Reliancegold Etf Offer Document

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OFFER DOCUMENT

RELIANCE MUTUAL FUND

Reliance Gold Exchange Traded Fund An open-ended Gold ETF

Sale of units at Rs.100/- per unit during the New Fund Offer Period and thereafter at applicable

NAV based prices as set out in this Offer Document New Fund Offer Opens on ___________________, 2007 Closes on ___________________, 2007

SPONSOR Reliance Capital Limited Corporate Office: H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai - 400 710. Tel. 022 – 30327000, Fax. 022 - 30327202 TRUSTEE Reliance Capital Trustee Co. Limited Corporate Office: Express Building (4th & 6th Floor), 14, 'E' Road, Churchgate, Opp. Churchgate Station, Mumbai 400 020. Tel. 022 – 3041 4800, Fax. 022 – 3041 4899 INVESTMENT MANAGER Reliance Capital Asset Management Limited Corporate Office: Express Building (4th & 6th Floor), 14, 'E' Road, Churchgate, Opp. Churchgate Station, Mumbai 400 020. Tel. 022 – 3041 4800, Fax. 022 – 3041 4899 REGISTRAR Karvy Computershare (P) Limited Karvy Plaza, 21, Road No.4, Street No.1, Banjara Hills, Hyderabad – 500 034 Tel: 040- 2331 2454, Fax: 040 –2331 1968 CUSTODIAN: Deutsche Bank Kodak House, Ground Floor, Mumbai – 400 001 AUDITORS TO THE SCHEME Haribhakti & Co. 42, Free Press House, Nariman Point, Mumbai - 400 021 INVESTORS SHOULD NOTE THAT This Offer Document sets forth concisely the information that a prospective investor ought to know before investing. Investors should carefully read the Offer Document before making an investment decision. Investors are advised to consult their legal / tax and other professional advisors in regard to tax/legal implications relating to their investments in the Scheme and before making decision to invest in the Scheme or redeem the Units in the Scheme. This Offer Document remains effective until a ‘material change’ (other than a change in Fundamental Attributes and within the purview of the offer document) occurs. Material changes will be filed with Securities and Exchange Board of India (SEBI) and circulated to the Unitholders or may be publicly notified by advertisements in the newspapers, subject to the applicable Regulations. The Unit holders of the Scheme are not being offered any guaranteed returns.

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The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date and the Offer Document has been filed with SEBI. The Units being offered for public subscription have neither been approved nor disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this Offer Document. No person has been authorized to give any information or to make any representations not confirmed in this Offer Document, in connection with the Offer Document or the issue of Units, and any information or representations not contained herein must not be relied upon as having been authorized by the Mutual Fund or the Asset Management Company. Exchange Traded Funds (ETFs) Exchange Traded Funds are usually passively managed funds tracking a benchmark index and reflect the performance of that index. They have the flexibility of trading like a share on the stock exchange. Reliance Gold Exchange Traded Fund Reliance Gold Exchange Traded Fund (RGETF) an open ended Gold Exchange Traded Fund will track the performance of Gold Bullion. The units issued under the scheme will represents the value of gold held in the scheme. The units being offered will have a face value of Rs.100/- each and will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs.100/-. RGETF offers investors a new, innovative, relatively cost efficient and secure way to access the gold market. The units are intended to offer investors a means of participating in the gold bullion market by buying and selling without the necessity of taking physical delivery of gold. The introduction of units of RGETF is intended to lower many of the barriers, such as purity, access, custody and transaction costs, that have prevented some investors from investing in gold. ETFs are bought/sold as mentioned below:

a. Large investors and authorized participants swap creation units for gold in physical form or in the form of cash.

b. The secondary markets where the ETFs are traded like units of common securities on the stock exchange(s) during the trading hours.

The advantages of RGETF over direct investment in gold :

1. Investors who want a cost effective and convenient way to invest in gold can get instantaneous exposure to a physical asset viz gold.

2. Its units can be traded like a share and therefore it provides the ability to buy and sell them quickly at the ruling market price unlike gold that can be sold only for a discount and by a cumbersome process.

3. The expenses incurred in buying and selling units and the schemes ongoing expenses will be less than the costs associated with buying and selling of gold and storing and insuring gold bullion in a traditional gold bullion market.

4. Minimum investment in ETF in secondary markets is one unit representing approximately one gram of gold in the beginning and the weight of gold representing 1 unit keeps reducing to the extent of expenses.

5. Helps investors to diversify across asset classes. 6. Investor’s get an opportunity to access to Gold Bars conforming to LBMA Good Delivery status,

in a cost effective manner. Reliance Gold Exchange Traded Fund will be listed on NSE and any other stock exchange(s) as may be decided by the Reliance Capital Asset Management Ltd. after the closure of the New Fund Offer in the form of Gold Exchange Traded Fund tracking the prices of Gold bullion.

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The Exchange does not in any manner:-

i) warrant, certify or endorse the correctness or completeness of any contents of this Offer Document; or

ii) warrant that the Units of the Scheme will be listed or will continue to be listed on the Exchange; or

iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its management or any scheme or project of this Mutual Fund; and it should not for any reason be deemed or construed that this offer document has been cleared or approved by the Exchange. Every person who desires to apply for or otherwise acquires any Units of RGETF may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription / acquisition whether by reason of anything stated or omitted to be stated herein or for any other reason whatsoever.

This Offer Document is dated ___________ and was approved by the Board of AMC and the Trustees on February 15, 2007. The Trustees have ensured that Reliance Gold Exchange Traded Fund approved by them is a new product offered by Reliance Mutual Fund and is not a minor modification of the existing scheme/fund/product PLEASE RETAIN THIS OFFER DOCUMENT FOR FUTURE REFERENCE.

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I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE ............................................................ 6 II. DEFINITIONS AND ABBREVIATIONS .................................................................................... 15 III. SUMMARY OF THE SCHEME ................................................................................................ 18 IV. CONSTITUTION AND MANAGEMENT OF THE FUND......................................................... 21 1. THE FUND ................................................................................................................................ 21 2. SPONSOR COMPANY ............................................................................................................. 21 3. THE TRUSTEE.......................................................................................................................... 22 4. ASSET MANAGEMENT COMPANY (AMC) ............................................................................. 28 5. AUDITORS ................................................................................................................................ 39 6. THE CUSTODIAN ..................................................................................................................... 39 7. THE REGISTRAR ..................................................................................................................... 41 8. BANKERS TO THE ISSUE ....................................................................................................... 41 V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS OF THE SCHEME....... 44 1. INVESTMENT OBJECTIVE ...................................................................................................... 42 2 ASSET ALLOCATION PATTERN .............................................................................................. 42 3. BENCHMARK INDEX................................................................................................................ 42 4. INVESTMENT STRATEGY ....................................................................................................... 42 5. INVESTMENT PROCESS ......................................................................................................... 43 6. CASE FOR INVESTING IN GOLD ........................................................................................... 43 7. TRACKING ERROR ................................................................................................................. 44 8. FUNDAMENTAL ATTRIBUTES ................................................................................................ 44 9. INVESTMENT PHILOSOPHY AND FOCUS............................................................................ 45 10. DEBT MARKET IN INDIA........................................................................................................ 46 11. PORTFOLIO TURNOVER ...................................................................................................... 47 12. INVESTMENT LIMITATIONS/RESTRICTIONS...................................................................... 47 13.UNDERWRITING BY THE SCHEME....................................................................................... 49 14. BORROWING BY THE MUTUAL FUND................................................................................. 49 15.COMPUTATION OF NET ASSET VALUE ............................................................................... 49 16. VALUATION OF ASSETS ....................................................................................................... 50 14. ACCOUNTING POLICIES & STANDARDS ............................................................................ 52 15. INVESTMENT BY THE AMC IN THE FUND .......................................................................... 55 16. DEPOSITORY ......................................................................................................................... 55 17. POLICY FOR INTER-SCHEME TRANSFERS ....................................................................... 55 VI. UNITS AND OFFER ................................................................................................................ 56 1. (A) NEW FUND OFFER (NFO) ................................................................................................. 56 (B) CONTINUOUS OFFER ........................................................................................................... 56 2. MINIMUM TARGET ................................................................................................................... 56 3. MINIMUM NUMBER OF INVESTORS IN SCHEME/PLAN ...................................................... 56 4. PURCHASE OF UNITS ............................................................................................................. 57 5. ALLOTMENT PRICE / PURCHASE PRICE .............................................................................. 57 6. ROUNDING OFF OF UNITS ..................................................................................................... 57 7. EXPENSES OF NEW FUND OFFER ....................................................................................... 57 8. CONSIDERATION FOR RGETF UNITS DURING THE NEW FUND OFFER PERIOD........... 57 9. PURITY OF GOLD .................................................................................................................... 58 10. CREATION UNIT..................................................................................................................... 58 11. DEMATERIALISATION ........................................................................................................... 59 12. LISTING................................................................................................................................... 59 13. WHO CAN INVEST ................................................................................................................. 59 14. JOINT APPLICANTS............................................................................................................... 60 15. ALLOTMENT STATEMENT .................................................................................................... 61 16. APPLICABLE NAV FOR PURCHASE / CREATION /REDEMPTION OF UNITS

DIRECTLY FROM THE FUND ................................................................................................. 61 17. HOW TO APPLY FOR RGETF UNITS ................................................................................... 62 18. SETTLEMENT OF PURCHASE/SALE OF RGETF UNITS ON THE STOCK EXCHANGE... 62 19. TRANSFER / PLEDGE/ ASSIGNMENT OF UNITS................................................................ 63

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20. TRANSMISSION ..................................................................................................................... 64 21. DIVIDEND PAYOUT OPTION................................................................................................. 64 22. POLICY ON UNCLAIMED REDEMPTION AND DIVIDEND AMOUNTS ............................... 65 23. PROCEDURE FOR CREATING RGETF IN CREATION UNIT SIZE ..................................... 65 24. PREVENTION OF MONEY LAUNDERING ............................................................................ 65 25. MODE OF PAYMENT ............................................................................................................. 66 26. WHERE TO SUBMIT APPLICATION FORMS........................................................................ 67 27. SYSTEMATIC INVESTMENT PLAN (SIP).............................................................................. 68 28. NOMINATION ......................................................................................................................... 68 29. REDEMPTION OF UNITS:..................................................................................................... 68 30. PROCEDURE FOR REDEEMING RGETF IN CREATION UNIT SIZE .................................. 69 31. MINIMUM ACCOUNT BALANCE............................................................................................ 70 32. PAYMENT OF PROCEEDS .................................................................................................... 70 33. RIGHT TO LIMIT REDEMPTION ............................................................................................ 71 35. DURATION OF THE SCHEME ............................................................................................... 72 VII. LOADS AND RECURRING EXPENSES ............................................................................... 73 A. LOAD STRUCTURE OF THE SCHEME .................................................................................. 73 B. APPLICABLE LOAD STRUCTURE .......................................................................................... 73 C. FEES AND EXPENSES OF THE SCHEME............................................................................. 73 VIII. UNITHOLDER'S RIGHTS AND SERVICES.......................................................................... 78 A. UNIT HOLDERS' RIGHTS ........................................................................................................ 78 B. REGISTER OF UNIT HOLDERS .............................................................................................. 79 C. VOTING RIGHTS OF THE UNIT HOLDERS ........................................................................... 79 D. DISPATCH OF ACCOUNT STATEMENT / UNIT CERTIFICATE ............................................ 79 E. NAV INFORMATION................................................................................................................. 79 F. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS.......................................... 80 G. SERVICES TO UNIT HOLDERS.............................................................................................. 80 IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND .................................................... 84 X. CONDENSED FINANCIAL INFORMATION ........................................................................... 88 XI. OTHER MATTERS ................................................................................................................ 100 XII.PENALTIES & PENDING LITIGATION ................................................................................ 144

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I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE

HIGHLIGHTS 1. The Sponsor of the Mutual Fund is Reliance Capital Limited (RCL) having a net worth of over

Rs.4122.46 crores as on March 31, 2006.

2. Reliance Capital Asset Management Ltd. (RCAML) is the Investment Manager for the schemes of Reliance Mutual Fund, managing assets of over Rs. 39,000 crores of over 3 million unit holders’ accounts as on January 31, 2007.

3. Reliance Gold Exchange Traded Fund (“RGETF”) is an open ended Gold ETF of Reliance Mutual Fund and will be listed on NSE and any other stock exchange(s) as may be decided by the Reliance Capital Asset Management Ltd. after the allotment of the New Fund Offer period in the form of an Exchange Traded Fund (“ETF”) tracking the domestic price of gold through investments in physical gold, money market instruments, and other securities as may be permitted by SEBI from time to time.

4. RGETF is designed to provide returns that closely correspond to the returns provided by the domestic price of gold.

5. Each unit of RGETF being offered will have a face value of Rs.100/-. The number of units allotted would be the total amount invested divided by the Allotment Price. Allotment price of RGETF per unit will be based on the cost of investments. In other words, RGETF being offered will have a face value of Rs100/- each and will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs. 100/-.

6. After the NFO, “RGETF” will be listed on NSE and any other stock exchange(s) as may be decided by the Reliance AMC after the closure of the New Fund Offer period, subsequent buying or selling by investors can be made from the secondary market on the NSE. RGETF can be bought/sold like any other stock on the Exchange. The minimum number of units that can be bought or sold is 1 (one) unit. Alternatively Authorised Participant and Large Investors can directly buy /sell in blocks from the fund in ‘Creation Unit’ Size, as defined below.

7. The Authorised Participants and Large Investors can directly buy/sell with the Fund in Creation Units. As RGETF can be bought/sold directly from the Fund, this mechanism provides efficient arbitrage between the traded prices and the NAV, thereby reducing the incidence of RGETF being traded at premium/discounts to NAV. RGETF will be available in dematerialized form. This will help in consolidating with other portfolio holdings and will eliminate need for physical storage thereby eliminating risks. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account number with DP. Since RGETF are to be issued / repurchased and traded compulsorily in dematerialized form, no request for rematerialisation of RMF will be accepted.

8. Investment Objective:

The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold and Gold related securities. However, the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors.

9. Investment Strategy: The Fund manager would use a ‘passive’ approach to try and achieve the investment objective of the Scheme. The scheme does not try to ‘‘beat’’ the gold market but aims to replicate the returns which commensurate the returns generated by gold during that period. It will however endeavor to seek temporary defensive positions when markets decline or appear over valued to the extent of its investment in money market or other debt securities.

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The fund manager would not make any judgment about the investment merit of a particular security nor will it attempt to apply any economic, financial or market analysis. This style of Passive Fund Management would eliminate the risks involved with active management with regard to over / underperformance vis-à-vis a benchmark.

10. Transparency: • The AMC will calculate and disclose the first NAV not later than 30 days from the closure of New

Fund Offer Period. Subsequently, the NAV will be calculated and uploaded on the AMFI site by 9.00 pm on every Working Day and also Reliance Mutual Fund’s website i.e. www.reliancemutual.com. The NAV shall be released to at least two daily newspapers to be published on the next day.

• Publication of abridged half-yearly un-audited financial results in the newspapers or as may be prescribed under the Regulations from time to time.

• Communication of portfolio on a half-yearly basis to the Unit holders directly or through the publications or as may be prescribed under the Regulations from time to time.

• Dispatch of the annual reports of the respective Scheme within the stipulated period as required under the Regulations.

11. Liquidity:

All investors including Authorised Participants, Large Investors and other investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. Alternatively Authorised Participant and Large Investors can directly buy /sell in blocks from the fund in ‘Creation Unit’ Size, as defined below.

12. Switch Facility: Switch-in into RGETF from other schemes will be allowed during the New Fund

Offer period at the applicable loads. 13. Repatriation: Full Repatriation benefits would be available to NRIs/FIIs subject to applicable

conditions.

14. Benefits of RGETF: The Macro view: • India is a major player in the global gold market, both through ownership and annual flow of

purchases of gold, and through enormous success in the labour-intensive export-oriented jewellery business.

• Modernisation of the gold market has been a long-standing policy goal in India. A key element of modernising any financial market is shifting away from closed clubs of dealers engaging in private transactions and bilateral negotiation, to a framework with anonymous trading taking place between participants from all across the country, all of whom are on a level playing field. An essential feature of modernisation of finance is the removal of entry barriers, so that it is easy for finance companies to enter and exit any kind of financial activity. The Gold ETF promises to be a step forward for the gold spot market in offering such a trading framework, characterised by nationwide participation by households and without entry barriers faced by finance companies.

• The Gold ETF is a gold spot instrument, which is distinct from gold futures. However, there are synergies between both initiatives, since they both strengthen different aspects of the gold market. A strong gold ETF market helps to strengthen the gold futures market, and vice versa.

The Micro View From the narrow viewpoint of a household also, the RGETF offers many benefits. Gold is a part of the portfolio of millions of households in the country. For households, the gold ETF offers the following advantages:

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• Zero concerns about physical security, theft or adulteration when faced with the tasks of custody and spot transactions.

• A transparent secondary market, which will offer reduced transactions costs when compared with existing over the counter (“OTC”) transactions on the gold spot market. The existing unregulated spot market suffers from acute problems of wide bid -offer spreads, and penalisation of customers on questions of purity.

• Once banks and other moneylenders accept the transparency and liquidity of the Gold ETF, it would become possible to pledge Gold ETF units as collateral for loans. This would greatly assist many low-income households by easing the credit constraints that they face. A household which may possess physical gold today would, in comparison, obtain more limited credit access owing to concerns about the purity and liquidity of the physical gold. In contrast, the Gold ETF units will eliminate concerns about purity, and will offer assured secondary market liquidity.

• RGETF is likely to trade in units which correspond to 1 gram of gold. This would make transactions accessible to a large number of households who presently find it difficult to do transactions of 1 gram or 1 tola of gold.

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RISK FACTORS AND SPECIAL CONSIDERATIONS

GENERAL RISK FACTORS • Mutual funds and securities investments are subject to market risks and there is no assurance or

guarantee that the objectives of the Scheme will be achieved. • As with any investment in securities, the NAV of the units issued under the scheme can go up or

down depending on the factors and forces affecting the capital market / bullion market. • Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of

the Scheme. • Investors in the scheme are not being offered any guaranteed or assured returns. • The investment decision made by the AMC may not always be profitable. • Reliance Gold Exchange Traded Fund is only the name of the Scheme and does not in any manner

indicate either the quality of the Scheme; it's future prospects or returns. • The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme

beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus.

• The Mutual Fund is not guaranteeing or assuring any dividend. The Mutual Fund is also not assuring that it will make periodical dividend distributions, though it has every intention of doing so. All dividend distributions are subject to the availabilty of distributable surplus in the Scheme.

SCHEME SPECIFIC RISK FACTORS: • Market Risk: Mutual funds and securities investments are subject to market risks and there is no

assurance or guarantee that the objectives of the Scheme will be achieved. The NAV of the Scheme will react to the prices of gold, Gold Related Instruments and stock market movements. The Unit holder could lose money over short periods due to fluctuation in the NAV of the Scheme in response to factors such as economic and political developments, changes in interest rates and perceived trends in stock prices market movements, and over longer periods during market downturns.

• Additionally, the prices of gold may be affected by several factors such as global gold supply and demand, investors’ expectations with respect to the rate of inflation, currency exchange rates, interest rates, etc. Crises may motivate large-scale sales of gold, which could decrease the domestic price of gold. Some of the key factors affecting gold prices are:

a. Central banks’ sale: central banks across the world hold a part of their reserves in gold.

The quantum of their sale in the market is one of the major determinants of gold prices. A higher supply than anticipated would lead to subdued gold prices and vice versa. Central banks buy gold to augment their existing reserves and to diversify from other asset classes. This acts as a support factor for gold prices.

b. Producer mining interest: Bringing new mines on-line is a time consuming and at times economically prohibitive process that adds years onto potential supply increases from mining production. On the other hand, lower production has a positive effect on gold prices. Conversely excessive production capacities would lead to a downward movement in gold prices as the supply goes up.

c. Macro-economic factors: A weakening dollar, high inflation, the massive US trade deficits all act in favor of gold prices. The global trend of rising interest rates also had a positive impact on gold prices. Gold being regarded as a physical asset would lose its luster in a deflationary environment as gold is used effectively as an inflation hedge.

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d. Geo political issues: any uncertainty on the political front or any war-like situation always acts as a booster to gold prices. The prices start building up war premiums and hence such movements. Stable situations would typically mean stable gold prices.

e. Seasonal demand: Since the demand for Gold in India is closely tied to the production of jewellery pices tend to increase during the times of year when the demand for jewelry is the greatest, the demand for metals tends to be strong a few months ahead of these festive seasons, especially Dussera, Diwali, Akshaya Trithya festival and summer wedding season in in India. Christmas, Mothers Day, Valentine’s Day, are also major festive and shopping for Gold.

f. Change in duties & levies.

• The gold held by the Custodian of RGETF may be subject to loss, damage, theft or restriction of access due to natural event or human actions. The Trustees may not have adequate sources of recovery if its gold is lost, damaged, stolen or destroyed and recovery may be limited, even in the event of fraud, to the market value of gold at the time the fraud is discovered.

• The custodian will maintain adequate insurance for its bullion and custody business. The liability of the Custodian is limited under the agreement between the AMC and the Custodian which establish the Mutual Fund’s custody arrangements, or the custody agreements.

Market Trading Risks • Absence of Prior Active Market: Although RGETF units described in this Offer Document are to

be listed on the Exchange, there can be no assurance that an active secondary market will develop or be maintained.

• Lack of Market Liquidity: Trading in RGETF on the Exchange may be halted because of market conditions or for reasons that in the view of the market authorities or SEBI, trading in RGETF is not advisable. In addition, trading in RGETF is subject to trading halts caused by extraordinary market volatility and pursuant to Stock Exchange(s) and SEBI ‘‘circuit filter’’ rules. There can be no assurance that the requirements of the market necessary to maintain the listing of RGETF will continue to be met or will remain unchanged. RGETF may suffer liquidity risk from domestic as well as international market.

• Time lag in procurement/redemption of physical gold: - Procurement of gold bars may take upto 1 month in case of adverse shortage of gold bars. It may not be possible to sell gold bar intentionally and may delay redemption depending on the market conditions.

• RGETF may trade at prices other than NAV: RGETF may trade above or below its NAV. The NAV of RGETF will fluctuate with changes in the market value of Scheme’s holdings. The trading prices of RGETF will fluctuate in accordance with changes in their NAVs as well as market supply and demand of RGETF. However, given that RGETF can be created and redeemed only in “Creation Units” directly with the fund, it is expected that large discounts or premiums to the NAVs of RGETF may not sustain due to arbitrage possibility available.

• Operational Risks: GETF are relatively new product and their value could decrease if unanticipated operational or trading problems arise.

• Regulatory Risk: Any changes in trading regulations by the Exchange or SEBI may affect the ability of Authorised Participant and or Large Investors to arbitrage resulting into wider premium/ discount to NAV. Although RGETF are proposed to be listed on Exchange, the AMC and the Trustees will not be liable for delay in listing of Units of the Scheme on Exchange / or due to connectivity problems with the depositories due to the occurrence of any event beyond their control.

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

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• Competition Risks: An investment in RGETF may be adversely affected by competition from other methods of investing in gold.

The value of the units relates directly to the value of the gold held by the scheme and fluctuations in the price of gold could adversely affect investment value of the units. The RGETF is designed to mirror as closely as possible the performance of the price of gold bullion and the value of units directly relate to the value of the Gold held by the Scheme less the Scheme’s liabilities (including accrued but unpaid expenses). Gold prices have been quite volatile historically. The price of gold has fluctuated from a low of $530 to a high of $726 between Jan-06 and Feb-07 between based on the London AM Fix Several factors may affect the price of gold, including:

Global gold supplies and demand, which is influenced by factors such as forward selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales, and productions and cost levels in major gold producing countries such as the South Africa, the United States and Australia.

➤ Investors’ expectations with respect to the rate of inflation; ➤ Currency exchange rates; ➤ Interest rates; ➤ Investment and trading activities of hedge funds and commodity funds; and ➤ Global or regional political, economic or financial events and situations.

In addition, investors should be aware that there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. In the event that the price of gold declines, the value of investment in units is expected to decline proportionately.

Changes in indirect taxes like custom duties for import, sales tax, VAT or any other levies will have an impact on the valuation of gold and consequently the NAV of the scheme.

Although, the objective of the Fund is to seek to provide returns that closely correspond to

returns provided by price of gold through investment in physical Gold and Gold related securities, the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors.

Credit & Interest Rate Risk The Fund may also invest in Gold Related Instruments, money market instruments, bonds, securitised debts & other debt securities as permitted under the Regulations which are subject to price, credit and interest rate risk. Trading volumes and settlement periods and transfer procedures may restrict liquidity in debt investments. • Right to Limit Redemptions: The Trustee, in the interest of the Unit holders of the Scheme offered in this Offer Document and keeping in view of the unforeseen circumstances / unusual market conditions, may limit the total number of Units, which can be redeemed on any Working Day depending on the total “Underlying Stock of Gold” that can be readily sold in the local market available with the fund.

• Redemption Risk – The Unit Holders may note that even though this is an open-ended scheme, the Scheme would ordinarily repurchase Units in Creation Unit size. Thus unit holdings less than the Creation Unit size can normally only be sold through the secondary market, unless no quotes are available on the Exchange for 2 trading days consecutively. Further, the price received upon the redemption of RGETF units may be less than the value of the gold represented by them. The result obtained by subtracting the Fund’s expenses and liabilities on any day from the price of the gold owned by the fund on that day is the net asset value of the fund which, when divided by the number of units outstanding on that date, results in the net asset value per unit, or NAV.

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• Asset Class Risk : The domestic price of gold may vary from time to time. Further, the returns from the types of securities in which a Scheme invests may under perform returns from the various general securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance and under performance in comparison of the general securities markets.

• Passive Investments: As RGETF is not actively managed, the underlying investments may be affected by a general decline in the domestic price of gold and other instruments invested under the plan. RGETF invests in the Gold & securities mentioned in the asset allocation regardless of their investment merit. The AMC does not attempt to take defensive positions in declining markets. Further, the fund manager does not make any judgment about the investment merit nor shall attempt to apply any economic, financial or market analysis.

• Tracking Error Risk: Tracking error means the variance between daily returns of the underlying benchmark (gold in this case) and the NAV of the scheme for any given period. NAV of the Scheme is dependant on valuation of gold. Gold has to be valued as per the formula provided by SEBI in its circular no. SEBI/IMD/CIR No. 2/65348/06 dated April 21, 2006. NAV so computed may vary from the price of Gold in the domestic market.

Factors such as the fees and expenses of the Scheme, cash balance, changes to the Underlying assets and regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying assets of the scheme. The Scheme’s returns may therefore deviate from those of its Underlying assets. Tracking error could be the result of a variety of factors including but not limited to: Delay in the purchase or sale of gold due to

o Illiquidity of gold, o Delay in realisation of sale proceeds, o Creating a lot size to buy the required amount of gold

The scheme may buy or sell the gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing prices.

The potential for trades to fail, which may result in the Scheme not having acquired gold at a price necessary to track the benchmark price.

The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses.

Disinvestments to meet redemptions, recurring expenses, dividend payouts etc. Execution of large buy / sell orders Transaction cost (including taxes and insurance premium) and recurring expenses Realisation of Unit holders’ funds

The scheme will endeavor to minimise the tracking error by Setting off of incremental subscriptions against redemptions, during liquidity window Use of gold related derivative instruments, as and when allowed by regulations Rebalancing of the portfolio

Given the structure of RGETF, the AMC expects the tracking error to be lower. The AMC will endeavor to keep the tracking error as low as possible. Under normal circumstances, such tracking errors are not expected to exceed 2% per annum. However this may vary when the markets are very volatile. Tax Issues: Repurchase of “RGETF” by the Fund or sale of RGETF by the investor on the Stock Exchange may attract short or long term capital gain tax depending upon the holding period of the Units. Moreover, converting RGETF units to Gold may also attract Wealth tax. The tax benefits described in this Offer Document, are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advise received by the AMC regarding the law and practice currently in force in India and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment or redemption in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each investor is advised to consult his / her own professional tax advisor.

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Gold is subject to indirect tax not restricted to the following : Sales Tax, Octroi, VAT, Stamp Duty, and Custom Duty. MINIMUM NUMBER OF INVESTORS & LIMIT OF HOLDING BY A SINGLE INVESTOR: As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No.10/22701/03 and dated June 14, 2005 ref SEBI/IMD/CIR NO.1/42529/05, each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/ plan(s) at portfolio level within a period of three months or at the end of the succeeding calendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO and the 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the scheme shall meet with both the conditions of minimum number of investor and holding as a percentage of the corpus. Determining the breach of 25% limit - The average net assets of the scheme would be calculated daily and any breach of the 25% holding limit by an investor would be determined. At the end of the quarter, the average of daily holding by each such investor is computed to determine whether that investor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period.

SPECIAL CONSIDERATIONS The Mutual Fund is not assuring or guaranteeing that it will be able to make regular/periodical distributions to its Unit holders. Periodical distributions will be dependent on the availability of distributable surplus The Trustees have the right in their sole discretion; to limit redemptions under certain circumstances mentioned elsewhere in the Offer Document. Investors should study this Offer Document carefully in its entirety before investing in this Scheme and should not construe the contents hereof as advise relating to legal, taxation, investment or any other matters. Investors are advised to consult their legal, tax, investment and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming units, before making a decision to invest / redeem Units and to retain this Offer Document for future reference.

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DUE DILIGENCE CERTIFICATE

It is confirmed that: • The Draft Offer Document of Reliance Gold Exchange Traded Fund, forwarded to SEBI, is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. • All the legal requirements in connection with the launch of the Scheme as also the guidelines, instructions etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. • The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well-informed decision regarding investment in the Scheme. • According to the information provided to us, Deutsche Bank, the Custodian, Karvy Computershare Pvt. Ltd., the Registrar and the Collecting Bankers are registered with SEBI and until the date, such registrations are valid. • The contents of the Offer Document including figures, data, yields etc. have been checked and are factually correct. Place: Mumbai Name: Balkrishna Kini Date: March 15, 2007 Designation: Head – Legal & Compliance Note : The Due Diligence Certificate as stated above was submitted to the Securities and Exchange Board of India on March 15, 2007.

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II. DEFINITIONS AND ABBREVIATIONS

In this Offer Document, the following words and expressions shall have the meaning specified below, unless the context otherwise requires: Applicable NAV: Applicable NAV is the Net Asset Value per Unit at the close of the Working Day on which the application for purchase or redemption is received at the designated investor service centre and is considered accepted on that day. An application is considered accepted on that day, subject to it being complete in all respects and received prior to the cut-off time on that Working Day. Asset Management Company/AMC/Investment Manager/RCAM: Reliance Capital Asset Management Limited, the Asset Management Company incorporated under the Companies Act 1956, and authorized by SEBI to act as the Investment Manager to the Schemes of Reliance Mutual Fund (RMF). Allotment Price: Allotment price is the price at which each unit will be allotted and will be equal to the face value of Rs100/- plus premium equivalent to the difference between the face value and price of one gram of gold on the date of allotment. . Application Form: Application form for subscribing to Units of RGETF as specified in this Offer Document. AMFI : Association of Mutual Fund in India. Authorised Participants: Member of the National Stock Exchange or any other recognised stock exchange or any other person who is appointed by the AMC to act as Authorised Participant as decided by the AMC. Collecting Bank: Branches of Banks for the time being authorized to receive application(s) for units, as mentioned in this document. Continuous Offer: Offer of the Units when the Scheme becomes open ended, after closure of the New Fund Offer. Custodian: Deutsche Bank, Mumbai, acting as Custodian to the Scheme, or any other custodian who is appointed by the Trustee. Crore: Ten Million Indian Rupees Creation unit: Creation unit is the number of units of scheme, which is exchanged against a predefined quantity and purity of physical Gold called the Portfolio Deposit and a Cash Component. For redemption of units it is vice-versa i.e. fixed number of units of scheme are exchanged for Portfolio Deposit and Cash Component. The Portfolio Deposit and Cash Component will change from time to time and is discussed separately under the scheme. CDSL: Central Depository Services (India) Ltd. Designated Investor Service Centres (DISC): Any official point of acceptance for transaction as may be designated by the Asset Management Company from time to time, where investors can tender the request for subscription, redemption or switching of units etc. Depository: Depository means a body corporate as defined in the Depositories Act, 1996 (22 of 1996) and includes National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL). Entry Load: Load on subscriptions / switch in Exit Load: Load on redemptions / switch out. ETF: Exchange Traded Fund. Exchange: The Stock Exchange Limited, Mumbai or The National Stock Exchange of India Limited or any other exchange where the Units are listed. FII: Foreign Institutional Investors, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995. Gold Related Instruments: Instrument having gold as underlying security, as may be specified by SEBI from time to time;

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Indian Rupees / Rs : The lawful currency of India Investment Management Agreement (IMA): The Agreement entered into between Reliance Capital Trustee Co. Limited and Reliance Capital Asset Management Limited by which RCAM has been appointed the Investment Manager for managing the funds raised by RMF under the various Schemes, and all amendments thereof. Lakh : One hundred thousand LBMA :London Bullion Market Association Large investor: Large investor means investors who are eligible to invest in the Scheme and who would be creating units of RGETF in creation unit size by depositing predefined quantity and purity of physical gold or cash which should be acceptable by the Custodian for such purposes. Further large investor would also mean those investors who would be redeeming units of RGETF in creation unit size. Load: A charge that may be levied as a percentage of NAV at the time of entry into the scheme or at the time of exiting from the scheme. Local Cheque: A Cheque handled locally and drawn on any bank, which is a member of the banker's clearing house located at the place where the application form is submitted. NAV / Net Asset Value: Net Asset Value of the Units in the Scheme is calculated in the manner provided in this Offer Document or as may be prescribed by Regulations from time to time. The NAV will be computed upto four decimal places. NRI: Non-Resident Indian. New Fund Offer Period : The dates on or the period during which the initial subscription to units of the scheme can be made if any, such offer period not being more than thirty days. NSDL: National Securities Depository Ltd Offer Document: The document issued by Reliance Mutual Fund, offering units of Reliance Gold Exchange Traded Fund for subscription. OTC : Over the counter. Purchase Price: Purchase Price to the investor of Units computed in the manner indicated in this Offer Document. Portfolio Deposit: These are LBMA Good Delivery physical gold bars imported by Banks authorized by RBI to deal in Gold and other securities. The value of gold and other instruments will be linked to the domestic prices of gold. Portfolio Deposit can change from time to time. Regulations/ Mutual Fund Regulations: Securities and Exchange Board of India (Mutual Funds) Regulations as amended from time to time and such other regulations as may be in force from time to time to regulate the activities of Mutual Funds. RBI / Reserve Bank of India: Reserve Bank of India, established under the Reserve Bank of India Act, 1934. RMF /Mutual Fund/the Fund: Reliance Mutual Fund, (formerly known as Reliance Capital Mutual Fund), a Trust under Indian Trust Act, 1882 and registered with SEBI vide registration number MF/022/95/1 dated June 30, 1995. RCTC/Trustee/Trustee Company: Reliance Capital Trustee Co. Limited, a Company incorporated under the Companies Act, 1956, and authorized by SEBI and by the Trust Deed to act as the Trustee of Reliance Mutual Fund. RCL/Sponsor/Settlor: Reliance Capital Limited Redemption / Repurchase Price : Redemption Price to be paid to Authorised Participants and / or Unitholders of Units computed in the manner indicated in this Offer Document. Registrar /Karvy: Karvy Computershare Pvt Ltd., who have been appointed as the Registrar or any other Registrar who is appointed by RCAM. Scheme: Scheme means Reliance Gold Exchange Traded Fund SEBI / Regulator: Securities and Exchange Board of India. Trust Deed: The Trust Deed entered into on April 25, 1995 between the Sponsor and the Trustee, and all amendments thereof. Trust Fund: The corpus of the Trust, unit capital and all property belonging to and/or vested in the Trustee.

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Tracking Error: Tracking error means the variance between daily returns of the underlying benchmark (gold in this case) and the NAV of the scheme for any given period. Unit: The interest of the investors in the scheme which consists of each Unit representing one undivided share in the assets of the scheme. Unitholder: A person who holds Unit(s) under the scheme. Underlying Stock / Securities: Instruments invested in by the Fund manager, other than gold and Gold Related Instruments, for the scherme, subject to the approval of the Regulator and / or in compliance with the Regulations. Working Day: Any day, other than a Saturday or Sunday or any day on which Banks in Mumbai are Closed for commercial transactions or The Stock Exchange, Mumbai and/or National Stock Exchange are closed for transactions or a day on which banks are open but The Stock Exchange, Mumbai and/or The National Stock Exchange are closed for transactions or a day on which sale of units is suspended by the AMC / Trustee or a day on which normal business could not be transacted due to storms, floods, bandhs, strikes or any other calamities, etc, subject to modifications by RCAM from time to time. Words and Expressions used in this Offer Document and not defined shall have the same meaning as in the Regulations. Words in singular shall include the plural and vice versa.

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III. SUMMARY OF THE SCHEME

SCHEME FEATURES: Scheme: Reliance Gold Exchange Traded Fund Type: An open-ended Gold Exchange Traded Fund that tracks the domestic prices of gold through investments in physical Gold. Investment Pattern: Instruments % Risk Profile Gold or Gold Related Instruments as permitted by regulators from time to time

90%- 100% Medium

Money Market instruments, Bonds, Debentures, Government Securities including T-Bills, Securitised Debt* & other debt securities as permitted by regulators from time to time

0– 10% Low to Medium

*Upto 10% in securitised debt It may be clearly understood that the percentages above are only indicative and not absolute. For further details on investment allocation please refer to section V of the Offer Document. Investment Objective: The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold and Gold related securities. However the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. Net Asset Value: Calculated & declared every Working day Options: Only Dividend Pay-out Option Minimum Application Amount: Minimum of Rs 5000/- (Rupees Five thousand) and in multiples of Re 1/- thereafter. Portfolio Disclosures: Half-yearly Load Structure: During NFO and Continuous Offer Entry & Exit Load : Maximum load of 7% under the scheme. The redemption price shall not be lower than 93% of NAV and the purchase price shall not be higher than 107% of the NAV and the difference between the redemption price and purchase price shall not exceed 7% of the purchase price. No entry or exit load will be levied on transactions with Authorised Participants and large investors during NFO or continuous offer.

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Listing: The Fund would endeavor to get the units of the Scheme listed on the National Stock Exchange and any other stock exchange(s) as may be decided by the Reliance AMC within 30 days from the closure of the New Fund Offer period. Liquidity : After the close of the NFO, as RGETF would be listed on the Exchange, subsequent buying or selling by Unit holders can be made from the secondary market. The minimum number of Units that can be bought or sold on the exchange is 1 (one) unit. All investors including Authorised Participants and large investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The trading will be as per the normal settlement cycle. Alternatively, Authorised Participants and Large investors can directly buy / sell Units in blocks from the Fund in ‘Creation Unit’ size, as defined in this Offer Document on all working days. Mutual fund will repurchase units from Authorised Participants and Large investors on any business day provided the units offered for repurchase is not less than 100 units . Switch Facility: Switch-in into RGETF from other schemes will be allowed during the New Fund Offer period at the applicable loads. Redemption Cheques Issued: Mutual Fund shall issue redemption cheque to Authorised Participants and Large investors for redemption in Creation Unit size and to Unit Holders in certain circumstances within 10 Working days. Minimum Redemption: Minimum number of units that can be bought or sold is 1 (one) unit. Reliance AMC will redeem units only in Creation Unit size. Mutual fund will repurchase units from Authorised Participants and Large investors on any business day provided the units offered for repurchase is not less than 100 units. Cut off time : 3:00 p.m. on working days as defined in the Offer Document Nomination Facility: Since the units of the scheme will be issued in electronic form in the Demat account of the investor, the nomination as registered with the Depository Participant will be applicable to the units of the scheme. Mode of Holding (applicable for Individuals): Single, Joint or Anyone or Survivor Benchmark Index: As there are no indices catering to the gold sector/securities linked to Gold, currently GETF shall be benchmarked against the price of Gold. Purity of Gold: All gold bullion held in the scheme’s allocated account with the custodian must be of fineness (or purity) of 995 parts per 1000 (99.5%) or higher. Recurring Expenses: Items % of average daily

net assets (estimated)

Investment Management and Advisory Fees 0.50 Cost relating to Investors communication 0.25 Custodial Fees 0.50 Registrars Fees & Processing Charges including stamp duty, if any

0.10

Licensing Fees 0.01 Listing Fees 0.01 Marketing & Sales Promotion 1.10

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Miscellaneous and other charges 0.03 Total 2.50 The above expenses are estimates only and are subject to change inter se as per actual expenses incurred. Subject to SEBI Regulations, the AMC reserve the right to modify the above estimate for recurring expenses on a prospective basis. Allotment of Units: 1. Each unit of RGETF will be approximately equal to the closing price of

1 (one) gram of gold on the date of allotment. 2. Each unit of RGETF being offered will have a face value of Rs.100/-. The number of units allotted

would be the total amount invested divided by the Allotment Price. Allotment price of “RGETF” per unit will be based on the cost of investments. In other words The RGETF being offered will have a face value of Rs100/- each and will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs. 100/-.

2. RGETF will be available in the Dematerialized form. 3. The applicant under the Scheme will be required to have a beneficiary account with a Depository

Participant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account number with DP.

4. Authorised Participant and Large investors can directly buy / sell Units in blocks from the Fund in ‘Creation Unit’ size, as defined in this Offer Document on all working days.Since RGETF are to be issued / repurchased and traded compulsorily in dematerialized form, no request for rematerialisation of RMF will be accepted.

Allotment of units in respect of applications received during NFO will be made within one month from date of closure of the NFO (subject to realization of cheque/draft and subject to receipt of minimum amount of investment during the New Fund Offer). For Subscriptions received after re-opening for continuous offer at the DISC's within the cut-off timings and considered accepted for that day, the units will be allotted as per the applicable NAV. RCAM, in consultation with the Trustees reserves the right to discontinue/ add more options at a later date subject to complying with the prevailing SEBI guidelines and Regulations. RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme, on a prospective basis. Duration of New Fund Offer Opening Date : ____________2007 Closing Date : _____________2007 The Trustees reserve the right to extend the new fund offer (but not more than 30 days). New Fund Offer price: During the NFO, the RGETF units offered will have a face value of Rs.100/- each and will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs.100/- as on the date of allotment. New Fund Offer Expenses: The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC.

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IV. CONSTITUTION AND MANAGEMENT OF THE FUND

1. THE FUND Reliance Mutual Fund Reliance Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882 with Reliance Capital Limited, as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited, as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of the Mutual Fund has been changed from Reliance Capital Mutual Fund to Reliance Mutual Fund effective March 11, 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date March 11, 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. The main objects of the Trust are: - i. To carry on the activity of a Mutual Fund as may be permitted by law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unitholders; ii. To deploy Funds thus raised so as to help the Unitholders earn reasonable returns on their savings; and iii. To take such steps as may be necessary from time to time to realise the effects without any limitation.

2. SPONSOR COMPANY Reliance Capital Limited Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited. Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd. (RCL). The promoters of RCL are Reliance Industries Limited and AAA Enterprises Private Limited. Reliance Capital Limited is a Non Banking Finance Company engaged in leasing, investment and other fund based activities. The networth of RCL is Rs. 4122.46 crores as on March 31, 2006. Given below is a summary of RCL's financials:

(Rs. in crores)

Particulars 2005-2006 2004-2005 2003-04 Total Income 652.02 356.79 458.78 Profit Before Tax 550.61 105.79 102.63 Profit After Tax 537.61 105.79 102.63 Reserves & Surplus 3849.58 1271.84 1208.50 Net Worth 4122.46 1399.81 1336.33 Earnings per Share (Rs.) 29.74 8.31 8.06 (Basic + Diluted) (Basic+ Diluted) Book Value per Share (Rs.) 112.95 109.96 104.54 Dividend (%) 30% 29% 29% Paid up Equity Capital 223.40 127.84 127.83

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RCL has contributed Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund. RCL is responsible for discharging its functions and responsibilities towards the Fund in accordance with the SEBI Regulations. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one lakh made by them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus. 3. THE TRUSTEE Reliance Capital Trustee Co. Limited Registered Office: Corporate Office :

EO1, Reliance Greens, Village Motikhavdi, P.O. Digvijaygram, District Jamnagar - 361140 (GUJARAT)

Express Building (4th & 6th Floor), 14, 'E' Road, Churchgate, Opp. Churchgate Station, Mumbai 400 020. Tel. 022 – 3041 4800, Fax. 022 – 3041 4899

Reliance Capital Trustee Co. Limited (RCTC), a company incorporated under the Companies Act, 1956, has been appointed as the Trustee to the Fund vide the Trust Deed dated April 25, 1995 executed between the Sponsor and the Trustee. RCTC has been appointed as the Trustee to “Reliance India Power Fund”, a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to commence. An application has also been filed for registration of “Reliance Venture Capital Fund” with SEBI. 1. The Directors

Directors of RCTC are: Name and Address Other Directorships Mr. S. P. Talwar 162, Kshitij, 16th Floor, 47, Napean Sea Road, Mumbai – 400036 (Former Deputy Governor of Reserve Bank of India)

Director: Venragiri Power Generation Limited, Reliance General Insurance Company Limited, Reliance Life Insurance Company Limited, Crompton Greaves Limited, Videocon Industries Limited, Reliance Asset Reconstruction Company Limited, Housing Development and Infrastructure Limited, Reliance Communications Limited, Reliance Communications Infrastructure Limited Member: Advisory Committee – Ministry of Company Affairs, New Delhi Court of Jawaharlal Nehru University, New Delhi

Mr. S. S. Bhandari P-7, Tilak Marg, ‘C; Scheme, Jaipur – 302005 Chartered Accountant

Director: M/s Vaibhav Gems Limited, Jaipur, M/s. Asian Hotels Limited, Senior Partner: M/s S. Bhandari & Co.

Chartered Acountants, Jaipur

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Mr. A. N. Shanbhag* 96/11, Mohini Mansion, 2nd Floor,Near D. S. High School, Sion(W), Mumbai-400 022 Tax & Investment Consultant

Director: MCS Ltd Proprietor: Wonderland Investments Consultants

Member: UTI – Vigilance Committee

Mr. Anand Bhatt* Shree Sadan, East Wing, 3rd floor, 4A, Carmichael Road, (M. L. Dahanukar Marg) Mumbai – 400 026 B.Com, L.L.B, Solicitor

Director: e-Serve International Limited, Hitech Plast Limited RPG Guardian Private Limited Foodworld Supermarkets Limited Senior Partner: Wadia Gandhy & Co.

Mr. P. P. Vora 503-504, Mount Everest, A wing, Bhakti Park, Near I-Max Adlab Theatre Wadala, Mumbai – 400 037 Chartered Accountant

Non-Executive Chairman – Jhagadia Copper Ltd. Director – National Securities Depository Ltd, Zandu Pharmaceuticals Ltd, Omaxe Limited Senior Partner: M/s P.P. Vora & Co., Chartered Accountants

* Associate Director

2. Duties and Obligations of the Trustees

In accordance with SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed constituting the Mutual Fund, the Trustees are required to fulfill several duties and obligations, including the following:

a. The Trustee and the Asset Management Company shall with the prior approval of SEBI enter into an Investment Management Agreement (IMA).

b. The Investment Management Agreement shall contain such clauses as are mentioned in the Fourth Schedule of the SEBI (MFs) Regulations, 1996 and other such clauses as are necessary for the purpose of making investments.

c. The Trustees shall have a right to obtain from the Asset Management Company such information as is considered necessary by the Trustees.

d. The Trustee shall ensure before the launch of any scheme that the Asset Management Company possesses/has done the following:

(i) Systems in place for its back office, dealing room and accounting;

(ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and submitted their bio-data which shall contain the educational qualifications, past experience in the securities market to SEBI, within 15 days of their appointment;

(iii) Appointed Auditors to audit its accounts;

(iv) Appointed a Compliance Officer to comply with regulatory requirement and to redress investor grievances;

(v) Appointed Registrars and laid down parameters for their supervision;

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(vi) Prepared a compliance manual and designed internal control mechanisms including internal audit systems; and

(vii) Specified norms for empanelment of brokers and marketing agents.

e. The Trustee shall ensure that the Asset Management Company has been diligent in empanelling the brokers, in monitoring securities transactions with brokers and avoiding undue concentration of business with any broker.

f. The Trustee shall ensure that the Asset Management Company has not given any undue or unfair advantage to any associate or dealt with any of the associates of the Asset Management Company in any manner detrimental to interest of unitholders.

g. The Trustee shall ensure that the transactions entered into by the Asset Management Company are in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Scheme.

h. The Trustee shall ensure that the Asset Management Company has been managing the Mutual Fund Scheme independent of other activities and have taken adequate steps to ensure that the interest of investors of one Scheme are not compromised with those of any other scheme or of other activities of the Asset Management Company.

i. The Trustee shall ensure that all the activities of the Asset Management Company are in accordance with the provisions of SEBI (Mutual Funds) Regulations, 1996.

j. Where the Trustees have reason to believe that the conduct of the business of the Mutual Fund is not in accordance with the Regulations and the Scheme, they shall forthwith take such remedial steps as deemed necessary by them and shall immediately inform SEBI of the violation and the action taken by them.

k. Each Trustee shall file the details of his transactions in securities (above Rs.1 Lac per transaction) with the Mutual Fund on a quarterly basis.

l. The Trustees shall be accountable for and be the Custodian of the funds and property of the respective Schemes and shall hold the same in trust for the benefit of the unitholders in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the provisions of the Trust Deed.

m. The Trustees shall take steps to ensure that the transactions of the Mutual Fund are in accordance with the provisions of the Trust Deed.

n. The Trustees shall be responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income received in the Mutual Fund for the unitholders of any Scheme in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

o. The Trustees shall obtain the consent of the unitholders of the Scheme:

(i) Whenever required to do so by SEBI in the interest of the unitholders;

(ii) Whenever required to do so, on the requisition made by three-fourths of the unitholders of any Scheme under the Mutual Fund;

(iii) When the majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units;

p. The Trustees shall ensure that no change in the fundamental attributes of any Scheme or the Trust or fees and expenses payable or any other change which would modify the Scheme and affects the interest of unitholders, shall be carried out unless :-

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(a) A written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated; and

(b) The unitholders are given an option to exit at the prevailing net asset value without any exit load.

q. The Trustee shall call for the details of transactions in securities by the key personnel of the Asset Management Company in his own name or on behalf of the Asset Management Company and shall report to SEBI, as and when required.

r. The Trustee shall quarterly review all transactions carried out between the Mutual Fund, Asset Management Company and its associates.

s. The Trustee shall quarterly review the net worth of the Asset Management Company and shall ensure that the same is in accordance with the clause (f) of sub-regulation (1) of regulation 21 of SEBI (Mutual Funds) Regulations, 1996.

t. The Trustee shall periodically review all service contracts such as custody arrangements, transfer agency of the securities and satisfy itself that such contracts are executed in the interest of the unitholders.

u. The Trustee shall ensure that there is no conflict of interest between the manner of deployment of the net worth by the Asset Management Company and the interest of the unitholders.

v. The Trustee shall periodically review the investor complaints received and the redressal of the same by the Asset Management Company.

w. The Trustee shall abide by the Code of Conduct as specified in the Fifth Schedule of the SEBI (Mutual Funds) Regulations, 1996.

x. The Trustee shall furnish to SEBI on a half-yearly basis the following:

(i) A report on the activities of the Mutual Fund;

(ii) A certificate stating that the Trustees have satisfied themselves that there have been no instances of self-dealing or front-running by any of the Trustees and by the directors and key personnel of the Asset Management Company; and

(iii) A certificate to the effect that the Asset Management Company has been managing the Scheme independently of any other activities and in case any activities of the nature referred to in regulation 24(2) of the SEBI (Mutual Funds) Regulations, 1996 have been undertaken by the Asset Management Company, adequate steps to ensure that the interest of the unitholders are protected, have been taken.

y. The independent Trustees referred to in sub-regulation (5) of Regulation 16 shall give their comments on the report received from the Asset Management Company regarding the investments by the Mutual Fund in the securities of group companies of the Sponsor.

z. The Trustees shall exercise due diligence as under:

General Due Diligence:

i) The Trustees shall be discerning in the appointment of the directors on the Board of the Asset Management Company.

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ii) The Trustees shall review the desirability or continuance of the Asset Management Company if substantial irregularities are observed in any of the Schemes and shall not allow the Asset Management Company to float new Schemes.

iii) The Trustee shall ensure that the trust property is properly protected, held and administered by proper persons and by a proper number of such persons.

iv) The Trustee shall ensure that all the service providers are holding appropriate registrations from SEBI or concerned regulatory authority.

v) The Trustees shall arrange for test checks of service contracts.

vi) The Trustees shall immediately report to SEBI of any special developments in the Mutual Fund.

Specific Due Diligence:

The Trustees shall:

i) Obtain internal audit reports at regular intervals from independent auditors appointed by the Trustees.

ii) Obtain compliance certificates at regular intervals from the Asset Management Company.

iii) Hold meetings of the Trustees once in two calendar months and atleast six such meetings shall be held in every year.

iv) Consider the reports of the independent auditor and compliance reports of Asset Management Company at the meetings of Trustees for appropriate action.

v) Maintain records of the decisions of the Trustees at their meetings and of the minutes of the meetings.

vi) Prescribe and adhere to a code of ethics by the Trustees, Asset Management Company and its personnel.

vii) Communicate in writing to the Asset Management Company of the deficiencies and checking on the rectification of deficiencies.

aa. The independent directors of the trustees shall pay specific attention to the following, as may be applicable, namely:-

i) The Investment Management Agreement and the compensation paid under the agreement.

ii) Service contracts with affiliates as to whether the Asset Management Company has charged higher fees than outside contractors for the same services.

iii) Selection of the Asset Management Company ‘s independent directors

iv) Securities transactions involving affiliates to the extent such transactions are permitted by Regulations.

v) Selecting and nominating individuals to fill independent directors vacancies.

vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions.

vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided.

viii) Principal underwriting contracts and renewals

ix) Any service contract with the associates of the Asset Management Company.

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ab. The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the unitholders approval would be obtained where it affects the interest of unitholders.

Where SEBI Regulations provide for seeking the approval of the Unit Holders for any purpose, the Trustee may adopt any of the following procedures: (i) Seeking approval by postal ballot or (ii) Approval of the Unit-holders present and voting at a meeting to be specifically convened by the Trustee for the purpose. For this purpose, the Trustees shall give 21 days notice to the Unit Holders and the Trustees may lay down guidelines for the actual conduct and accomplishment of the voting at the meeting and announcement of the results.

Under the Trust Deed, duties and obligations also include the following:

i) In carrying out its responsibility, the Trustee and its directors shall maintain arms length relationship with other companies, or institutions or financial intermediaries or any body corporate with which they may be associated.

ii) The Directors of the Trustee shall not participate in any decision-making process/resolutions of its board meetings for any investment in which they may be interested.

iii) All the Trustees shall furnish to the Board of Trustees or Trustee Company particulars of interest which he may have in any other company, or institution or financial intermediary or any corporate by virtue of his position as Director, partner or with which he may be associated in any other capacity.

iv) The Trustee shall not acquire or allow the AMC to acquire any asset out of the Trust Fund and/or Unit Capital, which involves the assumption of unlimited liability or results in encumbrance of Trust Fund and/or Unit Capital in any way.

v) The Trustee shall not make or guarantee loans or take up any activity in contravention of SEBI Regulations except with the prior approval of SEBI nor shall it allow the AMC to do so.

However, as and when there is an addition / modification / deletion in the duties and responsibilities of the Trustee, due to a change in the SEBI Regulations, such addition / modification / deletion shall be applicable here, accordingly.

The Trustee shall not be held liable for acts done in good faith if they have exercised adequate due diligence honestly.

The Trustees shall meet at least once in two calendar months and at least six such meetings shall be held in every year to review the information / reports submitted by the AMC in accordance with the Regulations. As per Regulations prevailing during the year ended March 31, 2006, eight meetings of the Board of Directors of the Trustee Company were held.

The Trustees have also appointed the statutory auditors to verify the books of accounts and to

ascertain the true and fair representation of the state of affairs as on a particular day and to ascertain profit/ loss of the Mutual Fund, as at the end of the financial year.

The Board of Trustees has constituted an Audit Committee, chaired by an independent Trustee. The Committee meets periodically to discuss the internal control systems, the scope of audit of the internal auditors, as well as the observations made by them. It also reviews the half-yearly and annual financial accounts. Recommendations, if any, of the audit committee on any matter relating

28

to financial management etc. are considered in the subsequent Board meeting of AMC and Trustees.

3. Trusteeship Fees Pursuant to the Trust Deed constituting the Fund, the Fund is authorised to pay the Trustee, a fee

for their services, in addition to the reimbursement of all costs, charges and expenses, sum computed at the rate of 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capital of all the Schemes put together on 1st April each year or a sum of Rs.5 Lacs, which ever is lower or such other sum as may be agreed upon between the Settlor and the Trustee from time to time. The Trustee may charge further fees as permitted from time to time under the Trust Deed and the Regulations.

4. ASSET MANAGEMENT COMPANY (AMC)

Reliance Capital Asset Management Limited

Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited.

Reliance Capital Asset Management Limited was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM on May 12, 1995 which was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to the IMA, RCAM is authorised to act as Investment Manager of the Mutual Fund.

The networth of the Asset Management Company including Preference shares as on March 31, 2006 was Rs. 61.36crores. The Mutual Fund has launched twenty nine Schemes till date, namely:

Reliance Growth Fund (September 1995) Reliance Vision Fund (September 1995) Reliance Income Fund (December 1997) Reliance Liquid Fund (March 1998) Reliance Medium Term Fund (August 2000) Reliance Short Term Fund (December 2002) Reliance Fixed Term Scheme (March 2003) Reliance Banking Fund (May 2003) Reliance Gilt Securities Fund (July 2003) Reliance Diversified Power Sector Fund

(March 2004) Reliance Monthly Income Plan (December 2003)

Reliance Floating Rate Fund (August 2004)

Reliance Pharma Fund ( May 2004) Reliance NRI Equity Fund (October 2004) Reliance Media & Entertainment Fund (September 2004)

Reliance Index Fund (February 2005)

Reliance NRI Income Fund (October 2004) Reliance Fixed Maturity Fund – Series I (March 2005)

Reliance Equity Opportunities Fund (February 2005)

Reliance Regular Savings Fund (May 2005)

Reliance Fixed Maturity Fund – Series II (April 2005)

Reliance Tax Saver (ELSS) Fund (July 2005)

Reliance Liquidity Fund (June 2005) Reliance Equity Fund (February 2006) Reliance Fixed Tenor Fund (November 2005) Reliance Fixed Horizon Fund (April 2006) Reliance Fixed Horizon Fund I (August 2006) Reliance Fixed Horizon Fund II ( November

2006) Reliance Long Term Equity Fund (November 2006)

29

RCAM has been registered as a portfolio manager vide SEBI Registration No. INP000000423 and renewed effective 1st August, 2003. RCAM has commenced these activities. It has been ensured that key personnel of the AMC, the systems, back office, bank and securities accounts are segregated activity wise and there exists systems to prohibit access to inside information of various activities. As per SEBI Regulations, it will further ensure that AMC meets the capital adequacy requirements, if any, separately for each such activity. Further, the AMC confirms that, there exists no conflict of interest in the various business activities undertaken by it.

RCAM has been appointed as the Investment Manager of “Reliance India Power Fund”, a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005. However, there is no conflict of interest between various business activities carried on by Asset Management Company.

1. Name and Address of the Asset Management Company for the Mutual Fund Reliance Capital Asset Management Limited

Registered Office: Corporate Office :

EO1, Reliance Greens, Village Motikhavdi, P.O. Digvijaygram, District Jamnagar - 361140 (GUJARAT)

Express Building (4th & 6th Floor), 14, 'E' Road, Churchgate, Opp. Churchgate Station, Mumbai 400 020. Tel. 022 – 3041 4800, Fax. 022 – 3041 4899

2. Shareholders of AMC Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital

Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited.

3. Directors The Directors of RCAM are:

Name and Address Other Directorships Mr. Amitabh Chaturvedi * Raheja Empress, Flat No. 1201/1202, 12th Floor, Veer Savarkar Marg, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai - 400 025 Senior Corporate Executive

Director: Reliance Asset Management (Singapore) Pte Limited; Reliance Asset Management (Mauritius) Limited, Reliance Infoinvestments Limited, Financial Planning Standards Board of India, Reliance General Insurance Company Limited, Reliance Life Insurance Company Limited, Reliance Money Limited, Association of Mutual Funds in India

30

Mr. Kanu Doshi 102, Shivala, Khatau Road, Cuffe Parade, Mumbai – 400 005 Chartered Accountant

Chairman: Matrix Advisors (India) Private Limited Director: BOB Capital Markets Limited, Peoples Financial Services Limited, Alphaplus Investment Management Private Limited

Mr. Manu Chadha C – 35, Malcha Marg, Chankyapuri, New Delhi – 110 021 Chartered Accountant

Director: TRC Financial Services Limited, Himalayan Crest Power Limited, GIC Housing Finance Limited, Kotla Hydro Power Limited, Ispat Industries Limited, TRC Corporate Consulting (P) Limited, Brady Air Limited, Partner: M/s T. R. Chadha & Co., Chartered Accountants

Mr. S. C. Tripathi 27, Sector 15A, NOIDA - 201 301(UP) Former Secretary, Govt. of India, Petroleum / Education Ministries

Director: IL&FS Infrastructure Development Corporation

* Associate Director

4. Duties and Obligations of the Asset Management Company

In accordance with SEBI (Mutual Funds) Regulations, 1996, the Trust Deed and the Investment Management Agreement, the Investment Manager has several duties and obligations, including the following:

1. The Asset Management Company shall take all reasonable steps and exercise due diligence to ensure that the investment of funds pertaining to any scheme is not contrary to the provisions of SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

2. The Asset Management Company shall exercise due diligence and care in all its investment decisions as would be exercised by other persons engaged in the same business.

3. The Asset Management Company shall be responsible for the acts of commissions or omissions by its employees or the persons whose services have been procured by the Asset Management Company.

4. The Asset Management Company shall submit to the Trustees quarterly reports on its activities and the compliance with SEBI (Mutual Funds) Regulations, 1996, amended up-to-date.

5. The Trustees, at the request of the Asset Management Company, may terminate the assignment of the Asset Management Company at any time provided that such termination shall become effective only after the Trustees have accepted the termination of assignment and communicated their decision in writing to the Asset Management Company.

6. Notwithstanding anything contained in any contract or agreement or termination, the Asset Management Company or its directors or other officers shall not be absolved of any liability

31

to the Mutual Fund for their acts of commission or omission, while holding such position or office.

7. The Chief Executive Officer of the AMC shall ensure that the Fund complies with the provisions of the SEBI Regulations and that the investments made by the Fund Managers are in the interest of the Unitholders and shall also be responsible for the overall risk management function of the Fund.

8. The Fund Manager shall ensure that the funds of the Scheme are invested to achieve the objectives of the Scheme and are in the interest of the Unitholders.

9. An Asset Management Company shall not, through any broker associated with the sponsor, purchase or sell securities, which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its schemes. Provided that for the purposes of the relevant sub-regulation, aggregate purchase and sale of securities shall exclude sale and distribution of units issued by the mutual fund. Provided further that the aforesaid limit of 5% shall apply for a block of any three months. An Asset Management Company shall not purchase and sell through any broker (other than an associated broker referred to above) which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its Schemes, unless the Asset Management Company has recorded in writing the justification for exceeding the limit of 5% and reports of all such investments are sent to the Trustees on a quarterly basis. Provided that the aforesaid limit shall apply for a block of three months.

10. An Asset Management Company shall not utilise the services of the Sponsor or any of its associates, employees or their relatives, for the purpose of any securities transaction and distribution and sale of securities, provided that an Asset Management Company may utilise such services if disclosure to that effect is made to the unitholders and the brokerage or commission paid is also disclosed in the half yearly annual accounts for the Mutual Fund.

11. As per the SEBI Circular dated May 24, 2001 no brokerage will be payable for investments made by Sponsors of the Mutual Fund in any of the Schemes of the Fund, on a prospective basis.

12. The Asset Management Company shall file with the Trustee the details of transactions in securities by the key personnel of the Asset Management Company in their own name or on behalf of the Asset Management Company and shall also report to SEBI, as and when required by SEBI.

13. In case the Asset Management Company enters into any securities transaction with any of its associates, a report to that effect shall be sent to the Trustee at their next meeting.

14. In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that scheme or by any other scheme of the same mutual fund in that company or its subsidiaries, if any, shall be brought to the notice of the Trustees by the Asset Management Company and be disclosed in the half-yearly and annual accounts with justification for such investment provided that the latter investment has been made within one year of the date of the former investment calculated on either side.

15. The Asset Management Company shall file with the Trustees and SEBI: -

(i) Detailed bio-data of all its directors along with their interest in other companies within 15 days of their appointment;

(ii) Any change in the interest of directors every six months and

(iii) A quarterly report to the Trustees giving details and adequate justification about the purchase and sale of securities of the group companies of the Sponsor or the Asset

32

Management Company as the case may be, by the Mutual Fund during the said quarter.

16. A statement of holding in securities of the directors of the Asset Management Company shall be filed with the Trustees, with the dates of acquisition of such securities at the end of each financial year.

17. The Asset Management Company shall not appoint any person as a key personnel who has been found guilty of any economic offence or involved in violation of securities laws.

18. The Asset Management Company shall appoint Registrars and Transfer Agents who are registered with SEBI. Provided if the work relating to the transfer of Units is processed in-house, the charges at competitive market rates may be debited to the Scheme and for rates higher than the competitive market rates, prior approval of the Trustees shall be obtained and reasons for charging higher rates shall be disclosed in the annual accounts.

19. The RCAM shall not undertake any other business except that permitted under the Regulations. The RCAM shall meet with the capital adequacy requirements, if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the Regulations.

20. The RCAM shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in the offer documents.

21. The RCAM shall not charge any fees on its investment in that scheme.

22. The RCAM does not face any contingent interest in connection with the business activities carried on by it.

23. The Asset Management Company shall abide by the Code of Conduct as specified in the Fifth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

24. The independent directors of the AMC shall pay specific attention to the following, as may be applicable, namely:-

(i) The Investment Management Agreement and the compensation paid under the agreement.

(ii) Service contracts with affiliates whether the Asset Management Company has charged higher fees than outside contractors for the same services.

(iii) Selection of the Asset Management Company‘s independent directors

(iv) Securities transactions involving affiliates to the extent such transactions are permitted.

(v) Selecting and nominating individuals to fill independent directors’ vacancies.

(vi) Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions.

(vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided.

(viii) Principal underwriting contracts and the renewals.

(ix) Any service contract with the associates of the Asset Management Company.

Under the Investment Management Agreement, the duties and obligations also include the following:

a) RCAM will be responsible for making, floating, issuing Schemes for the Trust after approval of the same by the Trustees and SEBI as well as investing and managing the funds mobilised under various Schemes, in

33

accordance with the provisions of the Trust Deed and SEBI Regulations.

b) RCAM must disclose the basis of calculating the repurchase/redemption price and Net Asset Value of the various Schemes of the Fund to the investors, at such intervals as may be specified by SEBI and/or the Trustees and in accordance with the SEBI Regulations.

c) RCAM must maintain books and records about the operation of various Schemes of the Fund to ensure compliance with the Regulations and guidelines for Mutual Funds as may be issued by SEBI from time to time, and shall submit a Scheme wise quarterly report on functioning of the Fund to the Trustee or at such intervals and in such manner as may be required or called for by the Trustee or SEBI.

d) RCAM shall exercise all due diligence and vigilance in carrying out its duties and in protecting the rights and interest of the unitholders.

e) RCAM will at all times ensure that the Trust Fund is segregated from assets of RCAM and assets of any other funds for which RCAM is responsible.

f) RCAM shall submit to the Trustee all information concerning the operation of the various Schemes of the Fund managed by RCAM at such intervals and in such manner as required by the Trustee to ensure that RCAM is complying with the provisions of the Trust Deed and SEBI Regulations.

RCAM shall observe the above-mentioned powers, duties and obligations. Notwithstanding this, the powers, duties and obligations as stated in the regulations, from time to time, shall prevail upon the powers stated above.

As and when there is an addition/deletion/modification in the duties and responsibilities of the AMC due to a change in the Regulations, such additions/deletions/modifications shall be made here, accordingly.

The AMC shall not be liable to the Trustee in the event that the Mutual Fund suffers a decline in its Net Asset Value or fails to achieve any increase therein; unless such decline or failure is caused by any acts of commission or omission or by the default or negligence of the AMC, a bonafide error of judgement not being regarded as default or negligence nor as an act of commission or omission.

Investment Decisions: The investment decisions are taken by a team comprising of the Chief Investment Officer and Fund Managers based on research reports, market intelligence, analysis of macro and micro economic indicators, market trends etc. Detailed discussions take place among the team members before investments are finally made. Such discussions/ meetings occur more than once during a day if situations warrant viz. major economic or political events for a review of earlier decisions. The Fund Managers along with their rationale record all such investment decisions. The Chief Executive Officer / President shall be responsible for compliances of all statutory requirements including SEBI Regulations and will supervise investments decisions of Fund Managers taking into consideration the overall interest of the Unitholders and assume responsibility for the day to day and overall Risk Management function of Mutual Fund. Under him Fund Manager(s) will look after investment of the funds of the Scheme(s) in a manner to achieve the investment objective of the Scheme and in the interest of Unitholders. The performance of the Schemes is reviewed by the Board of AMC and Trustees in their periodical meetings. The trustee will review the performance of the scheme on a periodical basis and submit a half yearly report to SEBI on various matters related to compliance and performance of the scheme. They

34

may also compare the performance of the scheme against a benchmark index. As there are no indices catering to the gold sector/securities linked to Gold, currently Reliance Gold Exchange Traded Fund shall be benchmarked against the price of Gold as per the extant regulations. The benchmark may be changed in future, if a benchmark better suited to the investment objective of the scheme is available, as may be permitted by SEBI and decided by the AMC and the Trustee and any change at a later date shall be recorded and reasonably justified. 5. AMC Fees : In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to a management and advisory fee at the rate of 1.25% of the average daily net assets for net assets upto Rs.100 crore and at the rate of 1.00% for the net assets in excess of Rs.100 crore. For Schemes launched on a No- Load basis, the AMC is entitled to collect an additional management fee of upto 1% of the average net assets outstanding in each financial year and the total management fee shall not exceed the limit stated under the Regulation 52(6) of SEBI. 6. Key Personnel of AMC & their relevant experience:

Name Age Designation Educational Qualification

Type and Nature of past experience including assignments held during the past 10 years

Mr. Vikrant Gugnani

36 President B.Com (Hons.), C.A.

Over 10 years of experience in diverse functions such as Product Management, Research, Infrastructure, Sales and Marketing. Prior to joining Reliance Capital Asset Management Limited he was with Citibank N A as Vice President, Product Head Indonesia – Investment Products. His experience of Citibank in India also includes Product Head India - Investment Products, Investment Counsellor - North, Y2K Project Team Leader and Branch Cash Officer. Prior to this he was an Independent Consultant on Project Consulting & Advisory

Mr. K. Rajagopal

58

Chief Investment Officer

M.A. CAIIB

Over 33 years experience in commercial Banking, treasury and investment operations 2001 till date -Reliance Capital Asset Management Limited Chief Investment Officer Fund Management, 1971-2001State Bank of India - Probationary Officer- International Banking & Loans Syndication Regional Administration of Branches & Business Development General Manager - Treasury- Treasury Operations including Liquidity

35

Name Age Designation Educational Qualification

Type and Nature of past experience including assignments held during the past 10 years Management, Investment Operations, Trading, Compliance Functions

Mr. Madhusudan Kela

38

Head – Equity Investments

B.Com, MMS

Over 13 years experience in Equity Sales & Dealing2001-03Vice President - Reliance Capital Ltd. Contributing to the development of the Mutual Fund (100% owned by RCL) 1998-99 Peregrine Securities Vice President - Equity & Sales Dealing 1996-98UBS Securities - Asst Vice President Equity Sales & Dealing 1994-96 Motilal Oswal - Equity Sales

Mr. Amitabh Mohanty

35

Head – Fixed Income

MBA, IIM Ahmedabad BE (Electrical), IIT Roorkee

Over 9 years experience in Fixed Income Function 1999 – 2005Alliance Capital Asset Management (India) Private Limited Head- Fixed Income 1996 – 1999SBI Funds Management Limited Managing Fixed Income Portfolios

Mr. Sunil Singhania

39 Fund Manager

B.Com. CFA, FCA

Over 11 Years of experience in Capital Markets 1997 - 2003Advani Share Brokers P LtdDirector - Institutional Sales & Research, Equity Derivatives1994-97Motisons Securities P Ltd.President Instrumental in setting up the broking business, NSE Trading membership, developing the systems.

Mr.Vikram Dhawan

37 Head – Commodities

B.E. (Mech.), PGD- Materials Management

February 2007 till date Reliance Capital Asset Management Ltd., Heading – Commodities – Involved in Fund Management and Investor Education. Taking New Initiatives in Commodities Investments. September 2005 – January 2007 Reliance Capital Limited., AVP (Head – Commodities) - Involved in Commodity Trading, Research & Analysis. February 2004 – September 2005 Vedanta Group., Head - Commodity Hedging -

36

Name Age Designation Educational Qualification

Type and Nature of past experience including assignments held during the past 10 years

Managing US$ 2.0 Billion p.a. Metals Hedge Book, Also involved in Commodity Derivatives and Physical Trading. May 2000 – January 2002 N.M. Rothschild & Sons Limited., Country Manager- Base & Precious Metals - Overseeing the US$ 1 Billion p.a. Precious Metals Sales & Distribution Portfolio; Providing Commodity Hedging Services to Indian Companies. January 1998 – May 2000 ScotiaMocatta (The Bank of Nova Scotia)., Associate Director - Metals – Providing Commodity Hedging Services to Indian Companies; Precious Metals and Treasury. January 1995 – January 1998 Birla Copper., Manager Hedging - Established Commodity Hedging Desk; Treasury, Physical Commodity Trading, Project Procurement & Finance

Mr. Amit Tripathi 31 Fund Manager-Debt

B.Com(H), PGDM

Over 7 years experience1999-2003The New India Assurance Co. Limited Assistant Admin Officer - Investment Dept.1998-1999Sun Invest Associates Limited Analyst -Equity Market Operations1997-1998CFS Financial Services Pvt. Limited Equity Dealer

Mr. Ashwani Kumar

38

Fund Manager-Equity

B.Sc., MBA Finance

Over 10 years of experience1992 - 2003Zurich Asset management Co. India P. LtdSenior Research Analyst

Mr. Sailesh RajBhan

34

Fund Manager-Equity

MBA (Finance) CFA (ICFAI)

Over 9 years experience in Equity Securities research and analysis 2001-2003Emkay Share & Stock Broker Pvt. Ltd Head - Research1996-2001Shah & Sequeira Invst. Pvt. Ltd Analyst - Equity research 1995-1996ICFAI- Securities Research Center Analyst – Equity Research

Mr. Prashant Pimple

29 Fund Manager –

MBA (Finance)

Over 5 years experience in Treasury

37

Name Age Designation Educational Qualification

Type and Nature of past experience including assignments held during the past 10 years

Debt CTM (ICFAI) 2003-2004- ICICI Bank Ltd Manager- Treasury Investment Advisory Services 2002-2003Bank Of Bahrain and Kuwait, B.S.C Asst Manager- Treasury (Dealing Room) 2000-2002 The Saraswat Co-op Bank Ltd Dealer-Treasury

Mr. Balkrishna Kini

50 Vice President Head – Legal & Compliance

B.Sc. (Hons.), LL.B., Master of Administrative Management

April 2006 till date - Reliance Capital Asset Management Ltd., Heading the Legal & Compliance Function.

March 2004 to March 2006 Reliance Capital Asset Management Ltd., as Head - Customer Service of Reliance Mutual Fund, monitoring Investor Service / Investor Relations & the activities of R&T agents April 2003 to November 2003 UTI AMC Ltd. Head – Central Monitoring Centre for operations and Head - Vashi Branch. April 2000 to April 2003 Unit Trust India Head - Mumbai Main/ JVPD branches. December 1992 to March 2000 Unit Trust India Branch Head, Pune Branch

Ms. Geeta Chandran

54 Vice President -Operations

B.A.(Eco),LL.B. June 2002 till date Reliance Capital Asset Management Ltd., Heading the Operations Dept; Handling day to day operations July 1993 to May 2002-Reliance Industries Ltd. Heading Treasury Operations September 1973 to June 1993Bank of America NT & SA Officer in Charge of Treasury operations

Mr. Prashanth Dominic Pereira

36 Investor Relations Officer

B.Com., DCM April 2006 till date Reliance Capital Asset Management Ltd., Heading the R&T / Branch Operations, Quality & Knowledge Management ICICI Bank ( from 20th July 1999 to 10th March 2006) Head Quality Initiatives Loans & Cards – 1st May 2005 Regional

38

Name Age Designation Educational Qualification

Type and Nature of past experience including assignments held during the past 10 years Head – RAOG Operations ( 1st Feb – 1st Jun 2005,Head – PDC Management ( 12th Sept 04 –31st Jan 05, Head Central Transaction Centre (4th Apr 03 –11th Sept 03), Head – Projects ( 25th Feb 02 – 3rd Apr 03,Head- Internet & Call Centre back office ops (20th Jul 99 – 24th Feb 02),IndusInd Bank ltd (11th Dec 95 – 19th Jul 99) Dy. Mgr – Operations

Mr. Lav. R. Chaturvedi

30 Head – Risk Management

B. Com, Master of Business Administration (MBA)., Chartered Financial Analyst (CFA)

January 2007 till date Reliance Capital Asset Management Ltd., Heading the Risk Management Department. Managing the Enterprise wide risk management system and ensuring adherence to SEBI Risk Management Guidelines in various functional areas. March 2004 to December 2006 IPS SENDERO – Subsidiary of FISERV INC. (FISV). Provide expert strategic and tactical balance sheet solutions to the Clients and assist in the resolution of advanced analytical and policy issues. July 1999 to March 2004 PARTNER’S TRUST (FORMERLY SBU BANK) Responsible for building profitability model using Fund Transfer Pricing Methodology and implemented the Enterprise Wide Level using web platform

Chief Investment Officer: Mr. K. Rajagopal Head – Equity Investments: Mr. Madhusudhan Kela Head – Fixed Income: Mr. Amitabh Mohanty Head – Commodities: Mr. Vikram Dhawan Compliance Officer: Mr. Balkrishna Kini Investor Relations Officer: Mr. Prashanth Pereira Fund Management Team: Mr. K. Rajagopal* Mr. Madhusudhan Kela* Mr. Amitabh Mohanty *

39

Fund Managers: Equity - Mr. Sunil Singhania*, Mr. Ashwani Kumar*, Sailesh Raj Bhan* Debt - Mr. Amit Tripathi*, Mr. Prashant Pimple* Commodities – Mr. Vikram Dhawan * Specific details mentioned under Section on Key Personnel above.

5. AUDITORS: Statutory Auditors to the Scheme Haribhakti & Co. Chartered Accountants 42, Free Press House, Nariman Point, Mumbai - 400 021. Auditors to the Asset Management Company Dalal & Shah Chartered Accountants ‘The Regency’, Office No. 11. 1st Floor, National Library Road, Bandra (W), Mumbai - 400 050 Auditors to the Trustee Company M/s. Malpani & Associates Chartered Accountants 307, Chartered House, Dr. C.H. Street, Near Marine Lines Church, Mumbai - 400 002. 6. THE CUSTODIAN The Trustee has appointed Deutsche Bank, who have been approved by SEBI to act as Custodian for Mutual Funds including gold exchange traded funds.vide registration no. IN/CUS/003, as the Custodian for RGETF . The registration of the Custodian is still valid and effective. The custodian shall hold the custody and possession of the securities and investment of the Fund and will discharge all the functions as are ordinarily discharged by a Custodian. It does not have any power or authority to sell or dispose of or deal with the securities/investment held by it on behalf of the Fund except as instructed by the AMC. The Trustee reserves the right to change the custodian, if required. In terms of Custody Agreement in accordance with SEBI Regulations, entered into with Deutsche Bank as amended from time to time, the Custodian shall, inter alia: • Provide post-trading and custodial services to the Mutual Fund; • Keep gold, Gold Related Instruments, securities and other instruments belonging to the Scheme in safe custody; • Ensure smooth inflow/outflow of gold, Gold Related Instruments, securities and such other instruments as and when necessary, in the best interests of the Unit holders; • Ensure that the benefits due to the holdings of the Mutual Fund are recovered; and • Be responsible for loss of or damage to the gold, Gold Related Instruments, securities due to negligence on its part or on the part of its approved agents.

40

The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of-pocket expenses in accordance with the terms of the Custody Agreement and as per any modification made thereof from time to time. ROLE OF THE CUSTODIAN: The Custodian is responsible for safekeeping of the Scheme’s gold deposited with it by Authorized Participants and Investors in connection with the creation of Baskets. The Custodian is responsible for allocating specific bars of gold bullion to the scheme Allocated Account. The Custodian will provide the AMC with regular reports detailing with identifying the gold bars held in the scheme Allocated Account. The Custodian may also from time to time act as Authorized Participants or purchase or sell gold or units for their own account, as agent for their customers and for accounts over which they exercise investment discretion. CUSTODY OF THE SCHEME’S GOLD Custody of the gold bullion deposited with and held by the scheme is provided by the custodian at its Vaults in Mumbai and other places. The custodian, as instructed by the AMC, is authorized to accept, on behalf of the AMC, deposits of gold. On the instructions given by the AMC, the custodian allocates gold by selecting bars of gold bullion for deposit to the scheme’s allocated account. The AMC and the custodian enter into the custody agreements, which establish the allocated account. The gold deposited with the scheme is held in the scheme allocated account. Under the agreement entered into by the AMC and the custodian, the custodian is responsible for the safekeeping of the gold held on behalf of the AMC. The custodian is responsible for any loss or damage suffered by the scheme as a direct result of any negligence, fraud or willful default in the performance of its duties. The custodian’s liability is limited to the market value of the gold held in the scheme’s allocated account at the time such negligence, fraud or willful default is discovered by the custodian, provided that the custodian promptly notifies the AMC of its discovery. In the event of a loss caused by the failure of the custodian to exercise reasonable care, the AMC has the right to seek recovery with respect to the loss against the custodian in breach. Allocated Accounts: An allocated account is an account with a Bank or Custodian, to which individually identified gold bars owned by the account holder are credited. The gold bars in an allocated gold account are specific to that account and are identified by a list which shows, for each gold bar, the refiner, assay or fineness, serial number and fine weight. The account holder has full ownership of the gold bars and, except as instructed by the account holder, the Bank or Custodian may not trade, lease or lend the bars. Transfer of Gold At the end of each business day gold is transferred to the schemes allocated account. The custodian allocates specific bars of gold from its gold stocks, so that allocated gold bars represent the amount of gold credited to the extent such amount is representable by whole bars. The bars of gold should be held directly by the Custodian. The custodian updates its records at the end of each business day to identify the specific bars of gold allocated to the scheme. The withdrawal of gold from the scheme for the purpose of redemption will follow the same procedure in the reverse order. DESCRIPTION OF THE CUSTODY AGREEMENTS Reports: The custodian provides the AMC with reports for each business day, no later than the following business day, identifying the movements of gold in and out of the scheme’s allocated account. The monthly statement contains sufficient information to identify each bar of gold held in the scheme allocated account and the custodian or subcustodian having possession of such bar.

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Sub-Custodians: The custodian may select Subcustodians to perform any of its duties, including holding gold for it. The sub-custodians selected by the custodians will have to be informed by the custodians to the AMC. Any additions or deletion of subcustodians will have to be reported to the AMC on a periodic basis. Custodian may, with the prior written consent of AMC, entrust Gold held in the Account to a specified subcustodian that is eligible to act as a custodian of Gold under applicable laws and regulations (a “Sub-Custodian”) selected by Custodian with due care. The custodian shall remain responsible in all respects to its client for safekeeping of the gold kept with such other person, including any associated risks. The custodian of securities shall continue to fulfill all duties to the clients relating to the gold so kept with the other person. Location & Segregation of Gold Gold held for scheme’s allocated account by the custodian or subcustodians appointed by the custodians is held at the custodian’s Vaults in Mumbai. The custodian’s books and records will identify every bar of gold held in the scheme’s allocated account in its own vault by refiner, assay or fineness, serial number and gross and fine weight. The AMC may upon reasonable notice, visit the custodian’s premises and examine the scheme’s gold held there and the custodian’s records concerning the scheme’s allocated account. The AMC’s independent auditors may also visit the custodians premises in connection with their audit of the financial statements of the scheme. Insurance The custodian will ensure adequate insurance for its bullion and custody business. The AMC and the sponsor may subject to confidentiality restrictions, review this insurance coverage from time to time. 7. THE REGISTRAR RCAM has appointed M/s. Karvy Computershare Pvt. Limited (KCPL) having their office at Karvy Plaza, 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034 and who are registered with SEBI vide registration no. INR000000221, to act as the Registrar and Transfer Agent to the Scheme.. RCAM and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that KCPL can provide the services required and have adequate facilities, including systems facilities and back up, to do so. The Trustee has also laid down broad parameters for supervision of the Registrar. As Registrar to the Scheme, KCPL will accept and process investor's applications, handle communications with investors, perform data entry services, despatch Account Statements and also perform such other functions as agreed, on an ongoing basis. The Registrar is responsible for carrying out diligently the functions of a Registrar and Transfer Agent and will be paid fees as set out in the agreement entered into with it and as per any modification made thereof from time to time. 8. BANKERS TO THE ISSUE The Bankers to the new fund offer will be as under: Name of the Bank : SEBI Registration No. ICICI Bank Limited : INBI 00000004 HDFC Bank Limited : INBI 00000063 Applications for the new fund offer will be accepted at the Designated Collection centers of the banks and/or also at all the Designated Investor Service Centers (DISC's), as mentioned in the application form.

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V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS

OF THE SCHEME 1. INVESTMENT OBJECTIVE: The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold and Gold related securities. However the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. However, there can be no assurance that the investment objective of the scheme will be achieved.

2 ASSET ALLOCATION PATTERN: Instruments % Risk Profile

Gold or Gold Related Instruments as permitted by regulators from time to time

90%- 100% Medium

Money Market instruments, Bonds, Debentures, Government Securities including T-Bills, Securitised Debt* & other debt securities as permitted by regulators from time to time

0– 10% Low to Medium

*Upto 10% in securitised debt The above Asset Allocation Pattern is only indicative. The investment manager in line with the investment objective as may alter the above pattern for short term and on defensive consideration. 3. BENCHMARK INDEX: As there are no indices catering to the gold sector/securities linked to Gold, currently GETF shall be benchmarked against the price of Gold.

4. INVESTMENT STRATEGY: The fund manager shall not try to ‘‘beat’’ the Gold Market, but aims to replicate the returns, which commensurate the returns generated, by Gold during that period. It will however endeavor to seek temporary defensive positions when markets decline or appear over valued to the extent of its investment in Money Market or other debt securities. The fund manager would not make any judgment about the investment merit of a particular security nor will it attempt to apply any economic, financial or market analysis. This style of Passive Fund Management would eliminate the risks involved with active management with regard to over / underperformance vis-à-vis a benchmark. The Fund will, in general invest a significant part of its corpus in Gold or Gold Related Instruments as permitted by regulators from time to time (as per the asset allocation mentioned above). However pending investments, the surplus amount of the Fund shall be invested in securitized debt, other debt securities, bonds and money market instruments as permitted by regulators from time to time. Also whenever good investment opportunity are not available in the view of the Fund manager, the Fund will reduce its exposure to gold and Gold Related instruments and during that period the surplus asset of the

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Fund shall be invested in securitized debt, other debt securities, bonds and money market instruments. However there is no assurance that all such buying and selling activities would necessarily result in benefit for the Fund. The allocation will be decided based upon the prevailing market conditions, prices of gold, macro economic environment, and the performance of the corporate sector, the debt market and other considerations. At times, such churning could lead to higher brokerage and transaction costs. To achieve its primary objective as mentioned above, the Fund would invest in gold and Gold Related Instruments as permitted by regulators from time to time. To achieve its secondary objective, the fund would invest in securitized debt, other debt securities, bonds and money market securities as permitted by regulators from time to time. These securities could include: - Obligations of Indian Companies (both public and private sector) including term deposits with the banks as permitted by SEBI/ RBI from time to time and developmental financial institutions - Certificate of Deposits (CDs) - Commercial paper (CPs) - In Securitized Debt upto 10% of the corpus. - The non-convertible part of convertible securities - Any other domestic fixed income securities - Money market instruments permitted by SEBI/ RBI, having maturities upto 1 year in call money market instruments as may be provided by the RBI to meet the liquidity requirements - Any other instruments as allowed by the Regulations from time to time. - The Fund may also enter into "Repo", or such other transactions as may be allowed to Mutual Funds from time to time. Subject to the Regulations, the investments may be in securities which are listed or unlisted, secured or unsecured, rated or unrated, having variable maturities, and acquired through secondary market purchases, RBI auctions, open market sales conducted by RBI etc., Initial Public Offers (IPOs), other public offers, placements, rights, offers, negotiated deals, etc The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by it as per the guidelines and Regulations applicable to such transactions. No investments shall be made in foreign securitised debt.

5. Investment Process: The AMC will initially decide the quantity of gold to be imported/procured and kept with the Custodian (who acts as a warehouse/custodian for the Fund ). Against this quantity, AMC issues units to the investor. Therefore the entire corpus (except for some portion to meet liquidity) shall be invested upfront into Gold 6. Case for investing in Gold: The price of gold is the benchmark. All forms of investments carry some degree of risk. Holding gold directly also has risks. However, including gold in a well-balanced portfolio can help diversify risk. Gold's ability to serve as a portfolio diversifier is due to its historically low-to-negative correlation with stocks and bonds. The economic forces that determine the price of gold are different from the forces that determine the prices of most financial assets. The price of gold depends upon various factors, including the supply and demand for gold, the strength or weakness of major foreign currency especially dollar, the rate of inflation, and interest rates and the current political environment. Gold is not subject to the risk of default or bankruptcy.

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7. Tracking Error Tracking error means the variance between daily returns of the underlying benchmark (gold in this case) and the NAV of the scheme for any given period. NAV of the Scheme is dependant on valuation of gold. Gold shall be valued based on the formula mentioned in SEBI circular no. SEBI/IMD/CIR No. 2/65348/06 dated April 21, 2006. NAV so computed may vary from the price of Gold in the domestic market. Factors such as the fees and expenses of the Scheme, corporate actions, cash balance, changes to the Underlying assets and regulatory policies may affect AMC’s ability to achieve close correlation with the Underlying assets of the scheme. The Scheme’s returns may therefore deviate from those of its Underlying assets. Tracking error could be the result of a variety of factors including but not limited to: Delay in the purchase or sale of gold due to

o Illiquidity of gold, o Delay in realisation of sale proceeds, o Creating a lot size to buy the required amount of gold

The scheme may buy or sell the gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing prices.

The potential for trades to fail, which may result in the Scheme not having acquired gold at a price necessary to track the benchmark price.

The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses.

Disinvestments to meet redemptions, recurring expenses, dividend payouts etc. Execution of large buy / sell orders Transaction cost (including taxes and insurance premium) and recurring expenses Realisation of Unit holders’ funds

The scheme will endeavor to minimise the tracking error by Setting off of incremental subscriptions against redemptions, during liquidity window Use of gold related derivative instruments, as and when allowed by regulations Rebalancing of the portfolio

8. Fundamental Attributes : For the purposes of this section, "fundamental attributes" of the scheme means:

(i) Type of scheme :An open-ended Gold Exchange Traded Fund that tracks the domestic prices of gold through investments in physical Gold.

(ii) Investment Objectives & Policies : The investment objective is to seek to provide returns

that closely correspond to returns provided by price of gold through investment in physical Gold and Gold related securities. However the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. Investment Pattern and Investment Objectives is provided hereinabove.

(iii) Terms of Issue : Provisions in this Offer Document in respect of redemption, listing, fees and expenses of the scheme.

Notwithstanding the above, the Trustees, in accordance with Regulation 18(15)(A) of the SEBI (Mutual Funds) Regulations, 1996, shall ensure that no change in the fundamental attributes of any Scheme or the Trust or fees and expenses payable or any other change which would modify the Scheme and affect the interest of the unit holders, be carried out unless : - i) A written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in the newspaper published in the language of the region where the Head Office of the Mutual Fund is situated and

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ii) The unit holders are given an option to exit at the prevailing Net Asset Value without any exit load. Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board of Directors of the Asset Management Company, made in order to conduct the business of the Fund, the Scheme or the Asset Management Company, where such business is in the nature of discharging the duties and responsibilities with which they have been charged. Nor will it include changes to the Scheme made in order to comply with changes in Regulations. None of the actions of the Trustees of the Mutual Fund or the Board of Directors of the Asset Management Company shall amount to a change in the fundamental attributes of the Scheme as described herein.

9. Investment Philosophy and Focus India today is the world’s largest democracy with a vibrant electorate, active Judiciary and civil society groups, and a fiercely independent media. For thousand of years, gold has been prized for its parity, its beauty, and above all its unique characteristics as a store of value. In today’s uncertain climate, many investors turn to gold because it is an important and secure asset that can be tapped at any time, under virtually any circumstances. But there is another side to gold that is equally important, and that is its day-to-day performance as a stabilizing influence for investment portfolio. These advantages are currently attracting considerable attention from financial professionals and sophisticated investors worldwide. Recent independent studies have revealed that traditional diversifiers often fall during times of market stress or stability. On these occasions most asset classes (including traditional diversifiers such as bonds and alternative assets) all move together in the same direction. There is no “cushioning” effect of a diversified portfolio – leaving investors disappointed. However, a small allocation of gold has been proven to significantly improve the consistency of portfolio performance, during both stable and unstable financial periods. Greater consistency of performance leads to a desirable outcome – an investor whose expectations are met. The consumers and public have realized the benefits of liberalization through increase in the choice and quality of products and decrease in prices. The business and industry have also adjusted themselves with the liberalization and globalization. The unprecedented high level of foreign exchange reserves, upward trend in FDI inflows and the general growth of the economy has given more confidence and encouragement to the policy-makers to further accelerate its economic reforms and liberalization process. Both at the central and state levels and across political parties, in general, there is consensus on further economic liberalization. The Macro view • India is a major player in the global gold market, both through ownership and annual flow of

purchases of gold, and through enormous success in the labour-intensive export-oriented jewellery business.

• Modernisation of the gold market has been a long-standing policy goal in India. A key element of modernising any financial market is shifting away from closed clubs of dealers engaging in private transactions and bilateral negotiation, to a framework with anonymous trading taking place between participants from all across the country, all of whom are on a level playing field. An essential feature of modernisation of finance is the removal of entry barriers, so that it is easy for finance companies to enter and exit any kind of financial activity. The Gold ETF promises to be a step forward for the gold spot market in offering such a trading framework, characterised by nationwide participation by households and without entry barriers faced by finance companies.

• The Gold ETF is a gold spot instrument, which is distinct from gold futures. However, there are synergies between both initiatives, since they both strengthen different aspects of the gold market. A strong Gold ETF market helps to strengthen the gold futures market, and vice versa.

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The Micro View From the narrow viewpoint of a household also, the Gold ETF offers many benefits. Gold is a part of the portfolio of millions of households in the country. For households, the Gold ETF offers the following advantages: • Zero concerns about physical security, theft or adulteration when faced with the tasks of custody

and spot transactions. • A transparent secondary market, which will offer reduced transactions costs when compared with

existing OTC transactions on the gold spot market. The existing unregulated spot market suffers from acute problems of wide bid -offer spreads, and penalisation of customers on questions of purity.

• Once banks and other moneylenders accept the transparency and liquidity of the Gold ETF, it would become possible to pledge Gold ETF units as collateral for loans. This would greatly assist many low-income households by easing the credit constraints that they face. A household which may possess physical gold today would, in comparison, obtain more limited credit access owing to concerns about the purity and liquidity of the physical gold. In contrast, the Gold ETF units will eliminate concerns about purity, and will offer assured secondary market liquidity.

• The Gold ETF is likely to trade in units which correspond to 1 grams of gold. This would make transactions accessible to a large number of households who presently find it difficult to do transactions of 1 gram or 1 tola.

10. Debt Market in India Debt Market in India: RGETF shall have some exposure to debt instruments as specified in the Asset Allocation table above. The Indian Debt market is facing major shift in the recent times. The substantial growth in Mutual Fund collections in the past few years have provided an easy route for the investors to channelise their savings into the debt market, which otherwise is largely dominated by Banks and other Institutional investors. At present, the Indian debt market is dominated by issues of Central Government bonds, Coporate Debentures and PSU Bonds. The new Securitised instruments are also very attractive in the primary market. The other instruments available for investment are Commercial Papers, Certificate of Deposits, Government guaranteed bonds, etc. Brief details about the instruments are given below as on October 16, 2006:

Instruments Listed/ Unlisted Current Yield Range Liquidity Risk profile As on October 16,

2006

Central Government Securities

Listed 6.61%to 8.13% High Low

Corporate Debentures / PSU Bonds

Listed 7.20%to 9% Medium Low

CPs/CDs (short term) Unlisted 7.20%to 8.10% High Low Call Money Unlisted 6%to 6.60% High Low Mibor linked Papers Listed/Unlisted 150-170 bps Low Low

A brief description about yields presently available on Central Govt. Securities /Bonds & Debentures of various maturities is as follows:

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Annualised yields (as on October 16, 2006) are:

Yrs < 1yr 2-7yrs 7-11yrs 11-20 yrs

Central Government securities/ Treasury Bills

6.61%to 6.91% 7.12%to 7.60% 7.60%to 7.73% 7.73%to 8.13%

Debentures/ Bonds (AAA rated)

7.20%to 8.10% 8.25%to 8.65% 8.65%to 8.90% N.A.

The price and yield on various debt instruments fluctuate from time to time depending upon the macro economic situation, inflation rate, overall liquidity position, foreign exchange scenario, etc. Also, the price and yield varies according to maturity profile, credit risk etc. 11. PORTFOLIO TURNOVER : Given the nature of the scheme, the portfolio turnover ratio may be high and AMC may re-allocate the portfolio according to liquidity requirements, commensurate with the investment objectives of the scheme. The effect of higher portfolio turnover may result in higher expenses and transaction costs. 12. Investment Limitations/Restrictions: The investment policy of the scheme comply with the rules, regulations and guidelines laid out in SEBI (Mutual Funds) Regulations, 1996. As per the Regulations, gold exchange traded fund scheme shall be subject to the following investment restrictions:

1. the funds of any such scheme shall be invested only in gold or Gold Related Instruments in accordance with its investment objective, except to the extent necessary to meet the liquidity requirements for honouring repurchases or redemptions, as disclosed in the offer document.

2. Pending deployment of funds of the scheme in gold and Gold Related Instruments in terms of

the investment objectives and policies of the scheme, the Mutual Fund can invest the funds received in the Scheme in short term deposits of scheduled commercial banks subject to the guidelines contained in SEBI Circular SEBI/IMD/CIR No. 1/ 91171 /07 dated April 16, 2007 or such other guidelines that SEBI may issue from time to time.

The investments in short term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the investment which, interalia, would include comparison with the interest rates offered by other scheduled commercial banks.

Further, the RCAM will ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000.

Further, as per the Seventh Schedule, the following investment limitations are currently applicable to its investments in the Underlying Stock: 1. The Scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency. This investment limit may be extended to 20% of the NAV of the Scheme with the approval of the of the Investment Committee based on the parameter set by the Board of Trustees and the AMC. Provided that this limit shall not be applicable to investments in money market instruments. Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

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2. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the Scheme. All such investments will be made with the prior approval of the Investment Committee of RCAM. Note: Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause 1 and 2 above. Further, it is clarified that the investment limits mentioned in (1) and (2) above are applicable to all debt securities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either central or state government. Government securities issued by central/state government or on its behalf by RBI are exempt from the above referred investment limits. 3. The AMC would monitor the tracking error of the scheme on an ongoing basis and would seek to minimise tracking error to the maximum extent possible. Given the structure of RGETF, the AMC expects the tracking error to be lower. Under normal circumstances, such tracking errors are not expected to exceed 2% per annum. However this may vary when the markets are very volatile. 4. RGETF units will be held in dematerialized form, as prescribed under The SEBI (Depositories and Participants) Regulations, 1996. The service charges payable to the depository will form part of annual recurring expenses. 5. Transfers of investments from one scheme to another scheme in the Mutual Fund shall be allowed only if: a) Such transfers are done at the prevailing market price for quoted instruments on "spot basis"; Explanation: "spot basis" shall have the same meaning as specified by the stock exchange for spot transactions: and b) The securities so transferred shall be in conformity with the investment objectives & policies of the Scheme(s) to which such transfer has been made. 6. The Scheme shall not make any investment in any Fund Of Fund scheme or in foreign securities. 7. The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC. 8. No term loans for any purpose will be advanced by the Scheme. 9. The AMC may invest in the Scheme either in the new fund offer or subsequently. However, it shall not charge any investment management fee on such amounts invested by it. 10. RCAM shall not undertake any other business except that permitted under the Regulations. RCAM shall meet with the capital adequacy requirements, if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the Regulations. The Scheme’s investment in debt will be in transferable securities (whether in capital markets or money markets or in privately placed debentures or securitised debts or bank deposits or money at call). All investment restrictions stated above shall be applicable at the time of making investment. The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in the encumbering of its assets in any way so as to expose them to unlimited liability.

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These investment limitations / parameters as expressed / linked to the net asset / net asset value / capital, shall in the ordinary course, apply as at the date of the most recent transaction or commitment to invest. Changes do not have to be effected merely because of appreciation or depreciation in value or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded for reasons beyond its control, AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unitholders. The Trustee Company in consultation with AMC may alter these above stated limitations from time to time, and also to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve its investment objectives & policies. As such, all investments of the Scheme will be made in accordance with the Regulations including Schedule VII thereof and the Fundamental Attributes of this Scheme. At RMF, to ensure robust risk management and adequate portfolio diversification internal Investment policy for various debt schemes has been framed. The investment policy at RMF specifies limits both on overall basis (across all schemes) as well as on individual scheme level. Guidelines for following parameters for liquid as well as non liquid schemes has been specified in the policy: 1. Eligible Instruments: Defines the eligible instruments where the scheme can invest 2. Minimum Liquidity: Defines the instruments considered as liquid instruments and the minimum investments in these instruments as a percentage of total net assets 3. Maximum Illiquid component: Defines the instruments considered as illiquid and the maximum investment that can be made in these instruments as a percentage of net assets. 4. Rating: Defines minimum and/ or maximum investment in a particular rating as a percentage of total portfolio. 5. Maturity: Defined the weighted average maturity of a portfolio. Also defines the weighted average maturity, maximum and maturity for certain asset types like corporate bond, PTCs, Gilts etc 13.Underwriting by the Scheme : The scheme will not accept underwriting and sub underwriting obligations. 14. Borrowing by the Mutual Fund: To meet the temporary liquidity needs of the Scheme for the purpose of repurchase, redemption, or payment of income /dividend to the unit holders, the Scheme may borrow upto 20% of its net assets for a period of upto six months or as may be permitted by the pertinent regulations. Loans may be obtained from any entity / organisation which are not specifically debarred to give loans to Mutual Funds and also loan is available from such entity / organisation at competitive terms. However, if loan is obtained from any associates such loans will be obtained only at extremely competitive terms at equal to or lower than market rates. These loans may be secured by securities or assets of the Scheme pledged to such entity / organisation. Borrowing by the Mutual Fund on account of the Scheme will tend to increase the impact of investment gains and losses on the NAV of the Scheme. There were no borrowings for the financial year ended March 31, 2002, March 31, 2003 and March 31, 2004 under any of the schemes of RMF. There were borrowings for the year ended March 31, 2005 and March 31, 2006. 15.Computation of Net Asset Value: The Net Asset Value (NAV) of the Units will be determined daily or as prescribed by the Regulations.

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The NAV under GETF shall be calculated up to 4 decimals as follows or such other formula as may be prescribed by SEBI from time to time.: NAV = Market or Fair Value of Scheme's investments + Current Assets - Current Liabilities and Provision

No of Units outstanding under Scheme on the Valuation Date

NAV Information: The NAV of the Scheme will be calculated and declared by the Fund on every Working Day by 9.00 p.m. The information on NAV may be obtained by the Unitholders, on any day from the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centres. The NAV shall be published in two daily newspapers on a daily basis as per the Regulations. Investors may also obtain information on the purchase /sale price for a given day on any Working Day from the office of the AMC / the office of the Registrar in Hyderabad/ any of the other Designated Investor Service Centres. For any NAV information, investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-40-30301111. 16. Valuation of Assets: A. Valuation of Gold Since physical gold and other permitted instruments linked to gold are denominated in gold tonnage, it will be valued based on the market price of gold in the domestic market and will be marked to market on a daily basis. The market price of gold in the domestic market on any business day would be arrived at as under: Domestic price of gold = (London Bullion Market Association AM fixing in US$/ounce X conversion factor for converting ounce into kg for 0.995 fineness X rate for US$ into INR) + custom duty for import of gold + sales tax/octroi and other levies applicable. The Trustees reserve the right to change the source (centre) for determining the exchange rate. The AMC shall record in writing the reason for change in the source for determining the exchange rate. The Fund shall value its investments in the Underlying Stocks according to the valuation norms, as specified in Schedule VIII of the Regulations, or such norms as may be prescribed by SEBI from time to time. (1) The gold held by a gold exchange traded fund scheme shall be valued at the AM fixing price of London Bullion Market Association (LBMA) in US dollars per troy ounce for gold having a fineness of 995.0 parts per thousand, subject to the following: (a) adjustment for conversion to metric measures as per standard conversion rates; (b) adjustment for conversion of US dollars into Indian rupees as per the RBI reference rate declared by the Foreign Exchange Dealers Association of India (FEDAI); and (c) addition of –

(i) transportation and other charges that may be normally incurred in bringing such gold from London to the place where it is actually stored on behalf of the mutual fund; and (ii) notional customs duty and other applicable taxes and levies that may be normally incurred to bring the gold from London to the place where it is actually stored on behalf of the mutual fund:

Provided that the adjustment under clause (c) above may be made on the basis of a notional premium that is usually charged for delivery of gold to the place where it is stored on behalf of the mutual fund: Provided further that where the gold held by a gold exchange traded fund scheme has a greater fineness, the relevant LBMA prices of AM fixing shall be taken as the reference price under this sub-paragraph.

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(2) If the gold acquired by the gold exchange traded fund scheme is not in the form of standard bars, it shall be assayed and converted into standard bars which comply with the good delivery norms of the LBMA and thereafter valued in terms of sub-paragraph (1).” B. Valuation of Debt Securities 1. Traded Securities: ( i) The securities shall be valued at the last quoted closing price on the stock exchange. (ii) When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the last quoted closing price on the stock exchange where the security is principally traded. (iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange, the value at which it is traded on another stock exchange may be used. (iv) When a security (other than debt securities) is not traded on any stock exchange on a particular valuation day, the value at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than thirty days prior to valuation date. When a debt security (other than Government Securities) is not traded on any stock exchange on any particular valuation day, the value at which it was traded on the principal stock exchange or any other stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than fifteen days prior to valuation date. When a debt security (other than Government Securities) is purchased by way of private placement, the value at which it was bought may be used for a period of fifteen days beginning from the date of purchase. 2. Thinly Traded Debt Securities: A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs 5 crore) on the principal stock exchange or any other stock exchange. A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt security. 3. Non Traded Securities: When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days prior to the valuation date, the scrip must be treated as a 'non traded' security. Valuation Of Non-Traded / Thinly Traded Securities Non traded/ thinly traded securities shall be valued "in good faith" by the AMC on the basis of the valuation principles laid down below: (a) Non Traded /Thinly Traded Debt Securities of Upto 182 Days to Maturity: As the money market securities are valued on the basis of amortization (cost plus accrued interest till the beginning of the day plus the difference between the redemption value and the cost spread uniformly over the remaining maturity period of the instruments) a similar process should be adopted for non-traded debt securities with residual maturity of upto 182 days, in the absence of any other standard benchmarks in the market. Debt securities purchased with residual maturity of upto 182 days are to be valued at cost (including accrued interest till the beginning of the day) plus the difference between the redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, the last valuation price plus accrued interest should be used instead of purchase cost. All other non-traded Non Government debt instruments shall be valued using the method suggested in (ii)(b). (b) Non Traded/ Thinly Traded Debt Securities of Over 182 Days to Maturity. For the purpose of valuation, all Non Traded Debt Securities would be classified into "Investment grade" and "Non Investment grade" securities based on their credit ratings. The non-investment grade securities would further be classified as "Performing" and "Non Performing" assets.

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• All Non Government investment grade debt securities, classified as not traded, shall be valued on yield to maturity basis as described in the applicable SEBI circular. • All Non Government non-investment grade performing debt securities would be valued at a discount of 25% to the face value. • All Non Government non-investment grade non-performing debt securities would be valued based on the provisioning norms. vi) Expenses and Incomes Accrued All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this purpose, major expenses like management fees and other periodic expenses would be accrued on a day-to-day basis. The minor expenses and income will be accrued on a periodic basis, provided the non-daily accrual does not affect the NAV calculations by more than 1%. vii) Changes in securities and in number of units: Any changes in securities and in the number of units will be recorded in the books not later than the first valuation date following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording may be delayed up to a period of seven days following the date of the transaction, provided as a result of such non recording, the NAV calculation shall not be affected by more than 2%. The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change from time to time in conformity with changes made by SEBI. The valuation of the Scheme's assets and calculation of the Scheme's NAV shall be subject to audit on an annual basis and such regulations as may be prescribed by SEBI from time to time.

14. Accounting Policies & Standards In accordance with the Regulations, the AMC will follow the accounting policies and standards, as detailed below: a) The AMC, for each Scheme and its Plans, shall keep and maintain proper books of account, records and documents, so as to explain its transactions and to disclose at any point of time the financial position of the Scheme and, in particular, give a true and fair view of the state of affairs of the Fund. b) For the purposes of the financial statements, the Scheme and its Plans shall mark all investments to market and carry investments in the balance sheet at market value. However, since the unrealized gain arising out of appreciation on investments cannot be distributed, provision shall be made for exclusion of this item when arriving at distributable income. c) Dividend income earned by the Scheme and its Plans shall be recognized, not on the date the dividend is declared, but on the date the share is quoted on an ex-dividend basis. For investments, which are not quoted on the stock exchange, dividend income would be recognized on the date of declaration of dividend. d) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned. Therefore, when such investments are purchased, interest paid for the period from the last interest due date up to the date of purchase should not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. Similarly, interest received at the time of sale for the period from the last interest due date up to the date of sale must not be treated as an addition to sale value but shall be credited to Interest Recoverable Account. e) In determining the holding cost of investments and the gains or losses on sale of investments, the "average cost" method shall be followed for each security. f) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the settlement date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial statements for that year. Where investment transactions take place outside the stock market, for example, acquisition through private placement or purchases or sales through private treaty, the transaction would be recorded, in the event of a purchase, as of the date on which the

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Scheme obtains an enforceable obligation to pay the price or, in the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to deliver the instruments sold. h) Where income receivable on investments has accrued but has not been received for the period specified in the guidelines issued by the Board, provision shall be made by debiting to the revenue account the income so accrued in the manner specified by guidelines issued by the Board. i) When units are sold in the Scheme, an appropriate part of the sale proceeds shall be credited to an Equalization Account and when units are repurchased an appropriate amount shall be debited to Equalization Account. The net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund but is only an adjustment to the distributable surplus. It shall therefore be reflected in the Revenue Account only after the net income of the Fund is determined. j) When units are sold, after considering the equalization as above, the difference between the sale price and the face value of the Unit, if positive, shall be credited to reserves and if negative, shall be debited to reserve, the face value being credited to Capital Account. Similarly, when the Units are repurchased, after considering the equalization as above, the difference between the purchase price and face value of the Unit, if positive, shall be debited to reserves and, if negative, shall be credited to reserves, the face value being debited to the Capital Account. k) The cost of investments acquired or purchased shall include brokerage, insurance premium, customs duty, VAT, Octroi, stamp duty charges and any charge customarily included in the broker's bought note or purchase invoice or any other cost incurred for acquiring the assets. In respect of privately placed debt instruments any front-end discount offered shall be reduced from the cost of the investment. l) Underwriting commission shall be recognized as revenue only when there is no devolvement on the Scheme and its Plans. Where there is devolvement on the Scheme and the Plans thereunder, the full underwriting commission received and not merely the portion applicable to the devolvement shall be reduced from the cost of the investment. The accounting policies and standards outlined above are as per the existing Regulations and are subject to change as per changes in the Regulations. Guidelines for Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds: (A) Definition of a Non Performing Asset (NPA) : An 'asset' shall be classified as non performing, if the interest and/or principal amount have not been received or remained outstanding for one quarter from the day such income / instalment has fallen due. (B) Effective date for classification and provisioning of NPAs : The definition of NPA may be applied after a quarter past due date of the interest. For e.g. if the due date for interest is 31.12.2002, it will be classified as NPA from 01.04.2003. (C) Treatment of income accrued on the NPA and further accruals : After the expiry of the 1st quarter from the date the income has fallen due, there will be no further interest accrual on the asset i.e. if the due date for interest falls on 31.12.2002 and if the interest is not received, accrual will continue till 31.03.2003 after which there will be no further accrual of income. In short, taking the above example, from the beginning of the 2nd quarter there will be no further accrual on income. On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized in the books of accounts of the Fund till the date, should be provided for. For e.g. if interest income falls due on 31.12.2002, accrual will continue till 31.03.2003 even if the income as on 31.12.2002 has not been received. Further, no accrual will be done from 01.04.2003 onwards. Full provision will also be made for interest accrued and outstanding as on 31.12.2002. (D) Provision for NPAs - Debt Securities : Both secured and unsecured investments once they are recognized as NPAs call for provisioning in the same manner and where these are related to close

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ended scheme the phasing would be such that to ensure full provisioning prior to the closure of the scheme or the scheduled phasing which ever is earlier. The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will not have discretion to extend the period of provisioning. The provisioning against the principal amount or installments should be made at the following rates irrespective of whether the principal is due for repayment or not. • 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3 months form the date of classification of the asset as NPA. • 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e. 6 months from the date of classification of the asset as NPA. • Another 20% of the book value of the assets should be provided for after 12 months past due date of interest i.e. 9 months form the date of classification of the asset as NPA. • Another 25% of the book value of the assets should be provided for after 15 months past due date of interest i.e. 12 months from the date of classification of the asset as NPA. o The balance 25% of the book value of the asset should be provided for after 18 months past due date of the interest i.e. 15 months form the date of classification of the assets as NPA. Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the prescribed valuation method. (E) Reclassification of assets: Upon reclassification of assets as 'performing assets': 1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in full. 2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly serviced over the next two quarters. 3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis would be credited at the time of receipt. 4. The provision made for the principal amount can be written back in the following manner: - • 100% of the asset provided for in the books will be written back at the end of the 2nd quarter where the provision of principal was made due to the interest defaults only. • 50% of the asset provided for in the books will be written back at the end of the 2nd quarter and 25% after every subsequent quarter where both installments and interest were in default earlier. 5. An asset is reclassified, as 'standard asset' only when both overdue interest and overdue installments are paid in full and there is satisfactory performance for a subsequent period of 6 months. (F) Receipt of past dues : When the fund has received income/principal amount after their classifications as NPAs; For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The asset will be continued to be classified as NPA for these two quarters. During this period of two quarters although the asset is classified as NPA no provision needs to be made for the principal if the same is not due and outstanding. If part payment is received towards principal, the asset continues to be classified as NPA and provisions are continued as per the norms set at (D) above. Any excess provision will be written back. Some of the investments made by mutual funds may become non-performing (NPAs) or illiquid at the time of maturity/ closure of schemes. In due course of time, these NPAs and illiquid securities may be realised by the mutual funds i.e. after the winding up of the schemes. Such amount would be distributed, if it is substantial and is realised within two years, to the old investors. In case the amount is not substantial or it is realised after two years, it may be transferred to the Investor Education Fund maintained by each mutual fund as specified in SEBI circular MFD/CIR/9/120/2000 dated November 24,

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2000. The decision as to the determination of substantial amount shall be taken by the trustees of mutual funds after considering the relevant factors. (G) Classification of Deep Discount Bonds as NPAs : Investments in Deep Discount Bonds can be classified as NPAs, if any two of the following conditions are satisfied: • If the rating of the Bond comes down to grade 'BB' or below. • If the company is defaulting in their commitments in respect of other assets, if available. • Full Net worth erosion. Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA. Full provision can be made if the rating comes down to grade 'D' (H) Reschedulement of an asset: In case any company defaults either interest or principal amount and the fund has accepted a Reschedulement of the schedule of payments, then the following practice may be adhered to: (i) In case it is a first Reschedulement and only interest is in default, the status of the asset namely, 'NPA' may be continued and existing provisions should not be written back. This practice should be continued for two quarters of regular servicing of the debt. Thereafter, this is classified as 'performing asset' and the interest provided may be written back. (ii) If the Re-schedulement is done due to default in interest and principal amount, the asset should be continued as non-performing for a period of 4 quarters, even though the asset is continued to be serviced during these 4 quarters regularly. Thereafter, this can be classified as 'performing asset' and all the interest provided till such date should be written back. (iii) If the Reschedulement is done for a second/third time or thereafter, the characteristic of NPA should be continued for eight quarters of regular servicing of the debt. The provision should be written back only after it is reclassified as 'performing asset'. (I) Disclosure in the Half Yearly Portfolio Reports: The mutual funds shall make scrip wise disclosures of NPAs on half yearly basis along with the half yearly portfolio disclosure. The total amount of provisions made against the NPAs shall be disclosed in addition to the total quantum of NPAs and their proportion of the assets of the mutual fund scheme. In the list of investments an asterisk mark shall be given against such investments, which are recognized as NPAs. Where the date of redemption of an investment has lapsed, the amount not redeemed shall be shown as 'sundry debtors' and not investment provided that where an investment is redeemable by installments that will be shown as an investment until all installments have become overdue. 15. INVESTMENT BY THE AMC IN THE FUND: RCAM reserves the right to invest its own funds in the Scheme upto a maximum extent of its networth. As per SEBI Regulations, such investments are permitted, subject to disclosure being made in the Offer Document. Further, RCAM shall not charge any fees on its investment in the Scheme, unless allowed to do so under SEBI Regulations in the future. 16. DEPOSITORY: RGETF units will be held in dematerialized form and hence the SEBI (Depositories and Participants) Regulations, 1996 would apply. The service charges payable to the depository participant will form part of annual recurring expenses. 17. POLICY FOR INTER-SCHEME TRANSFERS: The Scheme may purchase / sell securities under the Scheme through the mode of Inter-Scheme Transfers, if such a security is under the buy / sell list of this Scheme and is on the sell / buy list of another Scheme under the Fund. Under such circumstances, the transactions will be effected based on the prevailing market price on spot basis and in conformity with Regulations. The valuation of untraded / unquoted securities and debt instruments shall be done in accordance with the general valuation policies of the Fund.

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VI. UNITS AND OFFER

The offer is being made for subscription of units of Reliance Gold Exchange Traded Fund, an open-ended Gold ETF that seeks to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold and Gold related securities. 1. (a) New Fund Offer (NFO) :

New Fund Offer opens on ___________ New Fund Offer closes on __________

Extension or Termination of New Fund Offer Period The Trustee reserves the right to extend the closing date, subject to the condition that the New Fund Offer shall not be kept open for more than 30 days. The Trustee also reserves the right to close the NFO earlier by giving at least one days prior notice. Any such extension shall be notified in one vernacular daily of Mumbai and one English national daily.

(b) Continuous Offer: Commencing not later than 30 days after the closing of the New Fund Offer, the Scheme will

become open-ended. An investor can buy/sell units of RGETF on a continuous basis on the National Stock Exchange and other recognised stock exchanges where units are listed and traded like any other publicly traded securities at market prices which may be close to the actual NAV of the scheme. The trading lot is one RGETF unit. Investors can purchase units at market prices, which may be at a premium/discount to the NAV of the scheme depending upon the demand and supply of units at the exchanges.

Alternatively, Authorised Participants and Large Investors can directly buy /sell in blocks from the fund in ‘Creation Unit’ Size on any business day. Mutual fund will also repurchase units from Authorised Participants and Large Investors on any business day provided the units offered for repurchase is not less than 100 units.

2. Minimum Target : The Fund aims to collect a minimum subscription of Rs.1 lakh. Any oversubscription will be retained in full and the Fund will make full and firm allotment against all valid applications. The Fund will start investing the amount received in NFO immediately after the receipt of minimum target amount and may be fully invested prior to the date of allotment of units. In the event this amount is not raised during the new fund offer period, the AMC shall refund the subscription money collected under the scheme immediately after the closure of the New Fund Offer period, but not later than six weeks from the date of closure of the New Fund Offer period without any interest / compensation whatsoever. In the event of the AMC’s failure to refund the amount within the period stipulated above, the AMC shall be liable to pay to the applicants concerned interest @15% per annum from the 43rd day of the date of closure of the New Fund Offer to the date of refund. Refund of subscription amount to applicants whose applications are invalid for any reason whatsoever, will commence after the allotment process is completed. 3. Minimum number of Investors in Scheme/Plan: As per SEBI Circular dated December 12, 2003 and June 14, 2005 each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/ plan(s) at portfolio level within a period of three months or at the end of the succeeding

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calendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO and the 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the scheme shall meet with both the conditions of minimum number of investor and holding as a percentage of the corpus. Determining the breach of 25% limit - The average net assets of the scheme would be calculated daily and any breach of the 25% holding limit by an investor would be determined. At the end of the quarter, the average of daily holding by each such investor is computed to determine whether that investor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. 4. Purchase of Units : Minimum Amount Minimum of Rs.5000/- (Rupees Five thousand) and in multiples of Re 1/- thereafter RCAM may revise the minimum / maximum amounts and the methodology for subscriptions as and when necessary in the Scheme. Such change may be brought about after taking into account the cost structure for a transaction/account and /or market practices etc. and shall be applicable to transactions from the date of such a change, on a prospective basis.

5. Allotment price / Purchase Price: (a) Allotment price for subscription during the New Fund Offer Period : The face value of each unit offered under the scheme shall be Rs.100/- For subscriptions received during NFO, the units will be issued at a premium/discount equivalent to the difference between allotment price and the face value of Rs.100/-. Allotment price of units purchased during NFO will be on the basis of the closing value of the gold prices on the allotment date plus applicable load.

• Each unit under RGETF will be approximately equal to the closing price of 1 (one) gram of gold on the date of initial allotment after the NFO.

b) Purchase Price For subscription during the Continuous Offer Period : The Purchase Price will be calculated on the basis of the entry load as follows: Purchase Price = Applicable NAV x (1 + Entry Load) For detailed explanation on loads, please refer the Section on "Loads and Recurring Expenses"

6. Rounding off of Units: Based on the Allotment Price, the number of Units allotted will be rounded off to the nearest three decimal places. 7. Expenses of New Fund offer: The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC.

8. Consideration for RGETF units during the New Fund Offer Period: (a) In consideration for issue of RGETF units, the applicants will be required to bring cash against which subject to realisation of the instrument, RGETF units will be credited to the investor’s de-mat account on the date of allotment of units.

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(b) The AMC may at its own discretion, allow cash purchases (by accepting cash) from the Authorised Participants and Large Invetsors, against which subject to realisation of the instrument, Gold will be purchased on behalf of the Authorised Participants/Large Investors/ others and units will be credited to their de-mat account on the date of allotment of units. Purchase request for creation units shall be made by such Authorised Participants/Large Invetsors/others to the AMC, whereupon the AMC will arrange to buy the gold of the specified purity. The AMC may levy a fees/load/charges to be announced from time to time, for this facility. 9. Purity of Gold: All gold bullion held in the scheme’s allocated account with the custodian shall be of fineness (or purity) of 995 parts per 1000 (99.5%) or higher.

10. Creation Unit: ‘Creation Unit’ is a fixed number of RGETF, which is exchanged for Portfolio Deposit which would consist of physical Gold of defined purity and quantity and Cash Component. The facility of creating/redeeming units in Creation Unit size will be available with the Authorised Participants (whose names will be available on the website of the Fund i.e. www.reliancemutual.com) and large investors when the Scheme opens for ongoing subscription. Each creation unit consists of 100 units of RGETFand cash component, if any. The Fund may from time to time change the size of the creation unit in order to equate it with marketable lots of the underlying instruments. The investor has to deposit or will receive at least 100 grams of physical gold & in multiples of 100 grams thereof in order to create / redeem units of the Scheme. The physical Gold and Cash Component is defined as follows: - The Portfolio Deposit and Cash Component are defined as follows:-

a. Portfolio Deposit: These are LBMA Good Delivery physical gold bars imported by Banks authorized by RBI to deal in Gold and other securities. The value of gold and other instruments will be linked to the domestic prices of gold. Portfolio Deposit can change from time to time.

b. Cash Component for Creation Unit: The Cash Component represents the difference between

the applicable net asset value of a Creation Unit and the market value of the Portfolio deposit. This difference may include accrued dividends, accrued annual charges including management fees and residual cash in the scheme. In addition the Cash Component may include transaction cost as charged by the Custodian/Depository Participant, equalization of dividend, effect of rounding-off of number of shares in portfolio Deposit and other incidental expenses for Creating Units. The cash component will vary from time to time and will be computed and announced by the AMC on its website every Business Day.

c. Cash Component for Redemption in Creation Unit Size: The Cash Component represents

the difference between the applicable net asset value of a creation unit and the market value of the Portfolio deposit. This difference may include accrued dividend, accrued annual charges including management fees and residual cash in the scheme. Any transaction cost charged by the Custodian/DP, equalization of dividend and other incidental expenses for redeeming units may also form part of Cash Component. The cash component for redemption may vary from time to time and will be computed and announced by the AMC on its website.

Example of Issue of Units under NFO

Minimum Investment Rs. 5000/- Price of 1 gram of Gold* Rs. 942 Issue price of one unit of RGETF Rs. 942

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Number of RGETF Allotted (Rs. 5000/942) 5.307 *As on 23rd April, 07. The above is just an illustration to explain the method of allotment of units.

Example of Creation/Redemption of Units: As explained above, the Creation Unit is made up of 2 components i.e. Portfolio Deposit and Cash Component. The Portfolio Deposit will be determined by Fund. The Portfolio Deposit will be physical Gold and will be for 100 grams and in multiple of 100 grams. The value of Portfolio Deposit will change due to changes in the prices during the day. The cash component will be arrived in the following manner: Number of units comprising one Creation Unit 100 units NAV per unit Rs. 960 Value of Portfolio Deposit (physical Gold of 100 grams )* Rs.94,200 Value of One Creation Unit Rs. 96,000 Cash Component (Approx.) # Rs. 1,800 The above is only an illustration to explain the method of calculation of cash component. # Cash Component will vary depending upon the actual charges incurred like Custodial Charges and other incidental charges for creating units.

11. Dematerialisation: • RGETF units will be available only in the Dematerialized form. • The applicant under the Scheme will be required to have a beneficiary account with a

Depository Participant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account number with DP.

• Since RGETF are to be issued / repurchased and traded compulsorily in dematerialized form, no request for rematerialisation of RMF will be accepted.

12. Listing: The Fund would endeavor to get the units of the Scheme listed on the National Stock Exchange and any other stock exchange(s) as may be decided by the Reliance AMC within 30 days from the closure of the New Fund Offer period, subsequent buying or selling by investors can be made from the secondary market on the NSE. The minimum number of units that can be bought or sold through the stock exchange is 1 (one) unit.

13. Who can Invest: The following persons (subject, wherever relevant, to purchase of units being permitted under their respective constitutions and relevant State Regulations) are eligible to subscribe to the units:

• Adult Resident Indian Individuals, either singly or jointly (not exceeding three). • Non – resident Indians and persons of Indian origin residing abroad, on full repatriation basis or

on non-repatriation basis • Parents / Lawful guardians on behalf of Minors • A Karta on behalf of / in the name of HUF Hindu Undivided Family (HUF) • Companies (including Public Sector Undertakings), Bodies Corporate, Trusts (through Trustees)

and Co-operative Societies • Banks (including Regional Rural Banks) and Financial Institutions

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• Religious and Charitable Trusts (through Trustees), Private Trusts authorised to invest in Mutual Fund schemes under their Trust Deeds

• Foreign Institutional Investors registered with SEBI • Special Purpose Vehicles (SPVs) approved by appropriate authority (subject to RBI approval) • International Multilateral Agencies approved by the Government of India • Army/Navy/Air Force / Para Military Units and other eligible institutions • Unincorporated body of persons as may be accepted by Reliance Capital Trustee Co. Limited • Partnership Firms • Scientific and Industrial Research Organisations • Trustee, AMC or Sponsor or their associates may subscribe to Units under the Schemes. • Authorised Participants • Such other individuals/institutions/body corporate etc., as may be decided by the AMC from time

to time, so long as wherever applicable they are in conformity with SEBI Regulations. Note : 1. Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad / Foreign Institutional Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations. Allotment of units for subsequent purchases by NRIs / FIIs / SPVs / International Multilateral Agencies / PIOs shall be in accordance with RBI rules in force. 2. In case of application under a Power of Attorney or by a limited company or a corporate body or an eligible institution or a registered society or a trust fund, the original Power of Attorney or a certified true copy duly notarised or the relevant resolution or authority to make the application as the case may be, or duly notarised copy thereof, alongwith a certified copy of the Memorandum and Articles of Association and/or bye-laws and / or trust deed and / or partnership deed and Certificate of Registration should be submitted. The officials should sign the application under their official designation. A list of specimen signatures of the authorised officials, duly certified / attested should also be attached to the Application Form. In case of a Trust / Fund it shall submit a resolution from the Trustee(s) authorising such purchases and redemptions. RCAM reserves the right to invest its own funds in the Scheme(s) upto a maximum extent of its networth. As per SEBI Regulations, such investments are permitted, subject to disclosure being made in the respective Scheme Offer Documents (s). Further, RCAM shall not charge any fees on its investment in the Scheme (s), unless allowed to do so under SEBI Regulations in the future. It is expressly understood that at the time of investment, the investor/unitholder has the express authority to invest in units of the Scheme and the AMC / Trustee / Mutual Fund will not be responsible if such investment is ultra-vires the relevant constitution. RCAM reserves the right to include / exclude new / existing categories of investors to invest in this Scheme from time to time, subject to SEBI Regulations, if any. Right to Review Applications RCAM reserves the right to scrutinise, review and reject any application received during the new fund offer period or on an ongoing basis, at its discretion, without assigning any reason, in cases where, according to RCAM, accepting the same would not be in the best interests of the Fund. 14. Joint Applicants: If an Account has more than one holder, the first-named holder (as determined by the records of the Registrar) only will receive all notices and correspondence with respect to the Account, as well as the proceeds of any redemption request or dividend or other distributions. In

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addition, such holder will have the voting rights, associated with such Units as permitted. In the case of death of any joint holder, the survivor(s) shall be the only person(s) recognised by RMF as having any title to or interest in the units. In the case of holdings specified as 'jointly', all requests will have to be signed by all the joint holders in sequence of their holdings. However, in the case of holdings specified as 'any one or survivor', any one of the joint holders may sign such requests. If an Account has more than one holder and the mode of operation is not specified i.e. whether as 'Jointly' or 'Either or survivor' or 'Anyone or survivor', then it will be considered as 'Jointly'.

15. Allotment Statement: Units issued by the AMC under the scheme shall be credited to the investor’s beneficiary account with a Depository Participant (DP) of CDSL or NSDL. The AMC will endeavour to credit the units to the beneficiary account of the unitholder within five business days from the date of receipt of credit of the Cash. The AMC shall issue an intimation about the allotment of units to investors whose beneficiary accounts are credited on allotment of units under the scheme within thirty days of allotment either through physical form or through email as may be decided by the Fund from time to time. The Account Statement of the Beneficiary Account with the DP will be sent by the respective DPs periodically. 16. Applicable NAV for Purchase / Creation /Redemption Of Units Directly From The Fund: Authorised Participants and Large Investors:

The Authorised Participants and Large Investors can directly buy/sell the units from the Fund in Creation Unit Size as defined above on all working days as follows: The Fund creates / redeems RGETF in large blocks known as “Creation Unit”. The value of the “Creation Unit” is the basket of Underlying Gold called as the “Portfolio Deposit” and a “Cash Component” which will be exchanged for a fixed number of RGETF. The Portfolio Deposit and the Cash Component, which defines the Creation Unit are explained separately below. The Portfolio Deposit and Cash Component may change from time to time and will be announced by AMC/Fund through its website and other data providers. i) Creation :

In respect of valid applications received upto 3 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable.

ii) Redemptions: In respect of valid applications received upto 3 p.m. by the Mutual Fund, closing NAV of the day of receipt of application, shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable.

Applications for redemption of RGETF units have to be submitted in the prescribed format duly completed and signed alongwith the delivery order duly receipted by the DP stating the number of units transferred to the scheme’s DP account. Application for redemption by non-individuals should be accompanied by certified copy of the board/governing body resolution clearly authorizing the official concerned to redeem units and to receive/ collect gold/cash after complying with operational procedure and formalities. The application for redemption in the prescribed form will have to be submitted at the designated ISC of the fund before the cut off time. The expenses associated with taking physical delivery of gold will have to be borne by the authorized participant / investor

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17. How to Apply for RGETF units ?

1. Application Forms will be available at the Designated Investor Service Centers of Reliance Mutual Fund, its Distributors and the office of the Registrar.

2. Applications must be completed in block letters in English and duly signed by all the applicants .

3. Applications complete in all respects may be submitted before closure of New Fund Offer Period

at the designated branches of collecting bankers at locations mentioned in the Application Form.

4. During the continuous offer, investors can buy units of RGETF on a continuous basis on the

National Stock Exchange and other recognised stock exchanges where units are listed and traded like any other publicly traded securities at market prices which may be close to the actual NAV of the scheme. The trading lot is one RGETF unit.

5. Alternatively, Authorised Participant and large Investors can directly buy in blocks from the fund in ‘Creation Unit’ Size on any business day.

The Registrars shall allot admissible units to the investor which shall be credited to the investor’s beneficiary account with a Depository Participant (DP) of CDSL or NSDL under suitable intimation to the investor. 18. Settlement of purchase/sale of RGETF units on the stock exchange: Buying / Selling RGETF units on the stock exchange is similar to buying / selling any other listed securities. If an investor has bought units, an investor has to pay the purchase amount to the broker / sub-broker such that the amount paid is realized before the funds pay-in day of the settlement cycle on the exchange. If an investor has sold units, an investor has to deliver the units to the broker/sub-broker before the securities pay-in day of the settlement cycle on the exchange. The units (in case of units bought) and the funds(in the case of units sold) are paid out to the broker on the payout day of the settlement cycle on the exchange. The exchange regulations stipulate that the trading member should pay the money or units to the investor within 24 hours of the payout. (SEBI SMD/POLICY/Cir-/03 dated February 6, 2003). If an investor has bought units, he should give standing instructions for ‘Delivery-In’ to his/her DP for accepting units in his/her beneficiary account. An investor should give the details of his/her beneficiary account and the DP-ID of his/her DP to his/her trading member. The trading member will transfer the units directly to his/her beneficiary account on receipt of the same from exchange’s clearing corporation. An investor who has sold units should instruct his/her Depository Participant (DP) to give ‘Delivery Out’ instructions to transfer the units from his/her trading member through whom he/she have sold the units. The details of the pool A/c of investor’s trading member to which the units are to be transferred, unit quantity etc. should be mentioned in the delivery out instructions given by him/her to the DP. The instructions should be given well before the prescribed securities pay-in day. SEBI has advised that the delivery out instructions should be given atleast 24 hours prior to the cut off time for the prescribed securities pay in to avoid any rejection of instructions due to data entry errors, network problems, etc. Rolling Settlement As per the SEBI’s circular dated March 4, 2003, the rolling settlement on T+2 basis for all trades has commenced from April 1, 2003 onwards. The Pay-in and Pay-out of funds and the units will take place 2 working days after the trading date.

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The pay-in and pay-out days for funds and securities are prescribed as per the Settlement Cycle. A typical Settlement Cycle of Rolling Settlement is given below: Day Activity T The day on which the transaction is executed by a trading member T+1 Confirmation of all trades including custodial trades by 11.00 a.m. T+1 Processing and downloading of obligation files to brokers /custodians by 1.30 p.m. T+2 Pay-in of funds and securities by 11.00 a.m. T+2 Pay out of funds and securities by 1.30 p.m. While calculating the days from the Trading day (Day T), weekend days (i.e. Saturday and Sundays) and bank holidays are not taken into consideration. 19. Transfer / Pledge/ Assignment of units: (a) Transfer: RGETF units are transferable via the stock exchange. Transfers should be only in favour of transferees who are eligible of holding units under the scheme. The AMC shall not be bound to recognize any other transfer. The AMC will effect the transfer only in electronic form provided that the intended transferee is otherwise eligible to hold units under the scheme. The delivery instructions for transfer of RGETF units will have to be lodged with the DP in the requisite form as may be required from time to time and the transfer will be effected in accordance with such rules / regulations as maybe in force governing transfer of securities in dematerialised mode. Under special circumstances, holding of units by a company or other body corporate with another company or body corporate or an individual/ individuals, none of whom is a minor, may be considered by the AMC. Any addition, deletion of name from the folio of the Unit holder is deemed as transfer of Units. In view of the same, additions /deletions of names will not be allowed under any folio of the Scheme. The said provisions in respect of deletion of names will not be applicable in case of death of a Unit holder (in respect of joint holdings) as this is treated as transmission of Unit and not transfer. A transferee approaching the fund for Transfer / Transmission of units will have to have beneficiary account with a Depository Participant of CDSL or NSDL, since the units shall be in electronic mode. (b) Pledge/Assignment of units permitted only in favour of banks/other financial institutions:

i The uniholders may pledge/assign units in favour of banks/other financial institutions as a security for raising loans.

ii Units can be pledged by completing the requisite forms/formalities as may be required by the Depository. The pledger may not be allowed to redeem/ transfer the units so pledged until the bank/ financial institution to which the units are pledged provides a written authorization to the Depository that the pledge/charge/lien may be removed.

iii As the units of the Scheme will be issued and held in Demat form, the rules of Depository applicable for pledge will be applicable for Pledge/Assignment of the units of the Scheme.

iv Pledgor and Pledgee must have a beneficial account with the Depository. These accounts can be with the same DP or with different DPs. Pledgor will instruct its DP to create a pledge request by submitting a “Pledge Form” with a tick on “Create Pledge”.

v Pledgor will inform the pledgee about the creation of pledge request by giving a copy of the pledge report obtained from its DP.

vi Pledgee may instruct its DP to confirm the creation of pledge by submitting a “Pledge Form” with a tick on “Confirm creation of Pledge”. The pledge gets created in favour of the pledgee only when the pledgee’s DP confirms the creation of pledge in the system.

vii Pledge does not get created in the System until the Pledgee’s DP confirms the pledge. Pledgee may obtain pledge report from its DP and verify creation of pledge.

viii After the loan is repaid, the pledgor will instruct its DP to close the pledge by submitting the "Pledge Form" with a tick on "Close Pledge". The pledgee will instruct its DP to confirm the closure of pledge by submitting the "Pledge Form" with a tick on "Confirm Closure of Pledge".

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ix The pledge is closed in the system on executing the instruction in the system by both the DPs. A pledgor's DP alone cannot close the pledge.

x If the loan is not repaid, the pledgee, after giving notice to the pledgor as per the terms of the agreement, may instruct its DP to invoke the pledge by submitting the "Pledge Form" with a tick on "Invoke Pledge". On execution of this instruction, the securities are transferred into the pledgee's account. This does not require any confirmation from the pledgor.

xi The pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if a pledge is invoked and on record date the shares are in the pledgee's account.

20. Transmission: In case of death of the unitholder, Units shall be transmitted in favour of the second-named joint holder or nominee, as the case may be, on production of a death certificate or any other document to the satisfaction of the Fund. Since the units of the scheme will be issued in electronic form in the Demat account of the investor, the nomination as registered with the Depository Participant will be applicable to the units of the scheme. A Nomineee / legal heir approaching the fund for Transmission of units must have beneficiary account with a Depository Participant of CDSL or NSDL, since the units shall be in electronic mode. 21. Dividend Payout Option: Reliance Gold Exchange Traded Fund will have only Dividend Payout option. Dividend declared under the scheme, if any, will be paid to the unit holders within 30 days from the declaration of the dividend. Dividend will be distributed from the available distributable surplus after the deduction of TDS and applicable surcharge etc, if any. If and when dividends are declared, dividends will be distributed to all unit holders registered on the registers of the depositories on the record date.

• NOTE: For all tax related matters referred above, please read the Section of this offer document on 'Tax Benefits'. In view of the individual nature of tax benefits, each investor is advised to consult his or her own tax consultant with respect to the specific tax implications arising out of his or her participation in the scheme.

Effect of Dividends: As with the redemption of Units, when dividends are declared and paid with respect to the Scheme, the net assets will stand reduced by an amount equivalent to the product of the number of units outstanding and the dividend amount per unit declared on the record date. Mode of Payment of Dividends Regulation 53(a) of SEBI (Mutual Funds) Regulations, 1996 permit the mutual funds to distribute returns including dividend. As per SEBI regulations, it is mandatory for an investor to provide his / her bank account details for the purpose of payment of dividend / redemption proceeds. Dividend declared under the scheme, if any, will be paid to the unit holders as follows:

a) Where the unitholders have a bank account with specific banks with whom the fund has a tie up for direct credit to the bank account of unitholders, the net dividend amount will be credited directly to the bank account, under intimation to the unit holder by post/email, on a best effort basis after scrutinising the names of the banks where unitholders have their accounts

b) Unitholders who do not wish to avail the above mentioned direct credit facility will receive

dividend payments through dividend warrants payable at par . In locations where payable at par facility is not available, dividend payments will be made through demand drafts.

c) Since RGETF shall be a listed scheme, for declaration of dividend, RGETF shall follow the

requirements stipulated in the listing agreement.

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22. Policy on unclaimed redemption and dividend amounts: As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call money market or money market instruments only or such other instruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds shall be used for the purpose of investor education. The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by AMC for managing unclaimed amounts shall not exceed 50 basis points.

23. Procedure for Creating RGETF in Creation Unit Size: As mentioned above, Authorised Participants and Large Investors are required to transfer either requisite gold constituting the Portfolio Deposit to the fund’s Designated DP account OR equivalent cash, while the balance Cash Component, if any has to be paid to the AMC. On confirmation of the same by the Custodian / AMC, the AMC will endeavour to create and credit the equivalent number of RGETF into the DP account of Authorised Participants within 3 business days from the date of receipt of credit of the Portfolio Deposit to the extent of such Deposit. The AMC may create “Creation Unit” prior to receipt of all or a portion of the relevant Portfolio Deposit and Cash Component in certain circumstances where the purchaser, among other things, posts collateral to secure its obligation to deliver such outstanding Portfolio Deposit Securities and Cash Component. The AMC reserves the right to adjust the number of Units to be credited /credited in case the instrument towards the cash component is not honoured. Purchase request for Creation Units shall be made by such investor to the Fund/AMC where upon the Fund/AMC will arrange to buy the underlying portfolio securities. In such circumstances, applicable NAV for Creation Units will be the Net Asset Value per Unit at the close of the Working Day on which the proceeds are made available to the Fund for investments by the Bank, in the normal course of clearing. The creation request can be made to the fund in a duly filled application form. Application Forms for Creation Units of RGETF can be obtained from the designated Investor Service Centres of the fund . It may be noted that the application for Creation of Units can be made only at the designated Offices of the AMC as the AMC may decide from time to time.

24. Prevention of Money Laundering & Know Your Customer: In terms of the Prevention of Money Laundering Act, 2002, the Rules issued thereunder and the guidelines issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries, including Mutual Funds, have to formulate and implement a Client Identification Process, commonly referred to as Know Your Customer or KYC Process, verify and maintain the record of identity and address (es) of investors. Pursuant to the above, RCAM has adopted certain policies to ensure KYC and AML considered appropriate for its line of business, being committed to prevent money launderers using Reliance Mutual Fund as a vehicle for any such illegal activity. Accordingly, RCAM may seek information or obtain and retain documentation used to establish Customers’ identity. It may re-verify identity and obtain any missing or additional information for this purpose. RCAM, under powers delegated by the Trustee, shall have absolute discretion to reject any application, prevent further transactions by a Unit Holder, if after due diligence, the investor / Unit Holder / a person making the payment on behalf of the investor does not fulfil the requirements of the “Know Your Customer” Process or if RCAM believes that the transaction is suspicious in nature from AML perspective. In this regard, RCAM reserves the right to reject any application and effect a mandatory Redemption of Units allotted at any time prior to the expiry of 21 Business Days from the date of the application / allotment. If the payment for purchase of units are made by a third party (e.g. a power of attorney holder, a financing agency, a guardian etc.), the Unit Holder may be required to give such details of such transaction so as to satisfy the AMC of the source and/or consideration underlying the transaction.

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PAN Wherever an application is of an amount of Rs. 50,000 or more per transaction, the applicant or in the case of application in joint names, each of the applicants, should mention his/her Income Tax Permanent Account Number (PAN). Where PAN has not been allotted, a declaration in Form No. 60 (or Form No. 61) will be required to be furnished by the investor in duplicate alongwith a copy of the proof of address. Investors are therefore requested to provide the same, in the absence of which the application form will not be accepted. BANK ACCOUNT DETAILS In order to safeguard the interest of unitholders from loss or theft of their redemption cheques or dividend warrant, SEBI has made it mandatory for investors to provide their bank account details. Application Forms without bank details are liable to be rejected. DEMAT ACCOUNT The applicants under the Scheme (including a transferee) will be required to have a beneficiary account with a Depository Participant of NSDL/CDSL and will be required to indicate in the application the DP’s name, DP ID Number and its beneficiary account number with DP. In absence of the information in respect of DP ID/ Client ID the applications shall be rejected.

25. Mode of Payment: (a) Portfolio deposit: The authorized participant will be required to deposit gold of the pre-specified purity with the custodian in the proportion as declared by AMC from time to time. (b) Cash Component : For the cash component all cheques, bank drafts and pay order should be drawn in favour of “Reliance Gold Exchange Traded Fund” and be crossed “Account Payee Only”. If the cheque / Draft towards cash component is not honoured for any reason whatsoever, the application shall be rejected. (c) Allotment of Units against the investment made under the scheme, shall be subject to realization of instrument thereof.

PAYMENTS BY FOLLOWING MODES WILL NOT BE ACCEPTED

• Stock-invests • Cash • Outstation Cheques • Post-Dated Cheques (except in the case of Systematic Investment Plan)

RCAM may specify various other modes of payment from time to time.

LIST OF DOCUMENTS REQUIRED TO BE SUBMITTED ALONGWITH THE APPLICATION FORMS: Application under Power of Attorney: In the case the application made under a Power of Attorney (PoA), a duly attested copy of the Power of Attorney must be lodged along with the Application. The PoA Document must contain the signatures of both the PoA Executor and PoA holder.

Companies/Body Corporate • Certified copy of the Board Resolution authorising investments/ disinvestments in Mutual Funds

Schemes, certified by the Company Secretary / Authorised Signatory • List containing names designation and specimen signatures of the signatories, authorised as per the

above referred Board Resolution, duly attested by the bankers/ Company Secretary on the Company‘s letterhead

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• Copy of the Memorandum and Articles of Association of the Company duly attested by the Company Secretary or any other authorised signatory

• Other relevant documents governing the statute (in case of Body Corporate not covered under the Companies Act, 1956)

Partnership Firms • Copy of the Partnership Deed duly attested by any of the partners • Specimen Signatures of the partners attested by their bankers • Copy of the Resolution, signed by the partners, authorising investments/ disinvestments in the Fund

and corresponding operational procedures Trusts • Copy of the Trust Deed attested by the Trustees/ Secretary • Copy of the Resolution passed by the Trustees authorising investments/ disinvestments in Mutual

Fund Schemes, duly certified by the Trustees/ Secretary • List of Trustees and the specimen signatures, authorised as per the above resolution, duly attested

by the bankers/ Secretary of the Trust on the Trust‘s letterhead Co-operative Societies • Copy of the Registration Certificate attested by the Secretary/ office bearer of the society • Copy of the Resolution authorising investments/ disinvestments in the Fund and corresponding

operational procedures, duly attested by the Secretary/ office bearer of the society • List of authorised signatories with designation & their specimen signatures, attested by the bankers Non Resident Indians & Foreign Institutional Investors: In the case of NRIs/PIOs and FIIs (subject to RBI/appropriate authority approval) seeking to apply for Units on a non-repatriation basis, payment shall be made by way of inward remittance or by local cheques or demand draft payable in the city of the Designated Investor Service Centre drawn out of balances in their NRO/NRSR accounts maintained with banks authorised to deal with foreign exchange in India. Documents required to be submitted by NRIs alongwith the Application Form: • In case Indian rupee drafts are purchased abroad or from FCNR / NRE A/c., an account debit

certificate from the Bank issuing the draft confirming the debit shall also be enclosed alongwith the Application Form.

• For subscriptions amounts remitted out of debit to the FCNR / NRE A/c., the Application form must be accompanied with a Account Debit Certificate confirming the account type and account number, issued by the Investor’s banker(s).

• As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank account number in the application form. This is to safeguard the interest of Unit holders from loss or theft of their redemption cheques / DDs. Investors are requested to provide their bank details in the Application Form failing which the same will be rejected as per current Regulations.

26. Where to submit Application forms: During New Fund Offer Period: Investors may submit / mail the completed application forms at any of the Designated branches of the Collecting Banks. The addresses of the Designated Investor Service Centers are given at the end of this Offer Document. Ongoing Basis: Authorised Participants / Large Investors may submit / mail the completed application forms at any of the Designated Investor Service Centers of Reliance Mutual Fund. The addresses of the Designated Investor Service Centers are mentioned in this Offer Document. Investors in cities other

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than where the Designated Investor Service Centers (DISC) are located, may send their application forms to any of the nearest DISC, accompanied by Demand Draft/s payable locally at the DISC Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) are currently not available. 28. Nomination :

• Since the units of the scheme will be issued in electronic form in the depository account of the unit holder, the nomination registered with the Depository will be applicable to the units of the scheme.

• Such nomination including any variation, cancellation or substitution of Nominee(s) shall be governed by the rules and bye-laws of the Depository.

• Payment to the nominee of the sums shall discharge the Fund of all liability towards the estate of the deceased unit holder and his/her legal successors/legal heirs.

• Nomination can be made only by the individuals holding beneficiary (DP) accounts either singly or jointly. Non-individuals including society, body corporate, partnership firms, Karta of HUF, holder of power of attorney can not nominate. Only an individual including NRI can be a nominee. However nomination of NRI is subject to exchange control regulations in force from time to time.

• Society, trust, body corporate, partnership firm, Karta of HUF or Power of Attorney holder cannot be appointed as a Nominee.

• Minor can also be appointed as a nominee. However the guardian will sign on behalf of the • nominee and in addition to the name and photograph of the nominee, the name and address

and the photograph of the guardian must be submitted to DP. Only one nomination can be made for each depository account.

• The nomination form duly filled in should be submitted to the Depository Participant (DP) either at the time of account opening or later. The account holder, nominee and two witness must sign the form and the name, address and photograph of the nominee must be submitted. If the nomination was not made at the time of account opening, it can be made subsequently by submitting the nomination form.

• Nomination can be changed anytime by the account holder(s) by simply filling up the nomination once again and submitting it to the DP.

• In case nomination has been made for DP account with joint holders, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.

• In case nomination is not made by the sole holder of DP account, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However in case where the value of securities to be transmitted is less than Rs.1,00,000/- the DP may process the request based on the submissions of necessary letter of indemnity, surety, affidavits and NOC documents.

29. Redemption of Units: All investors including Authorised Participants, Large Investors and other investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. Mutual fund will repurchase units from Authorised Participants and Large Investors on any business day provided the units offered for repurchase is not less than 100 units. In case the fund is not in a position to sell the underlying gold in the market to generate cash, the fund reserves the right to / may exercise the option of redeeming the units of RGETF in the form of physical gold.

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The Authorised Participants & Large Investors may opt to take delivery of physical gold instead of redemption proceeds in cash, subject to a minimum of 100 units. In such a scenario, the Authorised Participants & Large Investors will have to collect the gold bar(s) from the Custodian at their own cost as per procedure prescribed by the AMC & its Custodian from time to time. Redemption Procedure Applications for redemption of RGETF units have to be submitted in the prescribed format duly completed and signed along with the delivery order duly receipted by the DP stating the number of RGETF units transferred to the scheme’s DP account . Application for redemption by non-individuals should be accompanied by certified copy (ies) of the board/governing body resolution clearly authorizing the official concerned to redeem units and to receive/collect securities/cash after complying with operational procedure and formalities. The application for redemption on a prescribed form will have to be submitted at the designated ISC before the cut off time. The number of units available for redemption in the account of the unitholder will be confirmed by the Registrars with the records maintained and downloaded by the depository with which the unitholder is holding the depository account. Redemption request will be processed further if the records as mentioned above show that the depository account has adequate number of units. The time taken for confirmation of redemption of units is dependent upon the download frequency that depository may permit. The registrar will instruct the custodian to sell the number of units to be redeemed. Redemption proceeds will be sent to the unitholder within 10 working days from the date of confirmation with the depository records. 30. Procedure for Redeeming RGETF in Creation Unit Size: The requisite number of RGETF units equaling the Creation Unit has to be transferred to the Fund’s DP account and the Cash Component to be paid to the AMC / Custodian. On confirmation of the same by the AMC, the Custodian will transfer the Portfolio Deposit by handing over the physical Gold of the predefined purity and quantity to the investor and pay the Cash Component, if applicable. The AMC may redeem Creation Unit of RGETF prior to receipt of all or portion of the relevant RGETF in certain circumstances where the purchaser, among other things, posts collateral to secure its obligation to deliver such outstanding RGETF units. The Portfolio Deposit and Cash Component for the RGETF may change from time to time due to change in NAV. The Fund may from time to time change the size of creation unit size in order to equate it with marketable lot of underlying physical gold. The procedures by which an authorized participant and large investors can redeem one or more baskets will be same as the procedures for the creation of units. On any business day, an authorized participant may send a redemption request to the AMC. The registrar will instruct the custodian to sell the number of units to be redeemed and the mode of redemption (physical gold or cash). The custodian will deliver the gold in physical form to the nearest 100 gram and the balance amount will be paid in cash.

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The number of Units so redeemed will be subtracted from the unitholder's account balance and a statement to this effect will be issued to the unitholder. In case the balance in unitholder's account does not cover the amount of redemption request, the Fund may close the unitholder's account and send the entire (lesser) balance to the unitholder, provided further that if the unitholder has made a partial redemption request which results in balance of units to fall below minimum application amount as per the latest NAV, the fund may close the unitholders account & redeem all units in the folio & remit the entire redemption proceeds to the investors. If an investor has purchased Units on more than one working day, the Units purchased prior in time (i.e. those Units which have been held for the longest period of time), will be deemed to have been redeemed first, i.e. on a First In First Out Basis. Units purchased by cheque or draft will not be redeemed until the realisation of the cheque/DD. Redemption Price : The Redemption Price will be calculated in the following way : Redemption Price = Applicable NAVx (1- Exit Load) Example: If the applicable NAV is Rs. 10.00, sales/entry load is 2 per cent and the exit/repurchase load is 2 percent then the sales price will be Rs. 10.20 and the repurchase price will be Rs. 9.80. The Fund will 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 Purchase Price of the Units shall not exceed the permissible limit of 7% of the Purchase Price, as provided for under the current Regulations. For detailed explanation on loads, please refer the Section on "Loads and Recurring Expenses-Section VII". The Redemption Price will be released to the press daily for being published in the newspaper, as prescribed under the Regulations, from time to time. Currently, redemptions shall be effected at applicable NAV based prices subject to exit loads. RCAM may revise the above pricing structure and transaction timings from time to time, subject to an exit load chargeable in accordance with the Regulations. However, any such revision shall be in accordance with SEBI Regulations and would be applicable only to units subscribed to after the initial date of such notification on a prospective basis. 31. Minimum Account Balance: RCAM reserves the right to close an investor's account if the value of the unit balance in the account falls below the minimum subscription amount under the scheme. In such an event, RCAM reserves the right to compulsorily redeem the balance units in the account completely at the applicable redemption price. The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when necessary. Such change may be brought about after taking into account the cost structure for a transaction / account and / or Market practices and / or the interest of the unit holders. Further such changes shall be carried out on a prospective basis from the date of notification of such change and would not, in any manner, be prejudicial to the interests of the investors who have joined the scheme before such notification. Any changes would be informed to unit holders by way of an advertisement.

32. Payment of Proceeds: a) Resident Investors Redemption proceeds will be paid either by direct credit to the investor / Authorized Participants bank account (where the Unit holder / Authorized Participants has an account with the bank with whom the fund has a tie up under intimation to Unit holder / Authorized Participants by post/email) or by cheques, marked “A/c. Payee only” and drawn in the name of the sole holder/first-named holder (as determined by the records of the Registrar). The Bank Name and Bank Account No, as specified in the Registrar’s records, will be mentioned in the cheque. The cheque will be payable at par at all the cities designated

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by the Fund from time to time. If the Unit holder resides in any other city, he will be paid by a Demand Draft payable at the city of his residence after deducting the Demand Draft charges. b) Non Resident Investors In case of non-resident investors / Authorized Participants, redemption proceeds will be remitted depending upon the source of investment as follows: (i) Repatriation Basis The proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident (Ordinary) account or NRSR account. When Units have been purchased through remittance in foreign exchange from abroad/by cheque/draft issued from proceeds of the Unit holders FCNR deposit or from funds held in the Unit holders Non Resident (External) account kept in India, the proceeds can be remitted to the Unit holder in foreign currency (any exchange rate fluctuation will be borne by the Unit holder) if desired by the Unit holder. (ii) Non Repatriation Basis a) When Units have been purchased from funds held in the Unit holders’ non-resident (Ordinary) account, the proceeds will be sent to the Unit holders Indian address for crediting to the Unit holders’ non-resident (Ordinary) account / NRSR account. b) When Units have been purchased from funds held in the Unit holders’ NRSR account, the proceeds will be sent to the Indian address for crediting to the Unit holders’ NRSR account. The Fund may make other arrangements for effecting payment of redemption proceeds in future. Despatch of Proceeds : As per SEBI Regulations, the Mutual Fund shall despatch the redemption proceeds within the maximum period allowed, which is currently 10 working days from the date of receipt of a valid redemption request by the mutual fund. All payments shall be despatched by ordinary mail (with or without UCP) or Registered Post or by Courier, unless otherwise required under the Regulations, at the risk of the Unit holder. Effect of Redemptions (i) On the Fund : The Unit capital and Reserves of the Scheme will stand reduced by an amount equivalent to the product of the number of Units redeemed and the Applicable NAV as on the date of redemption. (ii) On the unit holders account : The balances in the unit holders account will stand reduced by the number of Units redeemed. 33. Right to Limit Redemption : The Trustee may, in the general interest of the Unit holders of the Scheme under this Offer Document and keeping in view the unforeseen circumstances / unusual market conditions, limit the total number of Units which may be redeemed on any Working Day to 5% of the total number of Units then issued and outstanding under any Scheme / Plan or such other percentage as the Trustee may determine. The Trustee may, at its sole discretion in response to unforeseen circumstances or unusual market conditions including, but not limited to, extreme volatility of the stock, fixed income and money markets, extended suspension of trading on the stock exchanges, natural calamities, communication breakdowns, internal system breakdowns, strikes, bandhs, riots or other situations where the Trustee in consultation with RCAM, considers that such suspension is necessary, limit the total number of Units which may be redeemed on any working day to 5% of the total number of Units then in issue or such higher percentage as the Trustee may determine in any particular case. Any Units, which by virtue of these limitations are not redeemed on a particular Working Day, will be carried forward for redemption to the next Working Day, in the order of receipt. Redemptions so carried forward will be priced on the basis of the Redemption Price of the Working Day on which redemption is made. Under such circumstances, to the extent multiple redemption requests are received at the same time on a single Working Day, redemption's will be made on pro-rata basis, based on the size of each

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redemption request, the balance amount being carried forward for redemption to the next Working Day(s). 34. Suspension of Purchase and Redemption of Units: The purchase and/or redemption of Units may be suspended with prior approval of Trustees and Asset Management Company giving the details of circumstances and justification for the proposed action shall also be informed to SEBI in advance, temporarily or indefinitely when any of the following conditions exist at one/more Designated Investor Service Center's: 1. When the bullion markets in London and forex markets which provide basis for valuation are

closed otherwise than for ordinary holidays. 2. When, as a result of political, economic or monetary events or any circumstances outside the

control of the Trustee and the AMC, the disposal of the assets of the Scheme is not reasonable, or would not reasonably be practicable without being detrimental to the interests of the Unit holders.

3. In the event of breakdown in the means of communication used for the valuation of investments of the Scheme, without which the value of the securities of the Scheme cannot be accurately calculated.

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

5. In case of natural calamities, strikes, riots and bandhs. 6. In the event of any force, majeure or disaster that affects the normal functioning of the AMC or

the Registrar. 7. If so directed by SEBI. The normal time taken to process redemption and/ or purchase requests, as mentioned earlier, may not be applicable during such extraordinary circumstances. However, suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund shall be made applicable only after the approval from the Board of Directors of the Asset Management Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details of circumstances and justification for the proposed action shall also be informed to SEBI in advance. RMF also reserves the right at its sole discretion to withdraw sale of Units in the Scheme temporarily or indefinitely, if the AMC views that increasing the Scheme's size further may prove detrimental to the existing unit holders of the Scheme. An order/ request to purchase Units is not binding on and may be rejected by the Trustee, the AMC or their respective agents, unless it has been confirmed in writing by the AMC or its agents and (or) payment has been received. 35. Duration of the Scheme: The duration of the Scheme is perpetual. However, the scheme may be wound up if, 1. There are changes in the capital markets, fiscal laws or legal system, or any event or series of events occurs which in the opinion of the Trustees, require the scheme/ Plan to be wound up; or 2. 75% of the Unit holders in the Plan pass a resolution that the Plan be wound up; or 3. If SEBI directs the Scheme/ Plan to be wound up in the interest of Unit holders. 4. If the Plan fails to meet the criteria for minimum number of investors and maximum holding by a single investor as mentioned above.

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VII. LOADS AND RECURRING EXPENSES

A. LOAD STRUCTURE OF THE SCHEME: The Load structure shall be as indicated in Para B below on the 'Applicable Load Structure". Under the Scheme, RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme on the investment on prospective basis. The same will be notified to the unit holders. The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be permissible under the Regulations. All loads including CDSC for the Scheme shall be maintained in a separate account and may be utilised towards meeting the selling and distribution expenses as permitted under the Regulations. Any surplus in this account may be credited to the scheme, whenever felt appropriate by RCAM. B. APPLICABLE LOAD STRUCTURE: The following Load Structure is applicable during the new fund offer and continuous offer in the scheme till further notice. Entry & Exit Load : Maximum load of 7% under the scheme. The redemption price shall not be lower than 93% of NAV and the purchase price shall not be higher than 107% of the NAV and the difference between the redemption price and purchase price shall not exceed 7% of the purchase price. No entry or exit load will be levied on transactions with Authorised Participants and Large Investors during NFO or continuous offer. Contingent Deferred Sales Charge (CDSC): NIL Switch Facility: Switch-in into RGETF from other schemes will be allowed during the New Fund Offer period at the applicable loads. The Trustees reserve the right to change the load structure. Any imposition or enhancement of load in future shall be applicable on prospective investments only. At the time of changing the Load Structure: (i) The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Offer Documents and Abridged Offer Documents already in stock. The addendum will be sent alongwith the newsletter sent to the Unit holders immediately after the changes. (ii) Arrangements will be made to display the changes/modifications in the Offer Document in the form of a notice in all the Investor Service Centres and distributors/brokers office. (iii) The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slip issued to the investors on submission of the application form and will also be disclosed in the Account Statement or in the covering letter issued to the Unit holders after the introduction of such Load. C. FEES AND EXPENSES OF THE SCHEME: As per the provisions of the Regulations (as amended up to date), the following fees and expenses will be chargeable to the Scheme: 1. New Fund Offer Expenses (a) Present Scheme (Reliance Gold Exchange Traded Fund): The Scheme shall meet the entire expenses incurred during the new fund offer from the entry load and not through initial issue expenses in accordance with SEBI Circular dated April 4, 2006, being an open-ended scheme. Any expenses over & above the entry load amount shall be borne by the AMC. Reliance Fixed Horizon Fund – Plan A: The scheme was launched on April 7, 2006. As mentioned in the Offer Document, actual initial issue expenses were borne by the AMC.

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Reliance Fixed Horizon Fund – Plan B: The scheme was launched on May 25, 2006. As mentioned in the Offer Document, actual initial issue expenses were borne by the AMC. Reliance Equity Fund: The scheme was launched on March 28, 2006. Actual amount mobilized was approx. 5752crores. Actual Initial Issue Expenses – 4.0664 %. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Fixed Tenor Fund - Plan B: The scheme was launched on December 27, 2005. Actual amount mobilized in Plan B - Rs. 163.15 crores.Actual Initial Issue Expenses - 0.9584 %. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will beamortized on a weekly basis over the period of the scheme. Reliance Fixed Tenor Fund – Plan A: The scheme was launched on November 25, 2005. Actual amount mobilized in Plan A - Rs. 506.04 crores. Actual Initial Issue Expenses – 0.9584 %. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized on a weekly basis over the period of the scheme. Reliance Tax Saver (ELSS) Fund: The Scheme was launched on July 25, 2005. Actual amount mobilized – 670.09 crores. Actual Initial Issue Expenses – 4.7009%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Liquidity Fund: The scheme was launched on June 15, 2005. Actual amount mobilized - Rs. 462.68 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Regular Savings Fund: The scheme was launched on May 10, 2005. Actual amount mobilized - Rs. 2.035 lakhs. Actual Initial Issue Expenses– 2.457%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Fixed Maturity Fund – Series II: The scheme was launched on April 25, 2005. Actual amount mobilized –530. 46 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in the OfferDocument, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Index Fund - The scheme was launched on January 29, 2005. Actual amount mobilized Reliance Index Fund - Nifty Plan – Rs. 15.80 crores and in Sensex Plan – Rs. 3.72 crores. Actual Initial Issue Expenses –Nifty Plan – 0.79% and Sensex Plan – 0.81% of the amount mobilized in the respective plans. As mentioned in the Offer Document of the Reliance Index Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Fixed Maturity Fund Series I - The scheme was launched on March 29, 2005. Actual amount mobilized - Rs. 201.69 crores. Actual Initial Issue Expenses – Nil. Reliance Equity Opportunities Fund - The scheme was launched on February 14, 2005. Actual amount mobilized - Rs. 1772.68 crores. Actual Initial Issue Expenses - 3.1026% of the amount mobilized. As mentioned in the Offer Document of the Reliance Equity Opportunities Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance NRI Equity Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 92.96 crores. Actual Initial Issue Expenses - 3.39% of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Equity Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance NRI Income Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 2.03 crores. Actual Initial Issue Expenses - 2.45% of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Income Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Media & Entertainment Fund - The scheme was launched on September 16, 2004.Actual amount mobilized - Rs. 81.32 crores, Actual Initial Issue Expenses - 0.86% of the amount mobilized. As mentioned in the Offer Document of the scheme, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years.

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Reliance Floating Rate Fund - The scheme was launched on August 23, 2004. Actual amount mobilized - Rs. 590.59 crores, Actual Initial Issue Expenses - 0.02% of the amount mobilized As mentioned in the Offer Document of the scheme, initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. 2. Recurring Expenses of the Scheme: The ongoing fees and expenses of operating the Scheme on an annual basis, expressed as a percentage of the amount of the Scheme's average daily net assets, are estimated as follows: Items % of average daily

net assets (estimated)

Investment Management and Advisory Fees 0.50 Cost relating to Investors communication 0.25 Custodial Fees 0.50 Registrars Fees & Processing Charges including stamp duty, if any

0.10

Licensing Fees 0.01 Listing Fees 0.01 Marketing & Sales Promotion 1.10 Miscellaneous and other charges 0.03 Total 2.50 The above expenses are estimates only and are subject to change inter se as per actuals. Subject to SEBI Regulations, the Trustees reserves the right to modify the above estimate for recurring expenses on a prospective basis. The schemes estimated ordinary operating expenses are accrued daily commencing after the first day of the trading of the units on the NSE/BSE and are reflected in the NAV of the scheme. Fees are paid to the custodian for its custody services. The custodian is entitled to a fee that is accrued daily at an annual rate of the average daily aggregate value of the gold held in the scheme allocated account payable in monthly installments in arrears. The AMC will sell gold held by the scheme on an as-needed basis to pay the scheme’s expenses. As a result, the amount of gold to be sold will vary from time to time depending on the level of the scheme’s expenses and the market price of gold. Impact on Scheme Expenses Each time the scheme’s gold is sold to pay the scheme’s expenses, the amount of gold represented by each outstanding unit will be reduced. The following table demonstrates the impact of the scheme’s anticipated ordinary operating expenses on the NAV of the scheme over a five-year period base on the following assumptions. A beginning NAV of 95.78 crores based on 10 lakh units issued in exchange of 1000 Kgs of gold at a price of 1. Rs. 957.80 per gram. 2. No creations or redemptions of baskets over the five-year period.

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3. All expenses accrued during the periods presented below have been paid as of the end of such periods. Calculation of NAV: Assuming a constant gold price Year 1 2 3 4 5 Gold price per gram

957.80 957.80 957.80 957.80 957.80

Units 1000000.00 1000000.00 1000000.00 1000000.00 1000000.00 Grams 1000000.00 996000.00 992016.00 988047.94 984095.74 grams/unit 1.0000 0.9960 0.9920 0.9880 0.9841 NAV

957800000 953968800 950152924.80 946352313.10 942566903.85

NAV per unit 957.80 953.97 950.15 946.35 942.57 Annual Expenses

Ordinary operating exp

3831200.00 3815875.20 3800611.70 3785409.25 3770267.62

Expenses as a % NAV

0.40% 0.40% 0.40% 0.40% 0.40%

Grams of gold sold

4000.00 3984.00 3968.06 3952.19 3936.38

The above calculations are solely for the purpose of understanding of how the expenses will be recovered. The values taken for consideration may undergo changes depending on the actual expenses incurred. The calculations shown above are made assuming a constant price of gold over a period of 5 years. In practice, the actual prices of gold may increase or decrease and the NAV of the fund would proportionately increase or decrease as compared to the price of 1 gram of gold depending on the cash represented by 1 unit. As per the Regulations, RCAM can charge Investment Management Fees @ 1.25% of the average daily net assets for a corpus upto Rs.100 crores and 1% on the balance amount above Rs.100 crores, calculated on a daily basis. However, no AMC fees can be chargeable on RCAM's investment in the Scheme. The Trustee Company, RCTC, shall be entitled to receive a sum computed @ 0.05% of the Unit Capital of all the Schemes of RMF on 1st April each year or a sum of Rs.5,00,000/- which ever is lower or such other sum as may be agreed upon between the Settlor (RCL) and the Trustee (RCTC) from time to time in accordance with the SEBI Regulations or any other authority, from time to time. The above estimates have been made in good faith as per the information available to RCAM and are subject to change as per actuals. Expenses on an ongoing basis will not exceed the following percentage of the daily average net assets or such maximum limits as may be specified by SEBI Regulations from time to time.

Net Assets Maximum Expenses % Upto Rs.100 crores 2.50% Next Rs. 300 crores 2.25% Next Rs.300 crores 2.00% Balance 1.75%

Provided that such expenses shall be lesser by atleast 0.25% of the daily average net assets outstanding in each financial year in respect of a scheme investing in bonds.

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The Fund will strive to reduce the level of these expenses so as to keep them well within the maximum limits allowed by SEBI. The total expenses of the scheme including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6).

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VIII. UNITHOLDER'S RIGHTS AND SERVICES A. UNIT HOLDERS' RIGHTS 1) Unit holders under the Scheme have a proportionate right in the beneficial ownership of the assets of the Plan of the Scheme in which they have invested in, and to the dividend declared, if any, by the Fund under the Plan in which they have invested. 2) The Trustee shall be bound to make such disclosures to the unit holders as are essential in order to keep them informed about any relevant information, especially that which may have an adverse bearing on their investments. 3) a) If the Mutual Fund declares a dividend under the Scheme, the unit holders are entitled to receive dividend warrants within 30 days of the date of declaration of the dividend. b) Unit holders / Authorised Participants / Large Investors are entitled to receive Redemption cheques within 10 working days from the date of redemption. 4) The appointment of RCAM for the Fund may, with the prior approval of SEBI, be terminated by 75% of the unit holders or by a majority of the Board of Directors of the Trustee. 5) Unitholders shall also have the following rights: (i) To inspect all the documents listed under the heading "Documents Available for Inspection". ii) To receive an abridged scheme-wise annual report which shall be mailed to all unitholders not later than six months from the date of closure of the relevant accounting year and the full annual report shall be available for inspection at the head office of the fund and a copy shall be made available to the unitholders on request on payment of nominal fees if any, iii) Before expiry of one month from the close of each half year that is on 31/3 and 30/9, the Fund shall publish its un-audited financial results in one national English daily newspaper and in a newspaper in the language of the region where the Head Office of the fund is situated. These shall also be displayed on the web site of the Reliance Mutual Fund that is www.reliancemutual.com and that of AMFI. Full portfolio in the prescribed format shall also be disclosed either by publishing it in the newspapers or by sending to the unitholders within one month from the end of each half-year and it shall also be displayed on the web site of mutual fund. iv) The trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fees and expenses payable or any other change which would modify the scheme and affects the interest of the unitholders, shall be carried out unless, (i) a written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the mutual fund is situated; and (ii) the unitholders are given an option to exit at the prevailing Net Asset Value without any exit load. (v) Suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund shall be made applicable only after the approval from the Board of Directors of the Asset Management Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details of circumstances and justification for the proposed action shall also be informed to SEBI in advance. vi) Policy for Unclaimed Redemption and Dividend Amount. As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call money market or money market instruments only or such other instruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds shall be used for the purpose of investor education.

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The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by RCAM for managing unclaimed amounts shall not exceed 50 basis points. vii) The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the unitholders approval would be obtained where it affects the interest of unitholders 6) 75% of the unit holders can pass a resolution to wind-up the Scheme 7) The Trustee is obliged to convene a meeting on a requisition of 75% of the unit holders of a Scheme 8) The Trustee is obliged to obtain the consent of the unit holders - (a) Whenever required to do so by SEBI in the interest of the unit-holders; or (b) Whenever required to do so on the requisition made by three-fourths of the unit holders of the

Scheme; or (c) When the majority of the Board of Directors of the Trustee decides to wind up or prematurely redeem the units. B. Register of Unit holders : A Register of Unit holders shall be maintained at the office of RCAM and / or at the office of the Registrars and at such other places as the Trustee may decide and the register shall contain particulars as follows: a) The names and addresses of Unit holders b) The number of units held by each such holder C. VOTING RIGHTS OF THE UNIT HOLDERS: Subject to the provisions of the Regulations as amended from time to time, the consent of the unit holders shall be obtained, entirely at the option of the Trustee, either at the meeting of the unit holders or through postal ballot. Only one Unit holder in respect of each folio or account representing a holding shall vote and he shall have one vote per unit in respect of each resolution to be passed. D. Dispatch of Account Statement: Units issued by the AMC under the scheme shall be credited to the investor’s beneficiary account with a Depository Participant (DP) of CDSL or NSDL. The AMC will endeavour to credit the units to the beneficiary account of the unitholder within five business days from the date of receipt of credit of the Cash. The AMC shall issue an intimation about the allotment of units to investors whose beneficiary accounts are credited on allotment of units under the scheme within thirty days of allotment either through physical form or through email as may be decided by the Fund from time to time. The Account Statement of the Beneficiary Account with the DP will be sent by the respective DPs periodically.

• Refunds

No interest will be payable on any subscription money refunded within six weeks from the date of closure of the New Fund Offer. . In the event of the AMC’s failure to refund within the period stipulated above, interest @ 15% p.a. will be paid to the applicant from the 43rd day of the date of closure of the New Fund Offer to the date of refund and borne by the AMC. Refund orders will be marked "A/c. payee only" and drawn in the name of the applicant in the case of a sole applicant and in the name of the first applicant in all other cases. In both cases, the bank account number and bank name, as specified in the application, will be mentioned in the refund order. The bank and/ or collection charges, if any, will be borne by the applicant. All the refund payments will be mailed by registered post or as required under Regulations. In the case of holdings specified as 'jointly', all requests will have to be signed by all the joint holders. However, in the case of holdings specified as 'any one or survivor', any one of the joint holders may sign such requests. E. NAV INFORMATION: The NAV of the Scheme will be calculated and declared by the Fund on every Working Day by 9.00 p.m.. The information on NAV may be obtained by the Unitholders, on any day from the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centres.

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The NAV shall be published in two daily newspapers on a daily basis. The NAV shall be calculated up to four decimals.

Investors may also obtain information on the purchase /sale price for a given day on any Working Day from the office of the AMC / the office of the Registrar in Hyderabad/ any of the other Designated Investor Service Centres. For any NAV information, investor may also call Reliance Mutual Fund’s Call centre at 022 -3030 1111, callers outside India, please dial +(91) 22-30301111. F. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS: The Scheme-wise Annual Report of RMF will be prepared and an abridged summary of the Annual Report will be published through an advertisement and mailed to all unitholders as soon as may be but not later than six months from the date of the closure of the relevant financial year. The Unaudited financial results will be published through an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated before the expiry of one months from the close of each half year, that is on 31st March and on 30th September or as may required by the Regulations from time to time. The scheme’s portfolio in the prescribed format as per SEBI guidelines, will be published through an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the H.O. of Mutual Fund is situated before the expiry of one month from the close of each half year i.e. 31st March and 30th September or send a copy of the same to all eligible unitholders. Investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-022-30301111.

G. SERVICES TO UNIT HOLDERS: 1. Investor Services: It is the endeavour of the Fund to provide consistently high quality service to its investors. This would encompass all interactions by the unitholder / Investor with the Fund. The Fund will strive to upgrade the quality of services through implementation of technology, through ensuring quality consciousness amongst its service personnel and agencies associated with it. The Fund will endeavour to provide a high degree of convenience for the investors' dealings with itself. The Fund will strive to constantly increase this level of convenience. 2. Facilitating Enquiries and Transactions: Unitholders' enquiries and transactions during business hours will be entertained at the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centre. 3. Finding Solutions to Problems: The Fund will follow up with the Registrar on complaints and enquiries received from investors. The Fund will strive to speedily resolve investor complaints. 4. Unitholder Grievances Redressal Mechanism: Investor grievances will normally be received at the Corporate Office of the AMC or at the head office of the Registrar. All grievances received at the AMC, will then be forwarded to the Registrar, if required, for necessary action. The complaints will be closely followed up with the Registrar to ensure timely redressal and prompt investor service. Mr. Prashanth Pereira is the Investor Relations Officer for the Fund. All related queries should be addressed to him at the following address:

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Mr. Prashanth Pereira Reliance Capital Asset Management Limited Express building, 4th floor, Opp. Churchgate Station, Mumbai - 400020 Tel: 022-30414800 ; Fax: 022-30414818 Email: [email protected] 5. Correspondence : All correspondence, including change in the name, address, designated bank account number and bank branch, loss of Account Statement / Unit Certificates, etc. should be addressed to M/s. Karvy Computershare Private Limited - UNIT RMF , Karvy Plaza, 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034. (Tel No. 040- 23394828). For any further information, you may send us an E-mail to : [email protected] or contact Touchbase our customer service centre at 30301111, callers outside India, Please dial 91-40-30301111. 6. Investors' Complaints History : Reliance Mutual Fund mails to its Investors their Account Statement not later than one month from the date of the closure of the New Fund Offer period and within ten working days or within SEBI prescribed limits on an ongoing basis. Since then RMF has received, either directly or through its Registrars, some complaints / requests, the bulk of which pertain to non-receipt of Account Statement or correction of Name or Address etc. RMF works closely with its Registrar to provide prompt service to its Investors and has been able to attend to most standard complaints within normal response times. The status of complaints relating to RMF Schemes received upto October 16, 2006 is given below: Schemes Period Complaints

Received Complaints Redressed

Complaints Pending

Reliance Growth Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – Oct 16, 06

118 693 1970 2090

118 693 1970 2090

Nil Nil Nil Nil

Reliance Vision Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

283 1033 1405 1506

283 1033 1405 1506

Nil Nil Nil Nil

Reliance Income Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

203 392 157 73

203 392 157 73

Nil Nil Nil Nil

Reliance Liquid Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

26 110 59 57

26 110 56 57

Nil Nil Nil Nil

Reliance Medium Term Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

51 322 68 33

51 322 68 33

Nil Nil Nil Nil

Reliance Short Term Fund

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

74 41 7 18

74 41 7 18

Nil Nil Nil Nil

Reliance Fixed Term scheme

2003-2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

1 11 135 16

1 11 135 16

Nil Nil Nil Nil

Reliance Banking Fund

May 03- 31 March, 2004 2004-2005 2005-2006

1 23 372

1 23 372

Nil Nil Nil

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April 1, 06 – 16 Oct, 06 365 365 Nil Reliance Gilt Securities Fund

June 03- 31 March, 2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

4 4 Nil 1

4 4 Nil 1

Nil Nil Nil Nil

Reliance Monthly Income Plan

Jan 04 - 31 March, 2004 2004-2005 2005-2006 April 1, 06 – 16 Oct, 06

475 815 422 282

475 815 422 282

Nil Nil Nil Nil

Reliance Diversified Power Sector Fund

March 04 - 2005 2005-2006 April 1, 06 – 16 Oct, 06

917 1285 806

917 1285 806

Nil Nil Nil

Reliance Pharma Fund

May 04 – 31 March, 2005 2005-2006 April 1, 06 – 16 Oct, 06

352 305 112

352 305 112

Nil Nil Nil

Reliance Floating Rate Fund

August 04 – 31 March, 2005 2005-2006 April 1, 06 – 16 Oct, 06

11 40 74

11 40 74

Nil Nil Nil

Reliance Media & Entertainment Fund

September 04 – 31 March, 20052005-2006 April 1, 06 – 16 Oct, 06

50 51 45

50 51 45

Nil Nil Nil

Reliance Equity Opportunities Fund

Feb05 – 31,March, 2005 2005-2006 April 1, 06 – 16 Oct, 06

Nil 4915 1815

Nil 4915 1815

Nil Nil Nil

Reliance NRI Equity Fund

November 04 – 31 March, 20052005-2006 April 1, 06 – 16 Oct, 06

110 35 769

110 35 769

Nil Nil Nil

Reliance NRI Income Fund

November 04 – 31 March, 20052005-2006 April 1, 06 – 16 Oct, 06

16 Nil Nil

16 Nil Nil

Nil Nil Nil

Reliance Index Fund – Nifty Plan

Jan2005 – 31,March2005 2005-2006 April 1, 06 – 16 Oct, 06

1 2 4

1 2 4

Nil Nil Nil

Reliance Index Fund – Sensex Plan

April 1, 06 – 16 Oct, 06

1

1

1

Reliance Fixed Maturity Fund – Series I

Feb05 – 31,March, 2005 2005-2006 April 1, 06 – 16 Oct, 06

Nil 2 Nil

Nil 2 Nil

Nil Nil Nil

Reliance Fixed Maturity Fund – Series II

2005-2006 April 1, 06 – 16 Oct, 06

3 12

3 12

Nil Nil

Reliance Tax Saver Fund

2005-2006 April 1, 06 – 16 Oct, 06

2430 1709

2430 1709

Nil Nil

Reliance Regular Saving Equity Fund

2005-2006 April 1, 06 – 16 Oct, 06

122 310

122 310

Nil Nil

Reliance 2005-2006 Nil Nil Nil

83

Liquidity Fund April 1, 06 – 16 Oct, 06 Nil

Nil

Nil

Reliance Regular Saving Debt Fund

2005-2006 April 1, 06 – 16 Oct, 06

1 3

1 3

Nil Nil

Reliance Regular Saving Hybrid Fund

2005-2006 April 1, 06 – 16 Oct, 06

6 16

6 16

Nil Nil

Reliance Fixed Tenor Fund – Plan A

2005-2006 April 1, 06 – 16 Oct, 06

10 10

10 10

Nil Nil

Reliance Fixed Tenor Fund- Plan B

2005-2006 April 1, 06 – 16 Oct, 06

1 1

1 1

Nil Nil

Reliance Equity Fund

2005-2006 April 1, 06 – 16 Oct, 06

Nil 9539

Nil 9539

Nil Nil

Please note that 210 complaints were received through SEBI from April 1, 2003 to October 16, 2006 and the same were duly resolved.

84

IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND:

The certain tax benefits are available to the Mutual Fund and the Unit holders as mentioned hereinafter. It may however be noted that the information given herein is only for general information purposes, as per the Tax laws currently in force in India. As is the case with any interpretation of any law, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will be accepted by the tax authorities or will continue to be accepted by them indefinitely. Further statements with regard to tax benefits mentioned herein below are mere expressions of opinion and are not representations of the Mutual Fund to induce any investor to acquire units whether directly from the Mutual Fund or indirectly from any other persons by the secondary market operations. In view of the above, and since the individual nature of tax consequences may differ in each case on its merits and facts, each Investor / Unit holder is advised to consult his / her or its own professional tax advisor with respect to the specific tax implications arising out of its participation in the Scheme, as a unit holder. In view of the above, it is advised that the unit holders appropriately consult their investment / tax advisors in this regard. Tax Benefits to the Mutual Fund : Reliance Mutual Fund is a Mutual Fund registered with the Securities & Exchange Board of India and hence the entire income of the Mutual Fund will be exempt from income tax in accordance with the provisions of Section 10(23D) of the Income-tax Act, 1961, (the Act). The Mutual Fund will receive all income without any deduction of tax at source under the provisions of Section 196(iv) of the Act. An exemption has been granted under the Finance (No.2) Act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004. However, as per the taxation laws in force, read with Chapter VII of the Finance (No. 2) Act, 2004 pertaining to Dividend Distribution Tax, it is provided that on income distribution, if any, made by the Fund, on or after 1 April, 2004, to its Unitholders, being Individuals and Hindu Undivided Family, Dividend Distribution tax will be payable under Section 115R of the Act, at the rate of 14.025 % (inclusive of surcharge and additional surcharge called Education Cess on income-tax), and to other Unitholders at the rate of 22.44% (inclusive of surcharge and additional surcharge called Education Cess on income-tax), except, inter alia, in the case of equity-oriented funds (including close ended equity funds)(i.e. such fund where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 65% of the total proceeds of such Fund), where no such tax will be payable. The RGETF is categorized as a scheme other than equity oriented mutual fund scheme. "Equity oriented fund" is defined as - • a fund where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty five percent of the total proceeds of such fund; and • which has been set up under a scheme of a Mutual Fund specified in Section 10 (23D) of the Act. RGETF is classified as a Scheme other than Equity Oriented Mutual Fund Scheme. Hence, Securities Transaction Tax is not applicable in respect of RGETF. By virtue of section 45 of the Wealth Tax Act, 1957, wealth tax is not chargeable in respect of net wealth of a Mutual Fund registered under section 10(23D) of the Income Tax Act, 1961, hence Reliance Mutual Fund is not liable to pay Wealth Tax under the provisions of the Wealth Tax Act, 1957.

85

TAX BENEFITS TO THE UNITHOLDERS: (i). Income-tax Tax on Income distributed by the Mutual Fund All Unit holders Income received by unit holders in respect of the units of the Mutual Fund, is exempt from tax under Section 10(35) of the Act. Tax Deduction at Source All Unit holders In view of the exemption of income in the hands of the Unit holders, no income tax is deductible at source, on income distribution by the Mutual Fund on or after April 1, 2003, under the provisions of Sections 194K and 196A of the Act. As per section 196B of the Act, tax is required to be deducted at the rate of 11.22 per cent (inclusive of surcharge on income-tax at the rate of 10 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on the amount of tax inclusive of surcharge) from income payable in respect of units purchased in foreign currency to approved overseas financial organizations. (ii) Tax on Capital Gains Long-term Capital Gains on redemption of units: Long-term capital gains in respect of units, held for a period of more than 12 months, will be chargeable under Sec. 112 of the Act, at the rate of 20 per cent. However, where the tax payable on such long-term capital gains, computed before indexation, exceeds 10% of the amount of capital gains, such excess tax shall not be payable by the unit holder. In case of resident individuals and HUFs, where the total income as reduced by long-term capital gains, is below the basic exemption limit, the long-term capital gains will be reduced to the extent of the shortfall and only the balance long-term capital gains will be subjected to the 20 per cent tax or the 10 per cent as the case may be. The said tax rate would be increased by a surcharge of 10 per cent in case of non-corporate unit holders excluding firms, where the total income exceeds Rs. 10,00,000. In the case of firms and corporate unit holders, the 10 per cent surcharge is payable irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Short-term Capital Gains on redemption of units:: Short-term capital gains in respect of units held for not more than 12 months is added to the total income of the assessee and taxed at the applicable slab rates specified by the Act. Foreign Institutional Investors: Long-term capital gains arising on sale/repurchase of units, held for a period of more than twelve months, would be taxed at the rate of 10 per cent under Section 115AD of the Act (subject to the exemption of tax on long-term capital gains provided for in Sec. 10(38) of the Act, discussed elsewhere in this document) . The said tax rate would be increased by a surcharge of 2.5 per cent. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Such gains would be calculated without inflation index and currency fluctuations. Short-term capital gains arising on sale/repurchase of units would be taxed at 30 per cent (10% if such short term capital gains is of the nature referred in section 111A of the Act, discussed elsewhere in this document). The said applicable tax rate would be increased by 2.5 per cent surcharge. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge.

86

Specified overseas financial organizations: As per the provisions of section 115AB of the Act, long-term capital gains arising on sale/repurchase of units purchased in foreign currency shall be liable to tax at the rate of 10 per cent. The said tax rate would be increased by 10% per cent surcharge. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. However, such gains shall be computed without the benefit of cost indexation. Short-term capital gains arising on sale/repurchase of units would be taxed at 40 per cent in case of foreign companies and 30 per cent in case of others. The said tax rate would be increased by applicable surcharge of 10 per cent in case of non-corporate Unit holders excluding firms, where the total income exceeds Rs. 10,00,000 . The 10 per cent surcharge is payable in the case of domestic corporate Unit holders irrespective and firms of the amount of taxable income. In the case of foreign corporates the rate of surcharge would be 2.5% Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Tax Treaty : In the case of a non-resident unit holder who is resident of a country with which India has signed a Double Taxation Avoidance Agreement (DTAA), (which is in force), income tax is payable at the rate provided in the Act or at the rate provided in the such agreement, whichever is more beneficial to such non resident unit holder. In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required to provide a certificate from his Assessing Officer stating his eligibility for the lower rate. Dividend Stripping All Unit holders : As per Section 94(7) of the Act, loss arising on sale of Units, which are bought within 3 months prior to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of the Unit holders to receive the income) and sold within 9 months after the record date, shall be ignored for the purpose of computing income chargeable to tax to the extent of exempt income received or receivable on such Units. Tax Deduction at Source on Capital Gains Domestic Unit holders: No income tax is deductible at source from income by way of capital gains under the provisions of the Act. Foreign Institutional Investors : Under Section 196D of the Act, no deduction shall be made from any income by way of capital gains, in respect of transfer of units referred to in Section 115AD of the Act. Specified overseas financial organizations : As per section 196B of the Act, income tax is deductible on long-term capital gains on units of debt oriented mutual funds arising on repurchase of units purchased in foreign currency, at the rate of 10 per cent. The said tax rate would be increased by applicable surcharge of 2.5% per cent in case of corporate Unit holders irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Income tax is deductible on short-term capital gains arising on sale / repurchase of units at the rate of 40 per cent plus applicable surcharge at the rate of 2.5 per cent in case of foreign companies. Further, an additional surcharge of 2 per cent by way of education cess would be deducted on amount of tax inclusive of surcharge Other Non-resident Unit holders : In the case of a non-resident other than a company: Income tax is deductible on long-term capital gains arising on sale / repurchase of units of debt oriented mutual funds at the rate of 20 per cent. Income tax is deductible on short-term capital gains arising on sale / repurchase of units of debt oriented mutual funds at the rate of 30 per cent.

87

The above tax rates would be increased by a surcharge of 10 per cent, where the total income exceeds Rs. 10,00,000. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. In the case of a foreign company: Income tax is deductible on long-term capital gains arising on repurchase of units of debt oriented mutual funds at the rate of 20 per cent. Income tax is deductible on short-term capital gains arising on sale / repurchase of units debt oriented mutual funds at the rate of 40 per cent. The above tax rates would be increased by a surcharge of 2.5 per cent. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Tax Treaty: In accordance with the provisions of Circular no.728 dated October 30, 1995 issued by the Central Board of Direct Taxes ('CBDT'), in case of a non resident unit holder who is a resident of a country with which India has signed a Double Taxation Avoidance Agreement (DTAA) which is in force, the tax should be deducted at source under section 195 of the Act at the rate provided in the Finance Act of the relevant year or the rate provided in the said agreement, whichever is more beneficial to such non-resident unit holder. In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required to provide a certificate from his Assessing Officer stating his eligibility for the lower rate. Exemptions from long-term capital gains

I. As per the provisions of section 54EC of the Act, long-term capital gains on units of non –equity oriented mutual funds shall be exempt from tax to the extent such capital gains are invested, within a period of six months of such transfer, in acquiring notified bonds. However, if the said bonds are transferred within a period of 3 years from the date of their acquisition, the amount of capital gains exempted earlier would become chargeable to tax as long-term capital gains in the year in which the bonds are transferred.

II. As per the provisions of Sec 54F of the Act in the case of an individual or a HUF, long-term capital gains on non-equity oriented mutual funds are not chargeable to tax if the entire net consideration received on such transfer is invested within the prescribed period in a residential house. If part of such net consideration is invested within the prescribed period in a residential house, then proportionate exemption is available.

Other Benefits : Investments in Units of the Mutual Fund will rank as an eligible form of investment under Section 11 (5) of the Act read with Rule 17C of the Income-tax Rules, 1962, for Religious and Charitable Trusts. (ii). Wealth-tax: Units held under the scheme are not treated as assets as defined under Section 2(ea) of the Wealth-tax Act, 1957 and thereof would not liable to wealth-tax. However, converting RGETF units to Gold may attract Wealth tax. (iii). Gift-tax: The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units, purchased under the scheme, would therefore, be exempt from gift-tax. The tax benefits to the Mutual Fund and Unit Holders is in accordance with the prevailing tax laws. EACH INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX CONSULTANT WITH RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISING OUT OF HIS OR HER PARTICIPATION IN THE SCHEME.

88

X. CONDENSED FINANCIAL INFORMATION

Historical Per Unit Statistic Reliance Monthly Income Plan Reliance Floating Rate Fund

Date of allotment 13-Jan-04 02-Sep-04

2004-2005 2005-2006

April 01,2006 to October 16,2006

Sept 2, 2004 to Mar. 31,

2005

2005-2006

April 01,2006 to October 16,2006

NAV At The Beginning of the period

Growth Plan 10.1318 10.6687 12.6023 10.0044 10.2963 10.8775

Bonus Plan N.A N.A N.A 10.0044 N.A N.A

Dividend Plan N.A N.A N.A 10.0044 N.A N.A

Daily Dividend Plan N.A N.A N.A N.A 10.0447 10.0635

Weekly Dividend Plan N.A N.A N.A N.A 10.0668 10.0782

Monthly Dividend Plan 10.1318 10.2073 11.1954 N.A 10.0687 10.1138

Quarterly Dividend Plan 10.1318 10.1692 11.4266 N.A N.A. N.A.

Net Income Per Unit 1.13 0.81 0.71 0.45 1.34 0.24

Dividends:

Monthly Dividend plan 0.32 0.80 0.37 0.15 0.51 0.30

Quarterly Dividend Plan 0.24 0.55 0.50 N.A N.A N.A

Daily Dividend Plan N.A N.A N.A N.A 0.53 0.36

Weekly Dividend Plan N.A N.A N.A N.A 0.52 0.35Dividend (Re Investment) Plan N.A N.A N.A N.A N.A N.AInstitutional Monthly Dividend Plan N.A N.A N.A N.A N.A N.ATransfer To Reserve (if Any) Nil Nil Nil Nil Nil NilNAV at the End of the Period

Growth Plan 10.6687 12.6013 13.4905 10.2963 10.8757 11.2681

Monthly Dividend plan 10.2073 11.1945 11.6038 10.0687 10.1121 10.1691

Quarterly Dividend Plan 10.1692 11.4256 11.7227 N.A N.A N.A

Bonus Plan N.A N.A N.A N.A N.A N.ADividend Re-Investment Plan N.A N.A N.A N.A N.A N.A

Daily Dividend Plan N.A N.A N.A 10.0447 10.0636 10.0618

Weekly Dividend Plan N.A N.A N.A 10.0668 10.0894 10.0830

Dividend Plan N.A N.A N.A N.A N.A N.A

Institutional – Dividend N.A N.A N.A N.A N.A N.A

Institutional – Growth N.A N.A N.A N.A N.A N.A

89

Returns in (%) 5.51% 11.75% 12.65% 2.96% 5.56% 5.98%Benchmark Returns in (%) 1.64% 2.39%

Crisil MIP Blended Index Crisil Liquid Fund Index Net Assets at the end of the period (Rs. In Crs.) 250.91 345.82 454.08 557.96

306.69

753.67

Ratio of Recurring expenses to Net Assets (%) 1.79% 2.00% 2.00% 0.53% 0.55% 0.55%

Historical Cost Per Unit Statistic RELIANCE REGULAR

SAVING FUND - DEBT

RELIANCE REGULAR SAVING FUND -

EQUITY

RELIANCE REGULAR SAVING

FUND - HYBRID Date of allotment 09-Jun-05

2005-2006 April

01,2006 to October 16,2006

2005-2006

April 01,2006 to October 16,2006

2005-2006

April 01,2006

to October 16,2006

NAV At The Beginning of the

period

Growth Option 10.0275 10.2799 10.0242 11.8612 10.0269 10.3049

Net Income Per Unit 0.09 0.11 1.09

1.16 0.06

0.83

Dividend: Dividend Plan NIL NIL NIL NIL NIL NILTransfer to Reserve (if any) NIL NIL NIL NIL NIL NILNAV at the End of period Growth Option 10.2787 10.4201 11.8619 14.5564 10.3040 11.3098 Returns in (%) 2.79% 3.10% 18.62% 33.67% 3.04% 9.68%Benchmark Returns in (%) Net Assets at the end of the period (Rs in Crs.)

0.57

1.27

30.20

109.78

1.82

2.11

Ratio of Recurring expenses to Net Assets (%) 1.75% 1.75% 2.50% 2.50% 2.25% 2.25%

90

Historical Per Unit Statistic RELIANCE LIQUIDITY FUND Date of allotment 16-Jun-05

June 16, 2005 to March 31,2006

April 01,2006 to October 16,2006

NAV At The Beginning of the period Growth Plan 10.0014 10.4599 Bonus Plan NA NA Daily Dividend Plan 10.0000 10.0049 Weekly Dividend Plan 10.0014 10.0037 Monthly Dividend Plan Net Income Per Unit 0.28 0.37 Dividends: Daily Dividend Plan 0.48 0.36 Weekly Dividend Plan 0.49 0.35 Monthly Dividend Plan 0.17 0.15 Transfer To Reserve (if Any) Nil Nil

NAV at the End of the Period Growth Plan 10.4581 10.8417 Bonus Plan NA NA Daily Dividend Plan 10.0031 10.0031 Weekly Dividend Plan 10.0019 10.0077 Monthly Dividend Plan - 10.6901 Returns in (%) 4.58% 6.31% Benchmark Returns in (%) Crisil Liquid Fund Index Net Assets at the end of the period (Rs. In Crs.) 3,003.41 5,253.95 Ratio of Recurring expenses to Net Assets (%) 0.40% 0.40%

91

Historical Cost Per Unit Statistic

Reliance Diversified Power Sector Fund

Reliance Pharma Fund

Date of allotment 30-Apr-04 06-Jun-04

April 2004-2005 2005-2006

April 01,2006 to October 16,2006

Jun 2004 to Mar 31,

2005

2005-2006

April 01,2006

to October 16,2006

NAV At The Beginning of the period

Growth Option 10.0404 14.3074 30.0713 10.0048 12.1514 19.9698

Bonus Option 10.0404 14.3079 30.0713 10.0048 12.1513 19.9698

Dividend Plan 10.0404 14.3085 24.8703 10.0048 12.1515 18.7890

Net Income Per Unit 0.41 3.64 1.43 0.45 4.41 1.82

Dividend:

Dividend Plan NIL 4.00 NIL NIL 1.00 NILTransfer to Reserve (if any) NIL NIL NIL NIL NIL NILNAV at the End of period

Growth Option 14.3074 30.0716 30.4986 12.1514 19.9708 19.3768

Bonus Option 14.3079 30.0716 30.4986 12.1513 19.9708 19.3768

Dividend Plan 14.3085 24.8706 25.2386 12.1515 18.7899 18.2328

Returns in (%) 43.07% 104.66% 83.23% 21.51% 54.89% 39.70%Benchmark Returns in (%) 9.54%

India Power Index BSE Health Care

Index

Net Assets at the end of the period (Rs in Crs.) 317.15 702.14 678.09 145.48 146.19 118.19Ratio of Recurring expenses to Net Assets (%) 2.00% 2.03% 1.95% 2.13% 2.17% 2.20%

92

Historical Cost Per Unit Statistic Reliance Media & Entertainment Fund

Date of allotment 07-Oct-04

Oct 2004 to Mar 31,

2005 2005-2006 April 01,2006 to

October 16,2006

NAV At The Beginning of the period

Growth Option 10.008 10.3457 18.9787

Bonus Option 10.008 10.2461 18.9787

Dividend Plan 10.008 10.3469 17.7748

Net Income Per Unit 0.4 6.82 1.65

Dividend:

Dividend Plan NIL 1.00 NIL

Transfer to Reserve (if any) NIL NIL NIL

NAV at the End of period

Growth Option 10.3457 18.9796 20.0178

Bonus Option 10.2461 18.9796 20.0178

Dividend Plan 10.3469 17.7756 18.7384

Returns in (%) 3.46% 60.70% 49.48%

Benchmark Returns in (%)

S&P CNX Media & Entertainment Index

Net Assets at the end of the period (Rs in Crs.) 20.44 38.00 37.83

Ratio of Recurring expenses to Net Assets (%) 2.26% 2.23% 2.23%

Historical Cost Per Unit Statistic Reliance NRI Equity Fund Reliance NRI Income Fund

Date of allotment 16-Nov-04 16-Nov-04

Nov 2004 to Mar 31,

2005 2005-2006

April 01,2006

to October 16,2006

Nov 2004 to Mar 31,

2005 2005-2006

April 01,2006

to October 16,2006

NAV At The Beginning of the period

Growth Option 10.0295 11.3381 18.7857 10.0234 10.1701 10.6211

Bonus Option 10.0295 11.3381 18.7857 10.0234 N.A N.A

93

Dividend Plan 10.0295 11.3381 18.7857 10.0234 10.1942 10.6211

Net Income Per Unit 1.15 7.12 5.70 1.00 0.62 0.43

Dividend:

Dividend Plan NIL NIL 1.00 NIL NIL NIL Transfer to Reserve (if any) NIL NIL NIL NIL NIL NIL NAV at the End of period

Growth Option 11.3381 18.7868 23.4989 10.1701 10.6196 10.9919

Bonus Option 11.3381 18.7868 23.4989 N.A N.A N.A

Dividend Plan 11.3381 18.7868 22.2733 10.1942 10.6196 10.9919

Returns in (%) 13.38% 64.14% 70.49% 1.94% 4.52% 5.18% Benchmark Returns in (%) 9.23% 3.12%

BSE 200 Index Composite Bond Fund

Index

Net Assets at the end of the period (Rs in Crs.) 88.88 104.80 113.80 2.29 1.35 1.06 Ratio of Recurring expenses to Net Assets (%) 2.50% 2.47% 2.47% 1.53% 1.49% 1.49%

Historical Cost Per Unit Statistic

Reliance Index Fund – Sensex Plan Reliance Index Fund – Nifty Plan

Date of allotment 08-Feb-05 08-Feb-05

Feb

2005 to Mar 31,

2005

2005-2006

April 01,2006 to October 16,2006

Feb 2005 to Mar 31,

2005 2005-2006

April 01,2006 to October 16,2006

NAV At The Beginning of the period

Growth Option 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658

Bonus Option 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658

Dividend Plan 9.9807 9.8194 17.1036 9.9827 9.8834 14.3658

Net Income Per Unit 0.30 1.15 1.14 0.29 5.23 0.32

Dividend:

Dividend Plan NIL NIL NIL NIL NIL NIL Transfer to Reserve (if any) NIL NIL NIL NIL NIL NIL

NAV at the End of period

Growth Option 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

Bonus Option 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

Dividend Plan 9.8194 17.1036 19.1446 9.8834 14.3671 15.2709

94

Returns in (%) -1.99% 62.33% 54.27% -1.17% 38.32% 31.28% Benchmark Returns in (%) -0.0156 -1.93%

BSE Index NSE Index

Net Assets at the end of the period (Rs in Crs.) 0.85 1.57 3.71 2.15 1.20 1.15 Ratio of Recurring expenses to Net Assets (%) 1.50% 1.47% 1.49% 1.50% 1.43% 1.30%

Historical Cost Per Unit Statistic Reliance Equity Opportunity

Fund Reliance Tax Saver

(ELSS) Fund Reliance

Equity Fund

Date of allotment 31-Mar-05 22-Sep-05 28-Mar-06

Mar-05 2005-2006

April 01,2006 to October 16,2006

Sep 22,2005 to March 31,2006

April 01,2006 to October 16,2006

Mar 28,2006 to March 31,2006

April 01,2006

to October 16,2006

NAV At The Beginning of the

period

Growth Option 9.9382 9.9382 18.4769 9.95 13.34 10.10 10.16

Bonus Option 9.9382 9.9382 18.4769 NA NA 10.10 10.16

Dividend Plan 9.9382 9.9382 18.4769 9.95 13.34 10.10 10.16 Net Income Per Unit 0.02

2.83

2.45 0.86 0.59 0.02 -0.03

Dividend:

Dividend Plan NIL NIL 1.00 NIL NIL NIL NIL Transfer to Reserve (if any) NIL NIL NIL NIL NIL NIL NIL NAV at the End of period

Growth Option 9.9382 18.4779 19.2547 13.34 13.08 10.16 10.91

Bonus Option 9.9382 18.4779 19.2547 NA NA 10.16 10.91

Dividend Plan 9.9382 18.4779 18.0687 13.34 13.08 10.16 10.91

Returns in (%) -2.53% 84.78% 59.89% 33.40% 28.81% 1.60% 9.10% Benchmark Returns in (%)

BSE 200 Index Net Assets at the end of the period (Rs in Crs.) 1761.59 2,338.80 2,056.63 1,196.31 1,280.04 5,820.10 5,390.07 Ratio of Recurring expenses to Net Assets (%) 1.92% 1.89% 1.88% 2.06% 1.99% 1.76% 1.76%

95

• Absolute returns as the scheme has not completed one year since launch. All performance calculations are based only on NAV and the payouts to the unitholders. The annualised return is of Growth Plan/ Option. • $ For calculation of compounded annualised returns, the procedure specified in Standard Offer Document is followed. • The Benchmark indices for evaluating the performance of Debt-oriented Schemes were made available w.e.f. June 19, 2002. # No comparable index for Fixed Term Scheme. • Return available for Period less than 1 year for the first accounting year (Irrespective of period of existence of the scheme) are given in absolute terms.

Historical Cost Per Unit Statistic

Reliance Fixed Tenor Fund PLAN A

Reliance Fixed Tenor Fund PLAN B

Date of allotment 23-Dec-05 03-Feb-06

Dec 23, 2005 to March 31,2005

April 01,2006 to October 16,2006

Feb 03,2006 to March 31 2006

April 01,2006 to October 16,2006

NAV at the beginning of the period (Rs.)

Growth Plan 10.0142 9.9876 10.0012 9.9762

Dividend Plan 10.0142 9.9876 10.0012 9.9762

Retail Growth Plan N.A N.A N.A N.A

Retail Dividend Plan N.A N.A N.A N.A

Institutional Growth N.A N.A N.A N.A

Institutional Dividend N.A N.A N.A N.ATransfer to Reserve (If Any)

Net Income Per Unit 0.19 0.34 0.08 0.38Total Dividends paid per unit during the period * (Rs.)

Dividend Plan N.A N.A N.A 0.20Retail Dividend Plan N.A N.A N.A N.AInstitutional Dividend N.A N.A N.A N.ANAV at the end of the period

Growth Plan 9.9855 10.4225 9.9741 10.3943

Dividend Plan 9.9855 10.4225 9.9741 10.1927

Retail Growth Plan

Retail Dividend Plan N.A N.A N.A N.A

Institutional Growth

Institutional Dividend N.A N.A N.A N.A

Returns in (%) - -0.15% 4.23% -0.26% 3.94%

96

Growth

- Retail Growth

- Institutional Growth Benchmark Returns in (%) N.A N.A Net Assets at end of the period (Rs. Cr.) 503.33 515.68 161.68 165.97

Ratio of Recurring Expenses to Net Assets (%) 0.15% 0.15% 0.20% 0.20%

Historical Cost Per Unit Statistic Reliance Fixed Horizon Fund QP B SR IV

Reliance Fixed Horizon Fund Plan C SR I

Date of allotment 01-Aug-06 30-Aug-06

August 01,2006 to October 16,2006

August 30,2006 to October 16,2006

NAV at the beginning of the period (Rs.)

Growth Plan 10.0018 N.A

Dividend Plan 10.0018 N.A

Retail Growth Plan N.A 9.9213

Retail Dividend Plan N.A 9.9213

Institutional Growth N.A 9.9813

Institutional Dividend N.A 9.9813

Transfer to Reserve (If Any)

Net Income Per Unit 0.15 0.13

Total Dividends paid per unit during the period * (Rs.)

Dividend Plan N.A N.ARetail Dividend Plan N.A N.AInstitutional Dividend N.A N.A

NAV at the end of the period

Growth Plan 10.1483 N.A

Dividend Plan 10.1483 N.A

Retail Growth Plan N.A 10.0398

Retail Dividend Plan N.A 10.0398

Institutional Growth N.A 10.0995

Institutional Dividend N.A 10.0995

97

Returns in (%) - Growth 1.48%

- Retail Growth 0.40%

- Institutional Growth 0.99%Benchmark Returns in (%) Net Assets at end of the period (Rs. Cr.) 764.48 537.95

Ratio of Recurring

Expenses to Net Assets (%) 0.15% 0.15%

Historical Cost Per Unit Statistic Reliance Fixed Horizon Fund QP B SR V

Reliance Fixed Horizon Fund I AP SR I

Date of allotment 23-Aug-06 30-Aug-06

August 23,2006 to October 16,2006

August 30,2006 to October 16,2006

NAV at the beginning of the period (Rs.)

Growth Plan 10.0017 N.A

Dividend Plan 10.0017 N.A

Retail Growth Plan N.A 10.0017

Retail Dividend Plan N.A 10.0017

Institutional Growth N.A 10.0017

Institutional Dividend N.A 10.0017

Transfer to Reserve (If Any)

Net Income Per Unit 0.10 0.11

Total Dividends paid per unit during the period * (Rs.)

Dividend Plan N.A N.ARetail Dividend Plan N.A N.AInstitutional Dividend N.A N.A

NAV at the end of the period

Growth Plan 10.1075 N.A

Dividend Plan 10.1075 N.A

Retail Growth Plan N.A 10.1210

Retail Dividend Plan N.A 10.1210

Institutional Growth N.A 10.1210

Institutional Dividend N.A 10.1210

Returns in (%) - Growth 1.08%

98

- Retail Growth 1.21%

- Institutional Growth 1.21%Benchmark Returns in (%) Net Assets at end of the period (Rs. Cr.) 547.00 321.84

Ratio of Recurring

Expenses to Net Assets (%) 0.10% 0.10%

Historical Cost Per Unit Statistic

RELIANCE FXD HORIZON QP 1 -SR 1

RELIANCE FIXED HORIZON FUND 1 AP

SER 2

RELIANCE FIXED HORIZON FUND 1 MP

SER 1 Date of allotment 25-Sep-06 27-Sep-06 09-Oct-06

September 25,2006 to October 16,2006

September 27,2006 to October 16,2006

October 09,2006 to October 16,2006

NAV at the beginning of the period (Rs.)

Growth Plan 10.0018 N.A 10.0019

Dividend Plan 10.0018 N.A 10.0019

Retail Growth Plan N.A 9.9912 N.A

Retail Dividend Plan N.A 9.9912 N.A

Institutional Growth N.A 9.9912 N.A

Institutional Dividend N.A N.A N.A

Transfer to Reserve (If Any)

Net Income Per Unit 0.04 0.04 0.02Total Dividends paid per unit during the period * (Rs.)

Dividend Plan N.A N.A N.ARetail Dividend Plan N.A N.A N.AInstitutional Dividend N.A N.A N.ANAV at the end of the period

Growth Plan 10.0448 N.A 10.0153

Dividend Plan 10.0448 N.A 10.0153

Retail Growth Plan N.A 10.0345 N.A

Retail Dividend Plan N.A 10.0345 N.A

Institutional Growth N.A 10.0345 N.A

Institutional Dividend N.A N.A N.A

Returns in (%) - Growth 0.45% 0.15%

99

- Retail Growth 0.34%

- Institutional Growth 0.34% Benchmark Returns in (%) Net Assets at end of the period (Rs. Cr.) 555.50 331.85 939.49

Ratio of Recurring Expenses to Net Assets (%) 0.02% 0.07% 0.10%

Note : The details of Historical Per Unit Statistics of Reliance Fixed Maturity Fund, the close-ended income schemes have been published for only those plans which are in operation as on October 16, 2006 (Yet to be redeemed/matured)

100

XI. OTHER MATTERS A. POWER TO MAKE RULES: Subject to the prior approval of SEBI / other applicable regulatory authorities, wherever necessary, RCAM may, from time to time, in consultation with the Trustees, prescribe such terms and make such rules for giving effect to the provisions of the scheme. Further, RCAM may in consultation with the Trustees, add to, alter and / or amend from time to time, all or any of the terms and conditions of the scheme, and the same will be in line with the then prevalent regulations of SEBI / other applicable regulatory authorities. B. POWER TO REMOVE DIFFICULTIES: If any difficulties arise in giving effect to the provisions of this Scheme, RCAM may, in consultation with the Trustees, do anything not inconsistent with such provisions, which appear to them to be necessary, desirable or expedient, for the purpose of removing such difficulty. C. SCHEME TO BE BINDING ON UNIT HOLDERS: RCAM may, from time to time, in consultation with the Trustees, add to or otherwise vary or alter all or any of the features, investment options and terms of this Scheme after obtaining the prior approval of SEBI / Other applicable regulatory authorities and / or the unit holders where necessary, in accordance with the then prevalent Regulations and the same shall be binding on each unitholder. D. BOOKS AND RECORDS: The books and records of the Mutual Fund will be maintained at the office of the Mutual Fund. The fiscal year of the Mutual Fund ends on 31st March in each year. E. TRANSACTIONS WITH ASSOCIATE COMPANIES : The AMC may, from time to time, for the purpose of conducting its normal business use the services of its Associates. AMC does not have any separate policy for investment in securities of the group companies. If at any time such investments are made, it will be done on pure commercial consideration for the benefit of the fund. As per current regulations no investment will be made in any unlisted security of an associate or group company of the sponsor and in any security issued by way of private placement by an associate or group company of the sponsor. Further, no investment will be made in listed securities of the group company of the sponsor, which is in excess of 25% of the net assets of the Scheme of the fund. Investment in group companies will be done only in the interest of the fund and as per the Regulations. The AMC may from time to time, for the purpose of conducting its normal business, use the services of the Sponsor and the subsidiaries. The AMC from time to time, for the purpose of conducting its normal business may use the services of the Associates of the Sponsor / AMC, in existence or to be established at a later date, in case such an associate is in a position to provide the requisite services to the AMC. The AMC will conduct its business with the aforesaid companies on commercial terms and on an arms length basis and at the then prevailing market prices to the extent permitted under the applicable laws including the Regulations, after an evaluation of the competitiveness of the pricing offered by the associate companies and services to be provided by them. Should the Fund enter into any transaction with / through associates / group companies of Sponsor/ AMC, it shall do so as may be permitted by the Regulations and will disclose details of such investments or transactions in the manner required by the Regulations. 1.Underwriting obligations with respect to issues of Group/Associate Companies. The Reliance Mutual Fund under its entire Scheme has till date not entered into any underwriting contracts in respect of any public issue made by any of the group/associate companies of the Sponsor. 2. Subscription to issues lead managed by Group/ Associate Companies. No scheme of Reliance Mutual Fund has till date invested in any public issue lead managed by any Group/Associate company of the Sponsor.

101

3. Brokerage, Commission Paid. The Mutual Fund has paid the following brokerage to the associate Companies of the AMC.

Year Business Given

(Rs. in lacs) Brokerage paid

(Rs. in lacs) % of Brokerage

Commission

2001 – 2002 5.32 0.005 0.01

2002 - 2003 27,842.63 1.01 0.0036

2003 - 2004 37,249.65 1.50 0.0040

2004 - 2005 NIL NIL NIL

2005 - 2006 NIL NIL NIL

April 1, 2006 to October 16, 2006

NIL NIL NIL

4. Distribution of Units : Mutual Fund has availed services of associate companies of the Sponsor/AMC and paid the following brokerage for distribution of Units.

Name of the Entity Year Business Given

(Rs.) Brokerage paid

(Rs.)

Reliance Securities Limited

April 1, 2006 to October 16, 2006 166,604,296,986.37

15,063,016

5. Investments in Group Companies : The total investment in securities of Group companies under all the Schemes is disclosed below. Most of the equity shares, debentures, etc. were purchased from the open secondary market at relevant market prices over a period of time, based on the approved investment strategy

(At cost) (Rs.in lakhs)

Name of Scheme 2003-04 2004-05 2005 - 2006

April 01, 2006 to October

16, 2006 Reliance Growth Fund (RGF) 1889.35 1301.20 6584.81 733.69Reliance Vision Fund (RVF) 12082.71 5545.49 8074.15 3,729.40Reliance Income Fund (RIF) NIL 2153.29 Nil NilReliance Liquid Fund (RLF) NIL 1047.23 137.59 NilReliance Medium Term Fund (RMTF) NIL NIL Nil NilReliance Short Term Fund (RSTF) NIL 6295.93 Nil NilReliance Banking Fund (RBF) NIL NIL 380.78 -Reliance Gilt Securities Fund (RGSF) NIL NIL NIL NIL

Reliance Monthly Income Plan (RMIP) NIL 7251.31 Nil 1,256.24Reliance Diversified Power Sector Fund N.A. 3488.32 4,495.02 5,467.11

102

(RDPSF) Reliance Pharma Fund (RPF) N.A. NIL NIL NilReliance Floating Rate Fund (RFRF) N.A. 4057.47 Nil NilReliance Media & Entertainment Fund (RMEF)

N.A. NIL 299.20 -

Reliance NRI Income Fund (RNIF) N.A. NIL Nil NilReliance Index Fund (RInF) N.A. 141.47 3.69 23.60Reliance NRI Equity Fund (RNEF) N.A. 873.82 733.98 669.09Reliance Equity Opportunities Fund (REOF)

N.A. 11,648.96

10,294.30 Nil

Reliance Liquidity Fund (RLiF) N.A. N.A. NIL NilReliance Tax Saver (ELSS) Fund (RTSF)

N.A. N.A. 2,478.83 Nil

Reliance Fixed Tenor Fund (RFTF) N.A. N.A. NIL NilReliance Regular Savings Fund Nil Nil NIL NilReliance Equity Fund N.A. N.A. 22,709.63 18705.31Reliance Fixed Horizon Fund N.A. N.A. NIL Nil

As on October 16, 2006, the aggregate market value of the holding in group companies of the Sponsor/ AMC by schemes of Reliance Mutual Fund was as follows

Name of Scheme Value of Holding (At cost) (Rs.in lakhs)

% of Net Assets

Reliance Growth Fund (RGF) 2,604.35 1.07%Reliance Vision Fund (RVF) 12235.23 5.70%Reliance Income Fund (RIF) Nil NilReliance Liquid Fund (RLF) Nil NilReliance Medium Term Fund (RMTF) Nil NilReliance Short Term Fund (RSTF) Nil NilReliance Fixed Term Scheme (RFTS) Nil NilReliance Banking Fund (RBF) Nil NilReliance Gilt Securities Fund (RGSF) Nil NilReliance Monthly Income Plan (RMIP) Nil NilReliance Diversified Power Sector Fund (RDPSF) 7177.67 10.59%Reliance Pharma Fund (RPF) Nil NilReliance Floating Rate Fund (RFRF) Nil NilReliance Media & Entertainment Fund (RMEF) 356.70 9.43%Reliance NRI Income Fund (RNIF) Nil NilReliance Index Fund (RInF) 17.69 3.64%Reliance NRI Equity Fund (RNEF) Nil NilReliance Equity Opportunities Fund (REOF) 4,278.58 2.08%Reliance Liquidity Fund (RLiF) Nil NilReliance Tax Saver (ELSS) Fund (RTSF) Nil NilReliance Fixed Tenor Fund (RFTF) Nil NilReliance Fixed Horizon Fund Nil NilReliance Regular Savings Fund Nil NilReliance Equity Fund 36655.95 6.80%

103

6. Disclosure under Regulation 25(11)

This refers to the investment in Companies that hold more than 5% of NAV of any scheme managed by the AMC as defined under Regulation 25(11) of SEBI Regulations. Disclosure under Regulation 25(11) of SEBI (Mutual Funds) Regulations, 1996

Investments during period ended 16.10.2006 Holding as on 16.10.2006 Name of the

company

Name of Scheme in

which Co.has invested more

than 5% Name of scheme

Type of Security Quantity Cost Quantity Market

Value

ADITYA BIRLA NUVO LIMITED

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 3 (Series 2)

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 500 467.85 - -

ALLAHABAD BANK RELIANCE BANKING FUND

RELIANCE GROWTH FUND

CERTIFICATE OF DEPOSIT

3500 3,474.26 - -

RELIANCE MEDIA & ENTERTAINMENT FUND

RELIANCE INCOME FUND

CERTIFICATE OF DEPOSIT

2250 2,216.88 - -

RELIANCE SHORT TERM FUND

FIXED DEPOSIT

2500 2,500.00 - -

RELIANCE GILT SECURITIES FUND LONG TERM GILT PLAN

CERTIFICATE OF DEPOSIT

2000 1,972.22 - -

RELIANCE BANKING FUND

EQUITY 300000 267.51 - -

RELIANCE MONTHLY INCOME PLAN

CERTIFICATE OF DEPOSIT

4850 4,754.46 - -

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

21850 21,125.25 2500 2,328.19

RELIANCE FIXED 54500 54,500.0 27800 27,800.00

104

LIQUID FUND TREASURY PLAN

DEPOSIT

0

RELIANCE FLOATING RATE FUND

CERTIFICATE OF DEPOSIT

1150 1,101.27 - -

RELIANCE FLOATING RATE FUND

FIXED DEPOSIT

7500 7,500.00 5000 5,000.00

RELIANCE FIXED MATURITY FUND SERIES I ANNUAL PLAN

CERTIFICATE OF DEPOSIT

1500 1,412.96 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

CERTIFICATE OF DEPOSIT

3000 2,825.92 - -

RELIANCE LIQUIDITY FUND

CERTIFICATE OF DEPOSIT

84000 81,063.73 - -

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

29500 29,500.00 7000 7,000.00

RELIANCE TAX SAVER (ELSS) FUND

CERTIFICATE OF DEPOSIT

2500 2,465.05 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VII

CERTIFICATE OF DEPOSIT

2500 2,465.58 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

CERTIFICATE OF DEPOSIT

7250 7,159.36 - -

RELIANCE FIXED TENOR FUND PLAN A

CERTIFICATE OF DEPOSIT

1000 974.83 - -

RELIANCE FIXED

CERTIFICATE 6250 6,192.05 - -

105

MATURITY FUND SERIES II MONTHLY PLAN IX

OF DEPOSIT

RELIANCE FIXED TENOR FUND PLAN B

CERTIFICATE OF DEPOSIT

1300 1,295.31 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

CERTIFICATE OF DEPOSIT

2000 1,961.41 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

CERTIFICATE OF DEPOSIT

3750 3,722.95 - -

RELIANCE EQUITY FUND

CERTIFICATE OF DEPOSIT

500 498.42 - -

RELIANCE EQUITY FUND

FIXED DEPOSIT

3500 3,500.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN XI

CERTIFICATE OF DEPOSIT

6000 5,882.65 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

CERTIFICATE OF DEPOSIT

6000 5,926.53 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

CERTIFICATE OF DEPOSIT

8000 7,927.11 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

FIXED DEPOSIT

25000 25,000.00 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

CERTIFICATE OF DEPOSIT

10000 9,947.39 - -

106

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

CERTIFICATE OF DEPOSIT

500 494.91 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

CERTIFICATE OF DEPOSIT

5000 4,964.04 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

FIXED DEPOSIT

4700 4,700.00 4700 4,700.00

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

CERTIFICATE OF DEPOSIT

3800 3,778.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 5

FIXED DEPOSIT

10500 10,500.00 10500 10,500.00

BANK OF BARODA RELIANCE LIQUIDITY FUND

RELIANCE GROWTH FUND

EQUITY 3009664 7,030.54 2500000 6,963.75

RELIANCE SHORT TERM FUND

RELIANCE VISION FUND EQUITY 1502109 3,688.89 1203400 3,352.07

RELIANCE BANKING FUND

EQUITY 550000 1,309.45 360000 1,002.78

RELIANCE MONTHLY INCOME PLAN

DEBT 1000 1,023.58 - -

RELIANCE NRI EQUITY FUND EQUITY 316224 869.90 - -

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 2323601 5,350.69 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 50000 117.92 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 149354 343.51 - -

RELIANCE EQUITY FUND EQUITY 5268813 12,114.8

5 4489534 12,505.60

107

BANK OF INDIA RELIANCE FLOATING RATE FUND

RELIANCE BANKING FUND

EQUITY 100000 139.05 - -

RELIANCE LIQUIDITY FUND

RELIANCE MONTHLY INCOME PLAN

FIXED DEPOSIT

2500 2,500.00 - -

RELIANCE LIQUID FUND TREASURY PLAN

FIXED DEPOSIT

5000 5,000.00 - -

RELIANCE FLOATING RATE FUND

FIXED DEPOSIT

2000 2,000.00 - -

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

43000 43,000.00 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 500000 658.81 - -

RELIANCE EQUITY FUND

FIXED DEPOSIT

27500 27,500.00 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

FIXED DEPOSIT

20000 20,000.00 - -

BHARTI AIRTEL LIMITED

RELIANCE SHORT TERM FUND

RELIANCE MONTHLY INCOME PLAN

EQUITY 200000 734.65 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 5234 21.02 2928 14.22

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 2987 10.74 797 3.87

RELIANCE EQUITY FUND EQUITY 1251000 5,137.00 1000000 4,861.00

CANARA BANK RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE BANKING FUND

EQUITY 200000 485.81 - -

CHAMBAL FERTILISERS & CHEMICALS LIMITED

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE LIQUID FUND CASH PLAN

DEBT 12300 12,300.00 - -

RELIANCE LIQUID FUND TREASURY

DEBT 11000 11,000.00 - -

108

PLAN

RELIANCE LIQUIDITY FUND

DEBT 28000 28,000.00 5000 5,000.00

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

DEBT 1700 1,700.00 - -

CORPORATION BANK

RELIANCE SHORT TERM FUND

RELIANCE BANKING FUND

EQUITY 70382 257.14 50000 195.25

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 85941 292.98 - -

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

2500 2,371.18 - -

RELIANCE LIQUIDITY FUND

CERTIFICATE OF DEPOSIT

10000 9,845.16 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

CERTIFICATE OF DEPOSIT

4100 4,040.08 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 551863 1,760.16 - -

RELIANCE EQUITY FUND EQUITY 1212999 4,748.89 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

CERTIFICATE OF DEPOSIT

2000 1,970.42 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

CERTIFICATE OF DEPOSIT

4000 3,946.42 - -

DSP ML CAPITAL LTD

RELIANCE LIQUIDITY FUND

RELIANCE GROWTH FUND

DEBT 4000 4,000.00 - -

RELIANCE MEDIUM TERM FUND

DEBT 100 100.06 100 100.03

109

RELIANCE INCOME FUND

DEBT 1600 1,600.36 - -

RELIANCE SHORT TERM FUND

DEBT 7400 7,396.21 - -

RELIANCE MONTHLY INCOME PLAN

DEBT 1750 1,750.42 1150 1,150.05

RELIANCE LIQUID FUND CASH PLAN

DEBT 3500 3,500.00 - -

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 59000 58,830.53 11000 10,998.01

RELIANCE FLOATING RATE FUND

DEBT 4000 3,994.96 3000 3,000.00

RELIANCE LIQUIDITY FUND

DEBT 139500 138,509.22 - -

RELIANCE FIXED TENOR FUND PLAN A

DEBT 2850 2,851.49 2710 2,710.87

RELIANCE FIXED TENOR FUND PLAN B

DEBT 1640 1,641.01 1640 1,640.52

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

DEBT 10000 9,968.34 - -

RELIANCE EQUITY FUND DEBT 22500 22,500.0

0 36000 35,827.73

RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

DEBT 12500 12,339.85 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

DEBT 5000 4,931.18 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

DEBT 14000 13,895.33 - -

RELIANCE FIXED HORIZON FUND PLAN A

DEBT 12500 12,441.49 - -

110

SERIES 3

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

DEBT 15000 14,744.78 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

DEBT 6000 5,927.13 1000 994.82

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

DEBT 33500 33,192.58 - -

RELIANCE FIXED HORIZON FUND PLAN C SERIES 1

DEBT 5100 5,100.05 100 100.03

RELIANCE FIXED HORIZON FUND - 1 ANNUAL PLAN SERIES 1

DEBT 5150 5,150.07 1750 1,750.56

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

DEBT 26000 25,848.36 - -

RELIANCE FIXED HORIZON FUND - 1 ANNUAL PLAN SERIES 2

DEBT 3550 3,551.62 3550 3,551.13

RELIANCE FIXED HORIZON FUND 1 MONTHLY PLAN 1 SERIES 1

DEBT 5000 5,000.00 5000 5,000.00

GRASIM INDUSTRIES LIMITED

RELIANCE FIXED HORIZON FUND ANNUAL PLAN 1 SERIES 1

RELIANCE VISION FUND EQUITY 475681 8,872.32 368228 9,850.84

RELIANCE FIXED HORIZON FUND

RELIANCE LIQUID FUND CASH PLAN

DEBT 5800 5,800.00 - -

111

QUATERLY PLAN B SERIES 2

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 4

RELIANCE NRI EQUITY FUND EQUITY 54925 1,123.69 16752 448.15

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 8 SERIES 2

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 539 11.13 305 8.14

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 141 2.24 38 1.02

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 50000 926.83 - -

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 1700 1,700.00 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 3725 61.41 - -

RELIANCE REGULAR SAVING FUND HYBRID OPTION

EQUITY 300 6.70 - -

RELIANCE LIQUIDITY FUND

DEBT 8800 8,800.00 - -

RELIANCE EQUITY FUND EQUITY 809980 16,209.1

0 784980 20,999.78

H C L TECHNOLOGIES LTD

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 1

RELIANCE GROWTH FUND

EQUITY 371000 1,852.37 871000 5,092.74

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE VISION FUND EQUITY 800000 4,948.04 800000 4,677.60

RELIANCE SHORT TERM FUND

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 621 3.63 134 0.78

RELIANCE EQUITY EQUITY 221400 1,130.83 1255397 7,340.31

112

OPPORTUNITIES FUND

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 8043 44.71 - -

RELIANCE EQUITY FUND EQUITY 1045804 5,434.45 1006439 5,884.65

HDFC BANK LTD RELIANCE FLOATING RATE FUND

RELIANCE INCOME FUND

CERTIFICATE OF DEPOSIT

1850 1,778.42 - -

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE SHORT TERM FUND

CERTIFICATE OF DEPOSIT

50 47.96 - -

RELIANCE LIQUIDITY FUND

RELIANCE LIQUID FUND CASH PLAN

FIXED DEPOSIT

6500 6,500.00 3500 3,500.00

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 1926 15.55 1107 11.59

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 597 4.40 129 1.35

RELIANCE EQUITY OPPORTUNITIES FUND

FIXED DEPOSIT

4000 4,000.00 - -

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

10900 10,356.62 - -

RELIANCE LIQUID FUND TREASURY PLAN

FIXED DEPOSIT

2000 2,000.00 - -

RELIANCE FLOATING RATE FUND

CERTIFICATE OF DEPOSIT

350 335.93 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

CERTIFICATE OF DEPOSIT

13200 12,852.58 - -

RELIANCE LIQUIDITY

CERTIFICATE 28800 27,727.6

5 500 475.30

113

FUND OF DEPOSIT

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

20470 20,470.00 1490 1,490.00

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

CERTIFICATE OF DEPOSIT

700 689.42 - -

RELIANCE TAX SAVER (ELSS) FUND

FIXED DEPOSIT

500 500.00 - -

RELIANCE FIXED TENOR FUND PLAN A

CERTIFICATE OF DEPOSIT

2500 2,399.99 - -

RELIANCE EQUITY FUND

CERTIFICATE OF DEPOSIT

5000 4,954.71 - -

RELIANCE EQUITY FUND

FIXED DEPOSIT

1990 1,990.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 3

CERTIFICATE OF DEPOSIT

1600 1,574.95 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 5

CERTIFICATE OF DEPOSIT

500 497.15 - -

HDFC LTD RELIANCE REGULAR SAVING DEBT FUND

RELIANCE VISION FUND EQUITY 100000 1,173.98 - -

RELIANCE REGULAR SAVING EQUITY FUND

RELIANCE MEDIUM TERM FUND

DEBT 300 297.65 - -

RELIANCE REGULAR SAVING HYBRID FUND

RELIANCE INCOME FUND

DEBT 2200 2,183.02 - -

RELIANCE SHORT TERM FUND

DEBT 13600 13,396.14 7900 7,710.11

RELIANCE DEBT 14050 13,901.6 1100 1,053.23

114

MONTHLY INCOME PLAN

9

RELIANCE NRI INCOME FUND

DEBT 100 98.68 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 1743 22.13 992 15.33

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 367 4.46 104 1.61

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 14050 14,006.30 1000 1,000.53

RELIANCE FLOATING RATE FUND

DEBT 3900 3,904.54 - -

RELIANCE LIQUIDITY FUND

DEBT 88350 87,992.55 5000 5,001.81

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VI

DEBT 1000 993.71 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN II

DEBT 15000 14,897.33 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VII

DEBT 3500 3,460.31 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

DEBT 6000 5,971.51 - -

RELIANCE FIXED TENOR FUND PLAN A

DEBT 2500 2,485.82 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN IX

DEBT 4700 4,655.29 - -

115

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

DEBT 8300 8,270.73 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

DEBT 2200 2,176.85 - -

RELIANCE EQUITY FUND DEBT 5200 5,191.52 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN XI

DEBT 4200 4,182.21 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

DEBT 4200 4,193.41 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

DEBT 14500 14,470.96 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

DEBT 2000 2,000.94 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

DEBT 2000 2,000.35 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

DEBT 500 500.28 - -

RELIANCE FIXED HORIZON FUND PLAN C SERIES 1

DEBT 5000 4,992.22 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

DEBT 2500 2,496.20 - -

116

HERO HONDA MOTORS LTD

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

RELIANCE VISION FUND EQUITY 1267867 10,585.8

2 503000 3,760.68

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

RELIANCE NRI EQUITY FUND EQUITY 100000 844.52 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 761 5.84 439 3.28

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 333 2.77 83 0.62

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 1

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 875447 7,303.69 17600 131.59

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 2

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 37000 319.41 - -

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 3

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 1020000 8,739.54 486627 3,638.27

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 1 (Series 2)

RELIANCE EQUITY FUND EQUITY 1408800 12,214.2

8 610000 4,560.67

RELIANCE FIXED MATURITY FUND - QUARTERLY PLAN - 1 SERIES 2

RELIANCE FIXED MATURITY FUND - QUARTERLY PLAN - 2 SERIES 2

117

RELIANCE FIXED MATURITY FUND - QUARTERLY PLAN - 3 SERIES 2

RELIANCE FIXED TENOR FUND

RELIANCE INCOME FUND

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE MEDIUM TERM FUND

RELIANCE SHORT TERM FUND

HEXAWARE TECHNOLOGIES LTD

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 2

RELIANCE GROWTH FUND

EQUITY 903795 1,254.51 1950007 3,337.44

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 3

RELIANCE MONTHLY INCOME PLAN

EQUITY 300000 473.72 - -

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 4

RELIANCE FIXED HORIZON FUND1 QUARTERLY PLAN SERIES 1

HINDALCO INDUSTRIES LIMITED

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 3 (Series 2)

RELIANCE VISION FUND EQUITY 4000000 6,436.93 - -

RELIANCE FIXED HORIZON FUND ANNUAL

RELIANCE SHORT TERM FUND

DEBT 500 509.97 - -

118

PLAN 1 SERIES 1

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 1

RELIANCE NRI EQUITY FUND EQUITY 199870 326.74 - -

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 3

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 7525 12.20 3843 7.00

RELIANCE FIXED HORIZON FUND1 QUARTERLY PLAN SERIES 1

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 2168 3.01 487 0.89

RELIANCE SHORT TERM FUND

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 100000 168.25 - -

RELIANCE EQUITY FUND EQUITY 4973910 9,063.91 3723495 6,784.21

HINDUSTAN ZINC LTD

RELIANCE FIXED HORIZON FUND ANNUAL PLAN 1 SERIES 1

RELIANCE GROWTH FUND

EQUITY 135600 641.91 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 100000 654.49 - -

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES V

RELIANCE FIXED HORIZON FUND1 ANNUAL PLAN SERIES 2

RELIANCE FIXED HORIZON FUND1 QUARTERLY PLAN SERIES 1

RELIANCE FIXED MATURITY

119

FUND - ANNUAL PLAN - 1

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 1 (Series 2)

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 3 (Series 2)

RELIANCE FLOATING RATE FUND

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE SHORT TERM FUND

RELIANCE FIXED HORIZON FUND- 1 - MONTHLY PLAN -SERIES 1

ICICI BANK LTD RELIANCE BANKING FUND

RELIANCE GROWTH FUND

EQUITY 1100000 6,157.34 - -

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE GROWTH FUND

FIXED DEPOSIT

9002 9,002.00 2000 2,000.00

RELIANCE LIQUIDITY FUND

RELIANCE VISION FUND EQUITY 1885600 10,564.6

9 - -

RELIANCE VISION FUND

FIXED DEPOSIT

10994 10,994.00 2500 2,500.00

RELIANCE MEDIUM TERM FUND

CERTIFICATE OF DEPOSIT

250 242.69 - -

RELIANCE INCOME FUND

CERTIFICATE OF DEPOSIT

2450 2,296.18 - -

RELIANCE INCOME FUND

FIXED DEPOSIT

1200 1,200.00 - -

120

RELIANCE SHORT TERM FUND

CERTIFICATE OF DEPOSIT

13100 12,383.48 - -

RELIANCE GILT SECURITIES FUND LONG TERM GILT PLAN

CERTIFICATE OF DEPOSIT

2000 1,994.15 - -

RELIANCE BANKING FUND

EQUITY 150000 873.00 155000 1,116.47

RELIANCE MONTHLY INCOME PLAN

CERTIFICATE OF DEPOSIT

3950 3,847.60 - -

RELIANCE MONTHLY INCOME PLAN

DEBT 80 81.17 80 80.60

RELIANCE MONTHLY INCOME PLAN

EQUITY 219651 1,202.58 - -

RELIANCE MONTHLY INCOME PLAN

FIXED DEPOSIT

2002 2,002.00 500 500.00

RELIANCE DIVERSIFIED POWER SECTOR FUND

FIXED DEPOSIT

1500 1,500.00 500 500.00

RELIANCE NRI EQUITY FUND EQUITY 292574 1,698.69 - -

RELIANCE NRI EQUITY FUND

FIXED DEPOSIT

1202 1,202.00 300 300.00

RELIANCE NRI INCOME FUND

CERTIFICATE OF DEPOSIT

50 48.17 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 7045 41.46 3940 28.36

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 1566 9.01 370 2.67

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 403820 2,120.06 - -

RELIANCE EQUITY

FIXED DEPOSI 5000 5,000.00 2000 2,000.00

121

OPPORTUNITIES FUND

T

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

73300 71,546.81 5000 4,767.15

RELIANCE LIQUID FUND TREASURY PLAN

FIXED DEPOSIT

17600 17,600.00 - -

RELIANCE FLOATING RATE FUND

CERTIFICATE OF DEPOSIT

18500 17,771.82 7000 6,767.19

RELIANCE FIXED MATURITY FUND SERIES I ANNUAL PLAN

CERTIFICATE OF DEPOSIT

900 839.61 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

CERTIFICATE OF DEPOSIT

2650 2,462.10 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 10000 58.25 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

FIXED DEPOSIT

1300 1,300.00 300 300.00

RELIANCE LIQUIDITY FUND

CERTIFICATE OF DEPOSIT

181850 176,793.68 30900 29,820.88

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

60000 60,000.00 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

CERTIFICATE OF DEPOSIT

2500 2,323.95 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 561169 3,017.57 - -

122

RELIANCE TAX SAVER (ELSS) FUND

FIXED DEPOSIT

11000 11,000.00 3500 3,500.00

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VI

CERTIFICATE OF DEPOSIT

5000 4,982.71 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

CERTIFICATE OF DEPOSIT

5500 5,424.85 - -

RELIANCE FIXED TENOR FUND PLAN A

CERTIFICATE OF DEPOSIT

50 49.86 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN IX

CERTIFICATE OF DEPOSIT

500 495.20 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

CERTIFICATE OF DEPOSIT

15000 14,481.28 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

CERTIFICATE OF DEPOSIT

500 498.11 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

FIXED DEPOSIT

5000 5,000.00 - -

RELIANCE EQUITY FUND EQUITY 981354 6,079.81 - -

RELIANCE EQUITY FUND

FIXED DEPOSIT

170501 170,501.00 36000 36,000.00

RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

FIXED DEPOSIT

10000 10,000.00 - -

123

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

CERTIFICATE OF DEPOSIT

52600 51,748.40 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 1

CERTIFICATE OF DEPOSIT

5000 4,876.83 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

CERTIFICATE OF DEPOSIT

16600 16,464.73 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 3

CERTIFICATE OF DEPOSIT

5000 4,910.66 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

CERTIFICATE OF DEPOSIT

4600 4,543.54 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

CERTIFICATE OF DEPOSIT

3500 3,463.93 3100 3,080.88

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

CERTIFICATE OF DEPOSIT

4500 4,471.49 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 5

CERTIFICATE OF DEPOSIT

3100 3,058.00 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

CERTIFICATE OF DEPOSIT

1400 1,383.98 - -

RELIANCE FIXED HORIZON FUND 1 QUARTERLY PLAN 1 SERIES 1

CERTIFICATE OF DEPOSIT

10000 9,798.68 10000 9,842.43

INDIABULLS FINANCIAL

RELIANCE LIQUIDITY

RELIANCE EQUITY FUND DEBT 25000 25,000.0

0 - -

124

COMPANY LIMITED FUND

INDIABULLS FINANCIAL SERVICES LIMITED

RELIANCE LIQUIDITY FUND

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 1100000 2,693.58 - -

RELIANCE FIXED MATURITY FUND SERIES I ANNUAL PLAN

DEBT 2500 2,323.31 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

DEBT 2500 2,451.92 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 31101 66.94 - -

RELIANCE LIQUIDITY FUND

DEBT 26500 25,754.81 2500 2,446.07

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

DEBT 2500 2,370.56 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

DEBT 2500 2,408.96 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

DEBT 11500 11,333.37 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 1

DEBT 5000 4,930.09 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

DEBT 1500 1,472.38 - -

125

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

DEBT 1500 1,475.73 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

DEBT 9500 9,364.47 2500 2,447.48

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

DEBT 1500 1,486.48 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 5

DEBT 4500 4,346.31 4500 4,396.03

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

DEBT 1500 1,497.23 - -

INFOSYS TECHNOLOGIES LTD

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE GROWTH FUND

EQUITY 26272 850.07 - -

RELIANCE LIQUIDITY FUND

RELIANCE VISION FUND EQUITY 750000 14,243.4

6 500000 10,501.50

RELIANCE MONTHLY INCOME PLAN

EQUITY 40000 799.53 40000 840.12

RELIANCE NRI EQUITY FUND EQUITY 75000 1,455.64 50000 1,050.15

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 3283 56.47 1956 41.02

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 599 12.88 230 4.83

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 400000 6,691.85 400000 8,401.20

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 24000 388.40 24000 504.07

RELIANCE REGULAR EQUITY 730 13.21 500 10.50

126

SAVING FUND HYBRID OPTION

RELIANCE EQUITY FUND EQUITY 1500000 23,182.3

9 1500000 31,504.50

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 2

RELIANCE MEDIUM TERM FUND

DEBT 100 100.00 - -

RELIANCE INCOME FUND

RELIANCE INCOME FUND

DEBT 1700 1,623.97 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

RELIANCE SHORT TERM FUND

DEBT 5900 5,621.50 - -

RELIANCE MONTHLY INCOME PLAN

DEBT 6150 6,084.47 450 451.08

RELIANCE DIVERSIFIED POWER SECTOR FUND

EQUITY 2582112 1,851.43 - -

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 5800 5,621.93 - -

RELIANCE FLOATING RATE FUND

DEBT 500 500.74 350 350.39

RELIANCE LIQUIDITY FUND

DEBT 13200 12,736.04 7500 7,236.39

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

DEBT 2500 2,462.78 - -

RELIANCE FIXED TENOR FUND PLAN A

DEBT 200 200.00 - -

RELIANCE FIXED TENOR FUND PLAN B

DEBT 100 100.00 - -

RELIANCE EQUITY FUND EQUITY 885923 491.80 - -

RELIANCE FIXED HORIZON FUND - 1

DEBT 3500 3,499.62 3500 3,510.62

127

ANNUAL PLAN SERIES 1

RELIANCE FIXED HORIZON FUND - 1 ANNUAL PLAN SERIES 2

DEBT 500 500.97 200 200.61

J M FINANCIAL PRODUCTS PRIVATE LIMITED

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE SHORT TERM FUND

DEBT 500 500.00 - -

RELIANCE LIQUIDITY FUND

DEBT 12000 12,000.00 8000 8,000.00

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

DEBT 1500 1,500.00 - -

JET AIRWAYS I LIMITED

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE VISION FUND EQUITY 218600 2,567.33 - -

RELIANCE MONTHLY INCOME PLAN

DEBT 7367 7,844.16 2095 1,653.98

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 201 2.04 38 0.24

LARSEN & TOUBRO LIMITED

RELIANCE FIXED HORIZON FUND- 1 - MONTHLY PLAN -SERIES 1

RELIANCE VISION FUND EQUITY 424055 5,816.82 226600 2,968.57

RELIANCE MONTHLY INCOME PLAN

EQUITY 25000 316.06 25000 327.51

RELIANCE NRI EQUITY FUND EQUITY 30000 711.75 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 1618 22.28 1216 15.88

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 289 4.59 118 1.55

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 28741 387.97 - -

RELIANCE LIQUID FUND TREASURY

DEBT 1000 1,014.97 - -

128

PLAN

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 58696 847.20 50000 655.03

RELIANCE REGULAR SAVING FUND HYBRID OPTION

EQUITY 654 10.53 467 6.12

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 10000 272.78 - -

RELIANCE EQUITY FUND EQUITY 309348 7,990.95 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

DEBT 1000 1,009.97 - -

RELIANCE FIXED HORIZON FUND 1 MONTHLY PLAN 1 SERIES 1

DEBT 1000 1,009.73 1000 1,008.81

MARUTI UDYOG LIMITED

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 4

RELIANCE GROWTH FUND

EQUITY 492036 3,432.39 342036 3,286.79

RELIANCE FLOATING RATE FUND

RELIANCE VISION FUND EQUITY 2437802 18,831.3

7 628126 6,035.98

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE MONTHLY INCOME PLAN

EQUITY 175000 1,212.93 - -

RELIANCE LIQUIDITY FUND

RELIANCE NRI EQUITY FUND EQUITY 375000 2,910.37 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 904 7.46 511 4.91

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 439 3.23 120 1.15

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 115000 960.22 - -

129

RELIANCE REGULAR SAVING FUND HYBRID OPTION

EQUITY 521 4.64 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 300000 2,629.65 - -

RELIANCE EQUITY FUND EQUITY 1717926 14,347.9

3 1667526 16,024.09

PUNJAB NATIONAL BANK

RELIANCE BANKING FUND

RELIANCE INCOME FUND

DEBT 800 799.97 500 501.40

RELIANCE BANKING FUND

EQUITY 200000 949.01 190000 998.36

RELIANCE MONTHLY INCOME PLAN

DEBT 1400 1,400.00 500 501.40

RELIANCE LIQUID FUND CASH PLAN

FIXED DEPOSIT

3000 3,000.00 - -

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 601 2.67 132 0.69

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

6000 5,928.25 - -

RELIANCE LIQUID FUND TREASURY PLAN

FIXED DEPOSIT

12000 12,000.00 5000 5,000.00

RELIANCE FLOATING RATE FUND

CERTIFICATE OF DEPOSIT

10000 9,862.97 2500 2,477.42

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

FIXED DEPOSIT

3000 3,000.00 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 25000 117.11 - -

RELIANCE LIQUIDITY FUND

CERTIFICATE OF DEPOSI

56000 55,132.74 1000 991.97

130

T

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

55500 55,500.00 15000 15,000.00

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 986200 4,453.30 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN X

FIXED DEPOSIT

5000 5,000.00 - -

RELIANCE EQUITY FUND EQUITY 2558206 11,859.6

8 2225000 11,691.26

RELIANCE EQUITY FUND

FIXED DEPOSIT

19500 19,500.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

CERTIFICATE OF DEPOSIT

5000 4,924.70 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

FIXED DEPOSIT

7000 7,000.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 3

CERTIFICATE OF DEPOSIT

5000 4,993.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

CERTIFICATE OF DEPOSIT

4000 3,952.95 4000 3,967.89

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

CERTIFICATE OF DEPOSIT

500 495.53 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

CERTIFICATE OF DEPOSIT

15000 14,753.51 - -

RELIANCE FIXED HORIZON FUND 1 QUARTERLY PLAN 1

FIXED DEPOSIT

3500 3,500.00 3500 3,500.00

131

SERIES 1

RELIANCE FIXED HORIZON FUND 1 MONTHLY PLAN 1 SERIES 1

CERTIFICATE OF DEPOSIT

15000 14,842.20 15000 14,864.53

RAYMOND LIMITED

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 3 (Series 2)

RELIANCE INCOME FUND

DEBT 1100 1,100.00 - -

RELIANCE MONTHLY INCOME PLAN

EQUITY 50000 152.96 - -

RELIANCE MONTHLY INCOME PLAN

DEBT 300 300.00 - -

RELIANCE LIQUID FUND CASH PLAN

DEBT 72950 72,950.00 - -

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 521527 2,164.33 - -

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 33525 33,525.00 - -

RELIANCE FLOATING RATE FUND

DEBT 5450 5,450.00 - -

RELIANCE FIXED MATURITY FUND SERIES I ANNUAL PLAN

DEBT 1500 1,500.00 - -

RELIANCE LIQUIDITY FUND

DEBT 68800 68,800.00 800 800.00

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

DEBT 100 100.00 - -

RELIANCE TAX SAVER (ELSS) FUND

DEBT 500 500.00 - -

132

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VI

DEBT 500 500.00 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN II

DEBT 2225 2,225.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VII

DEBT 500 500.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

DEBT 1400 1,400.00 - -

RELIANCE FIXED TENOR FUND PLAN A

DEBT 100 100.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN IX

DEBT 1850 1,850.00 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

DEBT 900 900.00 - -

RELIANCE EQUITY FUND DEBT 2900 2,900.00 - -

RELIANCE CAPITAL LIMITED

RELIANCE BANKING FUND

RELIANCE GROWTH FUND

EQUITY 150000 733.69 - -

RELIANCE LIQUIDITY FUND

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 200666 983.53 - -

RELIANCE PHARMA FUND

RELIANCE COMMUNICATIONS LIMITED

RELIANCE LIQUIDITY FUND

RELIANCE GROWTH FUND

EQUITY 700000 2,361.94 700000 2,604.35

133

RELIANCE VISION FUND EQUITY 2500000 6,926.26 2500000 9,301.25

RELIANCE MONTHLY INCOME PLAN

EQUITY 600000 1,256.24 - -

RELIANCE NRI EQUITY FUND EQUITY 300000 669.09 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 6312 17.50 3448 12.80

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 594 1.80 501 1.86

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 1800000 4,180.90 1150000 4,278.58

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 500000 1,517.28 - -

RELIANCE EQUITY FUND EQUITY 7464053 23,152.1

3 7464053 27,770.01

- -

RELIANCE ENERGY LIMITED

RELIANCE FIXED HORIZON FUND1 ANNUAL PLAN SERIES 2

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 1035 5.12 558 2.61

RELIANCE FLOATING RATE FUND

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 385 2.31 89 0.42

RELIANCE GILT SECURITIES FUND - LONG TERM GILT PLAN

RELIANCE INCOME FUND

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE LIQUIDITY FUND

RELIANCE NATURAL RESOURCES LTD

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE GROWTH FUND

EQUITY 700000 42.72 - -

RELIANCE LIQUIDITY FUND

RELIANCE VISION FUND EQUITY 800000 33.46 - -

134

RELIANCE DIVERSIFIED POWER SECTOR FUND

EQUITY 14000000 4,390.63 14000000 3,150.00

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 1800000 75.62 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 200000 10.63 - -

SESA GOA LIMITED RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

RELIANCE MONTHLY INCOME PLAN

EQUITY 80000 828.07 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 376485 4,811.52 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 10 SERIES 2

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 11 SERIES 2

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 7 SERIES 2

135

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 8 SERIES 2

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 9 SERIES 2

RELIANCE FIXED HORIZON FUND- 1 - MONTHLY PLAN -SERIES 1

STERLITE INDUSTRIES INDIA LTD

RELIANCE FIXED HORIZON FUND PLAN A SERIES 1

RELIANCE VISION FUND EQUITY 691389 18.09 800000 3,824.80

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

RELIANCE LIQUID FUND CASH PLAN

DEBT 47200 47,200.00 - -

RELIANCE FIXED MATURITY FUND - ANNUAL PLAN - 3 (Series 2)

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 875375 0.00 1500000 7,171.50

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 7 SERIES 2

RELIANCE LIQUID FUND TREASURY PLAN

DEBT 20600 20,600.00 - -

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 8 SERIES 2

RELIANCE FLOATING RATE FUND

DEBT 1500 1,500.00 - -

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 9 SERIES 2

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 10000 143.59 - -

RELIANCE FIXED MATURITY FUND - QUARTERLY

RELIANCE LIQUIDITY FUND

DEBT 76300 76,300.00 - -

136

PLAN - 1 SERIES 2

RELIANCE FIXED MATURITY FUND - QUARTERLY PLAN - 2 SERIES 2

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VI

DEBT 2500 2,500.00 - -

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VII

DEBT 2000 2,000.00 - -

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

DEBT 1000 1,000.00 - -

RELIANCE LIQUIDITY FUND

RELIANCE EQUITY FUND EQUITY 1027866 5,532.77 - -

RELIANCE EQUITY FUND DEBT 6000 6,000.00 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

DEBT 6100 6,100.00 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

DEBT 4500 4,500.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

DEBT 5000 5,000.00 - -

TATA CHEMICALS LTD

RELIANCE LIQUID FUND - TREASURY PLAN

RELIANCE GROWTH FUND

EQUITY 100000 202.77 1000000 2,289.50

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 365 0.89 - -

RELIANCE EQUITY FUND EQUITY 2000000 5,198.29 2000000 4,579.00

TATA CONSULTANCY SERVICES LTD

RELIANCE FIXED HORIZON FUND

RELIANCE VISION FUND EQUITY 230000 4,095.29 - -

137

QUATERLY PLAN B SERIES 4

RELIANCE NRI EQUITY FUND EQUITY 95000 1,634.25 - -

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 1367 13.85 866 9.79

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 1270 15.66 402 4.54

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 475000 4,352.64 400000 4,518.80

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 70000 687.53 70000 790.79

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 375000 4,622.80 200000 2,259.40

RELIANCE EQUITY FUND EQUITY 878221 10,400.5

9 640000 7,230.08

TECH MAHINDRA LIMITED

RELIANCE SHORT TERM FUND

RELIANCE VISION FUND EQUITY 800000 4449.289

54 400000 2,841.80

RELIANCE EQUITY FUND EQUITY 134754 491.85 - -

ULTRATECH CEMENT LIMITED

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 3

RELIANCE MONTHLY INCOME PLAN

EQUITY 35075 191.67 - -

RELIANCE NRI EQUITY FUND EQUITY 50000 214.17 - -

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 767955 4,113.01 - -

RELIANCE REGULAR SAVING FUND EQUITY OPTION

EQUITY 40000 217.85 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 391251 2,437.17 - -

138

WIPRO LIMITED

RELIANCE FIXED HORIZON FUND QUATERLY PLAN B SERIES 3

RELIANCE VISION FUND EQUITY 900000 4,755.29 - -

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 10 SERIES 2

RELIANCE NRI EQUITY FUND EQUITY 150000 787.59 - -

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 11 SERIES 2

RELIANCE INDEX FUND SENSEX PLAN

EQUITY 2219 11.14 1269 7.24

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 7 SERIES 2

RELIANCE INDEX FUND NIFTY PLAN

EQUITY 2298 11.29 609 3.47

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 8 SERIES 2

RELIANCE EQUITY OPPORTUNITIES FUND

EQUITY 237687 1,106.53 - -

RELIANCE FIXED MATURITY FUND - MONTHLY PLAN - 9 SERIES 2

RELIANCE EQUITY FUND EQUITY 574023 3,051.63 - -

RELIANCE FLOATING RATE FUND

RELIANCE LIQUID FUND - CASH PLAN

RELIANCE LIQUIDITY FUND

YES BANK LTD RELIANCE LIQUID FUND - CASH PLAN

RELIANCE INCOME FUND

CERTIFICATE OF DEPOSIT

2000 1,987.70 - -

RELIANCE MONTHLY

CERTIFICATE 1000 995.92 - -

139

INCOME PLAN OF DEPOSIT

RELIANCE LIQUID FUND CASH PLAN

FIXED DEPOSIT

4802 4,802.00 1802 1,802.00

RELIANCE LIQUID FUND TREASURY PLAN

CERTIFICATE OF DEPOSIT

14700 14,457.79 1200 1,189.06

RELIANCE LIQUID FUND TREASURY PLAN

FIXED DEPOSIT

7200 7,200.00 - -

RELIANCE FLOATING RATE FUND

CERTIFICATE OF DEPOSIT

3500 3,454.26 1000 990.89

RELIANCE FIXED MATURITY FUND SERIES I ANNUAL PLAN

FIXED DEPOSIT

300 300.00 - -

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN I

FIXED DEPOSIT

700 700.00 - -

RELIANCE LIQUIDITY FUND

CERTIFICATE OF DEPOSIT

21100 20,666.99 100 99.09

RELIANCE LIQUIDITY FUND

FIXED DEPOSIT

22006 22,006.00 3200 3,200.00

RELIANCE FIXED MATURITY FUND SERIES II ANNUAL PLAN III

CERTIFICATE OF DEPOSIT

2500 2,462.79 - -

RELIANCE TAX SAVER (ELSS) FUND

EQUITY 2305178 1,649.50 3000000 3,004.50

RELIANCE TAX SAVER (ELSS) FUND

CERTIFICATE OF DEPOSIT

1000 987.47 - -

140

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN II

CERTIFICATE OF DEPOSIT

5500 5,385.21 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN II

FIXED DEPOSIT

7400 7,400.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VII

CERTIFICATE OF DEPOSIT

500 495.75 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN VIII

CERTIFICATE OF DEPOSIT

2500 2,480.72 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN IX

FIXED DEPOSIT

4100 4,100.00 - -

RELIANCE FIXED MATURITY FUND SERIES II MONTHLY PLAN IX

CERTIFICATE OF DEPOSIT

2000 1,990.82 - -

RELIANCE FIXED MATURITY FUND SERIES II QUARTERLY PLAN III

CERTIFICATE OF DEPOSIT

7500 7,340.53 - -

RELIANCE EQUITY FUND

CERTIFICATE OF DEPOSIT

5000 4,964.04 - -

RELIANCE EQUITY FUND

FIXED DEPOSIT

2002 2,002.00 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 2

CERTIFICATE OF DEPOSIT

10000 9,859.29 - -

141

RELIANCE FIXED HORIZON FUND PLAN A SERIES 2

CERTIFICATE OF DEPOSIT

5000 4,917.25 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 3

CERTIFICATE OF DEPOSIT

5000 4,943.32 - -

RELIANCE FIXED HORIZON FUND PLAN A SERIES 4

CERTIFICATE OF DEPOSIT

10000 9,884.22 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 4

CERTIFICATE OF DEPOSIT

7600 7,522.23 100 99.09

RELIANCE FIXED HORIZON FUND PLAN A SERIES 5

CERTIFICATE OF DEPOSIT

5000 4,999.08 - -

RELIANCE FIXED HORIZON FUND PLAN B SERIES 5

CERTIFICATE OF DEPOSIT

5000 4,913.04 5000 4,964.64

RELIANCE FIXED HORIZON FUND PLAN A SERIES 6

CERTIFICATE OF DEPOSIT

4500 4,456.67 - -

RELIANCE FIXED HORIZON FUND 1 QUARTERLY PLAN 1 SERIES 1

CERTIFICATE OF DEPOSIT

100 98.99 100 99.09

RELIANCE FIXED HORIZON FUND 1 MONTHLY PLAN 1 SERIES 1

CERTIFICATE OF DEPOSIT

2500 2,472.95 2500 2,476.74

142

7. Investments by associates in the Schemes The value of unit holding by associates and group companies in the schemes of Reliance Mutual Fund as on October 16, 2006 is as follows.

Rs. (In Lacs) Reliance Income Fund 28.17 Reliance Liquid Fund 93.61 Reliance Short Term Fund NIL Reliance Medium Term Fund - Reliance Growth Fund NIL Reliance Gilt Securities Fund 4.59 Reliance Monthly Income Plan - Reliance Vision Fund NIL Reliance Banking Fund NIL Reliance Diversified Power Sector Fund - Reliance Pharma Fund - Reliance Floating Rate Fund - Reliance Media & Entertainment Fund - Reliance NRI Income Fund - Reliance NRI Equity Fund - Reliance Equity Opportunities Fund NIL Reliance Index Fund - Nifty Plan NIL Reliance Tax Saver (ELSS) Fund NIL Reliance Liquidity Fund 78159.32 Reliance Regular Savings Fund - Reliance Fixed Tenor Fund - Reliance Fixed Horizon Fund - I – Annual Plan – Sr. II 12543.13 Reliance Fixed Horizon Fund – Plan C – Sr. I NIL Reliance Fixed Horizon Fund – I – Monthly Plan – Sr I 2591.25 Reliance Equity Fund NIL

F. PROCEDURE AND MANNER OF WINDING UP: Where a Scheme is to be wound up pursuant to the above Regulations, the Trustee shall give notice of the circumstances leading to the winding up of the Scheme:- To SEBI; and in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating at the place where the Mutual Fund is established. The Trustee shall call a meeting of the unit holders to consider and pass necessary resolutions by simple majority of the unit holders present and voting at the meeting for authorising the Trustee or any other person to take steps for winding up the Scheme. i) The Trustee or the person authorised as above, shall dispose of the assets of the Scheme concerned in the best interest of the unit holders of that Scheme. The proceeds of the Sale made in pursuance of the above, shall, in the first instance be utilised towards discharge of such liabilities as are properly due under the Scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders in proportion to their respective interest in the assets of the Scheme as on the date when the decision for the winding up was taken. ii) On the completion of the winding up, the Trustee shall forward to the Board and the unit holders, a report on the winding up containing particulars such as circumstances leading to the winding up, the steps taken for disposal of assets of the Fund before winding up, expenses of the Fund for winding up, net assets available for distribution to the unit holders and a certificate from the Auditors of the Scheme.

143

iii) Notwithstanding anything contained herein, the application of the provisions of the Mutual Fund Regulations in respect of disclosures of half-yearly reports and annual reports shall continue to apply. After the receipt of the report referred to above under 'Procedure and Manner of Winding Up', if SEBI is satisfied that all measures for winding up of the Scheme have been completed, the Scheme shall cease to exist.

144

XII. PENALTIES & PENDING LITIGATION

Penalties, pending litigation's or proceedings, findings of inspection or investigation for which action may have been taken or is in process of being taken by any regulatory authority. 1.Cases of penalties awarded by SEBI under the SEBI Act or any of its regulations against the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC, Trustee Company/ Board of Trustees, or any of the directors or key personnel (specifically the Fund Managers) of the AMC and Trustee Company. Cases of penalties awarded by any financial regulatory body, including stock exchanges, for defaults in respect of shareholders, debenture holders and depositors and penalties awarded for any economic offence and violation of any securities laws, against the Sponsors and its associates. Reliance Mutual Fund: SEBI had issued a show cause notice to Reliance Mutual Fund on February 12, 2003 regarding violation of investment restrictions for exceeding the investment limit in unrated debt securities (9.80% UTI Bank Bonds, 2007) beyond the permissible limit of 10% specified under the Regulations in one of the Schemes namely Reliance Medium Term Fund. (a) Reliance Mutual Fund had submitted reply on February 26, 2003 in this regard and also attended the adjudication proceedings held by SEBI on March 11, 2003 and a total fine of Rs.6 lacs was imposed by SEBI on both Reliance Capital Asset Management Limited and Reliance Mutual Fund. The said fine was borne by the AMC. (b) The Clearing Corporation of (I) Ltd. had levied penal charges to Reliance Mutual Fund on account of margin default on 14.03.03 of Rs. 35,996, on 17.03.03 of Rs. 26,030, on 6.11.03 of Rs. 5,000 the said charges were borne by the AMC. For details of other penalties besides the above please refer below. 2.Pending material litigation proceedings incidental to the business of the Mutual Fund to which the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel is a party. NIL 3.Pending criminal cases against the Sponsor or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel. Reliance Capital Limited: There are 42 cases pertaining to equity shares of Reliance Capital Limited pending in various Civil/ Criminal courts and other forums. The total amount involved in the above mentioned cases is approximately Rs.40,20,140/-. Similarly, 2 cases are pending in the High Court of Mumbai amounting to Rs.5,82,41,649/-, in relation to business operations of the company. Reliance Share & Stock Brokers Private Limited SEBI vide order dated 11.12.2006 had imposed penalty of Suspension of Registration of Reliance Share & Stock Brokers Private Limited (RSSBPL), a group Company of RCAM for a period of 4 months. Thereafter RSSBPL filed an Appeal with Securities Appellate Tribunal (SAT) and the SAT vide its order dated 27.12.2006 has stayed the order of SEBI till such time the matter is disposed off. JURISDICTION: Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in India. Statements in this Offer Document are, except where otherwise stated, based on the law, practice currently in force in India, and are subject to changes therein. OMNIBUS CLAUSE: Subject to the Regulation permitting: Besides the AMC, the Trustee or Sponsor may also absorb expenditures in addition to the limits laid down under the Regulations. Further, any amendment/clarification and guidelines in the form of notes or circulars issued from time to time by SEBI for the operation and management of mutual fund shall be applicable. AMC confirms that there are no deviations from the regulation and no subjective interpretations have been applied to the provisions of the Regulations

145

AMENDMENTS TO THE OFFER DOCUMENT: Necessary amendments shall be made to the Offer Document of the Scheme by RCAM, subject (if and as required) to approval of SEBI / Unitholder. Further, RCAM reserves the right to issue operational procedures for implementing marketing / service plans from time to time. DOCUMENTS AVAILABLE FOR INSPECTION: Copies of the following documents will be available for inspection by the unitholders between 11.00 a.m. and 1.00 p.m. on any working day at the head office of the Mutual Fund: - 1. Memorandum and Articles of Association of RCAM and RCTC. 2. The Custodial Agreement between RMF and Deutsche Bank 3. Trust Deed and subsequent amendments thereto 4. Mutual Fund Registration Certificate from SEBI 5. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. 6. Registrar's consent letter 7. Investment Management Agreement. 8. Auditor's consent letter 9. Indian Trusts Act, 1882. 10. Offer Document of this Scheme and subsequent amendments thereto Notwithstanding anything contained in the Offer Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder, shall be applicable.

For and behalf of the Board of Directors of

RELIANCE CAPITAL ASSET MANAGEMENT LIMITED [Asset Management Company for Reliance Mutual Fund]

Place : Mumbai (Vikrant Gugnani) Date : ___________, 2007 President