Risk Mitigation process against Third Party Cheques No.11/2011-12

Company Name(s): 

Addendum No. 11 /2011-12 July 4, 2011

Registered Office: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Phone: 022 - 66786666

Website: www.utimf.com

Risk Mitigation process against Third Party Cheques

In accordance with the AMFI Best Practice Guidelines on the Risk Mitigation process against Third Party cheques in Mutual Fund subscriptions and also to enhance the compliance with Know Your Customer (KYC) norms under The Prevention of Money Laundering Act, 2002 (PMLA) and further to addendum no.38/2011-12 dated November 22, 2010, the following clauses are revised in the section under the caption “How to apply” of the Statement of Additional Information (SAI), with immediate effect.
Existing Clause
Revised Clause
A) Restriction on Third Party Payments
Para on “Exceptions”
a) Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding Rs.50,000/- (each regular purchase or per SIP installment). Aforesaid limit of Rs.50,000/- shall not be applicable for making investment under UTI Children’s Career Plan, provided the donor has complied with the requirements mentioned hereinunder.
b) Payment by Employer on behalf of employee under Systematic Investment Plans through salary deductions.
A) Restriction on Third Party Payments
Para on “Exceptions”
i. Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding Rs.50,000/- (each regular purchase or per SIP installment). Aforesaid limit of Rs.50,000/- shall not be applicable for making investment under UTI Children’s Career Plan, provided the donor has complied with the requirements mentioned hereinafter. Further, this restriction is not applicable for payment made by a guardian whose name is registered in the records of UTI Mutual Fund in that folio.
ii. Payment by Employer on behalf of employee under Systematic Investment Plans or lump sum / one-time subscriptions through salary deductions.
Addendum
Registered Office: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Phone: 022 - 66786666
Website: www.utimf.com
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Process to identify Third-Party payments:
iii. In case of the subscriptions received with demand draft (DD) / banker’s cheque (BC), the Investor need to submit any one of the following documents along with the purchase application.
a) a Certificate from the Issuing banker stating the Account holder’s name and the Account number which has been debited for issue of the instrument or
b) counterfoil of the deposit slip containing the name of the Purchaser/applicant of the DD/BC which should be same as the name of the 1st unit holder as per the subscription application / folio and seal of the bank or
c) copy of the Bank passbook showing the debit of the equivalent amount of DD/BC (inclusive of bank charges, if any) and the narration containing issue of DD/BC in favour of UTI MF (1st unit holder should be one of the Bank account holders)
Process to identify Third-Party payments:
iii. In case of the subscriptions received with demand draft (DD) / banker’s cheque (BC) by way of debit to his/her bank account, the Investor need to submit any one of the following documents along with the purchase application.
a) a proof of debit to the Investor’s Bank account in the form of a Bank Manager’s Certificate from the Issuing banker stating the Account holder’s name and the Account number which has been debited for issue of the instrument and PAN as per Bank’s records, if available or
b) counterfoil of the deposit slip containing the name of the Purchaser/applicant of the DD/BC, bank account number and seal of the bank or
c) copy of the Bank passbook / statement showing the debit of the equivalent amount for issuance of DD/BC (inclusive of bank charges, if any) and the narration containing issue of DD/BC in favour of UTI MF (1st unit holder should be one of the Bank account holders) or
d) a copy of acknowledgement from the Bank, wherein the instructions to debit the account are available and the same carries the Bank account details and name
Addendum
Registered Office: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Phone: 022 - 66786666
Website: www.utimf.com
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iv. In case of DD/BC obtained by the investor from his own bank by paying cash upto Rs.50,000/-, the same should be accompanied by a certificate from the banker giving name, address and Permanent Account Number (PAN) (if available) of the person who has requested for the DD/BC or counterfoil of the deposit slip containing the name of the Purchaser/applicant of the DD/BC which should be same as the name of the 1st unit holder as per the subscription application / folio and seal of the bank. The investor is required to ensure that the name as per the letter matches with the first named unit holder/applicant. Such DD/BC issued by the Bank against Cash will not be accepted for investments of Rs.50,000/- or more.
of the investor as an account holder
iv. In case of DD/BC obtained by the investor from his own bank by paying cash upto Rs.50,000/-, the same should be accompanied by a certificate from the banker giving name, address, bank account number and Permanent Account Number (PAN) (if available) of the person who has requested for the DD/BC or counterfoil of the deposit slip containing the name of the Purchaser/applicant of the DD/BC, bank account number and seal of the bank. Such DD/BC issued by the Bank against Cash will not be accepted for investments of more than Rs.50,000/-.
In both (iii) & (iv) above, the Bank account number of the investor is the same as the / one of the registered Bank account mandate(s) with UTI Mutual Fund or the Bank details mentioned in the application form.
In case, the application for subscription does not comply with the above provisions, UTI AMC at its sole and absolute discretion, may reject/not process such application and refund the subscription amount and shall not be liable for any such rejection. This addendum is an integral part of the SAI and Key Information Memorandum (KIM) of the respective schemes and should be read in conjunction with SAI/KIM. For UTI Asset Management Company Limited Sd/- Authorised Signatory In case any further information is required, the nearest UTI Financial Centre may please be contacted.