DBS Chola Select Income Fund Plan - Flexi Debt Fund · † DBS Chola Select Income Fund is only the name of the scheme and Flexi Debt Fund is the Plan offered by the Scheme and do

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The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (MutualFunds) Regulations, 1996, (hereinafter referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, alongwith a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved orrecommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to knowbefore investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document afterthe date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of DBS Chola Mutual Fund, Taxand Legal issues and general information on www.dbscholamutualfund.com

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI,please contact your nearest Investor Service Centre or log on to our website.

The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated September 18, 2009.

DBS Chola Select Income FundPlan - Flexi Debt FundAn Open Ended Income Scheme

World Trade Centre, Centre 1, 27th Floor,Unit 1, Cuffe Parade, Mumbai 400 005

Offer of units at Rs.10/- per unit during the New Fund Offerand at NAV based prices upon re-opening

New Fund Offer opens on :September 29, 2009

New Fund Offer closes on :October 8, 2009

SPONSORCholamandalam DBS Finance LimitedRegistered Office: ‘Dare House’, No. 2, N S C Bose Road, Chennai - 600 001

INVESTMENT MANAGERDBS Cholamandalam Asset Management LimitedRegistered Office:‘Dare House’, No. 2, N S C Bose Road, Chennai - 600 001

Head Office:World Trade Centre, Centre 1, 27th Floor, Unit 1,Cuffe Parade, Mumbai - 400 005

TRUSTEEDBS Cholamandalam Trustees LimitedRegistered Office: ‘Dare House’, No. 2, N S C Bose Road, Chennai - 600 001

SCHEME INFORMATION DOCUMENT

Website : www.dbscholamutualfund.com

Scheme Information Document / DBS Chola Select Income Fund24

TABLE OF CONTENTS

Sr. No. Particulars Page No.

1. Highlight / Summary of the Scheme 1

2. Risk Factors 3

3. Defination 5

4. Due Diligence Certificate 6

5. Information about the Scheme 7

6. Type of Scheme and Investment Objective 7

7. Asset Allocation 7

8. Where will the Scheme Invest? 7

9. What are the Investment Strategies and Risk Control? 8

10. Fundamental Attributes 9

11. How will the Scheme Benchmark its Performance? 11

12. Who will manage the Scheme? 11

13. What are the Investment Restrictions? 11

14. Units and Offer 13

15. Who can Invest? 13

16. How to Apply? 14

17. Ongoing Offer Details 15

18. Periodic Disclosures 17

19. Computation of NAV 18

20. Annual Scheme Recurring Expenses 19

21. Load Structure 19

22. Penalties, Pending Litigations 20

Scheme Information Document / DBS Chola Select Income Fund 1

HIGHLIGHT / SUMMARY OF THE SCHEME

Name of the Scheme DBS Chola Select Income Fund

Name of the Plan Flexi Debt Fund

Nature of the Scheme An Open Ended Income Scheme.

Investment Objective The Scheme seeks to generate regular returns and capital appreciation by investing in debt (including securitiseddebt), government and money market securities.

Investment Plan and Option Flexi Debt Fund

• Institutional Option

• Retail Option

Sub-Options The Plan / Option will have following sub-option

Institutional / Retail Option

1. Dividend**

2. Growth

3. Quarterly Dividend

4. Bonus**

* If no option is specified at the time of application, the default option is Growth Option.

** Declared as and when decided by Trustee.

Investment Pattern Type of Instrument Normal Allocation(% of Net Asset)

Govt. Securities 0-100%

Money Market Instruments 0-100%

Corporate Bonds and Other Debt Instruments 0-100%

The Scheme may invest in securitised Debt.

Investments in foreign securities and stock lending - Nil.

The Scheme can invest up to 100% in money market instruments, however this is not a liquid scheme, and theFund Manager shall have the liberty to invest in securities having maturity of more than 91 days.

The Scheme may invest up to 100% of assets in securitized instruments.

The Scheme may undertake derivative transactions for the purpose of portfolio hedging and portfolio balancing,as permitted under the regulations and guidelines issued by SEBI from time to time.

The Scheme is positioned as a debt scheme which has flexibility to invest in all debt asset classes such as fixedincome securities, floating rate debt securities, money market securities and other debt instruments and acrossvarious tenors ranging from short term to long term. This is in order to capture all types of opportunitiesavailable in the debt market.

New Fund Offer Price Rs.10 per unit

New Fund Offer expenses To be borne by AMC

Minimum Application For new investors:Amount / Number of Units • Institutional Option:

A minimum of Rs. 50,00,000/- per application and any amount thereafter.

• Retail Option:

A minimum of Rs. 5,000/- per application and any amount thereafter.

For existing unitholders on subsequent purchases:

Minimum of Rs. 1,000/- per application and any amount thereafter

Minimum Repurchase Amount A minimum of Rs. 500/- per application or 50 units.

Load Structure Entry Load* : Nil

Exit Load** : 0.5% if redeemed <= 1 month

Bonus units and units issued on reinvestment of dividends shall not be subject to exit load as well as ContingentDeferred Sales Charge (CDSC).

There is no frequency for issue of Bonus Units; it shall be issued to the unit holders as and when decided by theTrustees.

* In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will becharged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly bythe investor to the AMFI registered Distributors based on the investors assessment of various factors includingthe service rendered by the distributors.


** Pursuant to SEBI circular no. SEBI / IMD / CIR No. 6 /172445/ 2009 dated August 7, 2009 and SEBI / IMD /CIR No. 7 /173650 / 2009 dated August 17, 2009, the Scheme shall not be permitted to make distinctionbetween unitholders by charging differential exit loads based on the amount of subscription and such parityshall be made applicable at the portfolio level respectively.

Portfolio(s) DBS Chola Select Income Fund has two separate portfolios namely, Flexi Debt Fund and Regular Debt Fund.

The Mutual Fund intends to currently launch Flexi Debt Fund. The NFO of Regular Debt Fund may commenceat any time within 6 months from the date of the SEBI clearance letter for the Scheme Information Document.

Cut-Off Timing 3.00 p.m. for subscription / redemptions (including switches) of units of the Scheme / Plan.

Transparency / NAV Disclosure The AMC will calculate and disclose the NAVs of the Scheme at the close of every Business Day. NAV of theScheme shall be made available at all Investor Service Centres of the AMC. The AMC shall have the NAVpublished in two daily newspapers. The AMC shall update the NAVs on the website of the Fundwww.dbscholamutualfund.com and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com)by 9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained toAMFI in writing. If the NAVs are not available before commencement of Business Hours on the following daydue to any reason, the Fund shall issue a press release giving reasons and explaining when the Fund would beable to publish the NAVs.

As presently required by the SEBI (MF) Regulations, a complete statement of the Scheme portfolio would bepublished by the Mutual Fund as an advertisement in one English daily circulating in the whole of India and ina newspaper published in the language of the region where the Head Office of the mutual fund is situated,within 1 month from the close of each half year (i.e. 31 March and 30 September) or mailed to the Unitholders.

NAV Declaration of NAV on all Business Days.

Liquidity Commencing not later than 30 (Thirty) days from the closure of the New Fund Offer Period, the Scheme willoffer Redemption at prices related to Applicable NAV on each Working Day.

Redemption of Units The Scheme will sell and redeem units on a continuous basis. (Subject to the prevailing Load Structure).Redemption cheques will be dispatched within 3 working days of receipt of application at the Registrars Officeunder normal circumstances.

Disclosure Semi-annual disclosure of entire portfolio in the format prescribed by SEBI.

Repatriation Facility Non-resident Indians (NRIs), Persons of Indian Origin residing abroad can invest in the Scheme on a repatriationbasis.

Benchmark Index CRISIL Composite Bond Fund Index

Custodian HDFC Bank Ltd.

Registrar Computer Age Management Services Pvt. Ltd.

Banker HDFC Bank Ltd.

Fund Manager Ms. Bekxy Kuriakose

Recurring Expenses Expected to be incurred on an on-going basis not exceeding 2.25% of the weekly average net assets uptoRs. 100 Crore, subject to SEBI regulations.


I. INTRODUCTION

RISK FACTORSA. Standard Risk Factors• Investment in Mutual Fund Units involves investment risks such as

trading volumes, settlement risk, liquidity risk, default risk includingthe possible loss of principal.

• As the price / value / interest rates of the securities in which thescheme invests fluctuates, the value of your investment in thescheme may go up or down.

• Past performance of the Sponsor/AMC/Mutual Fund does notguarantee future performance of the scheme.

• DBS Chola Select Income Fund is only the name of the schemeand Flexi Debt Fund is the Plan offered by the Scheme and do notin any manner indicate either the quality of the scheme, its futureprospects or returns.

• The sponsor is not responsible or liable for any loss resulting fromthe operation of the scheme beyond the initial contribution of Rs.1 Lakh made by it towards setting up the Fund.

• The present scheme is not a guaranteed or assured return scheme.

Scheme Specific Risk:1. Returns: Investors in the scheme are not being offered any

guaranteed returns.

2. Performance Risk: Scheme's performance can decrease orincrease, depending on a variety of factors, which may affect thevalues and income generated by a Scheme's portfolio of securities.The returns of a Scheme's investments are based on the currentyields of the securities, which may be affected generally by factorsaffecting capital markets such as price and volume, volatility in thestock markets, interest rates, currency exchange rates, foreigninvestment, changes in government and Reserve Bank of Indiapolicy, taxation, political, economic or other developments andclosure of the stock exchanges. Investors should understand thatthe investment pattern indicated for the Scheme, in line withprevailing market conditions, is only a hypothetical example as allinvestments involve risk and there can be no assurance that theScheme's investment objective will be attained nor will the Schemebe in a position to maintain the model percentage of investmentpattern/composition particularly under exceptional circumstancesso that the interest of the unitholders are protected. A change inthe prevailing rates of interest is likely to affect the value of theScheme's investments and thus the value of the Scheme's Units.The value of money market instruments held by the Schemegenerally will vary inversely with the changes in prevailing interestrates. The fund, while investing in fixed-income instruments likedebt, etc., shall consider and evaluate the risk of an issuer's abilityto meet principal and interest payments (credit risk) and also theprice volatility due to such factors as interest sensitivity, marketperception or the creditworthiness of the issuer and general marketliquidity (market risk).

3. Liquidity & Settlement Risk: Investors may note that AMC/ FundManager's investment decisions may not be always profitable. TheScheme will invest in debt securities and money market instruments.Trading volumes, settlement periods and transfer procedures mayrestrict the liquidity of these investments. Different segments ofthe Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseencircumstances. The inability of the Scheme to make intendedsecurities purchases due to settlement problems could cause theScheme to miss certain investment opportunities. By the samerationale, the inability to sell securities held in the Scheme's portfoliodue to the absence of a well developed and liquid secondary marketwould result, at times, in potential losses to the Scheme, in case ofa subsequent decline in the value of securities held in the Scheme'sportfolio.

4. Tenor risk: While building the planned amortisation schedule fora PTC there can be a clause stating a minimum percentage ofreceivable by the issue to stick to the initial cash flows. If thereceivables are less than the minimum stated receivables then thetenor of the PTC can get elongated or vice versa.

5. Credit risk: The PTC holders / Contributors are taking a directexposure to the repayment ability of the underlying borrowers.Hence the timely payment on the PTCs / Contributions will dependon the credit quality of the pool borrowers. The credit-cum-liquidityenhancement stipulated for the PTCs / Contributions adequatelycovers the credit risk.

6. Commingling risk: This risk arises on account of time lag betweenpool collections and investor payouts, during which the CollectionAgent continues to hold the pool collections. The risk of loss ofcash flows on account of commingling depends on the creditstanding of the issuer.

7. Prepayment risk: Since the PTCs / Contributions are structuredat "par", prepayment of loans in the pool will not lead to any loss.The prepaid principal will be passed on in its entirety to the PTCholders. However, prepayments result in higher reinvestment riskto the PTC holders / contributors than originally envisaged. Thisrisk is borne by the PTC holders/contributors.

8. Legal risk: In any securitisation transaction, it is essential that thetransfer of receivables is a "true sale", i.e. the originator does notretain any control over the receivables or any claim to the receivablesthat could override the claim of the PTC holders / contributors.Further, the transfer of receivables should not in any way vitiatethe terms of the underlying loan documents. It should also beensured that the investors have unrestricted access to the cashcollateral.

9. As the scheme may also invest in debt and money marketinstruments it may also have the following risk:

(i) Interest rate Risk: As interest rates increase or decline, theprices of individual securities will decrease or increase thusaffecting the NAV. Interest rate movements in the Indian debtmarkets can be volatile leading to price movements resultinginto consequential movements in NAV.

(ii) Reinvestment Risk: This risk refers to the interest rate levelsat which coupons or maturity proceeds from securities canbe reinvested. If interest rates fall these cash flows may bereinvested at lower rates.

(iii) Different types of securities in which the scheme would investas given in the Scheme Information Document carry differentlevels and types of risk. Accordingly, the scheme's risk mayincrease or decrease depending upon its investment patterne.g. corporate bonds carries higher level of risk thanGovernment securities. Further, even among corporate bonds,bonds which are AAA rated are comparatively less risky thanbonds which are AA rated.

10. Political Risk: Whereas the Indian market was formerly restrictive,a process of deregulation has been taking place over recent years.This process has involved the removal of trade barriers and otherprotectionist measures, which could adversely affect the value ofinvestments. It is possible that future changes in the Indian politicalsituation, including political, social, or economic instability,diplomatic developments and changes in laws or regulations couldhave an effect on the value of investments. Expropriation,confiscatory taxation, or other relevant developments could alsoaffect the value of investments.

11. Risk Associated with Derivatives Transaction:

Derivative products are leveraged instruments and can providedisproportionate gains as well as disproportionate losses to theinvestor. Execution of such strategies depends upon the ability ofthe fund manager to identify such opportunities. Identification andexecution of the strategies to be pursued by the fund managerinvolve uncertainty and decision of fund manager may not alwaysbe profitable. No assurance can be given that the fund managerwill be able to identify or execute such strategies.

The risks associated with the use of derivatives are different fromor possibly greater than, the risks associated with investing directlyin securities and other traditional investments.

As and when the Scheme trades in the derivatives market thereare risk factors and issues concerning the use of derivatives that


Investors should understand. Derivative products are specializedinstruments that require investment techniques and risk analysesdifferent from those associated with stocks. The use of a derivativerequires an understanding not only of the underlying instrumentbut of the derivative itself. Derivatives require the maintenance ofadequate controls to monitor the transactions entered into, theability to assess the risk that a derivative adds to the portfolio andthe ability to forecast price or interest rate movements correctly.There is the possibility that a loss may be sustained by the portfolioas a result of the failure of another party (usually referred to as the"counter party") to comply with the terms of the derivativescontract. Other risks in using derivatives include the risk of mis-pricing or improper valuation of derivatives and the inability ofderivatives to correlate perfectly with underlying assets, rates andindices.

12. Risk Associated with Securitised Debt and PTC

Scheme may invest in domestic securitized debt such as assetbacked securities (ABS) or mortgage backed securities (MBS). AssetBacked Securities (ABS) are securitized debts where the underlyingassets are receivables arising from automobile loans, personal loans,loans against consumer durables, etc. Mortgage backed securities(MBS) are securitized debts where the underlying assets arereceivables arising from loans backed by mortgage of residential /commercial properties. ABS/MBS instruments reflect the undividedinterest in the underlying pool of assets and do not represent theobligation of the issuer of ABS/MBS or the originator of theunderlying receivables. The ABS/MBS holders have a limitedrecourse to the extent of credit enhancement provided. If thedelinquencies and credit losses in the underlying pool exceed thecredit enhancement provided, ABS/MBS holders will suffer creditlosses. ABS/MBS are also normally exposed to a higher level ofreinvestment risk as compared to the normal corporate or sovereigndebt.

Tenor risk: While building the planned amortisation schedule fora PTC there can be a clause stating a minimum percentage ofreceivable by the issue to stick to the initial cash flows. If thereceivables are less than the minimum stated receivables then thetenor of the PTC can get elongated or vice versa.

B. REQUIREMENT OF MINIMUM INVESTORS IN THESCHEME / PLANThe Scheme / Plan shall have a minimum of 20 investors and nosingle investor shall account for more than 25% of the corpus ofthe Scheme / Plan. However, if such limit is breached during theNFO of the Scheme, the Fund will endeavour to ensure that withina period of three months or the end of the succeeding calendarquarter from the close of the NFO of the Scheme, whichever isearlier, the Scheme complies with these two conditions. In casethe Scheme / Plan does not have a minimum of 20 investors in thestipulated period, the provisions of Regulation 39(2)(c) of the SEBI(MF) Regulations would become applicable automatically withoutany reference from SEBI and accordingly the Scheme / Plan shallbe wound up and the units would be redeemed at applicable NAV.The two conditions mentioned above shall also be complied withineach subsequent calendar quarter thereafter, on an average basis,as specified by SEBI. If there is a breach of the 25% limit by anyinvestor over the quarter, a rebalancing period of one month would

be allowed and thereafter the investor who is in breach of the ruleshall be given 15 days notice to redeem his exposure over the25% limit. Failure on the part of the said investor to redeem hisexposure over the 25% limit within the aforesaid 15 days wouldlead to automatic redemption by the Mutual Fund on the applicableNet Asset Value on the 15th day of the notice period. The Fundshall adhere to the requirements prescribed by SEBI from time totime in this regard.

C. SPECIAL CONSIDERATIONS, If anyAll the above factors not only affect the prices of securities butmay also affect the time taken by the Fund for redemption ofUnits, which could be significant in the event of receipt of a verylarge number of redemption requests or very large value ofredemption requests. The liquidity of the assets may be affectedby other factors such as general market conditions, political events,bank holidays and civil strife. In view of this, the Trustee has theright in its sole discretion to limit redemption (including suspensionof redemption) under certain circumstances. Please refer to thepara "Suspension of Redemption/Repurchase of Units & DividendDistribution" in this document.

The liquidity of the Scheme's investments may also be restrictedby trading volumes, settlement periods and transfer procedures.In the event of an inordinately large number of redemption requestsor of a restructuring of the Scheme's portfolios, the time taken bythe Scheme for redemption of Units may become significant. Inview of this, the Trustee has the right in its sole discretion to limitredemption (including suspension of redemption) under certaincircumstances.

Redemption due to change in the fundamental attributes of theScheme or due to any other reasons may entail tax consequences.The Trustee, AMC, Mutual Fund, their directors or their employeesshall not be liable for any such tax consequences that may arise.

The tax benefits described in this Scheme Information Documentare as available under the present taxation laws and are availablesubject to conditions. The information given is included for generalpurpose only and is based on advice received by the AMC regardingthe law and practice in force in India and the Unitholders shouldbe aware that the relevant fiscal rules or their interpretation maychange. As is the case with any investment, there can be noguarantee that the tax position or the proposed tax positionprevailing at the time of an investment in the Scheme will endureindefinitely. In view of the individual nature of tax consequences,each Unit holder is advised to consult his / her own professionaltax advisor.

No person has been authorised to give any information or to makeany representation not confirmed in this Scheme InformationDocument in connection with the scheme or the issue of Units,and any information or representation not contained herein mustnot be relied upon as having been authorised by the Mutual Fundor the Asset Management Company.

Investors are advised to consult their Legal, Tax, Finance and otherProfessional Advisors before making decision to invest in or redeemthe units in regard to tax / legal issues relating to their investmentsin the Scheme. Investors in the Scheme are not being offered anyguaranteed returns.


D. DEFINITIONIn this Scheme Information Document the following words and expressions shall have the meaning specified herein unless the context otherwiserequires:

Asset Management Company / DBS Cholamandalam Asset Management Ltd., the asset management company set up under the CompaniesAMC / Investment Manager Act, 1956 and authorized by SEBI to act as Asset Management Company to the schemes of DBS Chola

Mutual Fund.

Applicable NAV for In respect of valid applications received upto 3 p.m., same day's closing NAV shall be applicable.redemption / switch In respect of valid applications received after 3 p.m., the closing NAV of the next Business Day shall be

applicable.

Business Day Any day other than :

1) Saturday;

2) Sunday;

3) Day on which any one of Banks / RBI in Mumbai or the Bombay Stock Exchange Limited or the NationalStock Exchange of India Ltd. are required or obliged by law or executive order to remain closed includingthe occasions when the functioning of any of the above banks or stock exchanges is affected due tobandhs / strike call made by a recognized union / management at any part of the country;

4) A book closure period as may be announced by the Trustee / AMC, or day on which normal businesscannot be transacted due to storms, floods or such other events as the Trustee / AMC may specify fromtime to time

5) Day on which the sale and redemption of units is suspended by the Trustee / AMC.

Custodian HDFC Bank Ltd., HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013 acting asthe Custodian of the Scheme.

Entry Load Load on purchase of units by the investor

Exit Load Load on redemption of units by the investor

Investment Management The Investment Management Agreement dated October 23, 1996, executed between DBS CholamandalamAgreement or IMA Trustees Ltd. and DBS Cholamandalam Asset Management Ltd.

ISC Investor Service Centre of the Asset Management Company/Registrars

Mutual Fund or Fund DBS Chola Mutual Fund, a Trust set up under the provisions of Indian Trust Act, 1882 and registered with SEBIvide Registration No. MF/035/97/9 dated 03/01/1997.

NAV Net Asset Value of the units of DBS Chola Select Income Fund (Plan - Flexi Debt Fund)

Scheme Information Document This document issued by DBS Chola Mutual Fund offering Units of DBS Chola Select Income Fund (Plan - FlexiDebt Fund)

PTCs 'PTCs (Pass Through Certificates) are an important financing technique used to convert cash generatingassets into marketable securities for sale to investors. The objective of securitisation is to separate businessrisk from the risk of sold assets. This enables investors to assess the credit quality and the cash flow of thepool of assets rather than looking to the business risk. It involves pooling together of similar loans (eg, homemortgages) into standardised bonds, or mortgage-backed bonds. These bonds use the interest paid on theunderlying loans to pay interest to the bondholders. This process is called securitisation.

Registrars Computer Age Management Services Pvt. Ltd. (CAMS), Chennai, performing the functions of a Registrar.

Regulations / SEBI Regulations SEBI (Mutual Funds) Regulations, 1996, as amended from time to time, for the operation and managementof mutual funds

Repo / Reverse Repo Sale/purchase of Government securities with simultaneous agreement to repurchase/resell them at a laterdate.

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

SEBI Securities and Exchange Board of India established under Securities and Exchange Board of India Act, 1992

SEBI Regulations SEBI (Mutual Funds) Regulations, 1996, as amended from time to time, for operation and management ofMutual Funds.

Sponsor Cholamandalam DBS Finance Ltd., having their registered office at Dare House, No. 2, N S C Bose Road,Chennai - 600 001

The Trustee DBS Cholamandalam Trustees Ltd., a company set up under the Companies Act, 1956

Trust Deed The Registered Trust Deed dated October 17, 1996 establishing DBS Chola Mutual Fund as a Trust under theIndian Trusts Act, 1882 and amended from time to time

The Scheme DBS Chola Select Income Fund

The Plan Flexi Debt Fund

Unit or Units The interest of an investor which consists of one undivided share in the NAV of the relevant option of DBSChola Select Income Fund (Plan - Flexi Debt Fund)

Unit holder A participants in DBS Chola Select Income Fund (Plan - Flexi Debt Fund)

DBS Chola Select Income Fund - The scheme that is being offered under this Scheme information Document for subscriptionFlexi Debt Fund


DUE DILIGENCE CERTIFICATEA Due Diligence Certificate duly signed by the Compliance Officer of DBS Chola Mutual Fund has been submitted to SEBI, which reads as follows:

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 guidelinesand 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 anyother 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 decisionregarding investment in the proposed scheme.

(iv) the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and theirregistration is valid, as on date.

For DBS Cholamandalam Asset Management Ltd.(AMC for DBS Chola Mutual Fund)

Sd/-Place : Mumbai Anish Y. ShahDate : January 30, 2009 Compliance Officer


A. TYPE OF THE SCHEME -DBS Chola Select Income Fund - Flexi Debt Fund is an Open EndedIncome scheme.

Investment Plan and Option Flexi Debt Fund


• Retail Option

Sub-Options The Plan / Option will have thefollowing sub options


1. Dividend**

2. Growth


4. Bonus**

*If no option is specified at the timeof application, the default option isGrowth Option.

** Declared as and when decidedby the Trustees

DBS Chola Select Income Fund has two separate portfolios namely, FlexiDebt Fund and Regular Debt Fund. The Mutual Fund intends to currentlylaunch DBS Chola Select Income Fund - Flexi Debt Fund. The NFO ofDBS Chola Select Income Fund - Regular Debt Fund may commence atany time within 6 months from the date of the SEBI clearance letter forthe Scheme Information Document.

B. INVESTMENT OBJECTIVEThe Scheme seeks to generate regular returns and capital appreciationby investing in debt (including securitised debt), government and moneymarket securities.

C. ASSET ALLOCATIONInstruments Indicative allocations Risk Profile

(% of total assets)

Maximum Minimum High/Medium/Low

Govt. Securities 100 0 Low toMedium

Money Market 100 0 Medium toInstruments High

Corporate Bonds and 100 0 Medium toOther Debt Instruments High

The Scheme may invest in securitised Debt.

Investments in foreign securities and stock lending - Nil.

The Scheme can invest up to 100% in money market instruments,however this is not a liquid scheme, and the Fund Manager shall havethe liberty to invest in securities having maturity of more than 91 days.

The scheme(s) may invest upto 100% of assets in securitized instruments.

The scheme(s) may undertake derivative transactions for the purpose ofportfolio hedging and portfolio balancing, as permitted under theregulations and guidelines issued by SEBI from time to time.

The Scheme is positioned as a debt scheme which has flexibility to investin all debt asset classes such as fixed income securities, floating ratedebt securities, money market securities and other debt instrumentsand across various tenors ranging from short term to long term. This isin order to capture all types of opportunities available in the debt market.

Change in Investment PatternSubject to the SEBI Regulations, the asset allocation pattern indicatedabove may change from time to time, keeping in view market conditions,market opportunities, applicable regulations and political and economicfactors. It must be clearly understood that the percentages stated above

are only indicative and not absolute. These proportions can varysubstantially depending upon the perception of the Investment Manager;the intention being at all times to seek to protect the interests of theUnitholders. Such changes in the investment pattern will be for shortterm i.e. upto three months and for defensive considerations only.

D. WHERE WILL THE SCHEME INVEST?Subject to the Regulations, the corpus of the Scheme can be invested inany (but not exclusively) of the following securities:

1. Securities created and issued by the Central and State Governmentsand/or repos/reverse repos in such Government Securities as maybe permitted by RBI (including but not limited to coupon bearingbonds, zero coupon bonds and treasury bills)

2. Securities guaranteed by the Central and State Governments(including but not limited to coupon bearing bonds, zero couponbonds and treasury bills)

3. Debt obligations of domestic Government agencies and statutorybodies, which may or may not carry a Central/State Governmentguarantee

4. Corporate debt and securities (of both public and private sectorundertakings) including Bonds, Debentures, Notes, Strips, Bills Re-discounting (BRDs) etc. These may be fixed rate instruments orfloating rate.

5. Obligations of banks (both public and private sector) anddevelopment financial institutions.

6. Money market instruments permitted by SEBI, in call money marketor in alternative investments for the call money market as may beprovided by RBI to meet the liquidity requirements.

7. Certificate of Deposits (CDs).

8. Commercial Paper (CPs).

9. The non-convertible part of convertible securities.

10. Securitised Debt obligation

11. Any international fixed income securities.

12. PTCs (pass through certificates or pay-through security) are poolof fixed-income securities backed by a package of assets. A servicingintermediary collects the monthly payments from issuers and afterdeducting a fee, remits or passes them through to the holders ofthe PTCs. They are an important financing technique used toconvert cash generating assets into marketable securities for saleto investors. It involves pooling together of similar loans (eg, homemortgages) into standardised bonds, or mortgage-backed bonds.These bonds use the interest paid on the underlying loans to payinterest to the bondholders. This process is called securitisation.

13. Any other like instruments as may be permitted by SEBI/ RBI/ suchother Regulatory Authorities from time to time.

The securities mentioned above could be listed, unlisted, privatelyplaced, secured, unsecured, rated or unrated and of any maturity.The securities may be acquired through Initial public offerings (IPOs),secondary market operations, private placement or rights offers.All investments in securities whether privately placed or otherwisewill be in line with SEBI guidelines as applicable and the investmentobjectives and policies of the Scheme. Investment in unratedsecurities will be in accordance with SEBI guidelines as applicable.

The AMC may from time to time for a short term period underexceptional circumstances on defensive consideration modify / alterthe investment pattern / asset allocation the intent being to protectthe Net Asset Value of the Scheme & the interests of Unit Holderswithout seeking consent of the Unit Holders.

A scheme may invest in another scheme under the same assetmanagement company or any other mutual fund without chargingany fees, provided that aggregate inter scheme investment madeby all schemes under the same management or in schemes underthe management of any other asset management company shallnot exceed 5% of the net asset value of the mutual fund.

II. INFORMATION ABOUT THE SCHEME


Scheme is not intending to Invest in ADRs / GDRs and foreignSecurities.

The fund shall buy and sell securities on the basis of deliveries andshall in all cases of purchases, take delivery of relevant securitiesand in all cases of sale, deliver the securities provided that it mayengage in short selling of securities in accordance with theframework specified by the SEBI. Provided further that mutual fundsshall enter into derivatives transactions in a recognised stockexchange subject to such guidelines as may be specified by SEBI.

E. WHAT ARE THE INVESTMENT STRATEGIES AND RISKCONTROL

Investment StrategyThe Scheme seeks to generate regular returns and capital appreciationby investing in debt (including securitised debt), government and moneymarket securities.

The actual percentage of investment in various fixed income securitieswill be decided after considering the economic environment (includinginterest rates and inflation), the performance of the corporate sectorand general liquidity, prevailing political conditions and otherconsiderations in the economy and markets. Also the Fund Managerwill generally be guided by, but not restrained by, the ratings announcedby various rating agencies on the assets in the portfolio.

All investments made by the scheme will be made in accordance withSEBI (Mutual Fund) Regulations, 1996.

• The overall portfolio structuring would aim at controlling risk atmoderate level. Security specific risk will be minimised by investingonly on those companies that have been thoroughly researchedin-house. Risk will also be managed through broad diversificationof the portfolios within the framework of the Scheme' investmentobjective and policies.

• The AMC will follow a structured investment process in order toidentify the best securities for investment and has developed aninternal research framework for consistently examining all securities.

• The scheme will invest in "Non Convertible Debentures", whichare rated by at least one rating agency.

Investment decisions are made by the Fund Manager of the scheme.The scheme's investments will be reviewed on regular basis by the FundManager in consultation with the Investment Committee. The Investmentcommittee comprise of the Chief Executive Officer, Fund Managers -Equity, Head - Fixed Income, Vice President - Finance & Operations andResearch Analyst/s. The Committee takes note of justification for theinvestments made and periodically reviews the investments decisionsand policies. The Board of Directors of the AMC and the TrusteeCompany review all investments made during a quarter and performanceof the scheme vis-à-vis similar schemes of other mutual funds are alsocompared.

Strategies for Debt Derivatives1. Bond - OIS Swap: Under this strategy, the fund manager pays fixed

rate on Overnight Indexed Swap (OIS) against an underlying bondof a similar or greater tenor and receives Mumbai Inter-Bank OfferRate (MIBOR). This is essentially done for hedging interest rate riskor for rebalancing portfolio allocation to fixed and floating ratebonds. Effectively, through this trade the fund manager is able toconvert a fixed rate bond into a floating rate MIBOR linkedinstrument. The trade has exposure to 'basis movement' - therelative movement of bond versus OIS.

2. Receive OIS: Here the fund manager receives fixed rate on OISagainst either cash or a floating rate bond of a similar or greatertenor, and pays MIBOR. The objective is to rebalance portfolio infavour of fixed rate exposure if the view is that overnight rates willfall.

3. Buy Interest Rate Futures: To hedge an underlying exposure ofgovernment securities or corporate bonds, the fund manager maysell similar tenor bonds under Interest Rate futures contracts if hehas a bearish view. When rates rise, the market value of the gilt/bonds will go down but the market value of the futures contractwill go up and hence the overall loss could be minimized.

Portfolio TurnoverThe portfolio may be churned in order to take advantage of movementsin the securities market and to maximize the average returns on theportfolio while maintaining a desirable risk profile and adequate liquidity.The Fund will attempt to balance the increased cost on account of higherportfolio turnover with the benefits derived therefrom.

Debt Market OverviewThe Indian Debt Market has grown in size substantially over the years.The Reserve Bank of India has been taking steps to make the IndianDebt Market efficient and vibrant. Broadly, the debt Market is divided intwo parts viz. the Money Market and the Debt market. Money marketinstruments have a tenor of less than one year while debt marketinstruments have a tenor of more than one year. Money marketinstruments are typically commercial paper, certificates of deposit,treasury bills, trade bills, repos, CBLO, etc. Debt market comprises typicallyof securities issued by Governments (Central and State), Banks, FinancialInstitutions, and Companies in the private and public sector,Corporations, Statutory Bodies etc.

The debt securities are mainly traded over the telephone directly orthrough brokers or at CCIL's NDS-OMS and CBLO platform. The NationalStock Exchange of India has a separate trading platform called theWholesale Debt Market segment where trades put through memberbrokers are reported. The debt market is very liquid with the daily tradesin the region of Rs. 2500 crores.

RBI has introduced the Negotiated Dealing System (NDS) platform fortrading in Government Securities and Money Market instruments. Mostof the market participants are now operating through NDS.

Promoted by major banks and financial institutions, The ClearingCorporation of India Ltd. (CCIL) was incorporated on April 30, 2001.The CCIL guarantees the settlement of all trades executed through NDS.The clearing and settlement risks viz., Counter party Credit Risk andOperational Risk are mitigated by CCIL thereby facilitating a smoothsettlement process.

The following table gives approximate yields prevailing as on 31st August,2009 on some of the money and debt market instruments. These yieldsare indicative and do not indicate yields that may be obtained in futureas interest rates keep changing.

Instrument Yield Range(% per annum)

Inter bank Call Money 3.20

91 Day Treasury Bill 3.40

5 yr AAA rated PSU corporate bond 8.51

One yr Bank CD rate 5.80

364 Day Treasury Bill 4.28

5-Year OIS 6.38

10-Year Government of India Security 7.44

Generally, for instruments issued by a non-Government entity, the yieldis higher than the yield on a Government Security with correspondingmaturity. The difference, known as credit spread, depends on the creditrating of the entity. Investors must note that the yields shown above arethe yields prevailing on 31st Dec., 2008 and they are likely to changeconsequent to changes in economic conditions and RBI policy.

Securitised Debt and PTCsAsset Securitisation is understood as a process whereby commercial orconsumer credits are packaged and sold in the form of financialinstruments. A typical process of securitisation involves sale of specificreceivables to a Special Purpose Vehicle. The Special Purpose Vehicle inturn issues instruments (promissory notes, participation certificates, debtinstruments or other instruments of similar nature) to the investors. Suchinstruments are ordinarily rated by an independent credit rating agency.

Securitised debt has become a popular instrument from the investor'sperspective in the developed markets. It provides diversification of theeconomic risks as credit risk is spread over a diversified group of obligorsand usually achieves a high investment grade rating.


Example:

Suppose a bank has given housing loan to retail borrowers. The totalamount of loan disbursed is Rs. 10.00 crores on 1st April, 2007. Thebank securitises the receivables and structures a PTC as given below.The bank sells it to the investors at the yield of, say, 6.30%. The cashflows would be as:

Payout Date Principal Interest Total receivableby the investor

15-Apr-07 14,551,292.70 249,452.90 14,800,745.60

15-May-07 14,020,695.70 426,840.27 14,447,535.97

15-Jun-07 13,507,561.54 368,727.04 13,876,288.58

15-Jul-07 13,011,343.60 289,328.90 13,300,672.50

15-Aug-07 12,531,504.55 231,830.65 12,763,335.19

15-Sep-07 12,067,530.32 167,140.27 12,234,670.59

15-Oct-07 11,618,919.94 101,454.51 11,720,374.45

15-Nov-07 8,691,151.66 44,865.63 8,736,017.29

This would result in a yield of 6.30% to the investor.

Policy for investing in group companies of the Sponsor of theMutual Fund

The Scheme retains the right to invest in the listed securities of groupcompanies of the Sponsor provided that such investments are not inexcess of 25% of the net assets.

Investment in the Scheme by Sponsors/Associates/AMC

From time to time, subject to the Regulations, the Sponsors and theAMC may acquire a substantial portion of the Scheme's units andcollectively constitute a majority investor in the Scheme. AMC shall notbe entitled to charge any fees on such investment.

F. FUNDAMENTAL ATTRIBUTESFollowing are the Fundamental Attributes of the scheme, in terms ofRegulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of Scheme:An Open ended Income Scheme.

(ii) Investment Objective:The Scheme seeks to generate regular returns and capitalappreciation by investing in debt (including securitised debt),government and money market securities.

(iii) Asset Allocation:Instruments Indicative allocations Risk Profile

(% of total assets)

Maximum Minimum High/Medium/Low

Govt. Securities 100 0 Low to Medium

Money Market 100 0 Medium to HighInstruments

Corporate Bonds and 100 0 Medium to HighOther Debt Instruments

The Scheme may invest in securitised Debt. Investments in foreignsecurities and stock lending - Nil.

The Scheme can invest up to 100% in money market instruments,however this is not a liquid scheme, and the Fund Manager shall havethe liberty to invest in securities having maturity of more than 91 days.

The scheme may invest upto 100% of assets in securitized instruments.

The scheme may undertake derivative transactions for the purpose ofportfolio hedging and portfolio balancing, as permitted under theregulations and guidelines issued by SEBI from time to time.

Fund positioned as a debt scheme which has flexibility to invest in alldebt asset classes such as fixed income securities, floating rate debtsecurities, money market securities and other debt instruments and

across various tenors ranging from short term to long term. This is inorder to capture all types of opportunities available in the debt market.

(iv) Terms of Issue:Liquidity: Liquidity will be available through Sale and Repurchase ofunits on an ongoing basis. An investor may purchase and get the unitsrepurchased on any Business Day at NAV based prices.

Listing: No listing of units will take place since the scheme is openended.

SALE OF UNITS AND REDEMPTION OF UNITS ON ANONGOING BASISThe Scheme offers for Sale and Redemption of units on every BusinessDay at NAV based prices, subject to the applicable Sales Load.Subscriptions on an ongoing basis will be made only by specifying theamount to be invested and not the number of Units to be subscribed.The total number of Units allotted will be determined with reference tothe applicable Sale Price and fractional Units may be created. FractionalUnits will be computed and accounted for up to three decimal placesand they will in no way affect an investor's ability.

Redemption of Units:A minimum of Rs. 500/- per application or 50 units.

Load Structure

Entry Load: Nil

Exit Load: 0.5% if redeemed <= 1 month

Bonus units and units issued on reinvestment of dividends shall not besubject to exit load as well as Contingent Deferred Sales Charge (CDSC).

There is no frequency for issue of Bonus Units; it shall be issued to theunit holders as and when decided by the Trustees.

As per SEBI Circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30,2009, of the exit load or CDSC charged to the investor, a maximum of1% of the redemption proceeds shall be maintained in a separateaccount by the AMC which may be utilised towards payment ofcommissions to the distributor and to take care of other marketing andselling expenses. Any balance shall be credited to the respective schemeimmediately.

The investor is requested to check the prevailing load structure of thescheme before investing.

For any change in load structure AMC will issue an addendum anddisplay it on the website/Investor Service Centres.

The redemption amount will be charged with applicable load and/orany other tax at applicable rate. A Unit holder may request redemptionof a specified amount or a specified number of Units, subject to theminimum redemption amount. If both the redemption amount andnumber of units are mentioned, the number of Units specified will beconsidered for deciding the redemption amount. If, only the redemptionamount is specified by the Unit holder, the Fund will divide theredemption amount so specified by the Applicable NAV based price toarrive at the number of Units.

Unit holders may also request for redemption of their entire holdingand close the account by indicating the same at the appropriate placein the Redemption Request Form, (subject to the prevailing loadstructure).

Redemption Price

The Redemption Price of the Units will be based on the Applicable NAVless exit load. All redemption requests received upto 3.00 p.m. will bepriced at the same day's Repurchase Price. Requests received after 3.00p.m. will be treated as having received on the next Business Day.

If any exit load is applicable at the time of redemption, then theRedemption Price will be (Applicable NAV) x (1- exit load) - Other Tax, ifany.

For example, if Applicable NAV is Rs.10.00 and exit load is 1.00%, thenthe Redemption Price will be 10 x (1-0.10) - other tax, if any (at presentNil) = Rs. 9.90.

Investors may note that the Trustees have a right to prescribe or modifythe load structure with prospective effect and to introduce an exit loadsubject to the Regulations.


How to Redeem

The redemption requests can be made on the transaction slip forredemption. The redemption request can be made at any of the InvestorService Centres as listed in this SID, or can be sent by mail to the Registrar,Computer Age Management Services Pvt. Ltd., 1st Floor, 178/10,Kodambakkam High Road, Opposite Hotel Palmgrove,Chennai - 600 034;Tel : 044-28285501/502/663, Fax: 044-28283614.

In case the Units are standing in the names of more than one Unitholder,where mode of holding is specified as 'Jointly', redemption requestswill have to be signed by all joint holders. However, in cases of holdingspecified as 'Anyone or Survivor', any one of the Unitholders will havethe power to make redemption requests, without it being necessary forall the Unitholders to sign. However, in all cases, the proceeds of theredemption will be paid only to the first-named holder.

Payment of Proceeds

All redemption requests received prior to 3.00 p.m. on any BusinessDay will be considered accepted on that Business Day, subject to theredemption request being complete in all respects, and will be pricedon the basis of the applicable NAV (subject to the prevailing loadstructure) less STT/other tax, if any. Where an application is receivedafter the cut-off time, as above, then the request will be deemed tohave been received on the next Business Day.

Under normal circumstances, the Fund will endeavour to dispatch theredemption cheques within 3 Business Days from the date of receipt ofthe redemption request at the office of the Registrar or its branches.The dispatch of dividend warrants shall be made within 30 days of thedeclaration of the dividend and dispatch of redemption or repurchaseproceeds shall be made within 10 working days from the date ofredemption or repurchase. In the event of a delay in dispatch ofredemption proceeds beyond 10 working days, interest @ 15% will bepayable to the investors for the period of delay.

Redemptions may also be paid by other convenient means such asaccount-to-account transfer, if so desired by the investors and, if foundfeasible by the mutual fund.

If a Unitholder makes a redemption request immediately after purchaseof Units, the Fund shall have a right to withhold the redemption requesttill sufficient time has elapsed to ensure that the amount remitted byhim (for purchase of Units) is realised and the proceeds have beencredited to the Scheme's Account. However, this is only applicable ifthe value of redemption is such that some or all of the freshly purchasedUnits may have to be redeemed to effect the full redemption.

For redemptions above Rs. 25 lakhs per investor at a time, the aboveservice standard of 3 Business Days may not apply. However, in suchcases, the Mutual Fund will despatch the cheque within but not morethan 10 working days.

The redemption cheque will be issued in favour of the sole / firstUnitholder's registered name and bank account number and will besent to the registered address of the sole/first holder as indicated in theoriginal Application Form or to the latest available address in case theinvestor has already changed his address. All efforts will be made toissue the cheque at the location mentioned by the investor. The bankcharge for collection of cheques at all other places have to be borne bythe Unit holder.

A Confirmation of Transaction or a fresh Account Statement will besent by the Registrar to the redeeming investors.

Unclaimed Redemption / Unclaimed Dividend Amount

The unclaimed Redemption amount and dividend amounts (the funds)may be deployed by the Mutual Fund in call money market or moneymarket instruments only. In respect of unclaimed redemption / dividendamounts, for those investors who claim the amount within three yearsfrom the due date for redemption, it will be paid at the then prevailingNAV. Subsequently, it will be paid at the NAV prevailing at the end ofthree years from due date for redemption. The income earned on suchfunds will be used for the purpose of investor education. InvestmentManagement fee charged by the AMC for managing such unclaimedamounts shall not exceed 50 basis points.

Effect of Redemptions

The Unit capital and Reserves of the Scheme will stand reduced by anamount equivalent to the product of the number of Units redeemedand the Applicable NAV as on the date of redemption.

If, as a consequence of redemption the balance in the Unitholder'saccount falls below Rs.1,000, then the Fund may close theUnitholder's account.

Fractional Units

Since a request for redemption or purchase is generally made in Rupeeamounts and not in terms of number of Units of the Scheme, an investormay hold Fractional Units. Fractional Units will be computed andaccounted for up to three decimal places. However, Fractional Units willin no way affect the investor's ability to redeem the Units, either in partor in full standing to the Unit holder's credit.

Suspension or Restriction on Issue and Redemption of Units

Suspension or restriction of repurchase / redemption facility under anyscheme of the mutual fund shall be made applicable only after theapproval from the Board of Directors of the AMC and the TrusteeCompany. The approval from the AMC Board and the Trustee Companygiving details of circumstances and justification for the proposed actionshall also be informed to SEBI in advance.

Accordingly, the Board of Directors of Trustee Company and AMC maydecide to temporarily suspend determination of NAV of the schemeoffered under this document, and consequently purchase andredemption of units, in any of the following events:

1. When one or more stock exchanges or markets, which providebasis for valuation for a substantial portion of the assets of theScheme are closed otherwise than for ordinary holidays.

2. When, as a result of political, economic or monetary events or anycircumstances outside the control of the Trustee and the AMC,the disposal of the assets of the Scheme is not reasonable, or wouldnot reasonably be practicable without being detrimental to theinterests of the Unit holders.

3. In the event of breakdown in the means of communication usedfor the valuation of investments of the Scheme, without whichthe value of the securities of the Scheme cannot be accuratelycalculated.

4. During periods of extreme volatility of markets, which in the opinionof the AMC are prejudicial to the interests of the Unit holders ofthe Scheme.

5. In case of natural calamities, strikes, riots and bandhs.

6. In the event of any force majeure or disaster that affects the normalfunctioning of the AMC or the Registrar.

7. If so directed by SEBI.

In the above eventualities, the time limits indicated above, for processingof requests for redemption of Units will not be applicable. Theredemption cheque in such extraordinary circumstances shall be mailedto the investor within a reasonable period of time.

The mutual fund reserves the right in it sole discretion to withdraw thesale of units in the scheme temporarily or indefinitely, if the TrusteeCompany or the AMC views that increasing the scheme's size furthermay prove detrimental to the existing unitholders of the scheme.

Lien on Units for Loans

In compliance with the guidelines and notifications issued by SEBI /Government of India / any other regulatory body from time to time,Units under the Scheme may be offered as security by way of a lien /charge in favour of scheduled banks, financial institutions, non-bankingfinance companies (NBFCs), or any other body. The Registrar will noteand record the lien against such Units. A standard form for this purposeis available on request with the Registrar. The Unit Holder will not beable to redeem / switch Units under lien until the Lien Holder provideswritten authorisation to the Fund that the lien / charge may be vacated.As long as Units are under lien, the Lien Holder will have completeauthority to exercise the lien, thereby redeeming such Units and receivingpayment proceeds. In such instance, the Unit Holder will be informedby the Registrar through an account statement. In no case will the Unitsbe transferred from the Unit Holder to Lien Holder. Dividends declaredon Units under Lien will be paid / re-invested to the credit of the UnitHolder and not the Lien Holder.


Aggregate fees and expenses charge to the scheme:

Recurring Expenses: The total annual recurring expenses are estimatedat 2.25% of the weekly average net assets of the Scheme, as givenbelow. These expenses are subject to inter-se change and may increase /decrease as per actual and/or any change in the SEBI regulations.

(% per annum of average weekly net assets)

(Rs. in Crores)

Description First 100 Next 300 Next 300 On theBalance

Investment Management 1.25% 1.00% 0.90% 0.80%& Advisory Fees

Registrar & Transfer Agent Fees 0.25% 0.25% 0.30% 0.30%

Custodian Fees 0.35% 0.35% 0.35% 0.30%

Trustee Fees 0.10% 0.10% – –

Audit Fee 0.10% 0.10% 0.05% –

Rating Fee 0.10% 0.10% 0.10% 0.10%

Other expenses as permittedby SEBI regulations 0.10% 0.10% 0.05% –

Total Annual Recurring 2.25% 2.00% 1.75% 1.50%Expenses

However NFO expenses to be borne by AMC.

In accordance with Regulation 18(15A) of SEBI Regulations, the trusteesshall ensure that no change in the fundamental attributes of the Schemeor the trust or fees and expenses payable or any other change whichwould modify the Scheme and affects the interest of the unitholdersshall be carried out unless :

i) A written communication about the proposed change in sent toeach unitholder and an advertisement is given in one English dailynewspaper having nationwide circulation as well as in a newspaperpublished in the language of the region where the Head Office ofthe mutual fund is situated; and

ii) unitholders are given an option to exit at the prevailing Net AssetValue without any exit load.

G) HOW WILL THE SCHEME BENCHMARK ITSPERFORMANCE

Benchmark Index: CRISIL Composite Bond Fund Index

Justification:

The Scheme would be investing in various debt instruments like GovtSecurities, corporate bonds and money market instruments. The Schemewill take aggressive interest rate as well as credit spread calls. CRISILComposite Bond Fund Index tracks returns on a composite portfoliothat includes call instruments, commercial paper, government securitiesas also AAA / AA rated corporate debt instruments. This benchmark istherefore an appropriate and realistic indicator for a Mutual Fund Schemewhich seeks to invest in all the instruments mentioned above in orderto maximize returns at a particular level of risk.

The AMC and the Trustee may mutually agree to change the benchmarkindex or select an additional benchmark index after recording reasonsfor such change and by following required regulatory process.

H) WHO WILL MANAGE THE SCHEMEMs. Bekxy Kuriakose

Senior Fund Manager

B. A. (Hons.), PGDM

Over 10 years' experience in Financial Market

Last assignments held:

Work experience:

December 2008 till Present: AVP & Senior Fund Manager - DBS CholaMutual Fund

January 2006 to November 2008: Fund Manager- Fixed Income - RelianceLife Insurance Co. Ltd.

April 2000 to January 2006: Fund Manager - SBI Mutual Fund

May 1999 to June 1999: Project Trainee - TAS (Tata AdministrativeServices)

Age: 31 years

I) WHAT ARE THE INVESTMENT RESTRICTIONSPursuant to the "SEBI Regulations", the following investment and otherlimitations are presently applicable to the Scheme, as the case maybe:

1) The Scheme shall not invest more than 15% of its NAV in debtinstruments issued by a single issuer, which are rated not belowinvestment grade by a credit rating agency. This investment limitmay be extended to 20% of the NAV of the Scheme with the priorapproval of the Board of the Trustee Company and the Board ofthe AMC. This limit shall not apply to investments in governmentsecurities. Provided further that investment within such limit canbe made in mortgage backed securitised debt which are rated notbelow investment grade by a credit rating agency registered withSEBI.

2) The Scheme shall not invest more than 30% of its net assets inmoney market instruments of an issuer. Provided that such limitshall not be applicable for investments in Government securities,treasury bills and collateralized borrowing and lending obligations.

3) The Scheme shall not invest more than 10% of its NAV in unrateddebt instruments issued by a single issuer and the total of suchinstruments shall not exceed 25% of the NAV of the Scheme. Allsuch investments will be made with the prior approval of the Boardof the Trustee Company and the Board of the AMC.

4) No Mutual Fund Scheme shall invest more than 30% of its netassets in the money market instruments of an issuer provided thatsuch limit shall not be applicable for investments in Governmentsecurities, treasury bills and collateralized borrowings and lendingobligations.

5) Debentures, irrespective of any residual maturity period (above orbelow one year), shall attract the investment restrictions asapplicable for debt instruments as specified under Clause 1 and1 A of Seventh Schedule to the Regulations.

6) No term loans for any purpose will be advanced by the Scheme.

7) The Scheme may invest in another scheme under the same assetmanagement company or in any other mutual fund withoutcharging any fees, provided the aggregate inter schemeinvestments made by all the Schemes under the same managementor in schemes under the management of any other AMC shall notexceed 5% of NAV of the mutual fund.

8) Transfers of investments from one scheme to another scheme inthe Mutual Fund shall be allowed only if:

• Such transfers are done at the prevailing market price forquoted instruments on spot basis;

• The securities so transferred shall be in conformity with theinvestment objective of the Scheme to which such transferhas been made.

9) The Scheme shall not make any investment in any fund of fundschemes.

10) The Fund shall get the securities purchased transferred in the nameof the Fund on account of the concerned scheme, whereverinvestments are intended to be of a long term nature.

11) The fund shall buy and sell securities on the basis of deliveries andshall in all cases of purchases, take delivery of relevant securitiesand in all cases of sale, deliver the securities provided that it mayengage in short selling of securities in accordance with theframework specified by the SEBI. Provided further that mutual fundsshall enter into derivatives transactions in a recognised stockexchange subject to such guidelines as may be specified by SEBI.

12) All the Scheme's investment will be in transferable securities(whether in capital markets or money markets) or money at call.


13) The Scheme shall not make any investment in:

a) Any unlisted security of an associate or group company ofthe Sponsor; or

b) Any security issued by way of private placement by anassociate or group company of the Sponsor; or

c) The listed securities of group companies of the Sponsor whichis in excess of 25% of the net assets

14) All investment restrictions stated above shall be applicable at thetime of making investment.

15) The Scheme shall not borrow except to meet temporary liquidityneeds of the Fund for the purpose of redemption of units orpayment of interest and dividend to the Unit holders, providedthat the fund shall not borrow more than 20% of the net assets ofthe individual scheme and the duration of the borrowing shall notexceed a period of 6 months.

16) The AMC may invest in the Scheme either in the New Fund Offeror subsequently. However, it shall not charge any investmentmanagement fee on such amounts invested by it.

17) Pending deployment of the scheme in securities in accordancewith the investment objectives of the scheme, the fund can investthe moneys of the scheme in short term deposits of scheduledcommercial banks, subject to such Guidelines as may be specifiedby the Board. The requirements of SEBI Circulars, SEBI/IMD/CIRNo. 1/91171/ 07 dated 16 April, 2007 and SEBI/IMD/CIR No.7/129592/08 dated 23 June, 2008 will be adhered to.

The Trustee of the Mutual Fund may alter these limitations / objectivesfrom time to time to the extent the SEBI Regulations change so as topermit the Scheme to make its investments in the full spectrum ofpermitted investments for the mutual fund in order to achieve itsinvestment objectives. All investments of the Scheme will be made inaccordance with the SEBI Regulations, including Seventh Schedulethereof.

J. HOW HAS THE SCHEME PERFORMED?This scheme is a new scheme and does not have any performance trackrecord.


This section provides details you need to know for investing in thescheme.

A. NEW FUND OFFER (NFO)New Fund Offer Period: This is the period during which a new schemesells its units to the investors.

NFO opens on: September 29, 2009

NFO closes on: October 8, 2009

New Fund Offer of Regular Debt Fund (Plan) may commence at anytime within six months from the date of getting the clearance from SEBIto launch the Plans under the Scheme. The Trustee reserves the right toextend the closing date, subject to the condition that the subscriptionlist shall not be kept open for more than 30 days. Any such extension ofthe subscription list shall be notified by a suitable display at the officialpoint of acceptance of transactions.

New Fund Offer Price: This is the price per unit that the investors haveto pay to invest during the NFO.

Rs. 10 per unit

Minimum Amount for Application in the NFO:

Application For new investors:Amount Institutional Option

A minimum of Rs. 50,00,000/- per applicationand any amount thereafter

Retail Option

A minimum of Rs. 5,000/- per application and anyamount thereafter

For existing unitholders on subsequentpurchases:

A minimum of Rs.1,000/- per application and anyamount thereafter

Minimum Target amount: Rs. 1,00,000

In accordance with the Regulations, if the Scheme fails to collect theminimum subscription amount as specified above, the Fund shall beliable to refund the money to the applicants.

In addition to the above, refund of subscription money to applicantswhose applications are invalid for any reason whatsoever will commenceimmediately after the allotment process is completed. Refunds will becompleted within six weeks of the close of the New Fund Offer Period.If the Fund refunds the amount after six weeks, interest @ 15% perannum shall be paid by the AMC. Refund orders will be marked "AccountPayee only" and drawn in the name of the applicant in the case of thesole applicant and in the name of the first applicant in all other cases.

Maximum Amount to be raised (if any)Not Applicable. The AMC retains the right to specify maximum amountto be raised, at the time of the New Fund Offer.

Plans / Options / Sub-Options offered

Investment Plans Flexi Debt Fund


• Retail Option

Sub-Options The Plan / Option will have following sub-option


1. Dividend**

2. Growth


4. Bonus**

*If no option is specified at the time of application,the default option is Growth Option.

** Declared as and when decided by Trustee.

Dividend PolicyDividend declaration and distribution shall be in accordance with SEBIRegulations as applicable from time to time. The AMC reserves the rightto declared dividend from time to time, depending on availability ofdistributable surplus.

AllotmentFull allotment will be made to all valid applications received during theNew Fund Offer Period of the Scheme. Allotment of Units, shall becompleted not later than 30 days after the close of the New Fund OfferPeriod.

• Account Statement

An Account Statement will be sent by ordinary post / courier / any otherpermitted mode, to each Unitholder, stating the number of Units allotted,not later than 30 Days from the close of the New Fund Offer Periodand/ or from the date of receipt of the request from the unitholders.Further, if an unitholder so desires, the AMC shall issue the unitcertificates to the applicant within thirty days of the receipt of requestfor the certificate.

The account statement shall not be construed as a proof of title and isonly a computer generated statement indicating the details oftransactions under the Scheme and is a non-transferable document.The account statement will be issued in lieu of Unit Certificate/s.

• Unit Certificates

Normally no Unit Certificates will be issued. However, if the applicantso desires, the AMC shall issue a non-transferable Unit Certificate tothe applicant within 30 days of the receipt of request for the certificate.A Unit Certificate if issued must be duly discharged by the Unitholder(s)and surrendered along with the request for redemption/switch or anyother transaction of Units covered therein.

RefundIn accordance with the Regulations, if the Scheme fails to collect theminimum subscription amount as specified above, the Fund shall beliable to refund the money to the applicants.

In addition to the above, refund of subscription money to applicantswhose applications are invalid for any reason whatsoever will commenceimmediately after the allotment process is completed. Refunds will becompleted within six weeks of the close of the New Fund Offer Period.If the Fund refunds the amount after six weeks, interest @ 15% perannum shall be paid by the AMC. Refund orders will be marked "AccountPayee only" and drawn in the name of the applicant in the case of thesole applicant and in the name of the first applicant in all other cases.

Who can invest?Units under the Scheme can be bought by the following entities subjectto the relevant rules / byelaws / constitution of the investor.

• Resident Adult Individuals, either singly or jointly (not exceedingThree)

• Parents / Lawful Guardians on behalf of Minors.

• Non- resident Indians/Persons of Indian Origin resident abroad (NRIs)on repatriation and non-repatriation basis.

• Karta of Hindu Undivided Families (HUF)

• Companies / Bodies Corporate Registered in India

• Banks (including Co-operative Banks and Regional Rural Banks),Financial Institutions & Investment Institutions

• Mutual Funds registered with SEBI

• Partnership Firms

• Societies

• Religious and Charitable Trusts under the provisions of 11(5)(xii)of Income Tax Act, 1961 read with Rule 17C of Income Tax Rules,1962

• Association of Persons / Body of Individuals

• Foreign Institutional Investors registered with SEBI

III. UNITS AND OFFER


• Foreign companies/firms/other bodies corporate incorporatedoutside India subject to FIPB/RBI approval

• Army / Air Force / Navy and other para-military units and bodiescreated by such institutions

• Scientific & Industrial Research Organisations

• International Multilateral Agencies approved by the Governmentof India

HOW TO APPLY?Please refer to the SAI and Application Form for the instructions

The application forms for the purchase of Units of the Scheme will beavailable at the offices of the AMC, the Customer Service Centres andthe office of the Registrar. New investors can purchase Units bycompleting an Application Form. Payment for purchase of Units will beaccepted only through a cheque or demand draft drawn payable at thecentre where the application is lodged, drawn in favour of "DBS CholaSelect Income Fund - Flexi Debt". Investors at places other than wherethe Investor Service Centres are located are requested to make thepayment without deducting the demand draft charges. In case ofapplications made by a demand draft, the demand draft charges maybe deducted from the amount to be invested. However, SBI DD chargeswill be treated as standard DD charges for ascertaining the quantum ofDD charges. In case after applying the DD charges based on standardSBI DD charges, the amount of investment is below the minimumapplication amount, the application may be rejected.

Investors should complete the Application Form and deliver the samealong with the cheque / draft at any of the Investor Service Centres ofthe AMC, listed elsewhere in this Scheme Information Document.Applications can also be sent by mail to the Registrar, at the followingaddress:

Computer Age Management Services Pvt. Ltd., 1st Floor, 178/10,Kodambakkam High Road, Opposite Hotel Palmgrove,Chennai - 600 034;Tel : 044-28285501/502/663, Fax : 044-28283614.

A fresh Account Statement will be sent by the Registrar to the investors,indicating the new balance to the credit in the Account. Under normalcircumstances, an Account Statement will be mailed to the investor,indicating the number of Units purchased within 3 Business Days of theacceptance of a valid application for purchase of Units.

In the event of non-realisation of any cheque or other instrumentremitted by the investor, the transaction of crediting the Unitholder'saccount will be reversed.

Where can you submit the filled up applicationsFilled up applications can be submitted at the Offices of Registrar/ AMC,as per the details given on the last few pages of this document includingthe back cover page.

MANDATORY QUOTING OF BANK MANDATE AND PANNUMBER BY INVESTORSPursuant to SEBI Circular No. SEBI/IMD/CIR No. 6/4213/04 dated March1, 2004 it is mandatory for investors to mention their bank accountnumber in their application/request for redemption. As per SEBI CircularNo. MRD/DoP/Cir- 05/2007 dated April 27, 2007, it is now mandatorythat Permanent Account Number (PAN) issued by the Income TaxDepartment would be the sole identification number for all participantstransacting in the securities market, irrespective of the amount oftransaction. Accordingly investors will be required to furnish a copy ofPAN together with request for fresh purchases. Application Formswithout these informations and documents will be consideredincomplete and are liable to be rejected without any reference to theinvestors. The procedure implemented by the AMC and the decisionstaken by the AMC in this regard shall be deemed final.

However, AMFI vide its circular no. 35P/MEM-COR/4/09-10 dated July14, 2009 exempted the PAN requirement for SIPs upto Rs. 50,000/- peryear per investor i.e. aggregate of investments in a rolling 12 monthsperiod or in a financial year (April to March) (hereinafter referred to as“Micro SIP”). Micro SIP will not be subject to common KYC processthrough CVL. Further, this exemption shall be extended to theinvestments after meeting all terms and conditions mentioned in theabove circular.

Know Your CustomerAs per SEBI guidelines, "Know Your Customer (KYC)" policy shouldclearly spell out the client identification procedure in order to implementthe anti money laundering provisions as envisaged under the Anti MoneyLaundering Act, 2002.

In order to make the data capture and document submission easy andconvenient for the investors, Mutual Fund Industry has collectivelyentrusted this responsibility of collection of documents relating to identityand address and record keeping to an independent agency (presentlyCDSL Ventures Limited) that will act as central record keeping agency('Central Agency'). As a token of having verified the identity and addressand for efficient retrieval of records, the Central Agency will issue anacknowledgement to each investor who submits an application. KYCcompliance has been implemented through a common platform of CDSLVentures Limited (CVL) from February 01, 2008 in respect of applicationsreceived on or after that date for investment of Rs. 50,000 and above.

Investors who wish to complete the KYC requirements have to submita completed Application Form for KYC along with all theprescribed documents listed in the KYC application Form, at any of thePoint of Service ('PoS'). The KYC Form is available at ourwebsite (www.dbscholamutualfund.com) and AMFI website(www.amfiindia.com). PoS are the designated centres appointed by theCentral Agency for receiving application forms, checking the documentsand issuing the acknowledgement thereof. List of PoS and location ofPoS is available at our website (www.dbscholamutualfund.com) andwww.amfiindia.com. Accordingly, Investors investing Rs. 50,000 or morewill have to obtain an acknowledgement from CVL confirming that theKYC requirements have been complied with. The said acknowledgementwill be issued by CVL based on the following:

i) photo, ii) proof of identity iii) proof of address iv) copy of PAN Card V)information with regard to financial status and other demographic detailsvi) any other information and/or documentation to establish identity ofany unit holder.

Presently, it is mandatory for all applications for subscription (fresh/additional purchase) of value of Rs. 50,000 and above to ensurecompletion of KYC requirements for all the applicants (guardian in caseof minor) in the application for subscription. The KYC completion statuswill be validated with the records of the Central Agency by the Registraron an ongoing basis. In case of non completion of KYC formalities anyfurther subscriptions of Rs. 50,000 and above will not be accepted fromthe investor.

With effect from March 3, 2008, applications for subscriptions of valueof Rs. 50,000 and above have to be supported by a copy of theacknowledgement of KYC / printout of KYC status downloaded fromCVL website (www.cvlindia.com) for all the applicants / holder of thefolio. Applications without completion of KYC requirements will berejected at the Front office counter itself.

In case of a New Fund Offer (NFO), allotment will be done only onconfirmation from the Central Agency that the KYC is final.

All investors (both individual and non-individual) can apply for completionof KYC. However, applicants should note that minors cannot apply forKYC completion and any investment in the name of minors should bealong with a Guardian, who should ensure compliance of KYCrequirements for the purpose of investing with a Mutual Fund. Also,applicants/unit holders intending to apply for units / currently holdingunits and operating their Mutual Fund folios through a Power of Attorney(PoA) must ensure that the issuer of the PoA and the holder of the PoAmention their respective KYC Completion at the time of investmentabove the threshold. PoA holders are not permitted to apply forcompletion of KYC on behalf of the issuer of the PoA. The Registrarand Transfer Agents (RTA) will overwrite static data of investors withdata from CVL. Separate procedures are prescribed for change in name,address and other KYC related details, should the applicant desire tochange such information. PoS will extend the services of effecting suchchanges. Once KYC is completed, any changes to KYC data can bedone only through the PoS and not through the Registrars and TransferAgents. These changes will be updated in the database maintained bythe RTA.

The AMC, under powers delegated by the Trustee, shall have absolutediscretion to reject any application, prevent further transactions by aunit holder, if after due diligence, the investor / unit holder / a person


making the payment on behalf of the investor does not fulfil therequirements of the KYC Policy or the AMC believes that the transactionis suspicious in nature with regard to money laundering.

The AMC has also acting as PoS at the address of its Head Office atWorld Trade Centre, Centre 1, 27th Floor, Unit 1, Cuffe Parade, Mumbai400 005.

The Schemes will adhere to such guidelines / procedures as may beissued by SEBI / any other regulatory authority in this regard from timeto time.

LISTINGThe Scheme(s), after the New Fund Offer Period, on a continuous basiswill offer for Redemption of Units at NAV related price on every BusinessDay. It is, therefore, not necessary to list the Units of the Scheme on anyexchange. The Trustee, however, has the right to list the Units underthe Scheme on any stock exchange/s for better distribution and additionalconvenience to existing/prospective Unitholders. Even if the Units arelisted, the Fund may continue to offer redemption facility as specified inthis Scheme Information Document. Any listing will come only as anadditional facility to investors who wish to use the services of a stockexchange for the purpose of transacting business in the Units of theScheme.

SPECIAL PRODUCTS / FACILITIES AVAILABLE DURINGTHE NFOSystematic Investment Plan (SIP) for New Fund Offer

Investors may opt for SIP during New Fund Offer and upon re-openingthe scheme. The investors should give 6 cheques for an equal amountof Rs.1,000/- or more. The date of the cheques should be 5th, 15th or25th of each month.

Load Structure

Entry Load: Nil







All cheques and drafts should be of equal amount and be drawn infavour of the name of the scheme and crossed "Account Payee Only",and must be payable at the centre where the applications are submitted.For cheques drawn on centres other than those where offices of theAMC / ISCs of CAMS exist, bank charges will have to be borne by theinvestor and units will be allotted for the amount net of the bank charges.On receipt of the post-dated cheques, the Registrar will send a letter tothe Unitholder confirming that his/her name has been included in theSystematic Investment Plan. An investor will have the right to discontinuethe Systematic Investment Plan, subject to giving 14 day(s) prior noticeto the Registrar. If any of the dates mentioned above is not a BusinessDay, then the immediately following Business Day will be the date onwhich cheques will be presented to the bank.

Systematic Withdrawal Plan and Systematic Transfer Plan:Not applicable at the time of NFO

SUSPENSION OR REDEMPTION OF UNITSSuspension or restriction of repurchase / redemption facility under anyscheme of the mutual fund shall be made applicable only after theapproval from the Board of Directors of the AMC and the Trustee

Company. The approval from the AMC Board and the Trustee Companygiving details of circumstances and justification for the proposed actionshall also be informed to SEBI in advance.

Accordingly, the Board of Directors of Trustee Company and AMC maydecide to temporarily suspend determination of NAV of the schemeoffered under this document, and consequently redemption of units, inany of the following events:

1. When one or more stock exchanges or markets, which providebasis for valuation for a substantial portion of the assets of theScheme are closed otherwise than for ordinary holidays.

2. When, as a result of political, economic or monetary events or anycircumstances outside the control of the Trustee and the AMC,the disposal of the assets of the Scheme is not reasonable, or wouldnot reasonably be practicable without being detrimental to theinterests of the Unit holders.

3. In the event of breakdown in the means of communication usedfor the valuation of investments of the Scheme, without whichthe value of the securities of the Scheme cannot be accuratelycalculated.

4. During periods of extreme volatility of markets, which in the opinionof the AMC are prejudicial to the interests of the Unit holders ofthe Scheme.

5. In case of natural calamities, strikes, riots and bandhs.

6. In the event of any force majeure or disaster that affects the normalfunctioning of the AMC or the Registrar.

7. If so directed by SEBI.

In the above eventualities, the time limits indicated above, for processingof requests for redemption of Units will not be applicable. Theredemption cheque in such extraordinary circumstances shall be mailedto the investor within a reasonable period of time.

The mutual fund reserves the right in it sole discretion to withdraw thesale of units in the scheme temporarily or indefinitely, if the TrusteeCompany or the AMC views that increasing the scheme's size furthermay prove detrimental to the existing unitholders of the scheme.

LIEN ON UNITS FOR LOANSIn compliance with the guidelines and notifications issued by SEBI /Government of India / any other regulatory body from time to time,Units under the Scheme may be offered as security by way of a lien /charge in favour of scheduled banks, financial institutions, non-bankingfinance companies (NBFCs), or any other body. The Registrar will noteand record the lien against such Units. A standard form for this purposeis available on request with the Registrar. The Unit Holder will not beable to redeem / switch Units under lien until the Lien Holder provideswritten authorisation to the Fund that the lien / charge may be vacated.As long as Units are under lien, the Lien Holder will have completeauthority to exercise the lien, thereby redeeming such Units and receivingpayment proceeds. In such instance, the Unit Holder will be informedby the Registrar through an account statement. In no case will the Unitsbe transferred from the Unit Holder to Lien Holder. Dividends declaredon Units under Lien will be paid / re-invested to the credit of the UnitHolder and not the Lien Holder.

B. ONGOING OFFER DETAILSOngoing offer period:The Scheme will reopen for subscription / redemption within 30 days ofClosure of the NFO.

Ongoing Purchase:The purchase price of the Units, on an ongoing basis, will be based onthe Applicable NAV.

Ongoing Redemption:Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.

This is the price you will receive for redemptions/switch outs.

Example: If the applicable NAV is Rs. 10, exit load is 2% then redemptionprice will be:

Rs. 10* (1-0.02) = Rs. 9.80


The Trustees reserve the right to introduce, modify or remove the exitload or contingent deferred sales charge or a combination thereof withprospective effect under the Scheme. The maximum load (exit/CDSC)under the Scheme will not exceed the limits as prescribed under theRegulations.

The Fund shall ensure that the Redemption Price is not lower than 93%of the NAV and the Purchase Price is not higher than 107% of the NAV,provided that the difference between the Redemption Price and PurchasePrice of the Units shall not exceed the permissible limit of 7% of thePurchase Price, as provided for under the Regulations.

Cut off timing for subscriptions / redemptions / switchesThe following cut-off timings shall be observed by the fund in respectof purchase / repurchase / switch out of units in the scheme / plans, andthe following NAVs shall be applied for such repurchase / switch out(repurchase / switch out facility shall be on specified repurchase date(s) /at maturity) :

• Where the application is received upto 3.00 p.m. - closing NAV ofthe day of receipt of application; and

• Where an application is received after 3.00 p.m. - closing NAV ofthe next Business Day.

• In respect of valid applications received with an outstation chequeor DD not payable at par at the place where it is received, theclosing NAV of the day on which the cheque or DD is creditedshall be applicable.

• In respect of valid applications for purchase of units in the Scheme/Plan with amount equal to or more than Rs. 1 crore, irrespectiveof the time of receipt of application, the closing NAV of the day(or immediately following Business Day if that day is not a BusinessDay) on which the funds are available for utilization shall beapplicable.

Where can the applications for purchase/redemption switchesbe submitted?The applications for purchase/redemption switches be submitted canbe made at any of the Investor Service Centres as listed in this SchemeInformation Document, or can be sent by mail to the Registrar; ComputerAge Management Services Pvt. Ltd., 1st Floor, 178/10, KodambakkamHigh Road, Opposite Hotel Palmgrove, Chennai - 600 034;Tel : 044-28285501/502/663, Fax : 044-28283614.

In case the Units are standing in the names of more than one Unitholder,where mode of holding is specified as 'Joint', redemption requests willhave to be signed by all joint holders. However, in cases of holdingspecified as 'Anyone or Survivor', any one of the Unitholders will havethe power to make redemption requests, without it being necessary forall the Unitholders to sign. However, in all cases, the proceeds of theredemption will be paid only to the first-named holder.

Minimum amount for purchase/redemption/switches

Application Amount For new investors:

Institutional Option

A minimum of Rs. 50,00,000/- per applicationand any amount thereafter

Retail Option

A minimum of Rs. 5,000/- per application andany amount thereafter

For existing unitholders on subsequentpurchases:

A minimum of Rs.1,000/- per application andany amount thereafter

Minimum Balance to be amount maintained and consequencesof non maintenance:

The Fund may close a Unitholder's account if the balance falls belowRs. 1,000 and the investor fails to invest sufficient funds to bring thevalue of the account up to Rs.1,000 within 30 days, after a writtenintimation in this regard is sent to the Unitholder.

SPECIAL PRODUCTS AVAILABLESystematic Investment Plan (SIP) for Ongoing Sales

Investors may opt for SIP during New Fund Offer and upon re-openingthe scheme. The investors should give 6 cheques for an equal amountof Rs.1,000/- or more. The date of the cheques should be 5th, 15th or25th of each month.

Load StructureEntry Load: Nil







All cheques and drafts should be of equal amount and be drawn infavour of the name of the scheme and crossed "Account Payee Only",and must be payable at the centre where the applications are submitted.For cheques drawn on centres other than those where offices of theAMC / ISCs of CAMS exist, bank charges will have to be borne by theinvestor and units will be allotted for the amount net of the bank charges.On receipt of the post-dated cheques, the Registrar will send a letter tothe Unitholder confirming that his/her name has been included in theSystematic Investment Plan. An investor will have the right to discontinuethe Systematic Investment Plan, subject to giving 14 day(s) prior noticeto the Registrar. If any of the dates mentioned above is not a BusinessDay, then the immediately following Business Day will be the date onwhich cheques will be presented to the bank.

Systematic Withdrawal Plan (SWP) for ongoing sales onlyInvestors may opt for SWP facility on following terms and conditions:

i) Fixed amount withdrawal: A minimum fixed amount of Rs. 500/-and equal amount thereafter can be withdrawn subject to havingminimum account balance as applicable in the scheme at the timeof opting for the plan.

ii) Capital appreciation withdrawal: Capital appreciation can bewithdrawn subject to maintenance of minimum account balanceof Rs. 10,000/- in the scheme.

iii) SWP is applicable only for the Cumulative Option of the scheme.

iv) Investor cannot simultaneously participate in SIP/STP and SWP inthe same scheme.

Value Date for redemptions under SWP:Monthly: 5th, 15th or 25th of each month

If any of the dates mentioned above is not a Business Day, then theimmediately following Business Day will be the date on which redemptionwill be considered.

The amount thus withdrawn by redemption will be converted into Unitsat Applicable NAV based prices and the number of Units so arrived atwill be subtracted from the Units balance to the credit of that Unitholder.Normally, the redemption cheque will be despatched to the unit holderswithin 3 Business Days of the value date.

The Fund may close a Unitholder's account if the balance falls belowRs. 1,000 and the investor fails to invest sufficient funds to bring thevalue of the account up to Rs.1,000 within 30 days, after a writtenintimation in this regard is sent to the Unitholder.


Unitholders may change the amount indicated in the SWP, subject tothe minimum amounts mentioned above. The SWP may be terminatedon a written notice by a Unitholder of the Scheme and it will terminateautomatically if all Units are liquidated or withdrawn from the accountor upon the Funds receipt of notification of death or incapacity of theUnitholder.

Systematic Transfer Plan (STP) for ongoing sales onlyExisting investors of the Schemes of DBS Chola Mutual Fund viz. DBSChola Monthly Income Plan, DBS Chola Short Term Floating Rate Fund,DBS Chola Liquid Fund, DBS Chola Freedom Income - Short Term Planand DBS Chola Triple Ace, DBS Chola Gilt ("Transferor Scheme) mayopt for STP facility for investment in DBS Chola Select Income Fund -Flexi Debt Fund ("Transferee Scheme") when open for ongoing saleson following terms and conditions:

1. Periodicity: STP facility can be availed on a Monthly or Quarterlybasis on 5th, 15th or 25th of a month. If these dates fall on non-Business Days then the immediate succeeding Business Day willbe considered for STP.

2. Options: (a) Fixed Amount: A minimum fixed amount ofRs. 1,000/- can be transferred subject to availability of a minimumaccount balance of Rs. 25,000/- in the transferor scheme at thepoint of initialization of STP. (b) Capital Appreciation: A minimumcapital appreciation of Rs. 1,000/- in the transferor's scheme canbe transferred subject to maintenance of a minimum accountbalance of Rs. 25,000/- in the transferor scheme. Balance as onthe date of opting for the STP would be considered as principalamount and any capital appreciation over that is considered fortransfer under this option.

Load StructureEntry Load: Nil







Exit loads as applicable in the transferor scheme will be payable fortransfer under STP.

Minimum Application size as applicable to normal investments will NOTBE APPLICABLE in case of investment under STP.

Account StatementFor normal transactions (other than SIP/STP) during ongoing salesand repurchase:

• The AMC shall issue to the investor whose application (other thanSIP/STP) has been accepted, an account statement specifying thenumber of units allotted (state the service standard for the same).

• For those unitholders who have provided an e-mail address, theAMC will send the account statement by e-mail.

• The unitholder may request for a physical account statement bywriting/calling the AMC/ISC/R&T.

For SIP / STP transactions:• Account Statement for SIP and STP will be despatched once every

quarter ending March, June, September and December within 10working days of the end of the respective quarter.

• A soft copy of the Account Statement shall be mailed to theinvestors under SIP/STP to their e-mail address on a monthly basis,if so mandated.

• However, the first Account Statement under SIP/STP shall be issuedwithin 10 working days of the initial investment/transfer.

• In case of specific request received from investors, Mutual Fundsshall provide the account statement (SIP/STP) to the investors within5 working days from the receipt of such request without anycharges.

Annual Account Statement:• The Mutual Funds shall provide the Account Statement to the

Unitholders who have not transacted during the last six monthsprior to the date of generation of account statements. The AccountStatement shall reflect the latest closing balance and value of theUnits prior to the date of generation of the account statement,

• The account statements in such cases may be generated and issuedalong with the Portfolio Statement or Annual Report of the Scheme.

Alternately, soft copy of the account statements shall be mailed to theinvestors' e-mail address, instead of physical statement, if so mandated.

DividendThe dividend warrants shall be dispatched to the unitholders within 30days of the date of declaration of the dividend.

RedemptionThe redemption or repurchase proceeds shall be dispatched to theunitholders within 10 working days from the date of redemption orrepurchase.

Delay in payment of redemption / repurchase proceedsThe Asset Management Company shall be liable to pay interest to theunitholders at such rate as may be specified by SEBI for the period ofsuch delay (presently @ 15% per annum).

C. PERIODIC DISCLOSURESNet Asset Value:The calculation and the periodicity of publication of the NAV andredemption prices will be in conformity with the Eighth schedule of theSEBI (Mutual Funds) Regulations, 1996 and Regulation 48(2) of SEBI orany modifications thereto as may be issued by SEBI from time to time.

The Net Asset Value (NAV) per unit of each option of the Scheme wouldbe computed at the end of every Business Day. The NAV would bedetermined in the following manner:

(Market / Fair value of securities +Accrued Income + Other assets -

Accrued expenses - Liabilities - Provisions)NAV (Rs.) per unit =

No. of Units outstanding

NAV will be declared as of the close of every Business Day. The valuationof the Scheme's assets and calculation of the Scheme's NAV shall besubject to audit on an annual basis and such regulations as may beprescribed by SEBI from time to time.

Half yearly Disclosures: Portfolio / Financial Results (This is a list ofsecurities where the corpus of the scheme is currently invested. Themarket value of these investments is also stated in portfolio disclosures)

The mutual fund shall publish a complete statement of the schemeportfolio and the unaudited financial results, within one month fromthe close of each half year (i.e. 31st March and 30th September), byway of an advertisement at least, in one National English daily and oneregional newspaper in the language of the region where the Head Officeof the mutual fund is located.

The mutual fund may opt to send the portfolio to all unit holders in lieuof the advertisement (if applicable).

Half Yearly ResultsThe Mutual Fund shall before the expiry of one month from the close ofeach half year that is on 31st March and on 30th September, publish itsunaudited financial results in one national English daily newspaper and


in a regional newspaper published in the language of the region wherethe Head Office of the mutual fund is situated.

Annual ReportScheme wise Annual Report or an abridged summary thereof shall bemailed to all unitholders within four months from the date of closure ofthe relevant accounts year i..e. 31st March each year.

Associate TransactionsPlease refer to Statement of Additional Information (SAI).

TaxationThe information is provided for general information only. However, inview of the individual nature of the implications, each investor is advisedto consult his or her own tax advisors/authorised dealers with respect tothe specific amount of tax and other implications arising out of his orher participation in the Schemes.

Applicable tax rates (Refer Notes) based on prevailing tax laws

Resident Investors Mutual Fund

Tax on Dividend Nil @ 12.50% plus surchargeand Education Cess

Capital Gains:

Long Term 10%** without Cost NILInflation Index benefitor 20%** with CostInflation Index benefit

Short Term Income tax rate NILApplicable to the Unitholders as per theirincome slabs**

**Plus surcharge @ 10% (where total income exceeds Rs. 10 lacs) andeducation cess of 3% in all cases.

The scheme shall bear the dividend distribution tax as per section 115Rof Income Tax Act, 1961. As per extant Income Tax regulations, dividendsdistributed by mutual funds are tax free in the hands of the investor.Any additional tax liability due to demand raised on the fund by the ITauthorities and deemed payable would be borne by the scheme. Anyadditional tax liability due to demand raised on the Investor by the ITauthorities and deemed payable would be borne by the respectiveinvestor.

Since, all the above Schemes does not qualify as an equity orientedfund, no Securities Transaction Tax is payable by the unit holders onredemption / repurchase of units by the Fund.

For further details on taxation please refer to the clause on taxation inthe SAI.

TAX IMPLICATIONS TO MUTUAL FUND

(Resident and other investors):DBS Chola Mutual Fund is registered with SEBI and as such, the entireincome of the Fund is exempt from income tax under Section 10(23D)

of the Act. In view of the provisions of Section 196(iv) of the Act, noincome tax is deductible at source on the income earned by the mutualfund.

INVESTOR SERVICESInvestor Grievance OfficerB. John Vijayan is the investor grievance officer and can be contactedat:

DBS Cholamandalam Asset Management Ltd.27th Floor, Unit 1, World Trade Centre, Centre 1,Cuffe Parade, Mumbai - 400 005.Phone: 022 6657 4000

D. COMPUTATION OF NAVDETERMINATION OF THE NET ASSET VALUEThe calculation and the periodicity of publication of the NAV andredemption prices will be in conformity with the Eighth schedule of theSEBI (Mutual Funds) Regulations, 1996 and Regulation 48(2) of SEBI orany modifications thereto as may be issued by SEBI from time to time.

The Net Asset Value (NAV) per unit of each option of the Scheme wouldbe computed at the end of every Business Day. The NAV would bedetermined in the following manner:

(Market / Fair value of securities+ Accrued Income + Other assets

– Accrued expenses – Liabilities – Provisions)NAV (Rs.) per unit =

No. of Units outstanding

NAV will be declared as of the close of every Business Day. The valuationof the Scheme's assets and calculation of the Scheme's NAV shall besubject to audit on an annual basis and such regulations as may beprescribed by SEBI from time to time.

The NAV of cumulative option and dividend option will be different ofthe scheme.

NAV Information / Sale and Repurchase price:

a) NAV shall be published at least in two daily newspapers at intervalsof not exceeding one week in case of close ended schemes andon daily basis in case of open ended schemes (along with sale andrepurchase prices).

b) The repurchase price shall not be lower than 93% of the NAV andthe sale price shall not be higher than 107% of the NAV and thedifference between the repurchase price and sale price shall notexceed 7% on the sale price. In the case of close-ended schemethe repurchase price shall not be lower than 95% of the NAV.


IV. FEES AND EXPENSES(This section outlines the expenses that will be charged to the schemes):

As per the provisions of the Regulations, read with the amendmentsthereto, the following fee and expenses will be charged to the plansunder the Scheme:

A. NEW FUND OFFER (NFO) EXPENSESThese expenses are incurred for the purpose of various activities relatedto the NFO like sales and distribution fees paid marketing and advertising,registrar expenses, printing and stationery, bank charges etc.

In accordance with the SEBI circular no. SEBI/IMD/CIR No. 11/ 115723 /08 dated 31 January, 2008 read with SEBI circular no.SEBI/IMD/CIR No. 4/168230/09 dated 30 June, 2009, the Scheme is notpermitted to charge initial issue expenses and entry load respectively.

Accordingly, the NFO Expenses of the Scheme shall be borne by AMC.

B. ANNUAL SCHEME RECURRING EXPENSESRecurring Expenses: The total annual recurring expenses are estimatedat 2.25% of the weekly average net assets of the Scheme, as givenbelow. These expenses are subject to inter-se change and may increase/decrease as per actual and/or any change in the SEBI regulations.

For the actual current expenses being charged, the investor should referto the website of the mutual fund.

(% per annum of average weekly net assets) (Rs. in Crores)

Description First 100 Next 300 Next 300 Balance

Investment Management 1.25% 1.00% 0.90% 0.80%& Advisory Fees

Registrar & Transfer 0.25% 0.25% 0.30% 0.30%Agent Fees

Custodian Fees 0.35% 0.35% 0.35% 0.30%

Trustee Fees 0.10% 0.10% – –

Audit Fee 0.10% 0.10% 0.05% –

Rating Fee 0.10% 0.10% 0.10% 0.10%

Other expenses as 0.10% 0.10% 0.05% –permitted by SEBIregulations*

Total Annual 2.25% 2.00% 1.75% 1.50%Recurring Expenses

* As permitted under the Regulation 52 of SEBI (Mutual Funds)Regulations, 1996.

However NFO expenses to be borne by AMC.

The Trustee fee, as per the provisions of the Trust Deed, is subject to amaximum of Rs. 5 Lakhs per annum. The Board of the Trustee Companymay charge the Trusteeship fee in proportion to the net assets of eachof the schemes of the Fund. The Board of the Trustee Company alsoreserves the right to change the method of allocation of trusteeshipfees among various schemes, from time to time, without adverselyaffecting the interest of the unit holders.

The AMC would update the current expense ratios on the website withintwo working days mentioning the effective date of the change.

C. LOAD STRUCTURELoad is an amount which is paid by the investor to subscribe to theunits or to redeem the units from the scheme. This amount is used bythe AMC to pay commissions to the distributor and to take care ofother marketing and selling expenses. Load amounts are variable andare subject to change from time to time. For the current applicablestructure, please refer to the website of the AMC or may call at ISC.

Entry Load* : Nil

Exit Load** : 0.5% if redeemed <= 1 month



* In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 datedJune 30, 2009, no entry load will be charged by the Scheme to theinvestor effective August 1, 2009. Upfront commission shall be paiddirectly by the investor to the AMFI registered Distributors based on theinvestors assessment of various factors including the service rendered

by the distributors.

** Pursuant to SEBI circular no. SEBI / IMD / CIR No. 6 /172445/ 2009dated August 7, 2009 and SEBI / IMD / CIR No. 7 /173650 / 2009 datedAugust 17, 2009, the Scheme shall not be permitted to make distinctionbetween unitholders by charging differential exit loads based on theamount of subscription and such parity shall be made applicable at theportfolio level respectively.




Any imposition or enhancement of Load in future shall be applicable onprospective investments only. At the time of changing the Load Structure:

(i) The addendum detailing the changes will be attached to theScheme Information Document and Key InformationMemorandum. The addendum will be circulated to all thedistributors / brokers so that the same can be attached to all theScheme Information Documents and Key InformationMemorandum already in stock.

(ii) Arrangements will be made to display the changes / modificationsin the Scheme Information Document in the form of a notice in allthe Investor Service Centres and distributors / brokers' office.

(iii) The introduction of the Exit Load along with the details will bestamped in the acknowledgement slip issued to the investors onsubmission of the application form and will also be disclosed inthe Account Statement or in the covering letter issued to the Unitholders after the introduction of such Load.

(iv) A public notice shall be given in respect of such changes in oneEnglish daily newspaper having nationwide circulation as well asin a newspaper published in the language of region where theHead Office of the Mutual Fund is situated.

(v) Any other measures which the mutual funds may feel necessary.

D. PROCEDURE FOR DIRECT APPLICATIONPursuant to SEBI circular no. SEBI/IMD/CIR No. 10/ 112153/ 07 datedDecember 31, 2007, the following procedure shall be applicable in caseof direct applications received by the AMC i.e. application receivedthrough internet, submitted to AMC or Collection Centre / InvestorService Centre and are not routed through any distributor / agent /broker. It shall also be applicable in case of switch-in to the Schemefrom other Schemes, if such a transaction is done directly by the investor.

1. Investors should ensure to write the word 'DIRECT' in the column'Distributor Information' or 'Broker Code' or 'ARN' in theirapplications for purchases/additional purchases/switches in caseswhere such applications are not routed through any distributor/agent / broker.

2. In cases where unit holder uses a pre-printed transaction slip/application form where details in the column 'DistributorInformation' or 'Broker Code' or 'ARN' is already printed,alterations, if any, in the column 'Distributor Information' or 'BrokerCode' or 'ARN' should be counter signed by all the unit holders. Ifthe alterations on the pre-printed transaction slip/application formare not countersigned by the unit holder(s), the application will beprocessed as if no alterations were made.

3. Transactions slips/application forms where the column undercolumn 'Distributor Information' or 'Broker Code' or 'ARN' is leftblank, the same will be processed as 'Direct' applications.

4. In case of existing SIP/STP, change in registration from broker codeto DIRECT shall be made based on written request received fromthe investor.

Investors can submit their applications for purchases / additionalpurchases at any of the Official Point(s) Acceptance of DBS CholaMutual Fund / Registrar. The list of Official Point(s) of Acceptanceis available on the website of DBS Chola Mutual Fund i.e.www.dbscholamutualfund.com and of the Registrar is available oncamsonline.com.


V. RIGHTS OF UNITHOLDERSInvestors are requested to refer SAI for these details.

VI. PENALTIES, PENDING LITIGATIONS ORPROCEEDINGS, FINDINGS OFINSPECTIONS OR INVESTIGATIONS FORWHICH ACTION MAY HAVE BEENTAKEN OR IS IN THE PROCESS OF BEINGTAKEN BY ANY REGULATORYAUTHORITY

1a) Cases of penalties awarded by SEBI under the SEBI Act or any ofits regulations against the Sponsors of the Mutual Fund or anycompany associated with the Sponsors in any capacity includingthe Asset Management Company, Trustee Company, or any of theDirectors or key personnel (specifically the fund managers) of theAsset Management Company: -

DBS Cholamandalam Securities Limited (CSEC):

SEBI vide an Order dated January 27, 2005 has directed thatcertification of registration of CSEC bearing SEBI Registration No.INB 0230759932 be suspended for a period of two months. TheOrder is effective after three weeks from the date of the Order.SEBI proceedings against CSEC is for violation of SEBI (Stock Brokerand sub-broker) Rules and Regulations, 1992 in respect of "Exerciseof due skill and care" with respect to the transactions executedfor one of its clients during the period May - June 2001.

CSEC has filed an appeal against the SEBI Order with SecuritiesAppellate Tribunal. (SAT) and also tightened its systems andprocedures and adheres diligently to SEBI's know-your-clientguidelines.

SAT vide its order dt. 27/09/2005 allowed CSEC's appeal and hadmodified SEBI's order for suspension of Registration Certificatefor a period of three weeks, as a mere warning to enable CSEC tobe more vigilant in future.

b) Other than the penalties as mentioned above, the penaltiesawarded by any financial regulatory body, including stockexchanges, for defaults by the Sponsors and their associates inrespect of shareholders, debenture holders and depositors.Penalties awarded for any economic offense and violation of anysecurities laws should also be disclosed):

NIL

2a) Pending material litigation proceeding incidental to the businessof the Mutual Fund to which the Sponsors of the Mutual Fund orany company associated with the Sponsors in any capacity includingthe AMC, Trustee Company or any of the directors or key personnelis a party:

NIL

b) Any pending criminal cases against the Sponsors or any companyassociated with the Sponsors in any capacity including the AMC,Trustee Company or any directors or key personnel:

NIL

3. Any deficiency in the systems and operations of the Sponsor ofthe Mutual Fund or any company associated with the Sponsor inany capacity as the AMC or the Trustee Company which SEBI hasspecifically advised to be disclosed in the Scheme InformationDocument, or which has been notified by any other regulatoryagency:

NIL

4. Any enquiry / adjudication proceedings under the SEBI Act andthe Regulations made thereunder, that are in progress against theSponsors of the Mutual Fund or any company associated with theSponsors in any capacity including the AMC, Trustee Company orany of the Directors or key personnel of the AMC:

NIL

Note:1) All information in the Scheme Information Document and KIM

shall be updated, considering the above observations, 30 daysbefore the launch of the scheme.

2) The Scheme Information Document containing details of theScheme approved by the Board of Directors of DBS CholamandalamAsset Management Ltd. and DBS Cholamandalam Trustees Ltd.on December 22, 2008.

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

For DBS Cholamandalam Asset Management Limited(AMC for DBS Chola Mutual Fund)

Anish Y. ShahCompliance Officer

Place: Mumbai

Date: September 18, 2009


TOLL FREE NO. : 1800-209-7575 OR SMS : DBSCHOLA TO 54545

DBS CHOLAMANDALAM ASSET MANAGEMENT LIMITED - BRANCHES• Mumbai: H.O. : World Trade Centre, Centre 1, 27th Floor, Unit 1, Cuffe Parade, Colaba, Mumbai-400 005 Tel.: 66574000• Mumbai (Branches) : 1007, 10th Floor, Raheja Centre, Free Press Journal Marg, Nariman Point, Mumbai - 400021 Tel.: 66908020 / 66908000.Flat No. 10, 3rd Floor, Kasturi Bldg., Opp. H. P. House, Churchgate, Mumbai - 400 020. Tel.: 66104946 • Ahmedabad : 1st Floor, M Square Building,Behind OM Complex, Swastik Char Rasta, C.G. Road, Navrangpura, Ahmedabad - 380 009. Tel.: 9601255975 • Bangalore : 28/1 KensingtonRoad, Diagonally Opp. Gurudwara, Ulsoor Road, Bangalore-560 042 Tel.: 080-4181 1050, 4181 1051-56 • Kolkata : Pradip Estates, 3rd Floor,Chabbildas Towers, 6A Middleton Street, Kolkata 700 071 Tel.: 033 -22837370 / 71 • Chennai : Dare House, No. 2, NSC Bose Road, Parry’s, Chennai- 600 001 Tel.: 044-25307402, 25307405 • Chandigarh : SCO - 2463-64, 2nd Floor, Sec-22C, Chandigarh - 160034 Tel.: 9878406940 / 0172- 3068051 • Coimbatore : Fourth Floor, Sri Arthanari Towers, No.114, Race Course Road, Coimbatore-641 018 Tel.: 9994997599 / 0422 - 4292471• New Delhi : Plot No. 7, 1st Floor, Pusa Road, New Delhi - 110 005. Tel Nos.: 011-66134270 / 71 • Hyderabad : 3rd Floor, ANK's Towers, Opp.to HDFC Bank, Rajbhavan Road, Somajiguda, Hyderabad - 500082 Tel.: 040-64557001. Telfax : 040-23311330 • Lucknow : Office No. 109, 1stFloor, Sky High Chambers, 5 Park Road, Lucknow - 226 001 Tel.: 9838119887/0522 4003245 / 3052460 • Madurai : No.48 C, First Floor, NewMillenium Complex, Dindigul Bye Pass Road, (Opp. Mappilliai Vinayagar Theatre) Madurai - 625 016. Mobile : 98659-66013, Tel.: 0452-2301378• Pune : Shrinath Plaza, Office No. 106/110, 5th Floor, Dnyaneshwar Paduka Chowk, Dnyaneshwar Mangal Karyalaya, Fergusson College Road,Shivaji Nagar, Pune 411 004 Tel.: 020-3291 2911 / 2551 0468 • Jaipur : 307, Third Floor, Tirupati Trade Centre, S.C. Road, Jaipur-302 001,Tel.: 9928725699 / 9829422699 • Ludhiana : 132/3, 1st Floor, K.L. Plaza, Rani Jhansi Road, Civil Lines, Opp. DIG Residence,Ludhiana - 141 001. Tel.: 9888080336 • Kanpur : 32/16, Chowk Chawal Mandi, Kanpur 208 001 Tel.: 9839296100 • Kochi : 1st Floor, BethesdaTowers, Opp. St. Martins Church, Palarivattom, Kochi - 682025. Mobile : 9895168160, Tel.: 6533130 • Vadodara : 113 - 115, Centre Point, R.C. Dutt Road, Alkapuri, Vadodara - 390 005. Mobile : 98985 98644, Tel.: 0265-2351740

CAMS - INVESTOR SERVICE CENTRES / TRANSACTION POINTS - BRANCHES• Agra : 0562-324 0202, 324 226 7 • Agartala : 381 - 9862923301, 2323009 • Ahmedabad : 079-3008 2468, 3008 2469 • Ahmednagar : 0241-3204221,3204309 • Ajmer : 0145-329 2040 • Akola : 0724-3203830 • Allahabad : 0532-329 1273, 329 1274 • Aligarh : 0571-3200301, 3200242 • Alwar : 0144-320 0451 • Ambala : 171-3247437, 3248787 • Angul : 6764 - 329976, 329990 • Amaravati : 0721-329 1965 • Amritsar : 0183-325 7404, 9872004056• Anand : 02692-325 071, 320 704 • Anantapur : 08554-326980, 326921 • Ankleshwar : 02646-310206, 310207 • Asansol : 0341- 329 5235, 329 8306• Aurangabad : 0240- 329 5202 • Balasore : 06782-326808 • Bagalkot : 093791 - 85477, 093791 86040 • Bangalore : 080-3057 4709, 3057 4710, 30578004 • Bareilly : 0581-3243172, 3243322 • Belgaum : 0831-329 9598 • Bellary : 08392-326 848, 326 065 • Berhampur : 0680 – 3203933/ 3205855• Bhagalpur : 0641-3209093, 3209094 • Bhavnagar : 0278 - 3208387, 3200348, 2567020 • Bhilai : 0788-3299 040, 3299 049 • Bikaner : 151 - 3201590,3201610 • Bilaspur : 7752 - 327886, 327887 • Bhilwara : 01482-320809, 231808 • Bhopal : 0755-329 5878, 329 5873 • Bharuch (Parent: AnkleshwarTP) : 9825304183 • Bhubaneswar : 0674-325 3307, 325 3308 • Bhuj : 02832-320762, 320924 • Bhusawal (Parent: Jalgaon TP) • Bokaro : 06542-324 881,326 322 • Burdwan : 0342-320 7001, 320 7077 • Calicut : 0495-325 5984 Chandigarh : 0172-304 8720, 304 8721, 304 8722 • Chandrapur : 7172 - 313885,313928 • Chennai : 044-3911 5563, 3911 5565, 3911 5567 • Cochin : 0484-323 4658, 323 4662 • Coimbatore : 0422-301 8000, 301 8001 • Cuttack : 0671-329 9572 • Darbhanga : 6272 - 326988, 326989 • Davenegere : 08192-326226, 326227 • Dehradun : 0135-325 1357, 325 8460 • Deoghar : 06432-320227,320827 • Dhanbad : 0326-329 0217 • Dharmapuri : 4342 - 310303, 310304 • Dhule : 02562 - 329902,329903 • Durgapur : 0343 - 329 8890, 329 8891,6451419 • Erode : 0424-320 7730, 320 7733 • Faizabad : 5278 - 310664, 310665 • Faridabad : 0129-3241148, 3241147 • Ghaziabad : 0120-3266917,3266918 • Goa : 0832-325 1755, 325 1640 • Gorakhpur : 0551-329 4771 • Gulbarga : 08472-310119, 310523 • Guntur : 0863-325 2671 • Gurgaon :0124-326 3763, 326 3833 • Guwahati : 0361-260 7771, 213 9038 • Gwalior : 0751-320 2873, 320 2311 • Haldwani : 5946 - 313500, 313501 • Hazaribagh: 06546-320251, 320250 • Himmatnagar : 2772 - 321080, 321090 • Hisar : 01662-329580, 315546 • Hoshiarpur : 1882 - 321081, 321082 • Hosur : 04344-321002, 321004 • Howrah (Parent: Kolkata ISC) : 9331737444 • Hubli : 0836-329 3374, 320 0114 • Hyderabad : 040-3918 2471, 3918 2473, 3918 2468• Indore : 0731-325 3692, 325 3646 • Itarsi : 7572 - 321474, 321475 • Jabalpur : 0761-329 1921 • Jaipur : 0141-326 9126, 326 9128, 5104373 • Jalandhar: 0181-3254883, 2222882 • Jalna C.C. (Parent: Aurangabad) • Jalgaon : 0257- 3207118, 3207119 • Jammu : 0191-9906082698 • Jamnagar : 0288-3299737 • Jamshedpur : 0657-329 4594 • Jhansi : 510-3202399 • Jodhpur : 0291-325 1357 • Junagadh : 0285-3200909, 3200908 • Kadapa : 08562-322469,322099 • Kalyani : 033-32422712, 32422711 • Kanpur : 0512-3918003, 3918000, 3918001 • Kakinada : 884 - 320 7474, 320 4595 • Karnal (Parent :PanipatTP) : 9813999809 • Karimnagar : 0878-3208004, 3205752 • Karur : 4324 - 311329, 310064 • Kestopur : 033-32415332, 32415333 • Kolhapur : 0231-3209 732, 3209 356 • Kolkata : 033-32550760, 3058 2285, 3058 2303 • Kollam : 474-3248376, 3248377, Cell: 9847067534 • Kannur : 0497-324 9382,324 9147 • Kharagpur : 3222 - 323984, 323937 • Kota : 0744-329 3202 • Kottayam : 0481-3207 011, 320 6093 • Kumbakonam : 0435 – 3201333/ 3200911• Kurnool : 08518-312978, 312970 • Latur : 02382-341927, 341507 • Lucknow : 0522-391 8000, 391 8001, 391 8002 • Ludhiana : 0161-301 8000, 3018001 • Madurai : 0452-325 1357, 325 2468 • Malda : 3512 - 329951, 329952 • Mangalore : 0824-325 1357, 325 2468 • Manipal : 0820-325 5827 • Mapusa(Parent ISC : Goa) : 9326126122 • Margao : 832 - 322 4761, 3224658 • Mathura : 0565-3207007, 3206959 • Meerut : 0121-325 7278 • Mehsana : 02762-323985, 323117 • Moga : 1636 - 310088, 310909 • Morbi : 2822 - 326910, 326911 • Moradabad : 0591-329 7202, 329 9842 • Mumbai : 022-30282468,30282469, 30282471 • Muzaffarpur : 0621-3207504, 3207052 • Mysore : 0821- 3206991, 329 4503 • Nadiad (Parent TP: Anand TP) • Nagpur : 0712-325 8275, 2432447 • Namakkal : 4286 - 322540, 322541 • Nanded : 2462 - 315980, 312564 • Nasik : 0253-329 7084, 325 0202 • Navsari : 02637-327709,329238, 248745 • Nellore : 0861-329 8154 • New Delhi : 011-3048 2471, 3048 1203, 3048 1205 • Nizamabad : 8462 - 310007, 310008 • Palakkad : 491- 3261114, 3261115 • Palanpur : 2742 - 321810, 321811 • Panipat : 0180-325 0525, 400 9802 • Patiala : 0175-329 8926, 222 9633 • Patna : 0612-3255284, 325 5285, 3255286 • Pondicherry : 0413-421 0030, 329 2468 • Porbander : 0286-3207767, 3205220 • Pune : 020-3028 3005, 3028 3003, 3028 3000• Rae Bareli : 535 - 3203360, 3203361 • Raichur : 8532-323215, 323006 • Raipur : 0771-3296 404 • Rajahmundry: 0883-325 1357 • Rajapalayam :4563 - 327520, 327521 • Rajkot : 0281-329 8158, 329 8206 • Ranchi : 0651-329 6202, 329 8058 • Ratnagiri : 2352 - 322940, 322950 • Ratlam : 07412-324829, 324817 • Rohtak : 01262-318687, 318589 • Roorkee : 1332 - 312386, 312011 • Ropar : 1881 - 324761, 324760 • Rourkela : 0661-329 0575 •Sagar : 07582-326711, 326894 • Saharanpur : 132 - 3255589, 3255591 • Salem : 0427-325 2271 • Sambalpur : 0663-329 0591 • Sangli (Parent: Kohlapur): 9326016616 • Satna : 7672 - 320896, 320756 • Satara : 02162-320926, 320989 • Shimla : 0177-3204944, 3204945 • Shimoga : 8182 - 322 966 , 322980 • Siliguri : 0353-329 1103 • Solapur : 0217-3204201, 3204200 • Sriganganagar : 0154-3206580, 3206295 • Srikakulam : 8942 - 321 900, 321 901• Surat : 0261-326 2267, 326 2468, 326 0352 • Surendranagar : 2752-320231, 320233 • Tirupur : 0421-3201271, 3201272 • Tirunelveli : 0462-320 0308,320 0102 • Tirupathi : 0877-3206887, 3209257, Cell No: 9848877737 • Trichur : 0487-325 1564 • Trichy : 0431-329 6906, 329 6909 • Trivandrum : 0471-324 0202, 324 1357 • Tuticorin : 461 - 3209960, 3209961 • Udaipur : 0294-329 3202 • Unjha (Parent: Mehsana) • Vadodara : 0265-301 8029, 301 8031• Valsad : 02632-324 202, 324623 • Varanasi : 0542-325 3264, 325 3265 • Vapi : 260 - 3201249, 3201268 • Vashi : 022-32598154, 32598155 • Vellore: 0416-3209017, 3209018 • Veraval : 2876 - 322900, 322901 • Vijayawada : 0866-329 9181, 329 5202 • Visakhapatnam : 0891-329 8397, 329 8374, 2554893• Warangal : 0870-320 2063, 320 9927 • Wardha : 7152 - 327735, 327346 • Yamunanagar : 1732-316880, 316770

COVER IV

DBS Cholamandalam Asset Management Limited27th Floor, Unit 1, World Trade Centre, Centre One, Cuffe Parade, Mumbai 400 005, India

Tel.: 91-22-6657 4000 Fax : 91-22-6657 4003www.dbscholamutualfund.com al

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