statements/Observations made are subject to the laws of the land as they exist at any relevant point of time. 8. Growth, appreciation, dividend and income, if any, referred to in this Scheme Information Document are subject to the tax laws and other fiscal enactments as they exist from time to time. 9. There is no assurance that an active secondary market will develop or be maintained. 10. Mutual Funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee against loss resulting from investing in the Scheme. The various factors which impact the value of the Scheme s investment include, but are not limited to, fluctuations in interest rates, prevailing political and economic environment, changes in government policies, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes etc. 11. Investment decisions made by the AMC may not always be profitable. 12. From time to time and subject to the Regulations, the Sponsors, the Mutual Funds and investment companies managed by them, their affiliates, their associate companies, subsidiaries of the Sponsors, and the AMC may invest either directly or indirectly in the Scheme. The funds managed by these affiliates, associates, the Sponsors, subsidiaries of the Sponsors and /or the AMC may acquire a substantial portion of the Scheme s units and collectively constitute a major investor in the scheme. Accordingly, redemption of units held by such funds, affiliates, associates, and Sponsors might have an adverse impact on the units of the Schemes because the timing of such redemption may impact the ability of other unitholders to redeem their units. 13. Trading in equity derivatives involves certain specific risks like: a. 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 substantially mitigated where derivative transactions happen through clearing corporation. b. Market Risk: Market movement may also adversely affect the pricing and settlement of derivative trades like cash trades. c. Illiquidity Risk: The risk that a derivative product may not be sold or purchased at a fair price due to lack of liquidity in the market. d. 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. e. Participating in derivatives is a highly specialized activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio 5

6 balancing, the overall market in these segments could be highly speculative due to the action of other participants in the market. f. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identify such opportunities. Identification and execution of the strategies to be pursued by the Fund Manager involve uncertainty and decision of Fund Manager may not always be profitable. No assurance can be given that the Fund Manager will be able to identify or execute such strategies. g. The risk associated with the use of derivative are different from or possibly greater than, the risk associated with investing directly in securities and other traditional investments. 14. Securities lending is one of the means of earning additional income for the scheme with a lesser degree of 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 would be exposed to risk through the possibility of default by the borrower/ intermediary in returning the securities. However, the risk would be adequately covered by taking of suitable collateral from the borrower by the intermediary involved in the process. The scheme 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. 15. In the event of receipt of inordinately large number of redemption requests or of a restructuring of the Schemes portfolio, there may be delays in the redemption of units. 16. Different types of securities in which the schemes would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly a scheme s risk may increase or decrease depending upon its investment pattern. For eg. Corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated. Scheme specific Risks The scheme is subject to the following risks described below. Some or all of these risks may adversely affect Schemes NAV, trading price, yield, and/or its ability to meet its objectives. 1. Investors may note that even though this is an openend scheme, UTI AMC would redeem units in exchange of underlying shares along with cash component only in minimum lots of 10,000 units plus in multiples of 1 unit thereafter or such number or value as may be prescribed from time to time. Thus holding less than the specified lots can be sold only through secondary market transactions. 2. is an Exchange Traded Fund. The concept of exchange traded funds is relatively new to Indian capital markets. Trading in shares could therefore be restricted due to which market price may or may not reflect the true NAV of shares at any point of time. Also there can be no assurance that an active secondary market will develop or be maintained for the shares. 3. Trading of in the market(s) may be halted because of market conditions or for reasons that in view of SEBI or market authorities trading in is not advisable. In addition trading in is subject to trading halts caused by extraordinary market volatility and pursuant to SEBI and stock exchange(s) circuit filter rules. There can be no assurance that the requirements of the Market necessary to maintain the listing of will continue to be met or will remain unchanged. 4. units may trade at a premium/discount to the NAV due to demand/supply conditions in the market(s). 5. Although units are proposed to be listed on the Stock Exchange(s), the Trustee/AMC will not be liable for delay in listing of units of the Scheme on the stock exchange(s)/ or due to connectivity problems with the depositories due to the occurrence of any event beyond their control. 6. Any changes in the trading regulations by the Stock Exchanges(s) or SEBI or other applicable regulations may affect the ability of market participants to arbitrage resulting in to wider premium/discount to NAV. 7. Impact cost risk: The scheme may have to bear the impact cost arising from sale and purchase of underlying securities either when it accepts/gives cash or cash equivalents in lieu of one or more Index securities, cash component on issue and redemption of units or while undertaking rebalancing of the scheme portfolio as a consequence of change in the composition or change in relative weightages of the securities underlying S&P CNX Nifty Index. 8. will be a passively managed scheme by providing exposure to S&P CNX NIFTY Index and tracking its performance as closely as possible. The scheme performance may be affected by a general decline in the Indian markets relating to its underlying Index. The scheme invests in the underlying Index regardless of their investment merit. 9. The Trustee in the general interest of the unitholders of the Scheme offered in this document and keeping in view the unforeseen circumstances/unusual market conditions, may limit the total number of units which can be redeemed on any Business Day depending on the total Saleable Underlying Securities available with the scheme. 6

7 10. Tracking error may have an impact on the performance of the scheme. Tracking Error means the extent to which the NAV of the fund moves in a manner inconsistent with the movements of the underlying Index on any given day or over any given period of time from any cause or reason whatsoever including but not limited to differences in the weightage of the investments in the securities and the weightage to such securities in the S&P CNX NIFTY Index, expenditure incurred by the scheme, corporate actions such as debenture or warrant conversions, rights, mergers, etc, change in constituents of Index, rounding of quantity of shares underlying the index, dividend payouts, whole cash not invested at all times as it may keep a portion of funds in cash to meet redemption etc. However UTI AMC will endeavour to keep the tracking error as low as possible. 11. The scheme may not fully replicate the performance of the S&P CNX NIFTY due to temporary unavailability of certain Index Securities in the secondary market or due to other extraordinary circumstances. 12. The securities in which the Scheme invests may under perform the various general securities markets or different asset classes. Different type of securities tend to go through cycles of out-performance and underperformance in comparison to the general securities markets. 13. Performance of the S&P CNX NIFTY Index will have a direct bearing on the performance of the Scheme. In the event the S&P CNX NIFTY is dissolved or is withdrawn by IISL, the Trustee reserves a right to modify the Scheme so as to track a different and suitable index and the procedure stipulated in the Regulations shall be complied with. 14. Whereas the Indian market was formerly restrictive, a process of deregulation has been taking place over recent years. This process has involved removal of trade barriers and protectionist measures, which could adversely affect the value of investments. It is possible that the future changes in the Indian political situation, including, political, social or economic instability, diplomatic developments and changes in laws and regulations could have an effect on the value of investment. Expropriation, confiscatory taxation or other relevant development could affect the value of investments. 15. Conversion of underlying securities to may attract capital gains tax depending on the acquisition cost and holding period of each individual securities to the investor. Redemption of by the AMC or sale of on the Stock Exchange(s) may attract short or long term capital gain tax depending upon the holding period of the units. 16. scheme is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited. IISL also makes no representation whatsoever of investing in securities that track the stock market performance in India. IISL is not responsible for any miscalculation, miscomposition or mismanagement of the S&P CNX NIFTY, solely for use of the scheme by the licensee. IISL has no liability or obligation with the administration of the fund. IISL does not guarantee the accuracy or the completeness of the data included therein and any misinterpretations thereof. In no event will IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits). IISL makes no express or implied warranty regarding the fitness of the fund. B. About the Index The S&P CNX NIFTY comprises of 50 securities and is a market capitalisation weighted index. It is a broad based diversified index. S&P CNX NIFTY is being currently managed by India Index Services & Products Limited (IISL) which is a joint venture of Credit Rating Information Services of India Ltd. (CRISIL) and the National Stock Exchange of India Ltd. (NSE). IISL is solely responsible for constructing, maintaining and disseminating data regarding various indices. CRISIL is India s largest rating agency and is reputed to be one of the top five rating agencies in the world. IISL has a consulting and licensing agreement with Standard and Poor s, a division of The McGraw Hill Companies Inc., (S&P), the world s leading provider of investable equity indices, for co-branding certain equity indices of IISL. The constituents of the S&P CNX NIFTY Index as on April 01, 2011 are: 1. ACC Ltd. 16. Hero Honda Motors Ltd. 2. Ambuja Cements Ltd. 17. Hindalco Industries Ltd. 3. Axis Bank Ltd. 18. Hindustan Unilever Ltd. 4. Bajaj Auto Ltd. 19. Housing Development Finance Corporation Ltd. 5. Bharat Heavy Electricals Ltd. 20. I T C Ltd. 6. Bharat Petroleum Corporation Ltd. 21. ICICI Bank Ltd. 7. Bharti Airtel Ltd. 22. Infosys Technologies Ltd. 8. Cairn India Ltd. 23. Infrastructure Development Finance Co. Ltd. 9. Cipla Ltd. 24. Jaiprakash Associates Ltd. 10. DLF Ltd. 25. Jindal Steel & Power Ltd. 11. Dr. Reddy's Laboratories Ltd. 26. Kotak Mahindra Bank Ltd. 12. GAIL (India) Ltd. 27. Larsen & Toubro Ltd. 13. Grasim Industries Ltd. 28. Mahindra & Mahindra Ltd. 14. HCL Technologies Ltd. 29. Maruti Suzuki India Ltd. 15. HDFC Bank Ltd. 30. NTPC Ltd. 7

8 31 Oil & Natural Gas Corporation Ltd. 41. Siemens Ltd. 32. Power Grid Corporation of India Ltd. 42. State Bank of India 33. Punjab National Bank 43. Steel Authority of India Ltd. 34. Ranbaxy Laboratories Ltd. 44. Sterlite Industries (India) Ltd. 35. Reliance Capital Ltd. 45. Sun Pharmaceutical Industries Ltd. 36. Reliance Communications Ltd. 46. Tata Consultancy Services Ltd. 37. Reliance Industries Ltd. 47. Tata Motors Ltd. 38. Reliance Infrastructure Ltd. 48. Tata Power Co. Ltd. 39. Reliance Power Ltd. 49. Tata Steel Ltd. 40. Sesa Goa Ltd. 50. Wipro Ltd. IISL may add and remove any securities comprised in the S&P CNX NIFTY Index from time to time necessitating the rebalancing of the portfolio of the fund. Tracking Error The performance of the scheme may not be commensurate with the performance of the underlying index on any given day or over any given period. Such variation, referred to as tracking error may result from a variety of factors whatsoever including but not limited to: Any delay experienced in the purchase or sale of shares due to illiquidity of the market, settlement and realisation of sale proceeds and the registration of any securities transfer and any delays in receiving cash and scrip dividends and resulting delays in reinvesting them. The differences in weightage of the investments in the securities and the weightage of such securities in the underlying index. Expenditure incurred by the scheme. The potential for trades to fail which may result in the Scheme not having acquired shares at a price necessary to track the underlying index. The Nifty reflects the prices of shares at close of business hours. However the scheme may buy or offload shares at different points of time during the trading session at the then prevailing prices which may not correspond to the closing prices on the NSE. IISL undertakes a periodical review of the scrips that comprise the S&P CNX NIFTY Index and may either drop or include new securities. The weightage of the scrips may also change due to the corporate actions such as debenture or warrant conversions, employee stock options, rights, mergers, etc. In such an event the fund will endeavour to reallocate its portfolio but opportunities may not permit precise mirroring of the underlying index immediately. The holding of a cash position and accrued income prior to distribution and accrued expenses. Disinvestments to meet redemptions, recurring expenses, dividend payouts etc. Tracking error of the scheme as on February 28, 2011 Tracking error Annualised Tracking error Over last 1 year Over last 3 years Over last 5 years Since inception Past performance may or may not be sustained in the future. C. DEFINITIONS 1. Acceptance/Request/Creation Date or date of acceptance/request/creation with reference to an application made by an applicant to the UTI Asset Management Company (UTI AMC) for creation or redemption of units means the day before the cut off time on which the designated UTI Financial Centres / authorised collection centres of UTI AMC/any other place as designated by UTI MF after being satisfied that such application is complete in all respects, accepts the same. 2. Accounting Year of UTI Mutual Fund is from April to March. 3. Act means the Securities and Exchange Board of India Act, 1992, (15 of 1992) as amended from time to time. 4. Alternate applicant in case of a minor means the parent other than the parent who has made the application on behalf of the minor. 5. Applicant means an investor who is eligible to participate in the scheme and who is not a minor and shall include the alternate applicant mentioned in the application form. 8

9 6. AMFI means Association of Mutual Funds in India. 7. Asset Management Company/UTI AMC/AMC/ Investment Manager means the UTI Asset Management Company Limited incorporated under the Companies Act, 1956 (1 of 1956) and approved as such by Securities and Exchange Board of India (SEBI) under sub-regulation (2) of Regulation 21 to act as the Investment Manager to the Schemes of UTI Mutual Fund. 8. Authorised Participants means the Member of the National Stock Exchange or any other recognized stock exchange or any other person who is appointed by the AMC to act as Authorised Participant. 9. Business 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 AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/switching of unit is suspended by the Trustee. 10. Cash means payment by cheque or draft. 11. Cash component represents the difference between the applicable Net Asset Value of a Creation Unit and the market value of the Portfolio Deposit. The difference may include accrued dividends, accrued annual charges including management fees and residual cash in the scheme. In addition it may also include transaction costs as charged by Custodian/ Depository Participant, equalisation of dividend, effect of rounding off of number of shares in portfolio deposit and other incidental expenses in creation of units. The portfolio securities and cash component applicable for a creation day will vary from time to time and will be computed and announced by the UTI AMC on its website every Business Day. 12. CDSL means Central Depository Services (India) Ltd. 13. Creation unit is a fixed number of which is exchanged for a predefined basket of securities underlying the S&P CNX Nifty Index called the Portfolio deposit and a Cash Component. In case of redemption a fixed number of share will be exchanged for Portfolio deposit and Cash Component. The Portfolio deposit and Cash Component may change from time to time and is discussed separately in this document. Creation unit size under the scheme is 10,000 units plus in multiples of 1 unit. The AMC reserves the right from time to time, to vary the number of units per creation unit and such change may or may not be in conjunction with a change in transaction fee. 14. Custodian means Stock Holding Corporation of India Limited, which has been granted a certificate of registration by SEBI under SEBI (Custodian of Securities) Regulations 1996 and for the time being appointed by the Fund for rendering custodial services for the Scheme in accordance with the Regulations. 15. Cut off time applicable for creation/redemption of the units in creation size is 3.00 p.m. on acceptance/ request/creation date. 16. Depository means a body corporate as defined in the Depositories Act, 1996 (22 of 1996) and includes National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL). 17. Eligible Trust means (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes `depository within the meaning of Clause(e) of Sub-section (1) of Section 2 of The Depository Act, Entry Load means load on purchase of units. 19. Exit Load means load on redemption of units. 20. 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. 21. Fund Manager means the manager appointed for the day-to-day management and administration of the scheme. 22. Investment Management Agreement or IMA means the Investment Management Agreement (IMA) dated December 9, 2002, executed between UTI Trustee Company Private Limited and UTI Asset Management Company Limited. 23. IISL means India Index Services & Products Ltd., a joint venture between Credit Rating Information Services of India Ltd. (CRISIL) and the National Stock Exchange of India Ltd. (NSE). 24. Index Fund means a mutual fund scheme, which invests in securities in the same proportion that constitute the underlying Index. 9

10 25. Market means any recognised Stock Exchange(s) where units are listed and traded. 26. Mutual Fund or Fund or UTIMF means UTI Mutual Fund, a Trust under the Indian Trust Act, 1882 registered with SEBI under registration number MF/ 048/03/01 dated January 14, 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 grandparents 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. 28. NSDL - National Securities Depository Ltd. 29. Number of units deemed to be in issue means the aggregate of the number of units issued and still remaining outstanding. 30. Official points of acceptance Designated Financial Centres of UTI/Custodian and other authorised Centre as may be prescribed by UTI AMC from time to time are the official points of acceptance of purchase and redemption applications of the scheme. The cut off time as mentioned in this Scheme Information Document will be applicable at these official points of acceptance. 31. Portfolio deposit is a predefined basket of securities that represent the underlying S&P CNX NIFTY Index and will be defined and announced by the fund on business days. Portfolio deposit can change from time to time and will be computed and announced by UTI AMC on each business day. 32. Registrars means a person whose services may be retained by UTI AMC to act as the Registrar under the scheme, from time to time. 33. Regulations or SEBI Regulations mean the SEBI (Mutual Funds) Regulations, 1996 as amended or reenacted from time to time. 34. RBI means the Reserve Bank of India, constituted under the Reserve Bank of India Act, S&P CNX Nifty Index means an index owned and operated by India Index Services and Products Ltd. (IISL). 36. Scheme means the S&P CNX NIFTY UTI NOTIONAL DEPOSITORY RECIEPTS Scheme (). 37. SEBI means the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992). 38. share means the one undivided share/ unit of the face value of Rupees hundred in the unit capital. Share and unit in this document means the one and same thing and is used interchangeably. 39. Society means a society established under the Societies Registration Act of 1860 (21 of 1860) or any other society established under any State or Central law for the time being in force. 40. Sponsors are Bank of Baroda, Punjab National Bank, Life Insurance Corporation of India and State Bank of India. 41. Time referred to in the Scheme Information Document stands for Indian Standard Time. 42. Tracking Error is defined as the standard deviation of the difference between daily returns of the underlying index and the NAV of the scheme. 43. Trust Deed means the Trust Deed dated December 9, 2002 of UTI Mutual Fund. 44. Trustee means UTI Trustee Company Private Limited a company set up under the Companies Act, 1956 and approved by SEBI to act as the Trustee to the schemes of UTI Mutual Fund. 45. Unit Capital means the aggregate of the face value of units issued under the scheme and outstanding for the time being. 46. Unitholder means a person holding units of the scheme in the depository mode. 47. In this Scheme Information Document, unless the context otherwise requires, (i) the singular includes the plural and vice versa, (ii) reference to any gender includes a reference to all other genders, (iii) heading and bold typeface are only for convenience and shall be ignored for the purpose of interpretation. 10

11 D. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY Due Diligence Certificate submitted to SEBI for S&P CNX Nifty UTI Notional DEpository Receipt () It is confirmed that: I. the draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time; II. all legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with; III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the scheme; IV. all the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. Sd/- Date: April 01, 2011 Place: Mumbai S C Dikshit Compliance Officer 11

12 II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME An open ended, exchange listed, Index linked scheme based on S&P CNX NIFTY Index. B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? Investment objective of the fund is to endeavour to provide returns that, before expenses, closely track the performance and yield of basket of securities underlying S&P CNX NIFTY Index. If any part of the consideration is accepted in cash, pending deployment of such funds in securities as per the investment objective as stated above, it may be invested in short term deposits with scheduled commercial banks and/or in other money market instruments. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? The investment policies of the scheme shall be as per SEBI (Mutual Fund) Regulations, 1996 and within the following guideline. Under normal circumstances, the investment range would be as follows Instruments Securities covered by the S&P CNX NIFTY Index Money Market Instruments, convertible bonds and other securities including cash at call Indicative Risk Profile Allocation (% of Total Assets) Upto 100% Medium to High Upto 10% Low D. Where will the scheme invest? Participating in Derivative Products: (i) The scheme may deal in derivative products like futures, options, warrants, swaps agreement, convertible securities or any other derivative instruments that are permissible or may be permissible under applicable regulations and such investments shall be in accordance with the investment objectives of the Scheme. (ii) The scheme may use derivatives for the purpose of portfolio balancing and for any other purposes that are permissible or may be permissible under applicable regulations. Index futures/options are meant to be an efficient way of buying/selling an index compared to buying/selling a portfolio of physical shares representing an index for ease of execution and settlement. Index Futures can be an efficient way to achieve the investment objectives. Notwithstanding the pricing, they can be of help in reducing the tracking error in the scheme. Index futures may enable doing away with the need for trading in individual components of the index, which may not be possible at times in keeping with the circuit filter limits and the liquidity in some of the scrips. Index future may also be helpful in reducing the transaction cost and the processing cost on account of ease of execution of one trade compared to several trade of shares of Index and will be easy to settle compared to physical portfolio of shares representing the underlying Index. (iii) In case of investments in Index futures the risk/ reward would be the same as investments in portfolio of shares representing an Index. However there is a cost attached to buying an Index Future. There could be an element of settlement risk, which could be different from the settlement risk of the physical shares. However the settlement risk is minimised as the exchange acts as a counterparty and clearing corporation. There is a risk attached to the liquidity and depth of the index future market, as it is a relatively new market. (iv) The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eight Schedule to the Regulations. The valuation of non-traded derivatives shall be done in accordance with the valuation method for non-traded investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Regulations. (v) Derivatives: A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable. Derivatives are further classified into Futures Options Swaps Futures: A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future. Investment in a future can give exposure to the underlying without directly buying the underlying instruments. Appreciation/Depreciation in the underlying instruments can be effectively captured through investment in futures. Future can be used to hedge against market movements effectively without actually selling the underlying instruments. The Index Futures are instruments designed to give exposure to the Index. The pricing of an index future is generally a function of the value of an underlying index and the interest rates. The risk associated with Index futures are similar to the one with equity investments. Additional risks could be on account of illiquidity and hence mispricing of the future at the time of purchase. 12

13 Options: An option is a derivative instrument which gives its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option. There are two basic types of options, call option and put option. Call option: A call option gives the buyer of the option the right but not the obligation to buy a given quantity of the underlying asset, at a given price (strike price), on or before a given future date. Put option: A put option gives the buyer of the option the right but not the obligation to sell a given quantity of the underlying asset, at a given price (strike price), on or before a given future date. On expiry of a call option, if the market price of the underlying asset is lower than the strike price the call would expire unexercised. Likewise, if, on the expiry of a put option, the market price of the underlying asset is higher than that of the strike price the put option will expire unexercised. The buyer/holder of an option can make loss of not more than the option premium paid to the seller/ writer but the possible gain is unlimited. On the other hand, the option seller/writer s maximum gain is limited to the option premium charged by him from the buyer/holder but can make unlimited loss. Swaps: The exchange of a sequence of cash flows that derive from two different financial instruments. For example, the party receiving fixed in an ordinary Interest Rate Swap receives the excess of the fixed coupon payment over the floating rate payment. Of course, each payment depends on the rate, the relevant day count convention, the length of the accrual period, and the notional amount. (vi) Exposure limits: In terms of SEBI Circular Cir/IMD/DF/11/2010 dated August 18, 2010, following is applicable with effect from October 01, 2010: a. The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the net assets of the scheme. b. Mutual Funds shall not write options or purchase instruments with embedded written options. c. The total exposure related to option premium paid must not exceed 20% of the net assets of the scheme. d. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. e. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following (i) Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. (ii) Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limits mentioned in Point a. (iii) Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. (iv) The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of the existing position against which hedge has been taken. f. Mutual Funds may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. g. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point a. Definition of Exposure in case of Derivative Positions h. Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows: Position Long Future Short Future Option bought Exposure Futures Price * Lot Size * Number of Contracts Futures Price * Lot Size * Number of Contracts Option Premium Paid * Lot Size * Number of Contracts. The AMC retains the right to enter into such derivative transactions as may be permitted by the Regulations from time to time. For risks associated with investments in derivatives investors are requested to refer to Risk Factors of this Scheme Information Document. 13