KEY INFORMATION MEMORANDUM
& APPLICATION FORM
Rate Income Fund
An Open-end Income Scheme
Offer of Units at Par Value of
Rs. 10 Per Unit for cash during
the Initial Offer Period and at
NAV based prices upon re-opening
Initial Offer Opens on : January 21, 2002
Initial Offer Closes on : February 2, 2002
Scheme Re-opens on : February 18, 2002
This Memorandum sets forth concisely the information
about the Scheme that a prospective investor ought to
know before investing. The memorandum should be
retained for future reference. For further details, investors
should refer to the full Offer Document.
The Scheme particulars have been prepared in accordance
with Securities and Exchange Board of India (Mutual
Funds) Regulations 1996, as amended till date, and filed
with Securities and Exchange Board of India (SEBI). The
units being offered for public subscription have not been
approved or disapproved by SEBI, nor has SEBI certified
the accuracy or adequacy of this Abridged Offer Document.
Templeton Mutual Fund
Contact Franklin Templeton Services at :
Sponsor: Templeton International Inc., Florida, USA.
Visit us at : Asset Management Company :
www.franklintempletonindia.com Templeton Asset Management (India) Pvt. Ltd.
TEMPLETON FLOATING RATE INCOME FUND
Templeton Mutual Fund RISK FACTORS
Sakhar Bhavan, 1st Floor, 230, Backbay Reclamation,
Nariman Point, Mumbai 400 021. l Mutual Funds and securities investments are subject to market and
other risks and there can be no assurance or guarantee that the
Schemes objectives will be achieved.
l As with any investment in securities, the NAV of the units issued
under the Scheme can go up or down depending upon the factors
and forces affecting the capital markets.
Templeton Floating Rate l Past performance of the Sponsor/AMC/Mutual Fund does not
indicate the future performance of the schemes of the Mutual Fund.
Income Fund l The Sponsor is not responsible or liable for any loss resulting from
the operation of the Scheme beyond the initial contribution of Rs.1
lakh made by it towards setting up the Fund.
An Open-end Income Scheme l Templeton Floating Rate Income Fund is the name of the
scheme and does not in any manner indicate either the quality of
the Scheme, its future prospects or returns.
l Investors in the Scheme are not being offered any guaranteed /
SCHEME SPECIFIC RISK FACTORS AND
l An open-ended income fund sponsored by the Franklin Templeton SPECIAL CONSIDERATIONS
Group, one of the worlds largest investment management
companies, which has over 50 years of experience in international 1. Investing in the Scheme involves certain risks and considerations
investment management and manages US$ 261.40 billion in generally associated with making investments in securities. There
assets (approximately Rs. 12,54,720 crores) as on November 30, can be no assurance that the Scheme can achieve its objectives.
2001. The value of the Schemes investments may be affected generally
l The scheme is an open-ended income scheme whose primary by factors affecting capital markets, such as price and volume
objective is to provide income consistent with the prudent risk from volatility in the securities markets, interest rates, currency exchange
a portfolio comprising substantially of floating rate debt instruments, rates, foreign investment, changes in Government policies, taxation,
fixed rate debt instruments swapped for floating rate return, and political, economic or other developments and closure of the stock
also fixed rate instruments and money market instruments. exchanges. There is also risk of loss due to lack of adequate
external systems for transferring, pricing, accounting and safekeeping
l The scheme offers two plans: Short Term Plan and a Long Term or record keeping of securities. Transfer risk may arise due to the
Plan. Both the plans offer dividend and growth options. process involved in registering the instruments (both physical &
demat) in the Schemes name, price risk may arise on account of
l The Scheme will offer for Sale and Redemption of Units at NAV non-availability of prices during the day and at the close of the day.
based prices on every Business Day on an ongoing basis,
Consequently, the NAV of the Scheme may fluctuate, and the value
commencing not later than 30 days from the closure of Initial Offer
of the Schemes Units may go down as well as up. Past performance
Period. The redemption cheque will be despatched to the unit of mutual funds managed by the Franklin Templeton Group and its
holders within the statutory time limit of 10 business days prescribed affiliates is not necessarily indicative of future performance of the
by SEBI. However, on a best effort basis the Fund will endeavour Scheme.
to despatch the redemption cheque within 72 hours after a valid
redemption request is received at the Registrars office at Hyderabad. 2. The scheme may invest in derivative instruments like interest rate
swaps, options on interest rates, warrants, forward rate agreement
l The NAV of the Scheme will be calculated for all business days and or any such instruments, for the purpose of hedging and portfolio
the full portfolio of investments will be disclosed half-yearly. balancing as permitted under the Regulations and guidelines, which
carries credit and market risks. Further, there could be an element
l Investors can avail of the following Tax Benefits under the Income
Tax Act, 1961: of settlement risk, which could be different from the risk in settling
physical instruments and there is a risk attached since the Indian
l Income from Units is fully exempt from Tax at the hands of market for derivative instruments is untried and untested.
the investors. 3. Risks of investing in floating rate debt instruments or fixed rate debt
l Units are not subject to Wealth Tax and Gift tax. instruments swapped for floating rate return:
l Interest rate movement (Basis Risk): As the fund will invest
l Dividends tax-free in the hands of investors (the scheme will
in floating rate instruments, these instruments coupon will be
pay a distribution tax, presently @ 10% plus surcharge)
reset periodically in line with the benchmark index movement.
l No tax deduction at source on redemption irrespective of the Normally, the interest rate risk of a floating rate instrument
amount redeemed for resident investors. compared to a fixed rate instrument is limited. The changes
TEMPLETON FLOATING RATE INCOME FUND
in the prevailing rates of interest will likely affect the value of /redemption requests or other short-term obligations because of
the Schemes holdings until the next reset date and thus the the percentage of the Schemes assets segregated to cover its
value of the Schemes Units. Increased rates of interest, obligations.
which frequently accompany inflation and/or a growing 6. Subject to necessary approvals and within the Investment Objective
economy, are likely to have a negative effect on the value of of the Scheme, the Scheme may also invest in overseas financial
the Units. The value of securities held by the Scheme generally assets subject to the approval of the concerned regulatory authorities.
will vary inversely with changes in prevailing interest rates.The To the extent that the assets of the Scheme will be invested in
fund could be exposed to the interest rate risk (i) to the extent securities denominated in foreign currencies, the Indian Rupee
of time gap in resetting of the benchmark rates, and (ii) to equivalent of the net assets, distributions and income may be
the extent the benchmark index fails to capture the interest adversely affected by changes in the value of certain foreign
rate movement. currencies relative to the India Rupee. The repatriation of capital
l Spread Movement (Spread Risk): Though the basis (i.e. to India may also be hampered by changes in regulations concerning
benchmark) gets readjusted on a regular basis, the spread exchange controls or political circumstances as well as the application
(i.e. markup) over benchmark remains constant. This can to it of other restrictions on investments.
result in some volatility to the holding period return of floating 7. Subject to the SEBI Regulations, the Mutual Fund may, if the
rate instruments Trustee permits, engage in Securities Lending. Securities Lending
l Settlement Risk (Counterparty Risk): The floating rate means the lending of security to another person or entity for a fixed
assets may also be created by swapping a fixed return to a period of time, at a negotiated compensation in order to enhance
floating rate return. In such a swap, there may be an additional returns of the portfolio. The securities lent will be returned by the
risk of counterparty who will pay floating rate return and borrower on the expiry of the stipulated period.
receive fixed rate return. As with other modes of extensions of credit, there are risks inherent
to securities lending, including the risk of failure of the other party,
l Liquidity Risk: Due to the evolving nature of the floating rate in this case the approved intermediary, to comply with the terms
market, there may be an increased degree of liquidity risk in of the agreement entered into between the lender of securities i.e.
the portfolio from time to time. the Scheme and the approved intermediary. Such failure can result
For details on swapping mechanism, please refer to the in the possible loss of rights to the collateral put up by the borrower
Section on INVESTMENTS IN DERIVATIVE INSTRUMENTS. of the securities, the inability of the approved intermediary to return
the securities deposited by the lender and the possible loss of any
4. The Scheme proposes to invest primarily in floating rate debt corporate benefits accruing to the lender from the securities
instruments or fixed rate debt instruments swapped for floating rate deposited with the approved intermediary. The Mutual Fund may
return. Trading volumes, settlement periods and transfer procedures not be able to sell such lent out securities and this can lead to
may restrict the liquidity of these investments. The length of time temporary illiquidity.
for settlement may affect the Scheme in the event the Scheme
has to meet an inordinately large number of redemption requests. 8. The risk associated with investment in debt securities are:
In addition, the Trustee has the right, in its sole discretion, to limit l Interest Rate Risk: As with all the debt securities, changes
redemptions under certain circumstances. See section on Right in the interest rates may affect the Schemes Net Asset Value
to limit redemptions. The Scheme will retain certain investments as the prices of securities generally increase as interest rates
in cash or cash equivalents for its day-to-day liquidity requirements. decline and generally decrease as interest rates rise. Prices
of long term securities generally fluctuate more in response
5. The Scheme will use techniques like interest rate swaps, options to interest rate changes than do short-term securities. Indian
on interest rates, warrants, forward rate agreement and other debt markets can be volatile leading to the possibility of price
derivative instruments that may be permitted and / or that may
movements up or down in fixed income securities and thereby
become permissible under SEBI/RBI Regulations and / or Regulations
possible movements in the NAV.
and / or statutory modification or re-enactment thereof for efficient
portfolio management and to attempt to hedge or reduce the risk l Liquidity or Marketability Risk: This refers to the ease with
of such fluctuation. However, these techniques and instruments, which a security can be sold at or near to its valuation yield-
if imperfectly used have the risk of the Scheme incurring losses to-maturity (YTM). The primary measure of liquidity risk is the
due to mismatches particularly in a volatile market. The Funds spread between the bid price and the offer price quoted by
ability to use these techniques may be limited by market conditions, a dealer. Liquidity risk is today characteristic of the Indian fixed
regulatory limits and tax considerations (if any). The use of these income market
techniques is dependent on the ability to predict movements in the l Credit Risk: Credit risk or default risk refers to the risk that
prices of securities being hedged and movements in interest rates. an issuer of a fixed income security may default (i.e. will be
There exists an imperfect correlation between the hedging unable to make timely principal and interest payments on the
instruments and the securities or market sectors being hedged. security). Because of this risk corporate debentures are sold
Besides, the fact that skills needed to use these instruments are at a yield above those offered on Government Securities which
different from those needed to select the Funds / Schemes are sovereign obligations and free of credit risk. Normally the
securities. There is a possible absence of a liquid market for any value of a fixed income security will fluctuate depending upon
particular instrument at any particular time even though the futures the changes in the perceived level of credit risk as well as any
and options may be bought and sold on an organized exchange. actual event of default. The greater the credit risk, the greater
The use of these techniques involves possible impediments to the yield required for someone to be compensated for the
effective portfolio management or the ability to meet repurchase increased risk.
TEMPLETON FLOATING RATE INCOME FUND
l Reinvestment Risk: This risk refers to the interest rate levels
at which cash flows received for the securities in the Scheme EXPENSES OF THE SCHEME
is reinvested. The additional risk from reinvestment is the
interest on interest component. The risk is that the rate at 1. UNITHOLDER TRANSACTION EXPENSES OR
which interim cash flows can be reinvested may be lower than SALES / REDEMPTION LOAD
that originally assumed. During Upon Reopening
Initial Offer for ongoing
9. Prospective investors should review / study this Offer carefully subscriptions
and in its entirety and shall not construe the contents hereof
or regard the summaries contained herein as advice relating Short Term Long Term Short Long Term
to legal, taxation, or financial/ investment matters and are Plan Plan Term Plan Plan
advised to consult their own professional advisor(s) as to the i Sales Load imposed 0% 0% 0% 0%
legal or any other requirements or restrictions relating to the on Purchases
subscription, gifting, acquisition, holding, disposal (sale, transfer,
switch or redemption or conversion into money) of Units and ii Sales Load on 0% 0% 0% 0%
to the treatment of income (if any), capitalization, capital issue of units in
gains, any distribution, and other tax consequences relevant lieu of dividends
to their subscription, acquisition, holding, capitalization, disposal (as % of NAV)
(sale, transfer, switch or redemption or conversion into money) iii Contingent Deferred NA NA NA NA
of Units within their jurisdiction / of nationality, residence, Sales Load (CDSC)
domicile etc. or under the laws of any jurisdiction to which they (based on any
or any managed Funds to be used to purchase/gift Units are period of holding)
subject, and (also) to determine possible legal, tax, financial (as % of NAV)
or other consequences of subscribing / gifting to, purchasing iv Redemption/ 0% Upto Rs. 10 0% Upto Rs. 10
or holding Units before making an application for Units. Repurchase Load lacs: 0.50% lacs: 0.50%
10. Neither this Offer Document nor the units have been registered (as % of amount if redeemed if redeemed
in any jurisdiction. The distribution of this Offer Document in redeemed) within within
certain jurisdictions may be restricted or subject to registration 6 months 6 months
requirements and, accordingly, persons who come into Above Rs. 10 Above Rs. 10
possession of this Offer Document in certain jurisdictions are lacs: 0.25% lacs: 0.25%
required to inform themselves about, and to observe, any such if redeemed if redeemed
restrictions. No person receiving a copy of this offer document within within
or any accompanying application form in such jurisdiction may 3 months 3 months
treat this Offer Document or such application form as constituting v Switchover/ 0% Upto Rs. 10 0% Upto Rs. 10
an invitation to them to subscribe for Units, nor should they Exchange Fee lacs: 0.50% lacs: 0.50%
in any event use any such application form, unless in the (as % of NAV) if redeemed if redeemed
relevant jurisdiction such an invitation could lawfully be made redeemed) within within
to them and such application form could lawfully be used 6 months 6 months
without compliance with any registration or other legal Above Rs. 10 Above Rs. 10
requirements. lacs: 0.25% lacs: 0.25%
if redeemed if redeemed
No person has been authorized to give any information or to make any within within
representations not confirmed in this Offer Document in connection with 3 months 3 months
this Offer or the issue of Units, and any information or representations
not contained herein must not be relied upon as having been authorized The Trustee reserves the right to introduce/increase/decrease a Load/Fee
by the Mutual Fund, the Investment Manager. Neither the delivery of this for the items (i) to (v) above at any time in future on a prospective basis.
Offer Document nor any sale made hereunder shall, under any However such increase/decrease/introduction would be subject to the
circumstances, create any implication that the information contained limits prescribed under the Regulations.
herein is correct as of any time subsequent to the close of the Initial As and when a sales load is introduced, the sales load collected on on-
Offering Period. going sales of units shall be retained in the Fund and maintained in a
separate account and would strictly and fully be utilised by the Investment
Manager in providing distribution related services to the Mutual Fund
DUE DILIGENCE relating to the sale, promotion, advertising and marketing of Units of the
Scheme, including payments to brokers/registrars for their services in
Templeton Asset Management (India) Pvt. Ltd. has exercised due diligence connection with the distribution of the Units.
while preparing the Offer Document of the Scheme and has submitted
a Due Diligence Certificate to Securities and Exchange Board of India 2. INITIAL ISSUE EXPENSES
on November 20, 2001 in the prescribed format. Investors may refer a) Present Scheme
to the full Offer Document for the contents of the Due Diligence All expenses relating to the initial offer of units under TFIF shall be borne
Certificate. by the AMC.
TEMPLETON FLOATING RATE INCOME FUND
Details of estimated initial issue expenses for the scheme are as follows: (Schemes launched during the last one fiscal year) are given below
Nature of expenses (Rs. lakh) % of estimated (Rs. in Lakhs):
target amount of Nature of expenses FITF TILP
Rs. 1 crore
Brokerage fees & Commission 0.12 0.00
Brokerage fees & Commission 1.50 1.50 Marketing & Advertising 3.33 0.00
Marketing & Advertising 0.10 0.10 Registrar fees 0.00 0.00
Registrar fees 0.10 0.10 Printing & Distribution 6.54 1.16
Printing & Distribution 0.10 0.10 Bankers fees 0.00 0.00
Bankers fees 0.50 0.50 Other expenses 2.40 0.00
Other expenses 0.50 0.50 None of the expenses in any of the schemes above, have exceeded 6%
2.80 2.80 of initial resources mobilised.
All Initial Issue Expenses will be borne by the Investment Manager. As c) Annual Scheme Recurring Expenses
such for every Rs. 100/- contributed by the investor, whole of Rs. 100/- The ongoing fees and expenses of operating the Scheme on an annual
will be available to the scheme for investment. basis, expressed as a percentage of the amount of the Schemes
average weekly net assets, are estimated to be as follows:
b) Past Schemes
i. Name of the Scheme: Templeton India Growth Fund Nature of fees and expenses % of Average Weekly
(TIGF) Net Assets
This scheme was launched in August 1996. All initial expenses Short Term Long Term
were borne by the Investment Manager. Plan Plan
ii. Name of the Scheme : Templeton India Income Fund Investment Management & Advisory Fees 0.75 1.25
Trustee Fees 0.01 0.01
This Scheme was launched in February 1997. All initial
expenses were borne by the Investment Manager. Custodian Fees 0.02 0.04
Registrar & Transfer Agents Charges &
iii. Name of the Scheme : Templeton India Liquid Fund (TILF)
Investor Communication 0.05 0.10
This Scheme was launched in June 1998. All initial expenses
were borne by the Investment Manager. Broker / Dealer Remuneration 0.25 0.40
Audit Fees 0.04 0.04
iv. Name of the Scheme: Templeton India Government
Securities Fund (TGSF) Cost of Funds Transfer 0.02 0.05
This Scheme was launched in June 1999. All initial expenses Cost of providing a/c statements,
were borne by the Investment Manager. dividends, etc 0.03 0.03
v. Name of the Scheme: Templeton Monthly Income Plan Cost of Statutory Advertisements 0.03 0.03
(TMIP) Other expenses 0.05 0.05
This Scheme was launched in January 2000. All initial expenses Total Annual Recurring Expenses 1.25 2.00
were borne by the Investment Manager.
vi. Name of the Scheme: Franklin India Growth Fund (FIGF) The total annual recurring expenses for Short Term Plan and Long Term
This Scheme was launched in January 2000. All initial expenses Plan is estimated at 1.25% and 2.00% respectively of the average
were borne by the Investment Manager. weekly net assets, and the total expenses of the Scheme including the
Management and advisory fees shall not exceed the limits prescribed
vii. Name of the Scheme : Franklin India Index Fund (FIIF) under Regulation 52(6) of SEBI (Mutual Funds) Regulations, 1996.
This scheme was launched in June, 2000. All the initial These estimates have been made in good faith as per the
expenses, in excess of the entry load, were borne by the information available to the Investment Manager based on past
Investment Manager. experience and are subject to change inter-se and types of the
viii. Name of the Scheme : Franklin India Balance Fund (FIBF) expenses charged shall be as per the Regulations.
This Scheme was launched in June, 2000. All the initial As per the Regulations, the total expenses of the respective Schemes
expenses, in excess of the entry load, were borne by the excluding issue or redemption expenses, whether initially borne by the
Investment Manager. mutual fund or by the AMC, but including the investment management
ix. Name of the Scheme : Franklin India Index Tax Fund and advisory fee shall be subject to the following limits:
(FITF) l On the first Rs. 100 crores of the average weekly net assets: 2.50%
This Scheme was launched in February 2001. All the initial l On the next Rs. 300 crores of the average weekly net assets:
expenses, were borne by the Investment Manager. 2.25%
x. Name of the Scheme : Templeton India Liquid Plus (TILP) l On the next Rs. 300 crores of the average weekly net assets:
This Scheme was launched in April 2001. All the initial 2.00%
expenses, were borne by the Investment Manager. l On the balance of assets: 1.75%
The details of initial issue expenses borne by AMC for FITF and TILP Provided that such recurring expenses shall be lesser by at least
TEMPLETON FLOATING RATE INCOME FUND
0.25% of the weekly average net assets outstanding in each herein and charged to the scheme and is subject to the following
financial year in respect of a scheme investing in bonds. Ongoing limits:
fees and expenses incurred beyond the stipulated amounts, if any, l On the first Rs. 100 crores of the weekly average net assets:
will be borne by the AMC. 1.25%
In accordance with the Regulations, the investment management l On the balance of the net assets: 1.00%
and advisory fee is included within the ongoing expenses stated The ongoing fees and expenses of the schemes are charged daily.
CONDENSED FINANCIAL INFORMATION
a) Historical Per Unit Statistics
TIGF TIIF TILF TGSF FIGF TMIP FIIF FIBF FITF
Date of Allotment 10-Sep-1996 05-Mar-1997 17-Jun-1998* 21-Jun-1999 7-Feb-2000 7-Feb-2000 4-Aug-2000 4-Aug-2000 26-Feb-2001
Financial Year 1-Apr-2000 to 1-Apr-2000 to 1-Apr-2000 to 1-Apr-2000 to 1-Apr-2000 to 1-Apr-2000 to 26-Jun-2000 to 26-Jun-2000 to 26-Feb-2001 to
31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001 31-Mar-2001
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
NAV at the beginning 15.45 15.03 (GP) 11.8417 (GP) 11.369 (GP) 9.25 10.10 (GP) 9.84 9.74 (GP) 10.00
of the year 10.53 (DP) 10.0022 (DP) 10.326 (DP) 10.04 (MP) 9.74 (DP)
Dividends 1.45 0.83 0.6851 0.925 Nil 2.05 Nil Nil Nil
NAV at the end of 11.34 16.73 (GP) 13.0144 (GP) 13.123 (GP) 4.93 10.84 (GP) 8.63 8.38 (GP) 8.78
the year 10.69 (DP) 10.0143 (DP) 10.712 (DP) 10.18 (MP) 8.23 (DP)
Annualised Returns from 5.28% 12.90% (GP) 9.91% (GP) 16.52% (GP) (46.07%) 7.30% (GP) (13.70%) (16.20%) (GP) (12.20%)
the date of allotment @ 12.43% (DP) 7.29% (DP) 14.11% (DP) 8.36% (MP) (17.70%) (DP)
Benchmark Returns @ 1.06% 15.13% (42.46%) (12.92%) (13.04%)
BSE Sensex I-SEC Bond BSE 100 Nifty Nifty
Net Asset at the 130.40 1535.59 302.13 248.00 23.31 155.11 19.24 11.19 1.30
end of the period (Rs. cr.)
* TILF (DP) was launched on April 7, 2000.
b) Half-yearly Audited Financial Results for the period ended September 30, 2001
TIGF FIGF FIIF FITF FIBF TIIF TMIP TGSF TILF TILP #
NAV at the beginning 11.34 4.93 8.63 8.78 8.38(GP) 10.84 (GP)
16.73 (GP) 13.123 (GP) 13.0144 (GP) 10.0033
of the Half year 8.23 (DP) 10.18 (MP)
10.69 (DP) 10.712 (DP) 10.0143 (DP)
Dividends Nil Nil Nil Nil Nil 0.525 1.17 0.575 0.3643 0.0000
NAV at the 9.74 4.06 6.97 7.12 7.91 (GP) 17.94 (GP) 11.36 (GP) 14.595 (GP) 13.5443 (GP) 10.3317
end of the Half year 7.62 (DP) 10.93 (DP) 10.27 (MP) 11.192 (DP) 10.0000
10.35 (QP) (DP- Ex Div)
Annualised Returns from 1.66% (42.26%) (26.93%) (28.80%) (18.43%) (GP) 13.63% (GP) 8.02% (GP) 18.06% (GP) 9.66% (GP) 7.56%
the date of allotment @ (21.04%) (DP) 13.22% (DP) 9.72% (MP) 15.62% (DP) 7.28 % (DP)
Benchmark Returns @ (3.89%) (41.69%) (27.28%) (30.79%) 16.70%
BSE Sensex BSE Sensex Nifty Nifty I-SEC Bond
Net Asset at the end of the 111.07 18.94 25.29 1.38 10.04 1853.08 169.20 459.41 751.80 124.52
period (Rs crores)
The date of allotment of TILP is April 23, 2001
TEMPLETON FLOATING RATE INCOME FUND
c) NAV and Returns as on November 30, 2001
TIGF FIGF FIIF FITF FIBF TIIF TMIP TGSF TILF TILP
Net Asset Value as on 11.74 4.86 8.12 8.28 9.01 (GP) 18.78 (GP) 11.83 (GP) 16.130 (GP) 13.7132 (GP) 10.4573 (GP)
November 30, 2001 8.63 (DP) 11.44 (DP) 10.49 (MP) 12.385 (DP) 10.0094 (DP) 10.0000 (DP)
Annualised Returns from 5.31% (32.86%) (14.59%) (17.20%) (7.59%) (GP) 14.22(GP) 9.72% (GP) 21.61% (GP) 9.56%(GP) 7.59% (GP)
the date of allotment till (10.56%) (DP) 13.80(DP) 10.99% (MP) 19.33% (DP) 7.17%(DP) 4.24% (DP)
November 30, 2001@ 10.83% (QP)
Net Asset as on November 139.91 24.90 33.24 1.80 11.21 1,937.10 174.80 624.83 699.53 128.05
30, 2001 (Rs in crores)
GP-Growth Plan, DP-Dividend Plan, MP-Monthly Dividend Plan, QP-Quarterly Dividend Plan, HP-Half-Yearly Dividend Plan;
TILP was launched on April 23, 2001. The date of allotment of TILP (DP) is November 8, 2001.
@ Returns for periods less than one year have been given in absolute terms without annualising the same. Returns for periods greater than one year are on compounded annualised basis.
For all dividend plans : Returns for schemes/plans with dividend distribution are computed assuming re-investment of all payouts at ex-dividend NAV.
TILP returns are calculated by simple annualisation of yields.
d) Borrowings of the Fund
As of March 31, 2001 the Fund did not have any borrowings other RBI
THE TRUSTEE COMPANY (THE TRUSTEE)
refinance facility (less than 20% of NAV) against government securities
Templeton Trust Services Private Limited is a company incorporated with
under Templeton India Government Securities Fund (TGSF).
limited liability under the Companies Act, 1956. The Registered Office
of the Trustee is situated at 1st Floor, Sakhar Bhavan, Nariman Point,
THE FRANKLIN TEMPLETON GROUP Mumbai 400 021. Following are the details of the Directors of the
Trustee Company :-
The Franklin Templeton Group is one of the worlds largest Investment
l Samuel J. Forester, Jr.*, Chairman
Management Companies with US $261.4 billion as at November 30,
2001 (Rs. 12,54,720 crores approximately) in assets under management Templeton Worldwide, Inc., 500 East Broward Boulevard, Suite
as on including nearly 225 Open End Mutual Funds, Separately Managed 2100, Fort Lauderdale, FL - 33394, U.S.A.
Accounts and other investment vehicles. The Franklin Templeton Group
Other Directorships: Templeton Research and Management
has over 50 years of experience in International Investment Management.
Venezuela CA, Templeton Funds Trust Company, Closed Joint Stock
The Group has over 40 offices worldwide.
CONSTITUTION OF THE MUTUAL FUND l Gregory E. McGowan*, Executive Vice President, Director and
General Counsel for International Development of Templeton
THE FUND Worldwide, Inc.
Templeton Mutual Fund (the Mutual Fund) has been constituted as 500 East Broward Boulevard, Suite 2100, Fort Lauderdale,
a trust under the Indian Trusts Act, 1882 and registered with SEBI FL - 33394, U.S.A.
bearing registration no. MF/026/96/8 dated February 19,1996.
Other Directorships: Templeton Investment Holdings (Cyprus) Ltd,
THE SPONSOR Franklin Templeton Holding Limited, Templeton/Franklin Investment
The sponsor of Templeton Mutual Fund is Templeton International, Inc. Services (Asia) Ltd., Templeton Investment Management (Australia)
Templeton International Inc., is a wholly owned subsidiary of Templeton Ltd., Templeton Natl Bank of Greece Mngmt (Lux) S.A., Templeton
Worldwide Inc., which in turn is a wholly owned subsidiary of Franklin Investment Management (HK) Ltd., Templeton Worldwide Inc.,
Resources Inc. Templeton International Inc, T.G.H. Holdings Ltd., Templeton Global
The Sponsor was responsible for setting up and establishing the Templeton Strategic Services, S.A., Templeton/Franklin Investment Services S
Mutual Fund. The Sponsor is the Settler of the Mutual Fund Trust. The A, Templeton Quantitative Advisors Inc., The DAIS Group, Inc,
Sponsor has entrusted a sum of Rs. 1 lakh to the Trustee as the initial Templeton Global Bond Managers, Inc., Templeton Management
contribution towards the corpus of the Mutual Fund. The sponsor has (Lux) S A, Templeton Financial Advisory Services S A
delegated the trustee functions to the Trustee and the Investment l Anand J. Vashi, Chartered Accountant
Management functions to The Investment Manager. The Sponsor is
represented by the Directors on the Boards of the Trustee and the D-J, Mehta Estate, 262 Thakurdwar, Mumbai 400 002.
Investment Manager in accordance with the Regulations. The Sponsor Other Directorships: The Acme Mfg. Co Ltd., A.J. Patel Investment
shall be responsible for discharging its functions and responsibilities & Trading Co. Pvt Ltd., Millars Mach Co. Pvt. Ltd., Lucid Technologies
towards the Fund in accordance with Regulations and the various Pvt. Ltd., Lucid International Pvt. Ltd., Pedershaab Acme India Pvt.
constitutive documents of the Fund. Ltd.
TEMPLETON FLOATING RATE INCOME FUND
l Percy Jal Pardiwalla, Advocate Trustee shall exercise due diligence as under :
16, Vishnu Mahal, D Road, Churchgate, Mumbai 400 020. A. General Due Diligence:
l Bharat Doshi, Company Executive i. The Trustee shall be discerning in the appointment of the
directors on the Board of the asset management company.
8, St. Helens Court, Dr. Gopalrao Deshmukh Marg, Mumbai 400 026
ii. Trustee shall review the desirability of continuance of the asset
Other Directorship: Mahindra Intertrade Limited, Mahindra & management company if substantial irregularities are observed
Mahindra Financial Services Limited, Mahindra Steel Service Centre in any of the schemes and shall not allow the asset
Limited, Mahindra & Mahindra Limited, Mahindra Information management company to float new scheme.
Technology Services Limited, Mahindra Consulting Limited, Mahindra
Holdings & Finance Limited, Ford Credit Kotak Mahindra Limited, iii. The trustee shall ensure that the trust property is properly
Ford India Limited, Mahindra British Telecom Limited, Indian protected, held and administered by proper persons and by
Opportunities Fund Limited, Indian Oppurtunities Fund (Mauritius) proper number of such persons.
Limited, NSE.IT Limited, Mahindra InfoTech Inc., Godrej Consumer iv. The trustee shall ensure that all service providers are holding
Products Ltd. appropriate registrations from the Board of concerned regulatory
* These Directors represent sponsors of the Trustee Company and authority.
are associates of the sponsor. v. The Trustee shall arrange for test checks of service contracts.
SUMMARY OF THE SUBSTANTIAL PROVIONS OF THE vi. Trustee shall immediately report to Board of any special
TRUST DEED developments in the Mutual Fund.
a) The Trustee shall ensure before the launch of any scheme that the B. Specific Due Diligence :
asset management company has:-
i. obtain internal audit reports at regular intervals from
i) systems in place for its back office, dealing room and independent auditors appointed by the Trustee.
ii. obtain compliance certificates at regular intervals from the
ii) appointed all key personnel including fund manager(s) for the asset management company
scheme(s) and submitted their biodata, which shall contain
the educational qualifications, past experience in the securities iii. hold meeting of Trustee more frequently
market, to the Trustee, within fifteen days of their appointment, iv. consider the reports of the independent auditor and compliance
iii) appointed auditors to audit the accounts, reports of asset management company at the meetings of
Trustee for appropriate action.
iv) appointed a compliance officer to comply with regulatory
requirement and to redress investor grievances, v. maintain records of the decisions of the Trustee at their
meetings and of the minutes of the meetings.
v) appointed registrars and laid down parameters for their
supervision, vi. prescribe and adhere to a code of ethics by the Trustee, asset
management company and its personnel
vi) prepared a compliance manual and designed internal control
mechanisms including internal audit systems, vii. communicate in writing to the asset management company
of the deficiencies and checking on the rectification of
vii) specified norms for empanelment of brokers and marketing
b) In accordance with Regulation 18(15A) of SEBI Regulations, the The Trustee shall not be held liable for acts done in good faith if they
trustees shall ensure that no change in the fundamental attributes have exercised adequate due diligence honestly.
of any scheme or the trust or fees and expenses payable or any The independent directors of the Trustee or asset management company
other change which would modify the scheme and affects the shall pay specific attention to the following, as may be applicable,
interest of unit holders, shall be carried out unless, - namely :
i) a written communication about the proposed change is sent i. the Investment Management Agreement and the compensation
to each unitholder and an advertisement is given in one paid under the agreement.
English daily newspaper having nationwide circulation as well ii. service contracts with affiliates whether the asset
as a newspaper published in the language of the region where management company has charged higher fees than outside
the head office of the mutual fund is situated; and contractors for the same services
ii) the unitholders are given an option to exit at the prevailing iii. selection of the asset management companys independent
Net Asset Value without any exit load. directors
c) The Trustee shall ensure that the AMC has not given any undue
iv. securities transactions involving affiliates to the extent such
or unfair advantage to any associates or dealt with any of the
transactions are permitted.
associates of the AMC in any manner detrimental to the interest
of unitholders. v. selecting and nominating individuals to fill independent directors
d) The Trustee shall be accountable for, and be the custodian of, the
funds and property of the Scheme and shall hold the same in trust vi. code of ethics must be designed to prevent fraudulent,
for the benefit of the unitholders in accordance with SEBI Regulations deceptive or manipulative practices by insiders in connection
and the provisions of the trust deed. with personal securities transactions.
TEMPLETON FLOATING RATE INCOME FUND
vii. the reasonableness of fees paid to sponsors, asset Allocation as % Risk
management company and any others for services provided Type of Security of Corpus Profile
viii. principal underwriting contracts and their renewals
ix. any service contract with the associates of the asset
management company. than 1 year, Repos/Reverse
Repos or any other instrument
permitted by RBI/SEBI)
l Non-Money market instruments
FUNDAMENTAL ATTRIBUTES (including bonds & debentures
issued by corporates or PSUs,
The following aspects of Templeton Floating Rate Income Fund are the
gilts, securitised debt, fixed
Fundamental Attributes of the Scheme:
deposits or any other instrument
1) Type of the Scheme permitted by RBI/SEBI)
Open-ended Income Scheme offering two Plans: Short Term Plan and
Long Term Plan with Dividend and Growth options. Floating Rate debt instruments*: 65% 100% Low to
2) Investment Objective l Money market instruments Medium
(Money at call, mibor linked
The Primary Objective of the Scheme is to provide income consistent
debentures, floating rate CPs,
with the prudent risk from a portfolio comprising substantially of floating
CDs, floating rate bonds < 182
rate debt instruments, fixed rate debt instruments swapped for floating
days or any other instrument
rate returns, and also fixed rate instruments and money market
permitted by RBI/SEBI)
However, there can be no assurance that the investment objective of l Non-Money market instruments
the scheme will be realised. (including floating rate bonds &
debentures issued by corporates
3) Investment Pattern or PSUs, floating rate gilts, fixed
The Primary Objective of the Scheme is to provide income consistent rate debentures/bonds with swap
with the prudent risk from a portfolio comprising substantially of floating or any other instrument
rate debt instruments, fixed rate debt instruments swapped for floating permitted by RBI/SEBI)
rate returns, and also fixed rate instruments and money market
instruments. To achieve this objective, the scheme shall substantially * Floating rate debt instruments include fixed rate instruments swapped
invest, inter-alia, in for floating rate returns.
Floating Rate Debt Instruments Under normal circumstances, at least 65% of the total portfolio will be
l Short Term / Money Market instruments such as money at call, invested in floating rate debt instruments.
mibor linked debt instruments, floating rate Commercial Papers It is the intention of the Fund that the investments in securitised debts
(CPs), Certificate of Deposits (CDs), floating rate bonds less than will not, normally, exceed 35% of the Net Assets of the scheme.
182 days to maturity and
The portfolio of the Short Term Plan will normally be skewed towards short
l Long term debt instruments such as floating rate bonds & debentures term maturities and the portfolio of the Long Term Plan will be normally
issued by corporates or PSUs, floating rate gilts, fixed rate debentures/ skewed towards longer term maturities.
bonds with swap or any other instrument permitted by RBI/SEBI
The above allocation pattern would be applicable under normal
Fixed Rate Debt Instruments
circumstances and generally the allocation would not be allowed to raise
l Short Term / Money Market instruments such as money at call, beyond these levels unless the markets are extremely turbulent and there
Commercial Paper (CP), Certificate of Deposits (CD) of commercial is a need to protect the unitholders interest by reallocating the portfolio.
banks of development financial institutions, treasury bills, In other words, the scheme would be maintaining the above ratios
governments securities less than 1 year, Repo/Reverse Repos or diligently which the investor can assume would be the steady state
any other instruments permitted by RBI/SEBI and allocation strategy.
l Bonds and debentures issued by corporates or PSUs, Government
securities, securitised debt, fixed deposits or any other instruments CHANGE IN THE INVESTMENT PATTERN
permitted by RBI/SEBI Subject to the Regulations, the asset allocation pattern indicated above
may change from time to time, keeping in view market conditions,
Under normal circumstances, it is anticipated that the asset allocation
availability of investment options, market opportunities, applicable
shall be as follows:
regulations and political and economic factors. It must be clearly
Allocation as % Risk understood that the percentages stated above are only indicative and
Type of Security of Corpus Profile not absolute and that they can vary substantially depending upon the
perception of the Investment Manager, the intention being at all times
to seek to protect the interests of the Unitholders. Such changes in the
Fixed Rate debt instruments: 0% 35% Low to Investment pattern will be for short term and defensive considerations.
l Money market instruments Medium The Fund will seek approval of the Unitholders of the Scheme in
(including money at call, CPs, accordance with the Regulations, if there is any change in the fundamental
CDs, treasury bills, gilts less attributes pursuant to change in investment pattern.
TEMPLETON FLOATING RATE INCOME FUND
It is clarified that this scheme is not a money market mutual fund l The redemption request should be for a minimum of Re.1/- (Rupee
scheme. One only)
OVERVIEW OF DEBT MARKETS l The units will be redeemed at the Applicable NAV for redemptions
The major players in the Indian debt markets today are banks, financial Applicable NAV for Redemptions for the Short Term Plan is the NAV
institutions, insurance companies and mutual funds. The instruments in of the day prior to immediately following business day from the business
the market can be broadly categorised as those issued by corporates, day on which the application for redemption is accepted.
banks, financial institutions and those issued by state/central governments.
The risks associated with any investments are credit risk, interest rate Applicable NAV for Redemptions for the Long Term Plan is the NAV at
risk and liquidity risk. While corporate papers carry credit risk due to the close of business day on which the application for redemption is
changing business conditions, government securities are perceived to accepted.
have zero credit risk. Interest rate risk is present in all debt securities The date of receipt of a redemption request will be the actual Business
and depends on a variety of macroeconomic factors. The liquidity risk Day of either the mail receipt at an Investor Service Centre of a
in corporate securities market is higher compared to those of government redemption request, or of actual receipt of an in-person redemption
securities. Liquidity in the corporate debt market has been improving due request within any prescribed time, on such business day. Also refer to
to the entry of more players and due to various measures taken by the Section on How to Redeem Units of the Scheme.
regulators in this direction over a period of time. SEBIs directive of a
Any redemption request after prescribed time on such Business Day will
compulsory rating by a rating agency for any public issuance over 18
be deemed to be received as of the next Business Day.
months is a case in point. In times to come, dematerialisation, entry
of private insurance companies and growth of fixed income mutual funds (Please note that the Trustee has a right to introduce/change an entry/
are expected to enhance liquidity in corporate debt market. The fiscal exit load or a combination of both at any point of time. The Trustee also
budget 2001-2002 has announced setting up of clearing corporation, reserves its right to limit the redemptions as laid down under the section
real time gross settlement and electronic clearing system for government Right to Limit Redemptions.)
securities. This will considerably enhance the depth and width of Indian b. Listing
debt markets and bring it at par with developed markets. The RBI in its Being an open-ended scheme the units of the scheme will not be listed
credit policy for the second half of financial year 2001-2002 has laid at any stock exchange.
down the time frame for Negotiated Dealing System and clearing
corporation. c. Fees and Expenses
l Initial Expenses: The initial issue expenses will be borne by
The following table attempts to give a broad overview of the available
the Investment Manager.
instruments in the financial markets and their risk return profile. The
data is based on the market conditions as on the date of the offer l Annual Recurring Expenses: The on-going fees and expenses
document and may vary substantially depending upon the factors and for operating the Scheme on an annual basis are estimated
forces affecting the securities market including the fluctuations in the at 1.25% p.a. and 2.00% p.a. of weekly average net assets
interest rates. of the Scheme, for the Short Term Plan and the Long Term
Security Liquidity Risk Indicative
returns (p.a.) These limits are within the limits specified by the SEBI Regulations. Any
expenditure in excess of the limits specified by the SEBI Regulations shall
GOI Securities High Low 6.75% - 9.00% be borne by the AMC and /or by the sponsors and/or Trust.
Call Money High Low 6.25% - 7.25% PORTFOLIO TURNOVER
Bank/FI Bonds, Portfolio turnover in the schemes will be a function of market opportunities.
Certificate of Deposits, The economic environment changes on a continuous basis and exposes
Commercial Papers, debt portfolio to systematic as well as non-systematic risk. The Scheme
Fixed Deposits Medium-High Low-Medium 7.00% - 8.50% is an open-ended scheme. It is expected that there would be a number
of subscriptions and repurchase on a daily basis. Consequently, it is
PSU Bonds Medium- High Medium 8.00% - 10.50% difficult to estimate with any reasonable measure of accuracy, the likely
Corporate Debts Low-Medium Medium 8.00% - 10.50% turnover in the portfolio. The Investment Manager will endeavour to
optimise portfolio turnover to optimise risk adjusted return keeping in
Securitised Debts Low Medium 8.25% - 11.00% mind the cost associated with it. A high portfolio turnover rate is not
MIBOR linked necessarily a drag on portfolio performance and may be representative
instruments High Medium 6.75% - 7.75% of arbitrage opportunities that exist for scrips/securities held in the
portfolio rather than an indication of a change in AMCs view on a scrip,
Derivatives Low-Medium Medium-High NA etc.
4) Terms of the issue SUBSCRIPTIONS
a. Liquidity The Scheme opens for subscription on January 21, 2002 and closes
Subsequent to the closure of the Initial Offer Period, the scheme will for subscription on February 2, 2002. The Scheme re-opens on February
open for continuous purchase and redemption with effect from February 18, 2002 and is perpetually open thereafter with announcements of NAV
18, 2002. However, the AMC reserves the right to extend the reopening for every Business Day.
date but not later than 30 days from the closure of the Initial Offer Period The Trustee has a right to extend the Closing Date subject to the
of the Scheme. condition that the Scheme shall not be kept open for more than 30 days.
TEMPLETON FLOATING RATE INCOME FUND
The allotment for Subscriptions during the initial offer period will be made limit shall not be applicable to investments in government securities
at Rs. 10.00 per unit, without any entry load. For on-going subscriptions, and money market instruments.
units will be offered to investors at Public Offering Price. 3. The Scheme shall not invest more than 10% of its NAV in unrated
MINIMUM SUBSCRIPTION debt instruments issued by a single issuer and the total investment
in such instruments shall not exceed 25% of the NAV of the
The Fund has targeted a minimum amount of Rs.1 crore which shall be
scheme. All such investments shall be made with prior approval
raised during the initial public offering. In the event the aforesaid target
of the Board of Trustee and Investment Manager or the committee
amount is not collected within the aforesaid time period, the amount
constituted by the Boards of Trustee Company and of the Investment
collected shall be refunded to the investors, as described under the
Manager for approval of such instruments
section Issuance of Units/Allotment/Refund.
4. The Mutual Fund under all its Schemes taken together will not own
more than 10% of any Companys paid up capital carrying voting
CHANGE IN FUNDAMENTAL ATTRIBUTES rights.
5. Transfer of investments from one Scheme to another Scheme in
In accordance with Regulation 18 (15A) of the SEBI Regulations, the
the Mutual Fund shall be allowed only if:
trustees shall ensure that no change in the fundamental attributes of
any scheme or the trust or fees and expenses payable or any other a) such transfers are done at the prevailing market price for
change which would modify the scheme and affects the interest of quoted instruments on spot basis;
unitholders, shall be carried out unless, - b) the securities so transferred shall be in conformity with the
i. a written communication about the proposed change is sent to investment objective of the Scheme to which such transfer
each unitholder and an advertisement is given in one English daily has been made, the registration and accounting of the
newspaper having nationwide circulation as well as in a newspaper transactions is completed and is ratified in the next meeting
published in the language of the region where the Head Office of of the Board of the Trustee, if the regulations so require.
the mutual fund is situated; and 6. The scheme may invest in another scheme under the same asset
management company or any other Mutual Fund without charging
ii. the unitholders are given an option to exit at the prevailing Net Asset
any fees, provided that aggregate interscheme investment made
Value without any exit load.
by all the schemes under the same management or in schemes
Explanation: In terms of SEBI Regulations and circular dated February under the management of any other asset management company
4, 1998, Fundamental Attributes means and includes the following: shall not exceed 5% of the net asset value of the mutual fund.
i. Type of a Scheme 7. The Mutual Fund shall get the securities purchased transferred in
l Open ended-Close ended-Interval Scheme the name of the Fund on account of the Scheme, wherever
l Sectoral Fund-Equity Fund-Balance Fund-Income Fund-Index Fund- investments are intended to be of a long-term nature.
Any other type of Fund. 8. Pending deployment of funds of a scheme in securities in terms
ii. Investment Objective of investment objectives of the Scheme, the AMC can invest the
l Main Objective - Growth-Income-Both funds of the scheme in short term deposits of scheduled commercial
banks or in call deposits.
l Investment pattern - The tentative Equity-Debt-Money Market portfolio
break-up with minimum and maximum asset allocation, while 9. The investment manager may invest in the Scheme from time to
retaining the option to alter the asset allocation for a short term time. The percentage of such investments to the total net assets
period on defensive considerations. may vary from time to time and can be upto 100% of the net assets
of the Scheme. However the investment manager shall not charge
iii. Terms of Issue
any fees on its investments in the Scheme in accordance with sub-
l Liquidity provisions such as listing, repurchase, redemption clause (3) of Regulation 24 of the Regulations.
l Aggregate fees and expenses charged to the Scheme
10. The Mutual Fund may borrow to meet liquidity needs, for the
l Any safety net or guarantee provided purpose of repurchase, redemption of units or payment of interest
or dividend to the unit holders and such borrowings shall not exceed
INVESTMENT RESTRICTIONS AND 20% of the net asset of the Scheme and duration of the borrowing
OTHER CONSIDERATIONS shall not exceed 6 months. The Fund may borrow from permissible
entities at prevailing market rates and may offer the assets of the
All the investments by the Scheme and the Mutual Fund, however, will Fund as collateral for such borrowing.
always be within the investment restrictions as specified in SEBI (MF) 11. The scheme shall not make any investment in:
Regulations, 1996, as amended from time to time. Pursuant to the a) any unlisted security of an associate or group company of the
SEBI Regulations, the following investment and other limitations are sponsor; or
presently applicable to the Scheme. b) any security issued by way of private placement by an associate
1. No term loans for any purpose will be advanced by the Scheme. or group company of the Sponsor; or
2. The Scheme shall not invest more than 15% of its NAV in debt c) the listed securities of group companies of the Sponsor which
instruments issued by a single issuer which are rated not below is in excess of 25% of the net assets.
the investment grade by a credit rating agency authorized to carry 12. The Mutual Fund will buy and sell securities on the basis of
out such activity under the Act. Such investment limit may be deliveries and will in all cases of purchase, take delivery of relative
extended to 20% of the NAV of the Scheme with the prior approval securities and in all cases of sale, deliver the securities and will
of the Boards of Trustee and Investment Manager. However such in no case put itself in a position whereby it has to make short sales
TEMPLETON FLOATING RATE INCOME FUND
or carry forward transactions or engage in badla finance (carry The Board of Directors of the Investment Manager are: -
forward). l Charles E. Johnson *, President and Chief Executive Officer -
Provided that the Mutual Fund shall enter into derivatives transactions Templeton Worldwide Inc. Chairman
in a recognised stock exchange for the purpose of hedging and l Vijay C. Advani * (Alternate Director to C. E. Johnson): Managing
portfolio balancing, in accordance with the guidelines issued by Director, Templeton Asset Management Ltd.
l Dr. J. Mark Mobius *, President - Templeton Emerging Markets
13. The Scheme will comply with any other Regulations applicable to Fund Inc.
the investments of Mutual Funds from time to time.
l Rajan Raheja *, Industrialist.
The Trustee of the Mutual Fund may alter these limitations/objectives
from time to time to the extent the SEBI Regulations change. All l Deepak M. Satwalekar, Managing Director and CEO HDFC
investments of the Scheme will be made in accordance with the SEBI Standard Life Insurance Company Ltd.
Regulations, including Schedule VII thereof. l P. Vaidyanathan, Managing Director - Integrated Enterprises (India)
MANAGEMENT OF THE FUND l Dina Wadia, Advocate and Solicitor - Partner - Little & Co
* These Directors are associated with the sponsor or its associates.
Templeton Asset Management (India) Pvt. Ltd.
(The Investment Manager) Compliance Officer:
Templeton Asset Management (India) Private Ltd. situated at 1st floor, Vivek Pai
Sakhar Bhavan, Nariman Point, Mumbai 400 021 (the Investment Compliance Officer
Manager), a company incorporated under the Companies Act, 1956 1st Floor, Sakhar Bhavan, 230 Backbay Reclamation,
is the Asset Management Company of the Mutual Fund. Nariman Point, Mumbai 400 021 India.
INFORMATION ON KEY PERSONNEL OF THE AMC
Name Age Qualifications Functions & Experience
Rajiv Vij 35 B. Tech. (IIT-Delhi), Regional Head, India & Middle East since April 2001,
Total experience 12 years PGDM (IIM-Calcutta) responsible for expanding Franklin Templetons business interests in
India & the Middle East region.
l Prior to that, as the Country Head and Chief Executive Officer
of the India office since November 1999, he managed the
firms domestic asset management business in the country
and was instrumental in rapidly growing the firms assets
under management in the country.
l Prior to that, he was the Vice President for Sales and
Marketing with the firm from December 1995 to October
1999. As a member of the key start-up team, he played a
crucial role in developing and implementing the strategy for
Franklin Templeton Funds market entry into India
l He joined Franklin Templeton from Hindustan Lever Limited
where he worked across the sales and marketing functions for
l He is a Member of the SEBI Mutual Fund Advisory Committee
and a Member of the Board of Association of Mutual Funds in
B. Swaminathan 38 ACS, CAIIB Director and Chief Operating Officer since November 1999.
Total experience 18 years He is responsible for developing and executing the companys
strategy for operational, legal and technology functions. This largely
involves general management of several functions within the
operations department such as Fund Accounting, Custody & Cash
Management and Transfer Agency functions. He also oversees the
Legal and other Corporate Affairs.
l Prior to that he was Vice President Operations in the company
l Prior to joining Templeton, he was Head (Operations) and
Company Secretary in 20th Century Asset Management (now,
Zurich Asset Management, India)
TEMPLETON FLOATING RATE INCOME FUND
Name Age Qualifications Functions & Experience
Nilesh Shah 33 ACA, Grad. CWA, completed Chief Investment Officer since December 1999 handling
Total experience 11 years GFM-25 programme at Templeton Debt Funds and Franklin Equity Funds in India.
JP Morgan, New York, USA l Prior to that he was Portfolio Manager Fixed Income from
March 1997 to November 1999.
l Prior to joining Franklin Templeton, Nilesh worked as Head of
structured products group at ICICI Securities & Finance Co.
Ltd. (A joint venture of ICICI and JP Morgan) for over 5 years.
He has managed various jobs including distribution of fixed
income products in institutional and retail markets, managing
short-term credit book and dealing in a wide range of
l He has worked in ICICI merchant banking division managing
public issues and corporate advisory assignments.
Suraj Kaeley 37 B. Sc., MMS Vice President (Marketing) since January 2000 and is
Total experience 11 years responsible for managing the distribution network and marketing
and sales support.
l Prior to that he Headed Sales & Distribution in Southern India
Region from May 1996 to January 2000
l Prior to that he was the AVP Retail Broking in IIT InvesTrust
Ltd. from May 1995 to April, 1996.
l Prior to that he was Sr. Officer Management Services Dept.
with HDFC Ltd. from October 1991 to April 1995 handling
MIS and Risk Management.
l Prior to that he was Sr. Officer Operations at HDFC Ltd. in
Retail lending, from June 1988.
Chetan Sehgal 33 B.E. (Mech), PGDBA Director Research India and is part of the team managing
Total experience 10 years (IIM-Bangalore), CFA TIGF.
l He joined Templeton in 1995 as Investment Analyst with the
emerging markets group and is currently a Portfolio Manager.
l As a Portfolio Manager and Analyst, Chetan analyses stocks
across a wide gamut of sectors, industries and geographies
within the emerging markets group which invests in about 40
countries under the direct supervision of Dr. Mark Mobius.
l Before joining Templeton, he had a 3-year stint at CRISIL,
Indias largest rating agency currently affiliated with Standard
& Poor. He has experience in rating corporate securities
across various industries and was also involved in structuring
debt instruments including securitisation assignments.
Deepesh Pandey 30 B. Tech. (IIT-Delhi), Fund Manager, Franklin Equity Funds since January 2000.
Total experience 7 years PGDM (IIM-Calcutta) l He manages the Franklin India Growth Fund and equity
components of Franklin India Balanced Fund and Templeton
Monthly Income Plan. He also oversees the Franklin India
Index Fund and Franklin India Index Tax Fund.
l His previous assignment for around 4.5 years was with the
Offshore Funds Group of SBI Funds Management Ltd. where
he worked as an Investment analyst on 2 of their offshore
funds, one of which was set up in collaboration with Morgan
Stanley Asset Management, USA.
TEMPLETON FLOATING RATE INCOME FUND
Name Age Qualifications Functions & Experience
Shobhit Mehrotra 36 MBA (Clemson Univ., USA), Asst. Vice President - Fixed Income, functioning as fixed income
Total experience 11 years analyst since 1997.
l Prior to that he was a Senior Rating Analyst and member of
Executive Rating Committee with ICRA for over 4.5 years from
l Prior to that he worked as a Process Engineer with Beaulieu
of America, a textile producer in USA.
Rakesh Parekh 38 MBA-Finance from Investment Analyst with the Emerging Markets Group, under
Total Experience 15 years University of Stirling (UK), Dr. Mark Mobius. He identifies and evaluates investment
Associate of Chartered opportunities for the global funds as well as TIGF, and looks after
Insurance Institute (UK), Israel and India markets. He joined Templeton in Nov 1999
Business Administration with
Honours from University l Prior to that he worked with B & K Securities India as a
of Dundee (UK). Senior Analyst from July98 to Oct99 focusing mainly on the
pharmaceutical and auto sectors.
l Prior to that he worked with Caspian Securities as a Senior
Analyst from June96 to June98 again covering the
pharmaceutical and auto sectors.
l Prior to that he worked with Oppenhiemer India as an
Investment Analyst from May93 to May96, where he was
responsible for India equity research.
l Prior to that between 1986 to the end of 1992, Rakesh
Parekh has been involved in various roles primarily as an
insurance underwriter with General Accident Plc and
Commercial Union Plc in the UK.
Vivek Pai 31 B.Com, ACA, l Templeton Trust Services Pvt. Ltd.(from Oct-2000) Head of
Total Experience 7 years Compliance and Internal Audit
l Consultant (May-2000 to Sep2000)
l Birla Sun Life Asset Management Company Ltd.
(Nov-1996 to May2000) Head of Fund Accounting
l Apollo Finvest (India) Limited Assistant Manager- Corporate
Finance (Dec-1994 to Oct-1996)
l M/s. Rakesh Garg & Associates (Chartered Accountants)
Consultant (Aug-1994 to Nov-1994)
FUND MANAGER from the rich experience gathered by Franklin Templeton Investments
The Scheme will be managed by a portfolio management team consisting over 50 years across various markets and asset classes.
of: The Investment team comprising of CIO, Analyst and Portfolio Managers
Nilesh D. Shah (Chief Investment Officer) and Shobhit Mehrotra take a top down and bottom up approach to define investment strategy.
(AVP-Fixed Income). The investment strategy covers factors such as asset class exposure
(government securities vs. corporate debt vs. money market securities
etc), maturity profile, rating profile and liquidity factors etc.
PROCEDURE FOR INVESTMENT DECISIONS
Based on such investment strategy defined by the CIO, the investment
The Schemes investment management process in terms of defining of management team will take investment decisions with respect to selection
factors such as credit risks, liquidity risks, interest rate risks, sector of securities in a portfolio, timing of investment and disinvestment,
exposure, scrip exposure, maturity exposure, risk management practices weightage of individual securities/class in the portfolio and asset allocation.
etc. are explained in the investment process note. The Chief Executive The investment team will follow the disciplined process of fundamental
Officer (CEO), Chief Investment Officer (CIO) and International Investment analysis to create portfolio for optimum risk adjusted return for long term
Head (based outside India) define such investment process note wherein out-performance.
the above mentioned broad parameters are laid down for making All these investment decisions will be recorded as per the standards
investment decisions. The investment process note is approved by the prescribed by the Board of Directors and in accordance with the
Boards of the AMC and the Trustee Company and forms the basis for regulatory guidelines issued by SEBI. The portfolio will be monitored on
approach to the Investment management process. It has critical insights a constant basis by the investment team.
TEMPLETON FLOATING RATE INCOME FUND
Currently, no appropriate benchmark index is available for comparison. Purpose Vehicles (SPVs) approved by the appropriate authority
The funds performance and the investment managers adherence to the (subject to RBI approval).
investment process would be reviewed on a monthly basis with the CEO 10. International Multilateral Agencies approved by the Government of
and the International Investment Head. The same alongwith a periodical India
analysis would also be reviewed by the Board of Directors of the AMC
and the Board of Trustees on a regular basis at the Board Meetings. 11. Army / Navy / Air Force, Para Military Units and other eligible
Investor Relations Officer
12. Mutual Funds registered with SEBI
Please refer to the list of Investor Services Centres (ISCs) and Contact
Persons at the back cover of this document. 13. Foreign Companies/Firms/Other Body Corporate incorporated outside
India subject to FIPB-RBI approval
Registrar and Transfer Agents
Karvy Consultants Ltd., 14. Scientific and Industrial Research Organizations
21, Avenue 4, Street No.1, 15. Banks (including Co-operative Banks and Regional Rural Banks)
Banjara Hills, and Financial Institutions and Investment Institutions.
Hyderabad 500 034
16. Trustee, AMC or Sponsor or their associates may subscribe to Units
Custodian of the Scheme under this Scheme;
Citibank, N. A.,
Plot C/61, G Block,
Bandra Kurla Complex, Bandra (East), 1. NRIs/PIOs/OCBs/FIIs have been granted a general permission by
Mumbai 400 051 RBI [Schedule 5 of the Foreign Exchange Management (Transfer
or Issue of Security by a Person Resident Outside India) Regulations,
Statutory Auditors for the Scheme 2000] for investing in /redeeming units of the schemes subject to
Arthur Anderson & Associates, conditions set out in the aforesaid regulations.
17th Floor, Express Towers,
Nariman Point, 2. In case of OCBs, NRIs/PIOs shall hold (irrevocably) atleast 60% of
Mumbai 400 021 the beneficial interest directly or indirectly in the said body/firm/
society/trust. OCB investors should submit an auditors certificate
in original in Form OAC/OAC-1 to the ISC where the Application
INVESTING IN TEMPLETON Form is submitted.
FLOATING RATE INCOME FUND 3. 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
WHO CAN APPLY FOR UNITS society or a trust fund, the original Power of Attorney or a certified
The following are eligible to apply for the purchase of the Units: true copy duly notarised or the relevant resolution or authority to
1. Resident Adult Individuals, either singly or jointly (not exceeding make the application / redemption as the case may be, or duly
three), resident in India notarised copy thereof, alongwith a certified copy of the Memorandum
and Articles of Association and/or bye laws and/or trust deed and/
2. Parents/Lawful guardians on behalf of Minors or partnership deed and Certificate of Registration should be
submitted. The officials should sign the application under their
3. Companies, corporate bodies, public sector undertakings,
official designation. In case of a Trust / Fund it shall submit a
associations of persons or bodies of individuals and societies
certified true copy of the resolution from the Trustee(s) authorising
registered under the Societies Registration Act, 1860 (so long as
such purchases / redemption.
the purchase of Units is permitted under their respective constitutions)
4. Returned cheques are liable not to be presented again for collection,
4. Religious and Charitable Trusts, Wakfs or endowments of private and the accompanying Application Forms are liable to be rejected.
trusts (subject to receipt of necessary approvals as required) and In case the returned cheques are presented again, the necessary
Private trusts authorised to invest in mutual fund schemes under charges are liable to be debited to the investor.
their trust deeds;
INITIAL OFFER PERIOD
5. Partnership Firms The Scheme opens for subscription on January 21, 2002 and closes
6. Hindu Undivided Families (HUFs), in the sole name of the Karta. for subscription on February 2, 2002. The Scheme re-opens on February
18, 2002 and is perpetually open thereafter with announcements of NAV
7. Non-Resident Indians- Persons of Indian origin resident abroad for every Business Day.
(NRIs) on full repatriation or non-repatriation basis
The Trustee has a right to extend the Closing Date subject to the
8. Overseas Corporate Bodies (OCBs), firms and societies which are condition that the Scheme shall not be kept open for more than 30 days.
held directly or indirectly but ultimately to the extent of at least 60% Thereafter, the scheme shall remain open perpetually with announcements
by NRIs and trusts in which at least 60% of the beneficial interest of NAV for every Business Day.
is similarly held irrevocably by such persons, on full repatriation MINIMUM SUBSCRIPTION
The Scheme seeks to collect Rs.1 crore as the minimum subscription
9. Foreign Institutional Investors (FIIs) registered with SEBI / Special and would retain any excess subscription collected. If the Scheme does
TEMPLETON FLOATING RATE INCOME FUND
not collect the minimum subscription during the Initial Public Offer, of a Draft in Indian Rupees purchased abroad or by a cheque drawn
refund will be made within six weeks of the date of closure of the Initial on Non Resident (External) Accounts / FCNR Accounts, payable at
Offer Period. If the fund refunds the amount after six weeks, interest @ par in Mumbai. Payments may also be made through Demand
15% per annum shall be paid by the AMC. Drafts or other permitted instruments.
HOW TO PURCHASE l FIIs and International Multilateral Agencies shall pay their subscription
During IPO: Investors can purchase units of the Scheme by simply filling by way of direct remittance from abroad or out of their special Non-
the attached application form. Fully completed application forms, Resident Rupee account maintained with a designated bank in
accompanied with subscription amount, should be submitted at any of India.
the Bank listed in this document.
After Reopening: Existing and New Investors can purchase units of the l NRIs / OCBs can invest by cheques / demand drafts drawn out of
Schemes by simply filling the attached application form. Fully completed Non-Resident Ordinary (NRO) account / Non-Resident Special
application forms, accompanied with subscription amount, should be Rupee Account (NRSR).
submitted/mailed to any of the ISCs listed in this document. Investors
can also lodge their completed application forms with brokers/agents/ l FIIs may pay their subscription amounts by direct remittance from
distributors, appointed by the Mutual Fund from time to time, for onward abroad or out of their special Non-Resident Rupee Accounts
submission to any of the ISCs. maintained with a designated bank in India or as may be permitted
During the IPO, all cheques and drafts should be made out in favour ISSUANCE OF UNITS/ALLOTMENT/ REFUND
of Templeton Floating Rate Income Fund and crossed A/c Payee The allotment for Subscriptions during the initial offer period will be made
only. During the IPO, the applications will be accepted at the designated at Rs. 10.00 per unit, without any entry load. For on-going subscriptions,
Bank Collection Centres. No outstation cheques / stock invest or post units will be offered to investors at Public Offering Price. Please refer
dated cheques will be accepted. to the section on Public Offering Price and Applicable NAV for
When the scheme opens for ongoing purchase, all cheques and drafts Subscriptions.
should be made out in favour of Franklin Templeton Funds and Investors can purchase units of the Scheme during the Initial Public Offer
crossed A/c Payee only. For ongoing purchases, applications can be by completing the Application Form and submitting it at any of te
submitted at any of the Investor Service Centres at the locations set forth branches of the Banks acting as Collection Centres (the Bank Collection
on the reverse of this Offer Document. Centres) as listed in the Aplication Form along with the subscripton
The Investor Service Centres will not accept cash. amount. Payments will be accepted only by local cheque or draft.
Purchases should be for a minimum of Rs. 1,00,000/- under the Short
The scheme may also make arrangements to apply online through the Term Plan and Rs.2,000/- under the Long Term Plan, and any amount
official website of the fund www.franklintempletonindia.com provided thereafter.
that they are account holders with HDFC Bank or ICICI Bank or any other
bank which the fund may tie-up with in future and have obtained the The Scheme will open for continuos purchase and redemption on
facility to transact online on the websites of these banks. This facility February 18, 2002.
will continue to be available when the scheme reopens for ongoing Once an investor has opened an account he may purchase additional
purchase. units by filling-up the pre-printed forms or simply fill in the account
As per the directives issued by SEBI, it is mandatory for applicants number in the application form and mail the same to the Investor Service
to mention their bank account numbers in their applications and Centres along with the payment, by a local cheque or draft. Additional
therefore, investors are requested to fill-up the appropriate box purchases of Units by existing unit holders can also be made for a
in the application form. minimum of Rs. 1,000/- or any amount thereafter. The fund urges the
investors to maintain a balance of at least Rs.1,00,000/- and Rs.2,000/-
Mode of Payment : Resident Investors under the Short Term Plan and the Long Term Plan respectively, at
Payment may be made by cheque or bank draft and crossed A/c Payee anytime.
Only drawn on any bank, which is situated at and is a member of the The Scheme would endeavour to expedite redemption payments and
Bankers Clearing House, located at any of the Investor Service Centres. facilitate easy subscription process. To achieve this objective, the Fund
Bank charges for outstation demand drafts will be borne by the Fund may tie up with Commercial Banks and other institutions and may
and will be limited to the bank charges stipulated by the Indian Banks introduce new facilities to utilise the infrastructure of such banks and
Association. Outstation demand draft has been defined as a demand institutions for enabling easy subscriptions and easy redemptions to the
draft issued by a bank in a place other than Mumbai. The AMC will not investors.
accept any request for refund of demand draft charges.
Full allotment will be made to all valid applications received during the
As per the directives issued by SEBI, it is mandatory for applicants to Initial Offer and from the opening of the Scheme for continuous purchase.
mention their bank account numbers in their applications and therefore, Issuance of Units on Application shall be made in the following manner:
investors are requested to fill-up the appropriate box in the application
form. a) An Account Statement containing the number of Units allotted will
be issued within 30 days after the close of the initial offer period.
Mode of Payment : NRIs, OCBs, FIIs
b) Refund of subscription money to applicants, in case applications
REPATRIATION BASIS are invalid or rejected or in case the Fund fails to receive the
l In the case of NRIs and OCBs, payment may be made by means minimum targeted amount of Rs.1 crore during the initial offering
TEMPLETON FLOATING RATE INCOME FUND
of the Scheme, will be made within six weeks from the date of in the manner described hereunder) depending on the amount invested,
closure of the Scheme. No interest will be payable on any subscription as explained under the head Expenses.
money so refunded within six weeks. If the Mutual Fund refunds
To further elaborate, the POP is calculated by dividing the Applicable
the amount after six weeks, interest at the rate of 15% p.a. shall
NAV by the reciprocal of the sales load. For example, if the NAV is Rs.14/
be paid out of the assets of the AMC for the period thereafter.
- and the sales load applied is 1%, the POP will be calculated as follows:
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
Public Offering Price: NAV = 14 = Rs. 14.14
name of the first applicant in all other cases. All refund cheques
will be mailed by Registered Post. (POP) (1-Sales Load) (1-0.01)
c) The Trustee is entitled, in its sole and absolute discretion, to reject To further clarify, load is always calculated on the reciprocal basis as
any Application. explained in the above example and not as a direct percentage on the
After the scheme reopens for continuous purchase, an Account Statement amount invested.
bearing the details such as number of units allotted, amount invested, As per Regulations, while determining the prices of the Units, the Mutual
etc. will be mailed to the registered address of the investor, within 3 days Fund will ensure that the repurchase (i.e. redemption) price is not lower
from the date of submission of Application Form at any ISC. than 93% of the Net Asset Value and the sale price (i.e. POP) is not
higher than 107% of the Net Asset Value, provided that the difference
Joint Name Applicants
between the repurchase price and sale price shall not exceed 7%
In the event an Account has more than one registered owner, the first- calculated on the sale price.
named holder shall receive the Account Statements, all notices and
correspondence with respect to the Account, as well as the proceeds APPLICABLE NAV FOR SUBSCRIPTIONS
of any Redemption requests or dividends or other distributions. In Applicable NAV for Subscriptions for the Short Term Plan is NAV of
addition, such Unit holders shall have the voting rights, as permitted, the day prior to the day on which the Mutual Fund has received the clear
associated with such Units, as per the applicable guidelines. funds in its bank account.
Applicants can specify the mode of holding in the application form as Applicable NAV for Subscriptions for the Long Term Plan is NAV at
Joint or Anyone or Survivor. In the case of holding specified as Joint, the close of the business day on which the application for subscription
Redemptions would have to be signed by all joint holders in the same is accepted. The date of receipt of a subscription request will be the
order as registered with the Mutual Fund. However, in cases of holding actual Business Day of either the mail receipt at an Investor Service
specified as Anyone or Survivor, any one of the Unit holder will have Centre or of actual receipt of an in-person subscription request or by
the power to make Redemption requests, without it being necessary for any other prescribed mode, before the prescribed time.
all the Unit holders to sign. However, in all cases, the proceeds of the USE OF SALES LOAD
Redemption will be paid only to the first-named holder.
The sales load collected on on-going sales of units shall be retained in
COMPANIES/CORPORATE BODIES ETC. the Fund and would strictly and fully be used by the Investment Manager
In case of an application under a Power of Attorney or by a limited in providing distribution related services to the Mutual Fund relating to
company, body corporate, registered society, trust or partnership, the the sale, promotion, advertising and marketing of Units of the Scheme,
relevant Power of Attorney or the relevant resolution or authority to make including payments to brokers/registrars for their services in connection
the application or the Trust Deed or the Partnership Deed as the case with the distribution of the Units.
may be, or duly certified copy thereof, along with a certified copy of the FRACTIONAL UNITS
Memorandum and Articles of Association and-or bye-laws must be
Investors may have Account Statements that show an issuance of
lodged at the any ISC within three days from the date of investments.
fractional Units. Fractional Units in no way will affect an investors ability
INITIAL OFFER PRICE (IOP) to redeem Units. Fractional Units will be computed and accounted for
All purchases during IPO will be at Rs. 10/- per unit. On reopening of upto three decimal places.
the Scheme, units are proposed to be sold at Zero Entry Load. AVAILABILITY OF FORMS
Therefore, the POP would be the Applicable NAV for Subscriptions. Application Forms and copies of the Offer Document are available from
Please refer to the section on Applicable NAV for Subscriptions. the Investor Service Centres at their respective locations set forth in the
However, the Trustees reserve the right to introduce/chnage an entry/exit Application Forms or on the reverse of this Abridged Offer Document,
load any time thereafter. in addition to the Head Office of the Mutual Fund. Application Forms are
PUBLIC OFFERING PRICE (POP) FOR ONGOING PURCHASES also available with the approved intermediaries of the Mutual Fund as
well as on the website of the mutual fund www.franklintempletonindia.com
The Scheme opens for subscription on January 21, 2002 and closes
for subscription on February 2, 2002. The Scheme re-opens on February SYSTEMATIC INVESTMENT PLAN (SIP)
18, 2001 and is perpetually open thereafter. The Trustee has a right to Mutual Fund Investors can benefit by investing specified rupee amounts
extend the Closing Date subject to the condition that the Scheme shall periodically for a continuous period. This concept is called Rupee Cost
not be kept open for more than 30 days. Averaging.
For on-going subscriptions, units will be offered to investors at Public This savings program allows investors to save a fixed amount of rupees
Offering Price (POP). POP is the price at which the units are proposed every month by purchasing additional units of the Fund. Therefore, the
to be sold. POP is calculated based on the Applicable NAV for average unit cost will always be less than the average sale price per unit
subscriptions and will additionally include the permissible load (computed irrespective of the market being rising, falling or fluctuating.
TEMPLETON FLOATING RATE INCOME FUND
By investing a fixed amount of Rupees at regular intervals, investors can TIGF
take advantage of the benefits of Rupee Cost Averaging, at the same
time, saving a fixed amount each month. The investment under SIP has Month Opening Applicable Amount No. of Closing
to be for a minimum prescribed amount. A minimum of 6 cheques in Balance NAV Redeemed Units Balance
case of monthly and minimum of 4 cheques in case of quarterly SIP of Units (Rs.) (Rs.) Redeemed of Units
needs to be provided. (a) (b) (c) (d) (e)
Here is an illustration using hypothetical figures to show how a Systematic [c-b] [a-d]
Investment Plan can benefit an investor. Let us assume that Mr. ABC
would like to invest Rs.1,000/- as a quarterly investment for a period 1 5,000.000 11.00 1,000.00 90.909 4,909.091
of four quarters, i.e. a total of Rs.4,000/- 2 4,909.091 11.08 1,000.00 90.253 4,818.838
Quarter Amount Public Offering No. of Units
3 4,818.838 11.15 1,000.00 89.686 4,729.152
Invested (Rs.) Price (POP) (Rs.) purchased
4 4,729.152 11.20 1,000.00 89.286 4,639.866
1 1000 12 83.333
2 1000 15 66.667
3 1000 9 111.111
Month Amount Applicable No. of Closing
4 1000 12 83.333 Invested NAV Units Balance
(Rs.) (Rs.) Allotted of Units
Total 4000 48 344.444 (f) (g) (h) (i)
Average price (per unit) per quarter (quarters)=Rs.12.00 (i.e. Rs. 48/4)
Average cost per unit = Rs.11.61 (i.e. Rs. 4000/344.444 units) 1 1000.00 11.000 90.909 90.909
As can be seen from the example above, the average cost per unit is 2 1000.00 11.092 90.155 181.064
always lower than the average market price per unit, irrespective of a
rise, fall or fluctuations in the market. A greater number of units were 3 1000.00 11.129 89.855 270.919
purchased when the per-unit cost was low; fewer units were purchased 4 1000.00 11.222 89.111 360.030
when the per-unit cost was high. Thus, Mr. ABC automatically gains
without having to monitor prices (NAV) on a day-to-day basis. Note:
However, an investor should note that the market value of the Schemes The Fund may close an investors account if the balance falls below
units is subject to fluctuations. Before undertaking any plan for the minimum prescribed balance (based on applicable NAV) in the
Systematic Investment, the investor should keep in mind that such Schemes from which Transfer is proposed to be done due to
a program does not assure a profit or protect against a loss. redemptions or SWP and the investor fails to invest sufficient funds
SYSTEMATIC TRANSFER PLAN (STP) to bring the value of the account to the prescribed minimum (based
on applicable NAV) after a written intimation in this regard is sent
A unit holder may establish a systematic transfer plan and choose to
to the Unitholder.
transfer on a monthly or quarterly basis from the Scheme to another
Templeton scheme. The transfer will be effected by way of redemption TRANSFER FACILITY
of units (with appropriate exit load, if any) and a reinvestment (with As the Fund stands ready to buy-back (redeem) its units at any time the
appropriate entry load, if any) of the redemption proceeds in another transfer facility is found redundant. However, if a transferee becomes
Scheme(s). a holder of the Units by operation of law or upon enforcement of a pledge,
Unitholders may change the amount (but not below the specified then the AMC shall, subject to production of such evidence, which in
minimum) by giving written notice to the registrars. their opinion is sufficient, proceed to effect the transfer, if the intended
transferee is otherwise eligible to hold the Units.
Currently, STP from the Scheme is available for transfer into TIGF,
FIGF, FIIF, FITF, FIBF, TIIF, TMIP, TGSF and TILF. A person becoming entitled to hold the Units in consequence of the
death, insolvency, or winding up of the sole holder or the survivors of
The unitholder may avail of this plan by completing the enclosed
joint holders, upon producing evidence to the satisfaction of the Fund,
Application Form or by filling up the relevant portion of the transaction
shall be registered as a holder.
statements. A systematic transfer plan may be terminated on appropriate
written notice by the unitholder of the fund, and it will terminate PLEDGE OF UNITS
automatically if all the units are liquidated or withdrawn from the
The Units under the Scheme, may be offered as security by way of a
account, or upon the Funds receipt of notification of death or incapacity
pledge/charge in favour of scheduled banks, financial institutions, non-
of the unitholder. The Investment Manager may change rules relating banking finance companies (NBFCs), or any other body. The AMC and/
to the plan from time to time. or the ISC will note and record such Pledged Units. A standard form for
Here is an illustration using hypothetical figures to explain the concept this purpose is available on request from any ISC. Disbursement of such
of a Systematic Transfer Plan. Let us assume that Mr. ABC would like loans will be at the entire discretion of the bank/financial institution/NBFC
to transfer Rs. 1000/- every month from TIGF to TGSF for a period of or any other body concerned and the Mutual Fund assumes no
four months, i.e. a total of Rs.4000/-. responsibility thereof.
TEMPLETON FLOATING RATE INCOME FUND
The Pledgor will not be able to redeem Units that are pledged until the redemption) price is not lower than 93% of the Net Asset Value and the
entity to which the Units are pledged provides written authorisation to sale price (i.e. POP) is not higher than 107% of the Net Asset Value,
the Mutual Fund that the pledge/lien charge may be removed. As long provided that the difference between the repurchase price and sale price
as Units are pledged, the pledgee will have complete authority to redeem shall not exceed 7% calculated on the sale price. Any such change in
such Units. the load structure will be on a prospective basis and will only be
applicable to Units purchased by investors after the new entry/exit load
structure comes into effect.
REDEMPTION OF UNITS
APPLICABLE NAV FOR REDEMPTIONS
HOW TO REDEEM UNITS Applicable NAV for Redemptions for the Short Term Plan is the NAV
The scheme will open for continuous redemption from February 18, of the day prior to immediately following business day from the business
2002. Notice for redemption can be sent to the Fund at its ISCs. day on which the application for redemption is accepted.
Redemption of the Units will be made on any Business Day at the
Applicable NAV, as defined below. A Business day has been defined as: Eg. If a redemption request is received on a Friday, the Applicable NAV
for Redemptions will be the NAV of Sunday. On any other business day,
A day other than: on which the application for redemption is accepted, which is not
(i) Saturday and Sunday, followed by a non-business day, the Applicable NAV for Redemptions
(ii) a day on which the banks in Mumbai and/or RBI are closed for will effectively be the NAV at the close of the business day on which
business / clearing, the application for redemption is accepted.
(iii) a day on which the Bombay Stock Exchange and/or National Stock Applicable NAV for Redemptions for the Long Term Plan is the NAV
Exchange are closed, at the close of business day on which the application for redemption
(iv) a day which is a public and/or bank holiday at a collection centre is accepted
where the application is received,
(v) a day on which sale and repurchase of units is suspended by the Unit holder may request the redemption of a certain specified Rupee
AMC, amount or of a certain number of Units. If a redemption request is for
(vi) a day on which normal business could not be transacted due to both a specified Rupee amount and a specified number of Units, the
storms, floods, bandhs, strikes or such other events as the AMC specified number of Units will be considered the definitive request. In
may specify from time to time. the case where a Rupee amount is specified or deemed to be specified
for redemption, the number of Units redeemed will be the amount
The AMC reserves the right to declare any day as a Business Day or
redeemed divided by the applicable NAV. Redemption requests will be
otherwise at any or all collection centres.
honored to the extent permitted by the credit balance in the Unit holders
The Fund, however, may limit the right to make redemptions. See Right account. The number of Units so redeemed will be subtracted from the
to Limit Redemptions below. In order to redeem units, investors must Unit holders account and a statement to this effect will be issued to
submit a redemption request by filling-up the pre-printed forms and mail the Unit holder. If the redemption request exceeds the Balance in the
the same to the Mumbai ISC. Redemption requests may only be made account then the account would be closed and balance sent to the
at ISC, Mumbai. All redemption request forms must contain the investors investors.
Folio Number and be duly signed by all of the Unitholders on record or
To further elaborate, the redemption amount is calculated by deducting
their Power of Attorney holders. Redemption requests by telephone,
from the Applicable NAV for Redemptions, the exit load, if any . For
telegram, fax or other means or that lack valid signatures may not be
example, if the Applicable NAV for Redemption is Rs.14/- and the exit
load applied is 1%, the redemption amount will be calculated as follows:
If a redemption request is received before the specified cut-off time on (Applicable NAV
any business day the redemption will be on the Applicable NAV for Redemption = for Redemptions)* = 14 *(1-1%) = 14 * (1 - 0.01) = Rs. 13.86
Redemptions (See Applicable NAV for Redemptions) adjusted for exit Amount
load, if any. All redemption requests received after the prescribed time (1- Exit Load%)
will be treated as having been received on the next business day and
the units will be redeemed accordingly. Investors may note that the PAYMENT OF REDEMPTION PROCEEDS
Trustee has a right to introduce an exit load or a combination of entry Redemption proceeds will be paid by cheque and payments will be made
and exit loads subject to the Regulations. in favour of the Unitholders registered name and bank account number
EXIT LOAD/CHARGE unless the unitholder instructs otherwise. Redemption cheques will be
sent to the Unitholders address (or, if there is more than one holder
Currently, the redemptions in the Scheme will attract an exit load (as
of record, the address of the first-named holder on the original application
a % of the Applicable NAV for redemptions as defined below) as
for Units) or the credit the redemption proceeds to the bank account
mentioned under the section Fees and Expenses Unitholders should
of the investor if the investor so instructs, subject to the AMC having
note that the AMC retains the right to change/impose an exit load upto
necessary arrangements with the bank. All redemption payments will be
6%. This exit load set forth above is subject to change at the discretion
made, in favour of the registered holder of the Units (unless the
of the AMC and such changes shall be implemented prospectively.
Unitholder instructs otherwise) or, if there is more than one registered
The Trustee reserves the right to increase/decrease/introduce entry/exit holder, of the first registered holder on the original application for Units.
load at any time subject to the condition that the repurchase (i.e. Units purchased can be redeemed only after realization of cheques.
TEMPLETON FLOATING RATE INCOME FUND
The redemption cheque will be despatched to the unitholders within the to bring the value of the account to the prescribed minimum (based on
statutory time limit of 10 business days prescribed by SEBI. However, applicable NAV) after a written intimation in this regard is sent to the
on a best effort basis the Fund will endeavour to despatch the redemption Unitholder.
cheque within 72 hours after a valid redemption request is received at
RIGHT TO CLOSE AN INVESTORS ACCOUNT
the Registrars office at Hyderabad, subject to the Funds right to limit
redemption as described in Right to Limit Redemptions. The Mutual Fund may close out an investors account whenever, due to
redemptions, the value of the account falls below the minimum account
To safeguard the interests of the Unitholders from loss or theft of their balance of Rs. 1,00,000/- and Rs. 2,000/- for Short Term Plan and Long
redemption cheques, SEBI has made it mandatory for applicants to Term Plan respectively, and the investor fails to purchase sufficient Units
mention their bank account numbers in their application for to bring the value of the Account upto the minimum amount or more,
purchase or redemption of Units. Investors are required to provide after written notice is sent by the Mutual Fund.
the name of their bank, branch address and account number in the
Application. Redemption cheques will be sent in accordance with such RIGHT TO LIMIT REDEMPTIONS
information. The Trustee may, in its sole discretion in response to unforeseen
circumstances or unusual market conditions, limit the total number of
REDEMPTION BY NRIS, OCBS AND TRUSTS Units which may be redeemed on any Business day to 5% of the total
NRIs/PIOs/OCBs/FIIs have been granted a general permission by RBI number of Units then in issue (or such higher percentage as the Trustee
[Schedule 5 of the Foreign Exchange Management (Transfer or Issue of may determine in any particular case). In addition, the Trustee reserves
Security by a Person Resident Outside India) Regulations, 2000] for the right, in its sole discretion, to limit redemptions with respect to any
investing in / redeeming units of the schemes subject to conditions set single account to an amount of Rs. 1 crore in a single day. Any Units
out in the aforesaid regulations. which, by virtue of these limitations, are not redeemed on a particular
SYSTEMATIC WITHDRAWAL PLAN (SWP) Business Day will be carried forward for redemption on the next following
Business Day in order of receipt. Redemptions carried forward will be
A Unitholder may establish a Systematic Withdrawal Plan in any scheme
made at the NAV in effect on the subsequent Business Day(s) on which
and receive regular/ quarterly payments from the account. The Unitholder
can opt to withdraw a fixed amount subject to a prescribed minimum the condition for redemption request is fulfilled. To the extent multiple
amount per month or per quarter. The investor can alternatively withdraw redemptions are being satisfied in a single day under these circumstances,
capital appreciation. In case of withdrawal of capital appreciation, SWP such payments will be made pro-rata based on the size of each
is available in Growth Option only. The Unitholder may avail of SWP by redemption request. Under such circumstances, redemption cheques
may be mailed out to investors within a reasonable period of time and
filling up the relevant portion of the transaction statement or by completing
will not be subject to the normal response time for redemption cheque
an Application Form and sending it to any of the ISCs mentioned at the
reverse of this Offer Document. mailing.
The amount thus withdrawn by redemption shall be converted into Units
at the applicable NAV (which is generally the first business day of the SWITCHING FACILITY
month in which the payment is scheduled), and such Units will be
subtracted from the unit balance of that Unit holder. Unitholders will have an option to switch all or part of their investment
in one Scheme/Plan to another Scheme/Plan established by the Fund
Unitholders may change the amount by giving appropriate written notice that is available for investment at that time. The AMC would not charge
to the Registrars. A Systematic Withdrawal Plan may be terminated on any separate fees for such switching currently. The switch will be effected
written notice by the unitholder of the Fund, and it will terminate by way of redemption of units (with appropriate exit load, if any) and
automatically if all Units are liquidated or withdrawn from the account, a reinvestment (with appropriate entry load, if any) of the redemption
or upon the Funds receipt of notification of death or incapacity of the proceeds in another Scheme(s)/Plan(s). To effect a switch, a unitholder
Unitholder. must provide clear instructions to the Fund. Such instructions may be
Here is an illustration using hypothetical figures to explain the concept provided by completing a form and lodging the same on any Business
of a Systematic Withdrawal Plan. Let us assume that Mr. ABC has Day with any of the Investor Service Centres or the office of the Registrar
invested Rs. 10,000/- and been allotted 1000 units during the initial and Transfer Agent. The form may also be sent by post as above. An
offer. Subsequently he would like to receive Rs. 1000/- for a period of account statement reflecting the new holdings will be dispatched to the
four months, commencing from the beginning of the next month. Unitholder within three days of completion of the switch transaction.
Month Opening Amount Applicable No. of units Closing
Balance of Withdrawn NAV redeemed Balance SUSPENSION OF SALE OR REDEMPTION
Units (Rs.) (Rs.) of Units OF UNITS
1. 1000.000 1000 12 83.333 916.667
With the approval of the Boards of Directors of the Trustee and the Asset
2. 916.667 1000 15 66.667 850.000 Management Company, the sale or redemption of Units may be suspended
3. 850.000 1000 9 111.111 738.889 temporarily or indefinitely when any of the following conditions exist:
4. 738.889 1000 12 83.333 655.556 i. The debt market stops functioning or trading is restricted;
ii. Periods of extreme volatility in the debt market, which, in the
Total 4000 344.444
opinion of the Investment Manager, is prejudicial to the interest of
Note: The Fund may close an investors account if the balance falls the investors;
below the prescribed minimum balance (based on applicable NAV) due iii. When there is a strike by the banking community or trading is
to redemptions or SWP and the investor fails to invest sufficient funds restricted by RBI or other authority
TEMPLETON FLOATING RATE INCOME FUND
iv. Period of extreme volatility in the debt/money market, which in the
opinion of the Board of Directors of AMC and Trustee is prejudicial PROCEDURE AND MANNER OF WINDING UP
to the interest of the schemes investors.
i) The Trustee shall call a meeting of the Unitholders to consider and
v. As and when directed by the Government of India or RBI or SEBI pass necessary resolutions by simple majority of the Unitholders
to do so or conditions relating to natural calamity/external aggression/ present and voting at the meeting for authorizing the Trustees or
internal disturbances etc. arises, so as to cause volatile movements any other person to take steps for winding up the Scheme.
in the money or debt market, which in the opinion of the AMC, will
be prejudicial to the interest of the unitholders, if further trading ii) a) The Trustee or the person authorized as above, shall dispose
in the scheme is continued. off the assets of the Scheme concerned in the best interest
of the Unitholders of that Scheme.
vi. Break down in the information processing/communication systems
affecting the valuation of investments/processing of sale/repurchase b) The proceeds of the sale made in pursuance of the above,
request shall, in the first instance be utilized towards discharge of such
vii. Natural calamity; liabilities as are properly due under the Scheme and after
making appropriate provision for meeting the expenses
viii. SEBI, by order, so directs. connected with such winding up, the balance shall be paid
ix. Any other circumstances which in the opinion of the Board of to the Unitholders in proportion to their respective interest in
Directors of AMC and Trustee is prejudicial to the interest of the the assets of the Scheme as on the date when the decision
schemes investors. for the winding up was taken.
The approval from the Boards of the Trustee giving details of circumstances iii) On the completion of the winding up, the Trustee shall forward to
and justification for the proposed action shall also be informed to SEBI. the Board and the Unitholders, a report on the winding up containing
particulars such as circumstances leading to the winding up, the
The Trustee also reserves the right in its sole discretion to withdraw sale
steps taken for disposal of assets of the Fund before winding up,
of Units in the Scheme temporarily or indefinitely, if the Trustee views
expenses of the Fund for winding up, net assets available for
that increasing the Schemes size further may prove detrimental to the
distribution to the Unitholders and a certificate from the Auditors
existing Unitholders of the Scheme.
of the Fund.
iv) Notwithstanding anything contained herein, the application of the
UNCLAIMED DIVIDEND/REDEMPTION AMOUNT provisions of the SEBI Regulations in respect of disclosures of half-
yearly reports and annual reports shall continue to apply.
The unclaimed redemption and dividend amount may be deployed by
the mutual fund in call money market or money market instruments only After the receipt of the report referred to above under Procedure and
and the investors who claim these amounts during a period of three years Manner of Winding Up, if SEBI is satisfied that all measures for winding
from the due date shall be paid at the prevailing Net Asset Value. After up of the Scheme have been completed, the Scheme shall cease to
a period of three years, this amount may be transferred to a pool account exist.
and the investor can claim the amount at NAV prevailing at the end of
the third year. The income earned on such funds may be used for the BORROWING BY THE MUTUAL FUND
purpose of investor education. The AMC would make a continuous effort
to remind the investors through letters to take their unclaimed amounts. In terms of Regulations as presently prevailing, the Scheme shall have
The investment management fees charged by the AMC for managing the power to borrow upto 20% of its assets under management outstanding
unclaimed amounts will not exceed 50 basis points. as on the date of borrowing. This borrowing shall be used only for the
purposes of paying redemptions or for the dividend distributions that may
DURATION OF THE SCHEME have to be paid by the Mutual Fund. The Mutual Fund may tie up with
various banks/institutions for the above mentioned facility for which it
The duration of the Scheme is perpetual. However, in terms of the SEBI may have to give guarantee or the delivery of the securities held by it
Regulations, the Scheme may be wound up if: as collateral. The AMC may be exposed to losses on account of its
i. There are changes in the capital markets, fiscal laws or legal inability to get its securities back in time from the bank(s)/institution(s).
system, or any event or series of events occurs, which, in the The limit of 20% may be revised at the discretion of the Fund and to
opinion of the Trustee, requires the Scheme to be wound up; or the extent the Regulations hereafter permit.
ii. 75% of the Unitholders of the Scheme pass a resolution that the
Scheme be wound up; NET ASSET VALUE CALCULATION AND
iii. SEBI directs the Scheme to be wound up in the interests of the VALUATION OF ASSETS
NAV is the actual value of a Unit on any Business Day and is computed
Where a Scheme is to be wound up pursuant to the above, the Trustee as shown below:
shall give notice of the circumstances leading to the winding up of the
Scheme - (Market Value of the Scheme's Investments + Other Assets
(including accrued interest) + Unamortized Issue Expenses
i. to SEBI; and All Liabilities except Unit Capital & Reserves)
ii. in two daily newspapers having circulation all over India and also (Rs. Per unit) Number of Units Outstanding at the end of the day
in a vernacular newspaper circulating at the place where the Fund
is established. Valuation of Schemes assets and calculation of the Schemes NAV will
TEMPLETON FLOATING RATE INCOME FUND
be subject to such rules or regulations that SEBI may prescribe from time 7. From time to time, subject to the Regulations, the Sponsors, the
to time and shall be subject to audit on an annual basis. Mutual Funds managed by them, their affiliates-associates, the
Sponsors and the AMC may acquire a substantial portion of the
Valuation of Assets will be in accordance with the provisions of the SEBI
Schemes units and collectively constitute a majority investor in the
Regulations/Guidelines/Directives as amended from time to time.
WITH SPONSOR - ASSOCIATES
1. The Schemes of Templeton Mutual Fund, from the date of their
inception, till the date of this offer document, have not underwritten Every investor will have an Account number. The number of Units issued
any issue lead managed by the associate companies. to an investor or redeemed by an investor will be reflected in his or her
Account and a statement to this effect will be issued to the Unitholder.
2. Templeton Mutual Fund has not utilized the services of associate Reports / Disclosures
companies for purchase-sale of securities.
Information Type Frequency
3. Templeton Mutual Fund has utilized the services of one of the Disclosure of NAV Calculated Daily - Published Daily
associates namely, Spur Cable And Datacom Pvt. Ltd (formerly, - Press Release daily
Hathway Securities Ltd.), a subsidiary of Hathway Investments Ltd.
Performance Review Quarterly
for procuring unit subscriptions for both Templeton India Growth
Portfolio Information Complete holding - Half Yearly
Fund (TIGF) and Templeton India Income Fund (TIIF). The details
of the brokerage commission and the trail fees paid for such Redemption and Resale Prices Calculated Daily - Press release daily
subscriptions are given below. These commissions have been Other Service Standards
computed and paid at the same rates offered to other distributors
by the Scheme. Description of Service Service Commitment
Account Statement 3 Days
(Rs. in millions)
Address change 3 Days
For the Nomination 3 Days
Scheme For the year ended half year ended Transmission 5 Days
31-03-1999 31-03-2000 31-03-2001 30-09-2001 Redemption Cheque mailing 72 hours
SIP/SWP/STP Account Statements 5 Days
TIGF 1.48 2.02 1.77 0.289
TIIF 0.54 0.21 0.03 0.004 ACCOUNT STATEMENTS
Each Unitholder will receive an Account Statement each time additional
4. The AMC may, subject to SEBI regulations, utilize the services of purchases or redemptions of Units are made, or dividends or other
the associate companies for the following: distributions in respect of Units are declared and paid. In addition, each
l Purchase or sale of securities; Unitholder also will receive an annual Account Statement as soon as
practicable after 31st March each year. Such annual Account Statement
l Marketing, sale and distribution of the units of the Schemes
will detail the investors opening balance of Units held as of 1st April
of Templeton Mutual Fund
of the prior year, all transactions that occurred during the preceding
However, the AMC shall ensure that brokerage paid to affiliate months with respect to the Account, such as additional purchases,
broker will be in line with what will be paid to non-affiliate broker redemptions and reinvestments of dividends, and a closing balance of
and the quantum of business shall be subject to the limits prescribed Units held and the NAV of the Units as on the date of issue of the
by SEBI Statement.
The AMC shall also ensure that the brokerage - trail fee paid to
the affiliate brokers for the sale and distribution of units is at the NAV, REDEMPTION AND ISSUE PRICES
same rates offered to the other distributors. Following are the statutory provisions governing the repurchase and
resale prices of units of Mutual Funds:
5. The AMC may, subject to the regulations, may subscribe on behalf
of the Schemes in the Government securities issued and lead a) The Mutual Fund, in case of open-ended scheme, shall publish in
managed by any of the associate. The AMC shall ensure that a daily newspaper of all India circulation, the NAV, sale and
investments in such issues will be in line with the investment repurchase price of units on a daily basis.
objectives of the Scheme.
b) While determining the prices of the units, the scheme shall ensure
6. No investment shall be made in any unlisted security of an that the repurchase price is not lower that 93% of the Net Asset
associate or group company of the sponsor; or any security issued Value and the sale price is not higher that 107% of the Net Asset
by way of private placement by an associate or group company of Value.
the sponsor. The Scheme may however invest in the listed securities
of group companies of the sponsor provided that such investments Provided further that the difference between the repurchase price
are not in excess of 25% of the net assets of all the Schemes of and the sale price of the unit shall not exceed 7% calculated on
the Fund. the sale price.
TEMPLETON FLOATING RATE INCOME FUND
c) The price of units shall be determined with reference to the last However, the investors should be aware that the nominee may not
determined Net Asset Value unless, acquire title or beneficial interest in the property by virtue of the
the scheme announces the Net Asset Value on a daily basis; nomination and that neither the Mutual Fund or the Investment Manager
and or the Registrar and Transfer Agent of the Fund will be bound to transfer
the units to the nominee in the event of any dispute in relation to the
the sale price is determined with or without a fixed premium nominees entitlement to the units.
added to the future NAV.
The Scheme shall comply with Regulations 48 and 49 of SEBI Regulations If the Mutual Fund or the Investment Manager or the Trustee were to
regarding computation and publication of NAV, redemption and re-sale incur, suffer or any claim, demand, liabilities, proceedings or actions are
prices. filed or made or initiated against any of them in respect of or in
connection with the nomination, they shall be entitled to be indemnified
Notwithstanding what is contained in the foregoing paragraph the Fund absolutely for any loss, expenses, costs, and charges that any of them
would compute NAV, redemption and issue prices daily and make press may suffer or incur absolutely from the investors estate.
releases every day to newspapers widely circulated for publication.
The publishing of NAV and redemption and Issue Prices as outlined above RECEIVING ACCOUNT STATEMENT/UNIT CERTIFICATES/
are as per the extant SEBI Regulations and are subject to change from CORRESPONDENCE BY E-MAIL
time to time. The Mutual Fund will encourage the Unit holder to provide their e-
mail addresses for all correspondence. The Mutual Funds Website
ANNUAL FINANCIAL REPORTS would facilitate request for Account Statement by Unit holders. The
As required by the SEBI Regulations, the Fund will publish, as soon as Mutual Fund will endeavour to send Account Statement and any
practical after 31st March each year but not later than six months other correspondence using e-mail as the mode of communication.
thereafter, as the Trustee may decide, accounts relating to its affairs for
the period ending 31st March. The Fund will also mail an abridged The Unit holder will be required to download and print the Account
scheme-wise annual report to all the unitholders. The full annual report Statement after receiving e-mail from the Mutual Fund. Should the
of the Fund will be furnished to the Unitholders upon a written request Unit holder experience any difficulty in accessing the electronically
and will be available at the Head Office of the Investment Manager for delivered Account Statement, the Unit holder shall promptly advise
inspection. The Fund will make all disclosures required by the SEBI the Mutual Fund to enable the Mutual Fund to make the delivery
Regulations, including information about the entire portfolio held by the through alternate means. Failure to advise Templeton Mutual Fund
Fund under this Scheme. or Karvy Consultants Ltd. of such difficulty within 24 hours after
receiving the e-mail, will serve as an affirmation regarding the
HALF YEARLY DISCLOSURES acceptance by the Unit holder of the Account Statement.
The Fund shall before the expiry of one month from the close of each
half year that is on 31st March and 30th September, publish its It is deemed that the Unit holder is aware of all security risks
unaudited financial results, containing details specified in Regulation 59 including possible third party interception of the Account Statement
read with Twelfth Schedule of SEBI Regulations, in one English newspaper and content of the Account Statement becoming known to third
circulating in the whole of India and in one regional newspaper circulating parties.
in the region where the head office of the Fund is situated. In addition, Subject to the consent of the Unitholder, the mutual fund will
the Scheme shall mail or publish the complete portfolio to the investors endeavour to send the account statement, annual report, half yearly
before the expiry of one month from March 31 an September 30 each portfolio statement to the unitholder by e-mail. Alternately, the AMC
year. These shall also be displayed on the web site of the mutual fund may also send an e-mail to the investor giving the link to the website
and that of AMFI. of the Mutual Fund for the aforesaid statements.
DISCLOSURE UNDER REGULATION 25(11) OF SEBI (MF)
The Unitholder, at any time after the allotment of units may write to any
For the details of investments in companies which have invested more Investor Service Centre, requesting that the Units be transferred on
than 5% of NAV of schemes managed by the AMC, as on September account of a gift made by the unitholder subject to the provisions of
30, 2001, please refer the Offer Document. applicable law.
NOMINATION & TRANSFER FACILITY
If an Application is made in the name of a single holder, the Unitholder
can nominate a successor to receive the Units upon his-her death, TAXATION
subject to the prescribed formalities.
The following summary outlines the tax benefits available to the Unitholders
Furnishing of the death certificate by way of proof of the death of the of the Scheme and to the Fund and is based on the prevailing tax laws,
unitholder, signature of the nominee, furnishing proof of guardianship as they stood on the date of this Offer Document.
in case the nominee is a minor, acknowledging receipt of amounts to
the credit of the single unitholder, execution of Indemnity Bond of or such THE FOLLOWING INFORMATION IS PROVIDED FOR GENERAL
other documents as may be required from the nominee in favour of and INFORMATION PURPOSES ONLY. HOWEVER, IN VIEW OF THE INDIVIDUAL
to the satisfaction of Templeton Mutual Fund (TMF), Templeton Asset NATURE OF THE IMPLICATIONS, EACH INVESTOR IS ADVISED TO CONSULT
Management (I) Pvt. Ltd. (TAMIL), that will constitute full discharge of HIS OR HER OWN TAX ADVISERS WITH RESPECT TO THE SPECIFIC TAX
liabilities of TMF and/ or TAMIL towards the single unitholders estate, IMPLICATIONS ARISING OUT OF HIS OR HER PARTICIPATION IN THE
legal heirs, executors, administrators and successors. SCHEME.
TEMPLETON FLOATING RATE INCOME FUND
TAX IMPLICATIONS TO THE MUTUAL FUND Accordingly, income in respect of units of the Scheme shall not be liable
Tax benefit to the Fund to taxation and/or to any deduction of tax at source.
Templeton Mutual Fund is registered with SEBI and the entire income Tax on capital gains
of the Fund is exempt from income-tax under Section 10(23D) of the As per Section 2(42A) of the Act, units of the Scheme held as a capital
Act; the Fund is therefore entitled to receive income without any asset, for a period of more than twelve months immediately preceding
deduction of tax at source. the date of transfer, will be treated as a long-term capital asset for the
computation of capital gains; in all other cases, it would be treated as
a short-term capital asset.
As per Section 115R of the Act, any amount of income distributed by
a Mutual Fund to its unit holders shall be chargeable to tax and such NRIs/OCBs/PIOs
Mutual Fund shall be liable to pay additional income-tax at the rate of Long-term and short-term capital gains arising to NRIs/PIOs/OCBs from
10 percent. A surcharge of 2 percent on this additional tax would also the transfer of the units of the Scheme will be taxable at the following
be payable. rates:
However, these provisions will not be applicable to any income distributed Nature of income Tax rate*
by an open-ended equity oriented fund for a period of three years
Short-term capital gains Rate applicable as per the slabs
commencing from April 1, 1999.
prescribed in the case of NRIs/PIOs
An open ended equity oriented fund has been defined to mean such (note 1), and at 48 percent in the case
fund where the investible funds are invested by way of equity shares in of OCBs
domestic companies to the extent of more than fifty percent of the total
proceeds of such fund. Long-term capital gains 20 percent with the cost inflation index
benefit or 10 percent without the cost
TAX IMPLICATIONS TO RESIDENT UNITHOLDERS
inflation index benefit, whichever is
Tax on income in respect of units beneficial
As per Section 10(33) of the Act, income received in respect of units
* excluding surcharge as may be applicable (note 2).
of a mutual fund specified under Section 10(23D) of the Act, is exempt
from income-tax. The above rates would be subject to applicable tax treaty relief.
Tax on capital gains Note 1:
Under Section 2(42A), units of the Schemes are treated as long-term Currently, NRIs/PIOs are liable to tax in respect of their total income as
capital assets if held for a period of more than 12 months. Under Section per the following rates:
112 of the Act, the capital gains arising from transfer of a long-term Slab Tax rate
capital asset will be subject to tax at 20 percent with the cost inflation
index benefit, or at 10 percent without the cost inflation index benefit, Total income not exceeding Rs. 50,000 Nil
whichever is beneficial.
Rs. 50,001 ~ not exceeding Rs. 60,000 10 percent of excess over
Further, capital gains arising from the transfer of short-term capital
assets will be subject to tax at the normal rates of tax applicable to such
assessees. Rs. 60,001 ~ not exceeding Rs 150,000 20 percent of excess over
The tax payable on total income from all sources shall be increased by Rs. 60,000 + Rs. 1,000
a surcharge of 2 percent for individuals and trusts having total income Exceeding Rs 150,000 30 percent of excess over
exceeding Rs 60,000, and for all categories of taxpayers. Rs. 150,000 + Rs. 19,000
Tax deducted at source
As per Section 194K of the Act, no tax is required to be withheld or
Surcharge is currently applicable at the rate of 2 percent in the case
deducted at source, where any income is credited or paid by a mutual
of NRIs/PIOs/non-resident trusts having total income exceeding
Rs. 60,000. Foreign corporates (such as for instance, FIIs organised as
Further, no tax is required to be deducted at source from capital gains companies and OCBs) are not liable to any surcharge.
arising at the time of repurchase or redemption of the units.
Religious and charitable trusts As per Section 195 of the Act, in respect of short-term capital gains,
Investments in the units of the Fund by Religious and Charitable Trusts tax is required to be deducted at source at the rate of 30 percent if the
is an eligible investment under Section 11(5) of the Act, read with Rule payee is a non-resident non-corporate assessee, and at the rate of 48
17C of the Income Tax Rules, 1962. percent if the payee is a foreign company. As regards long-term capital
TAX IMPLICATIONS TO NRIS/OCBS/PIOS/FIIS gains, tax is required to be deducted under Section 195 at the rate of
20 percent in all cases.
Tax on income in respect of units
As per Section 10(33) of the Act, income received in respect of units These withholding tax rates will be further increased by the applicable
of a mutual fund specified under Section 10(23D) are exempt from surcharge (note 2).
income tax. Further, as per the proviso to Section 196A(1) of the Act,
no tax shall be deducted at source from any income credited or paid
to non-resident investors in respect to units of a Mutual Fund specified As per Section 115AD of the Act, long-term capital gains on sale of units
under Section 10(23D). would be taxed at the rate of 10 percent and short-term capital gains
TEMPLETON FLOATING RATE INCOME FUND
would be taxed at 30 percent [plus the surcharge as applicable (note 2)].
The said rates would be subject to applicable tax treaty relief. GENERAL INFORMATION
The gains, in either case, would be calculated without indexation of cost DECLARATION OF DIVIDENDS
of acquisition and without conversion of cost of acquisition in foreign
The Trustee may declare dividends in the scheme from time to time
though there is no assurance or guarantee to the Unitholders as to the
No tax would be deductible at source from the capital gains (whether rate of dividend distribution nor that the dividend will be regularly paid.
long-term or short-term) arising on repurchase/redemption of units in The Trustees may declare dividends at any periodicity as it deems fit to
view of the provisions of Section 196D(2) of the Act. Unitholders, whose names appear on the Unitholders register on the
record date. Dividends will be paid by cheque, net of taxes as may be
WEALTH TAX BENEFITS (FOR RESIDENT UNITHOLDERS
applicable, and payments will be in favour of the Unitholders registered
AND NRIs/OCBs/PIOs/FIIs) name and, if provided, bank account number. Dividend cheques will be
Units are not to be treated as assets as defined under Section 2(ea) sent to the Unitholders address stated on the Application Form. All
of the Wealth-Tax Act, 1957 and hence will not be liable to wealth-tax. dividend payments will be made in favour of the registered holder of Units
OTHER INCOME TAX PROVISIONS or, if there is more than one registered holder, of the first-named
registered holder on the original Application Form. To safeguard the
Under Section 94(7), losses arising on the sale of securities or units,
interest of Unitholders from loss or theft of dividend cheques, investors
in respect of which the dividend or income received or receivable is
are encouraged to provide the details of their bank account in the
exempt from tax, will be disallowed if such securities or units have been
Application Form. Dividend cheques will be sent in accordance with such
purchased upto 3 months prior to the record date and have been sold
information. The Trustee may not declare a dividend at all in the event
within 3 months after such date. The amount of loss to be disallowed
of inadequacy of distributable income. There is no assurance or guarantee
will be restricted to the amount of dividend or income received or
to Unitholders as to the periodicity of dividend, rate of dividends
receivable in respect of such securities or units.
distribution nor that dividends will be regularly paid.
Dividend Reinvestment Facility: Investors may choose to reinvest the
The Gift Tax Act, 1958, has ceased to apply to gifts made on or after
dividend to be received by them in additional Units of the Schemes.
1st October, 1998. Gifts of Units, purchased under the Scheme, would
Under this option, the dividend due and payable to the Unitholders will
therefore, be exempt from gift-tax.
be reinvested in the respective Schemes at the first ex-dividend NAV.
The dividends so reinvested shall be constructive payment of dividends
INVESTOR SERVICES to the Unitholders and constructive receipt of the same amount from
each Unitholder for reinvestment in Units.
The Fund intends to promptly follow up on all complaints and enquiries
POWER TO MAKE RULES
received from investors regarding the issue of Units with a view to
resolving them quickly. For further assistance in this regard, investors are Subject to the prior approval of SEBI, if required, the Trustee may, from
urged to contact the ISCs mentioned on the reverse of this Abridged Offer time to time, prescribe such terms and make such rules for the purpose
Document. of giving effect to the provisions of this Scheme with power to the
Investment Manager to add to, alter or amend all or any of the terms
History of performance regarding redressal of investor grievances and rules that may be framed from time to time.
(as on November 30, 2001)
POWER TO REMOVE DIFFICULTIES
Scheme 01-04-1999 to 31-03-2000 01-04-2000 to 31-03-2001 01-04-2001 to 30-11-2001
If any difficulty arises in giving effect to the provisions of this Scheme,
Received Redressed Pending Received Redressed Pending Received Redressed Pending the Trustee may do anything not inconsistent with such provisions, which
appear to them to be necessary, desirable or expedient, for the purpose
TIGF 316 316 Nil 271 271 Nil 117 117 Nil of removing the difficulty.
FIGF 15 15 Nil 179 179 Nil 6 6 Nil SCHEME TO BE BINDING ON THE UNITHOLDERS
The Trustee may, from time to time, add to or otherwise vary or alter
FIIF N.A. N.A. N.A. 75 74 1 11 12 Nil all or any of the features, investment plans and terms of this Scheme
FIBF N.A. N.A. N.A. 38 38 Nil 8 8 Nil after obtaining the prior approval of SEBI and the Government of India
where necessary and the Unitholders in accordance with the SEBI
TIIF 440 440 Nil 1027 1023 4 660 663 1 Regulations, and the same shall be binding on each Unitholder and any
person or persons claiming through or under him as if each Unitholder
TMIP 17 17 Nil 450 449 1 171 172 0
or such person expressly agreed that such features, plans and terms
TGSF 29 29 Nil 157 157 Nil 106 106 Nil should be so binding.
TILF 63 63 Nil 111 111 Nil 8 8 Nil WEBSITE
The website of Templeton Mutual Fund is intended solely for the use
FITF N.A. N.A. N.A. 0 0 Nil 3 3 Nil of Resident Indians, Non Resident Indians, persons of Indian Origin and
TILP N.A. N.A. N.A. N.A. N.A. N.A. 0 0 Nil Foreign Institutional Investors registered with Securities and Exchange
Board of India. It should not be regarded as a solicitation for business
Investor Relations Officers in any jurisdiction other than India. In particular the information is not
Please refer to the list of Investor Service Centres and contact persons for distribution and does not constitute an offer to sell or the solicitation
as listed in this Abridged Offer Document. of an offer to buy securities in any jurisdiction where such activity is
TEMPLETON FLOATING RATE INCOME FUND
prohibited including the United States of America. Any persons resident of the distributor for this purpose. In such event, the Power of Attorney
outside India who nevertheless intend to respond to this material must should be submitted to the Fund.
first satisfy themselves that they are not subject to any local requirements
which restrict or prohibit them from so doing. Information other than
that relating specifically to Templeton Asset Management (India) Pvt. The Fund intends to utilize the services of select financial intermediaries
Ltd., Templeton Mutual Fund and its products, is for information for distribution and may pay brokerage depending upon the efficiency
purposes only and should not be relied upon as a basis for investment and other factors as may be decided by the AMC. The Investment
decisions. Templeton Asset Management (India) Pvt. Ltd. cannot be manager is the sole authority to select such financial intermediary/
responsible for any information contained in any website linked from intermediaries who would distribute the product. Further, the AMC may
this website. appoint one or more exclusive distributors, at its discretion, based on
the parameters decided by the AMC.
The Fund may use the services of associate brokers or take the sale of
In the new era of liberalisation and modernisation, the Fund wishes to
its units into account when allocating brokerage. However, the brokerage
take optimum advantage of the modern techniques of communication
paid to Associate Brokers shall be at the same rate offered to any other
and transactions to serve its investors in a more efficient manner. As broker who procures subscription.
a step towards the same, the Fund has introduced and is allowing online
subscription and redemption/ repurchase of the Units of the Fund or any BOOKS AND RECORDS
other transaction such as change in address, change in bank details, The books and records of the Fund will be maintained at the Registered
change in mode of payment etc. The investor availing this facility will Office of the Investment Manager. The fiscal year of the Fund ends on
be able to subscribe for and redeem the Units of the Fund or carry out 31st March in each year. The Register of Unitholders of the Scheme shall
other transactions through web-based transaction links. Online transactions be maintained at the Registered office of the Investment Manager along
will save cost & time of the investor and will also enable the Fund to with that of the Registrars, Karvy Consultants Ltd. at their office at 46,
serve its clients in a faster and efficient way. However the investors Road No.4 Street No.1, Banjara Hills, Hyderabad 500 034 and such
intending to take benefit of the web-based transaction facility should other places as the Trustees may decide.
note that the investor may use this service at their own risk. The Fund,
the AMC, the Trustee, alongwith its directors, employees and
representatives shall not be liable for any damages or injuries arising out
DOCUMENTS AVAILABLE FOR INSPECTION
of or in connection with the use of the website or its non-use including
The following documents will be available for inspection by the prospective
non-availability or failure of performance, loss or corruption of data, loss
investors between 11.00 a.m. and 1.00 p.m. on any day (excluding
of or damage to property (including profit and goodwill), work stoppage,
Saturdays, Sundays and public holidays), at the office of the Fund: -
computer failure or malfunctioning, or interruption of business; error,
omission, interruption, deletion, defect, delay in operation or transmission, l Copy of Registration Certificate from SEBI
computer virus, communication line failure, unauthorised access or use
l Copy of the Trust Deed and Supplementary Trust Deed
l Copy of Investment Management Agreement
PERSONAL IDENTIFICATION NUMBER (PIN)
l Copy of Memorandum & Articles of Association of Trustee
The PIN facility will be made available to the Unit holders to facilitate
transactions through the website of the Fund and may also be introduced l Copy of Memorandum & Articles of Association of the Investment
to facilitate transactions through other modes like telephone, ATM, Manager
Smart Cards etc. Unit holders will be required to indicate their desire l Copy of the Custodian Agreement
to avail of this facility and also indicate their Bank Account No., Name
l Consent of Registrar and Transfer Agents to act in the said capacity
of the Bank and Branch in the application for purchasing units at a future
date. The Mutual Fund on request, will mail to such Unit holders, the l Consent of Auditors to act in the said capacity
HPIN Agreement together with detailed terms and conditions subject l A copy of this Offer Document
to which its usage will be permitted. On receipt of the HPIN Agreement
l SEBI (Mutual Funds) Regulations, 1996
duly signed by the Unit holder, the PIN will be mailed to each Unit holder.
For transactions using the website, Unit holders may first use the PIN l Copy of Indian Trust Act, 1882
to create his own log-in name and password. The Unit holder will be first l Annual Report of the Asset Management Company
asked to enter the log-in name and password before the request for
purchase, redemption switch or any other transaction is accepted. In the
interest of the Unit holder, the Mutual Fund/ISC reserves the right to ask PENALTIES AND PENDING LITIGATION
for a fax confirmation of the request and any other additional information
about the account of the Unit holder. All transactions conducted with l All cases of penalties awarded by SEBI under the SEBI Act or any
use of this PIN will be the responsibility of the Unit holder and the Unit of its regulations against the Sponsor of the Mutual Fund or any
holder will abide by the record of the transactions generated. The Mutual company associated with the Sponsor in any capacity including the
Fund and the ISC / Registrar shall not accept any responsibility for the Asset Management Company, Trustee Company/Board of Trustees,
unauthorised use of the PIN. or any of the directors or key personnel specifically the fund
managers) of the Asset Management Company and Trustee Company
TRANSACTION BY DISTRIBUTOR The nature of the penalty must be disclosed. For Sponsor and its
Franklin Templeton may introduce a facility for distributors to transact associates, other than the penalties as mentioned above, the
on the web on behalf of their clients, provided the client has authorised penalties awarded by any financial regulatory body, including stock
the distributors to do so by executing a Power of Attorney (PoA) in favour exchanges, for defaults in respect of shareholders, debentureholders
TEMPLETON FLOATING RATE INCOME FUND
and depositors shall also be disclosed. Additionally, penalties Mutual Fund as one of the respondents. The Honourable Delhi
awarded for any economic offence and violation of any securities High Court vide its order dated 3rd August, 2000 directed
laws shall be disclosed : Nil SEBI to dispose off the representation filed by the investor.
The investor then filed a representation with SEBI. After
l Any pending material litigation proceedings incidental to the business hearing the petitioner and the respondents, SEBI rejected the
of the Mutual Fund to which the Sponsor of the Mutual Fund or representation vide order dated September 4, 2000 upholding
any company associated with the Sponsor in any capacity including the stand of the Mutual Fund.
the AMC, Board of Trustees /Trustee Company or any of the
directors or key personnel is a party. Any pending criminal cases Subsequently, the investor had filed a Memorandum of Appeal
against the Sponsor or any company associated with the Sponsor with the Securities Appellate Tribunal, Mumbai against the
in any capacity including the AMC, Board of Trustees/Trustee SEBI order dated September 4, 2000. The Tribunal dismissed
Company or any of the directors or key personnel should also be the appeal vide its order dated February 15, 2001 and upheld
disclosed separately: the stand of the Mutual Fund. The investor has now filed a
petition in the Delhi High Court challenging the order of the
Securities Appellate Tribunal and challenging the Central
l Three individual plaintiffs filed a consolidated complaint in the
Board of Direct Taxes (CBDT) order.
U.S. District Court for the Southern District of Florida against
Templeton Vietnam Opportunities Fund, Inc. (now known as l Any deficiency in the systems and operations of the Sponsor of the
Templeton Vietnam and Southeast Asia Fund, Inc.); Templeton Mutual Fund or any company associated with the sponsor in any
Asset Management, Ltd., an indirect wholly-owned subsidiary capacity including the AMC or the Trustee Company which SEBI has
of FRI and the investment manager of the closed-end specifically advised to be disclosed in the offer document, or which
investment company; certain of the fund's officers and directors; has been notified by any other regulatory agency , shall be
FRI; and Templeton Worldwide, Inc., an FRI subsidiary. The disclosed : Nil
plaintiffs in that action, moved to certify a class with respect
to certain claims raised in the consolidated complaint. The l Any enquiry/adjudication proceedings under the SEBI Act and the
court has not ruled on the motion to certify a class. Regulations made thereunder, that are in progress against the
Sponsor of the Mutual Fund or any company associated with the
l Templeton International Inc. is involved from time to time in Sponsor in any capacity including the AMC, Board of Trustees/
litigation relating to claims arising in the normal course of Trustee Company or any of the Directors or key personnel of the
business. Management is of the opinion that the ultimate Asset Management Company shall be disclosed: Nil
resolution of such claims will not materially affect Franklin
Templeton Investments' business or financial position. Notwithstanding anything contained in this Abridged Offer Document the
provisions of the SEBI (Mutual Funds) Regulations, 1996 and the
Guidelines thereunder shall be applicable.
l One of the investors under Templeton India Growth Fund had
made investment to the tune of Rs.1,00,00,001/- under For Templeton Asset Management (India) Pvt. Ltd.
Section 54EB of the Income Tax Act, 1961. In accordance Investment Manager: Templeton Mutual Fund
with the legal opinion of the counsel of the Fund, the Fund
is of the view that investments under Section 54EB of the
Income Tax Act, 1961 read with CBDT notification no. 10247
dated December 19, 1996, the units had to be locked-in for Rajiv Vij
a period of seven years from the date of investment. However, Regional Head, India And Middle East
the investor had disputed this stand and had filed a writ
petition in the High Court of Delhi seeking the direction of the Place: Mumbai
court for premature redemption of units, with Templeton Date: December 28, 2001
TEMPLETON FLOATING RATE INCOME FUND
Templeton International, Inc., Citibank, N. A.
500 East Broward Boulevard, Plot C/61, Bandra Kurla Complex,
Suite 2100, Fort Lauderdale, 'G' Block, Bandra (East), Mumbai 400 051
Florida 33394 - 3091, USA.
REGISTRARS Templeton Trust Services Pvt. Ltd.
Karvy Consultants Ltd., 1st Floor, Sakhar Bhavan,
46, Avenue 4, Street No. 1, 230 Backbay Reclamation,
Banjara Hills, Nariman Point, Mumbai 400 021.
Hyderabad 500 034
Arthur Andersen & Associates
17th Floor, Express Towers,
Templeton Asset Management Nariman Point, Mumbai 400 005.
(India) Pvt. Ltd.
1st Floor, Sakhar Bhavan,
230 Backbay Reclamation, LEGAL ADVISORS
Little & Co.
Mumbai 400 021.
Central Bank Building
M.G. Road, Mumbai - 400 001
TEMPLETON FLOATING RATE INCOME FUND
FRANKLIN TEMPLETON INVESTOR SERVICE CENTRES
City Contact Person Address Phone No.
Ahmedabad Banashree Desai Templeton Asset Management (India) Pvt. Ltd., 079-6568935
Dishman Business Centre
301-306, Samudra Annexe
Off C. G. Road, Navrangpura
Ahmedabad 380 009
Bangalore Ayesha Irfan / Templeton Asset Management (India) Pvt. Ltd., 080-2267272
Mona Teresa DBS Corporate Club, 26, Cunningham Road
Bangalore 560 052
Chennai Padmini Priya Templeton Asset Management (India) Pvt. Ltd., 044-8275191
DBS Executive Club
1st Floor, 31/A, Cathedral Garden Road
Chennai 600 034
Hyderabad Madhuri Sharma Templeton Asset Management (India) Pvt. Ltd., 040-7846970
DBS Corporate Club
111-115, Chenoy Trade Centre
Park Lane, Secunderabad 500 003
Kochi Anugeetha Sabu Templeton Asset Management (India) Pvt. Ltd., 0484-363116
C/o. Business Communication Centre
Ground Floor, Kurisupally Road
Kochi 682 015
Kolkata Sharmistha Pande Templeton Asset Management (India) Pvt. Ltd., 033-2405264
DBS Corporate Club, Suite No. 303, 2nd Floor,
8, A.J.C. Bose Road, Kolkata 700 017
Lucknow Sunanda Raina Templeton Asset Management (India) Pvt. Ltd., 0522-237289
The Business Bridge, 1st Floor
Saran Chambers 2, 5-Park Road
Lucknow 226 001
Mangalore Anjali Shetty Templeton Asset Management (India) Pvt. Ltd., 0824-425282
C/o. Raj Business Centre, Raj Towers, Balmatta Road
Mangalore 575 001
Mumbai Sameera Khan Templeton Asset Management (India) Pvt. Ltd., 022-2886123
Sakhar Bhavan, 1st Floor 1600-117283
230, Backbay Reclamation (Free phone)
Nariman Point, Mumbai 400 021
New Delhi Bharati Ranjan / Templeton Asset Management (India) Pvt. Ltd., 011-3329000
Meera Chawla International Business Centre
M-38/1, 3rd Floor, Connaught Place
New Delhi 110 001
Pune Prerna Prasad Templeton Asset Management (India) Pvt. Ltd., 020-4016334
Masters Executive Centre Pvt. Ltd.
Cabin No. 15 & 16, Citi Point
Dhole Patil Road, Pune 411 001
Contact Franklin Templeton Services at : email@example.com
Visit us at : www.franklintempletonindia.com
TEMPLETON FLOATING RATE INCOME FUND
BANK COLLECTION CENTRES DURING IPO
City Bank Address
Ahmedabad Citibank Ground Floor, "Rembrandt", C.G. Road, Near Panchvati Circle, Ahmedabad 380 006
Bangalore Citibank 104, Prestige Meridian 2, 30 M. G. Road, Bangalore 560001
Vysya Bank 10/4, Mitra Towers, Kasturba Road, Bangalore 560 001
Bhubaneshwar Vysya Bank Narayan Market Complex, Plot No. 48, 1st Floor, Ashok Nagar, Janpath Road,
Unit 2, Bhubaneshwar 751 009
Chandigarh Vysya Bank SCO 70-71, Ground Floor, Sector 8C, Madhya Marg, Chandigarh 160 018
Chennai Citibank Shakti Towers, 766 Anna Salai, Chennai 600 002
Vysya Bank 185, Anna Salai (Near TVS), Mount Road, Chennai 600 006
Coimbatore Citibank Unit 4 & 5, 3rd Floor, Peoples Park, Arts College Road, Coimbatore 641 018
Hubli Vysya Bank Umachagi complex, Koppikar Road, Hubli 580 020
Hyderabad Citibank Pulla Reddy Bldg, Road No.G-3 879, Greenland Road, Begumpet, Hyderabad 500 016
Vysya Bank No. 4-1-3172-319, Troop Bazar, Abid Road, Hyderabad 500 001
Indore Vysya Bank 9/1/3, Hotel Embassy, M. G. Road, Indore 452 001
Jaipur Citibank Bhagwati Bhawan, Government Hostel Crossing, M. I. Road, Jaipur
Kanpur Vysya Bank Upsea Ltd., 1st Floor, 14,113 Civil Lines, Padam Towers II, Kanpur 208 001
Kochi Vysya Bank .
No. XI, 6870K, Thekkera Mansion, P B. No. 3669, Opp. Kavita Theatre,
M. G. Road, Ernakulum, Kochi 682 035
Kolkata Citibank Kanak Bldg, 1st floor, 41 Chowringhee Road, Kolkata 700 001
Lucknow Vysya Bank Commerce House, 1st Floor, Habibulla Estate, Halwasiya Court, 24, M. G. Road,
Hazratganj, Lucknow 226 001
Ludhiana Citibank Ground Floor, Ludhiana Stock Exchange Building, Feroze Gandhi Market, Ludhiana 141 001
Mangalore Vysya Bank .
Navarathana Complex, K. S. Rao Road, P B. No. 225, Mangalore 575 001
Mumbai Citibank Bombay Mutual Bldg, Mezzanine Floor, 208 D. N. Road, Fort, Mumbai 400 001
Vysya Bank 1) Mittal Tower, A Wing, Ground Floor, 210 Nariman Point, Mumbai 400 021
2) 103/104, A Wing, 1st Floor, Floral Deck Plaza, MIDC Central Road, Andheri (E), Mumbai 400 093
Mysore Vysya Bank 6 to 9, 1st Floor, D Devaraj URS Road, Mysore 570 001
New Delhi Citibank Jeevan Vihar Bldg, 3 Sansad Marg, New Delhi 110 001
Vysya Bank G-35 Connaught Circus, Connaught Place, New Delhi 110 001
Patna Vysya Bank Room No. 101A & 101B, 1st Floor, Ashiana Plaza, Plot No. 120, Ward No. 2,
Circle No. 6, Budh Marg, Patna 800 001
Pune Citibank 2413 Kumar Capital, East Street, Pune 411 001
Vysya Bank 928, Mantri Centre, F. C. Road, Pune 411 004
TEMPLETON FLOATING RATE INCOME FUND
City Bank Address
Rajkot Vysya Bank .
Saurashtra Kutch Stock Exchange Bldg., P B. No. 235, Sadar Bazar, Harihar Chowk, Rajkot 360 001
Surat Vysya Bank 1420, Rajhans Complex, Opp J. K. Tower, Ring Road, Near Majura Gate, Surat 395 002
Trichy Vysya Bank .
47, Chinnakadai Street, P B. No. 314, Tiruchirapalli 620 002
Trivandrum Vysya Bank TC 14/46/1 Shekar Mansion, Vazhuthacaud, Trivandrum 695 014
Udipi Vysya Bank .B.
1st Floor, Shivaprasad Commercial Complex, Head Post Office Road, P No. 96,
Maruthi Veethica, Udipi 576 101
Vadodara Citibank Ground Floor, Pelican Race Course Circle, Vadodara 390 007
Vijayawada Vysya Bank D No. 29-4-19, Kodandarami Reddy Street, Governorpet, Vijayawada 520 002
Vizag Vysya Bank 47-7-26, 1st Floor, Sri Kanya Arcade, Dwarkanagar, 4th Lane, Visakhapatnam 530 016
BANK COLLECTION CENTRES FOR NRI DURING IPO
City Bank Address
Mumbai Citibank Bombay Mutual Bldg., Mezzanine Floor, 208 D. N. Road, Fort, Mumbai 400 001
TEMPLETON FLOATING RATE INCOME FUND
TEMPLETON FLOATING RATE INCOME FUND
INSTRUCTION 1 INSTRUCTION 3
Please fill the Application Form and submit it at any of the 3a) E-mail Communications
branches of banks acting as Collecting Centres as listed herein, Delivering service through Web / E-mail helps the fund to reduce
along with your payment. Kindly retain the Acknowledgement Slip expenses in the fund and is a more efficient delivery channel. Currently,
initialled / stamped by the Bank Collection Centre. we provide, based on your choice, most of the service deliverables
This application form is for Resident Investors/ NRIs/ OCBs, etc. and through emails. In case of large documents, a suitable link would be
should be completed in ENGLISH in BLOCK LETTERS only. Please Tick provided and investor through email can download, save and print these
(3) in the appropriate box (2), where boxes have been provided. Please documents. The investor always has a right to demand a physical
refer to the Key Information Memorandum / Abridged Offer Document copy of any or all the service deliverables and the fund would
carefully before filling the Application Form. All applicants are deemed arrange to send the same to the investor.
to have accepted the terms subject to which this offer is being made
3b) Nomination Details
and bind themselves to the terms upon signing the Application Form and
tendering the payment. Any application may be accepted or rejected at Applicants applying with mode of holding as "Single" can make a
nomination. Please refer to Section on Nomination & Transfer Facility
the sole and absolute discretion of the Trustee, without assigning any
reason whatsoever. in Key Information Memorandum.
Please refer to the Section "Investing in Templeton Floating Rate INSTRUCTION 4
Income Fund" of Key Information Memorandum for a list of Investment Details
1. Applicants should indicate their preference of the Plan (Dividend
Application by Trust, HUF, Corporation, Business or Others Plan/ Growth Plan). Please opt for reinvesting the dividend or payout
In case of an application under a Power of Attorney or by a limited by ticking (3) the appropriate box (2).
company/body corporate/registered society/trust/ partnership firm, the 2. Applicants should indicate their preference for dividend distribution
relevant Power of Attorney/the relevant resolution or authority to make by opting for reinvesting the dividend or payout by ticking (ü) the
the application/ the Trust Deed/the Partnership Deed as the case may appropriate box. (Refer section on "Distribution of Dividends" in Key
be, or duly certified copy thereof along with specimen signatures and Information Memorandum).
attested copy of the Memorandum and Articles of Association/bye-laws 3. Please mention the total amount of investment under the scheme
must be lodged at any of the Investor Service Centres within 3 days from in figures and words in the space provided. The application must
the date of application, quoting the details of the application. All be for a minimum of Rs. 1,00,000 under Short Term Plan and
communication and payments shall be made to the first applicant or the Rs. 2,000 under Long Term Plan.
Karta in case of HUF.
Purchases by NRIs and OCBs INSTRUCTION 5
NRIs/PIOs/OCBs/FIIs have been granted a general permission by RBI Payment Details
[Schedule 5 of the Foreign Exchange Management (Transfer or Issue of 1. The subscription amounts can be tendered by cheque/demand
Security by a Person Resident Outside India) Regulations, 2000] for drafts favouring "Templeton Floating Rate Income Fund",
investing in/redeeming units of the schemes subject to conditions set crossed "A/c. Payee Only" and payable locally. No
out in the aforesaid regulations. outstation cheques would be accepted.
2. In case of NRIs/OCBs/ Persons of Indian Origin applying on repatriation
INSTRUCTION 2 basis, payments may be made by Cheques / Demand Drafts drawn
Applicant Information on NRE/FCNR/NRSR Accounts.
1. Name and Address of First/Sole Applicant must be given in full (P .O. 3. Investors from places where there is no Collection Centre, can
Box No. alone is not sufficient). In case of NRI/OCBs, 'Overseas send their application form along with a demand draft favouring
Address' should be provided. "Templeton Floating Rate Income Fund", payable at Mumbai,
2. In case of Institutional Investors, please provide the Name of the by Registered Post only, to the address of AMC i.e. "Templeton
contact person. Asset Management (I) Pvt. Ltd., Sakhar Bhavan, 1st Floor,
Nariman Point, Mumbai 400021" which should reach us on or
3. Applicant's PAN/GIR No. and I.T. Circle /Ward/District (if available)
before closure date. Bank charges for outstation demand drafts
should be mentioned if the amount invested is Rs. 50,000/- or
(issued in a city where there is no Investor Service Centre) will be
TEMPLETON FLOATING RATE INCOME FUND
borne by the Investment Manager and may be deducted by the Option. Unitholders who do not avail of the above direct credit facility
investors while making the application. Subsequently Templeton will receive cheques payable at par.
Mutual Fund will not entertain any request for reimbursement of
demand draft charges. INSTRUCTION 7
Bank Account Details
INSTRUCTION 6 Applicants should provide the name of the bank, branch address,
Direct Credit of Dividend : Arrangement For Payment of account type and account number of the sole/first applicant. Please
Dividends note that as per SEBI Directives, it is mandatory for the investors
This section should be filled only for Investments in the Dividend Plan. to mention their bank account details in applications.
See section on Dividends of the Key Information Memorandum.
The Mutual Fund has tied up with selected banks to enable direct credit
of dividends declared in Dividend Plan into the bank accounts of the
Declaration & Signatures
investors who have an account at the designated banks. Please tick (3) 1. Signatures can be in English or in any other language. Thumb
the bank where you have an account and wish to directly credit the impressions must be attested by a Magistrate /Notary Public under
dividend. However, the list of banks is subject to change from time to his/her official seal. In case of HUF, the Karta will sign on behalf
time and the Mutual Fund reserves the right to issue a demand draft/ of the HUF.
payable at par cheque inspite of an investor opting for Direct Credit 2. Applications by minors should be signed by their guardian.
TEMPLETON FLOATING RATE INCOME FUND
Templeton Mutual Fund APPLICATION FORM
Please read the instructions before completing the
Templeton Floating Initial Offer Opens on : January 21, 2002
Rate Income Fund Initial Offer Closes on : February 2, 2002
Scheme Re-opens on : February 18, 2002
An Open-end Income Scheme
1 BROKER INFORMATION & APPLICATION DATE (Not to be filled in by the Applicant)
Broker Name & Code Sub-Broker Code Bank Serial No. Registrar Serial No. Application Date
2 APPLICANT INFORMATION
Name of Sole / First Applicant Salutation Mr. Ms. Dr. Prof. Sex Male Female Date of Birth
(First holder / Minor)
Name of Guardian (in case of Minor) Contact Person (in case of Institutional Investors)
DD MM YYYY
Mode of Holding (please 4)
Name of Second Applicant
Name of Third Applicant Anyone or Survivor
Address of Sole / First Applicant and Communication [(P.O. Box Address is not sufficient) (Overseas Address in case of NRIs/FIIs/OCBs)]
City State Pin Code
Off. Tel. Resi. Tel.
Occupation (please 4) Service Professional Business Housewife Retired Student Others______________
Individual HUF Company FIIs NRI Trust OCB Society
Status (please 4) Partnership AOP Body Corporate BOI On behalf of Minor Others_________________
PAN / GIR No. (For investment above Rs. 50,000) Circle/Ward/District
3 A. E-MAIL COMMUNICATION
I wish to receive the following via e-mail instead of physical document (please 3)
Account Statement Quarterly Review & Annual Report Communication on Change of Address, Bank, etc.
B. NOMINATION DETAILS
I want a Nomination Form to be mailed / e-mailed to me (please 4) (Available only for Single holders)
Templeton Floating Rate Income Fund
ACKNOWLEDGEMENT SLIP (To be filled in by the Investor) Date : ................................ Serial No.
Received from Mr./Ms.....................................................................................................................................................................
an Application for Units of Templeton Floating Rate Income Fund along with Cheque/DD No................................................
dated........................ drawn on...............................................................................................................for Rs................................
Bak Collection Centre
Note : All subscriptions are subject to realisation of cheques/demand drafts. All cheques/drafts should be made favouring Templeton Floating Rate Income Fund. Signature & Stamp
Floating Rate Income Fund 35
4 INVESTMENT DETAILS
(Provide SEPARATE CHEQUES for more than one Plan & Option Investment)
Application must be for a minimum of Rs. 1,00,000 under Short Term Plan and Rs. 2,000 under Long Term Plan.
Plan Option (please 4) Option (please 4) Amount (Rs.) DD Charges
Short Dividend Reinvest Payout
Plan Growth N.A.
Long Dividend Reinvest Payout
Plan Growth N.A.
Rs. in Words
5 PAYMENT DETAILS (Cheques/Drafts should be drawn in favour of Templeton Floating Rate Income Fund)
Cheque/Draft No. Cheque/Draft Dated Drawn on (Name of Bank and Branch)
LOCAL CHEQUE DEMAND DRAFT For NRI Investors Only (please 3) NRO NRE FCNR NRSR REPATRIABLE
6 DIRECT CREDIT OF DIVIDEND / REDEMPTIONS*
This Section needs to be filled in only if you have opted for Investment in Dividend Plans of TFIF. Unitholders who do not select the Direct Credit option will receive their dividends
by payable at par cheque. Please (3) and provide Account Details in Step 7.
I authorise TEMPLETON MUTUAL FUND to directly credit the dividends to my account maintained with one of the following banks.
ABN AMRO Bank Centurion Bank Citibank Deutsche Bank HDFC Bank
HSBC ICICI Bank Standard Chartered Grindlays Bank Standard Chartered Bank
I hereby declare that the particulars given herein are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information,
I would not hold Templeton Mutual Fund responsible. I have read the instructions and agree to discharge the responsibility of me as a participant under the Direct Credit arrangement.
* (as & when available)
7 BANK ACCOUNT DETAILS (As per Directives of SEBI, it is mandatory to provide these details)
Please provide the following details relating to the Sole/First Holder for Redemption/Dividend Warrants.
Name of the Bank Account No.
Account Type (Please 4)
Current Savings NRO NRE NRSR
8 DECLARATION AND SIGNATURES
Having read and understood the contents of the Offer Document and Key Information Memorandum Sole/First
of Templeton Floating Rate Income Fund, I/We hereby apply to the Trustee of Templeton Mutual Applicant
Fund for units of Templeton Floating Rate Income Fund as indicated above and agree to abide by
the terms, conditions, rules and regulations of the Scheme. ...........................................................................................................................
*I/We confirm that I am/we are Non-Residents of Indian Nationality/Origin and that I/we hereby Applicant
confirm that the funds are remitted from abroad through approved banking channels or from my/ ...........................................................................................................................
our funds in my/our Non-Resident External Account/FCNR/NRSR Account. Third
*Applicable to NRI / OCB only Date Applicant
INVESTOR SERVICE CENTRES (firstname.lastname@example.org)
Contact Franklin Templeton Service Centres at :
l Ahmedabad Banashree (079-6568935) l Bangalore Ayesha/Mona (080-2267272) l Chennai Padmini (044-
8275191) l Hyderabad Madhuri (040-7846970) l Kochi Anugeetha (0484-363116) l Kolkata Sharmistha (033-
2405264) l Lucknow Sunanda (0522-237289) l Mangalore Anjali (0824-425282) l Mumbai Sameera (022-
2886123, 1600 - 117283 Free Phone) l New Delhi Bharati/Meera (011-3329000) l Pune Prerna (020-4016334) Visit us at : www.franklintempletonindia.com
Floating Rate Income Fund 36