‘Offer document' is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, forms of the issue etc . and is using for inviting subscription to the issue being made by the issuer.
What is IPO offer document?
Offer document means Prospectus in case of a public issue or offer for sale and Letter of offer in case of a rights issue , which is filed with the Registrar of Companies (ROC) and Stock Exchanges. An offer document covers all the relevant information to help an investor to make his/her investment decision.
What is offer fund documents?
What is a Mutual Fund Offer Document? It is a prospectus that details the investment objectives and strategies of a particular fund or group of funds , as well as the finer points of the fund's past performance, managers and financial information.
Which information is available in the Mutual Fund offer document?
The KIM contains the following information: Details of the AMC and the scheme such as the mutual fund's name, its AMC and Trustees , etc. Details of the scheme such as the inception date, issue date, investment objective, risk profile, name of the fund manager, benchmark index, etc.
Which documents are prepared for SEBI approval?
The document is prepared by Merchant Banker(s), registered with SEBI. They are required to do the due diligence while preparing an offer document. The draft offer document submitted to SEBI is put on website for public comments.
What are the types of offer document?
Letter of offer is an offer document in case of a Right issue of shares or convertible securities and is filed with stock exchanges before the issue opens. Abridged letter of offer is an abridged version of the letter of offer. It is sent to all the shareholders along with the application form.
What is importance of fund offer document?
The purpose of a Scheme's offer document is to provide vital information about the scheme in a way that will assist investors in making informed decisions regarding whether to invest their money in that scheme or not.
What are the two parts of offer document?
Offer document is a prospectus provided by mutual fund houses which gives the information about the offerings of the scheme to the investors. Offer document is divided into two parts that is Scheme Information Document (SID) and Statement of Additional Information (SAI) .
How do you read IPO?
- Scroll down to the part of the prospectus that provides an introduction about the company. ...
- Look close to the top of the prospectus to learn the stock exchange on which the company intends to list its shares.
Why do companies issue rights?
Why do companies offer rights issues? A company would offer a rights issue in order to raise capital . If current shareholders did choose to buy the additional shares, a company could use the funding to clear its debt obligations, acquire assets, or facilitate expansion without having to take out a loan from a bank.
Can distributors charge transactions?
Distributors can change their current status on transaction charges by submitting an option letter to CAMS. ... In 2011, SEBI had introduced a transaction charge of Rs 150 for first time mutual fund investors and Rs 100 for existing investors for distributors for a subscription amount of Rs 10,000 and above.
What is a scheme information document?
What is a SID? Scheme Information Document is one of the many fund offer documents and has almost all the information about a mutual fund scheme ; details like what are minimum subscription amounts, exit and entry loads, SIP details, fund managers and their experience, risk level, the objective of the scheme etc.
How do you read a information scheme document?
- 1/ Investment objective: ...
- 2/ Investment amount, fees, expenses and load structure: ...
- 3/ The risk associated: ...
- 4/ Investment strategy: ...
- 5/ Asset allocation: ...
- 6/ Performance history: ...
- 7/ Fund management team:
How can I get SEBI permission?
Grant of Certificate of Registration
8. On receipt of approval from SEBI, the applicant must pay registration fee of Rs. 1,00,000/- (If applicant is corporate) and Rs. 10,000/- (If applicant is Individual) by way of bank draft in favour of “The Securities and Exchange Board of India”, Page 2 payable at Mumbai.
How long can SEBI take to offer suggestions on offer document?
SEBI shall be intimated of the changes made in the SAI within 7 days . The effective date for such changes shall be mentioned in the updated SAI. i. Application forms for schemes of mutual funds for which the offer documents are filed with SEBI shall be accompanied by the KIM in terms of Regulation 29 (4).
Are mutual funds regulated by SEBI?
Role of SEBI in Mutual Fund Regulations
As far as mutual funds are concerned, SEBI is the policymaker and also regulates the industry . It lays guidelines for mutual funds to safeguard the investors' interest. Mutual funds are very distinct in terms of their investment strategy and asset allocation activities.
