Motilal Oswal BSE Top 10 Banks ETF

SCHEME INFORMATION DOCUMENT SECTION I Motilal Oswal BSE Top 10 Banks ETF (An open-ended scheme replicating/tracking the BSE Top 10 Banks Total Return Index) (Scheme Code: will be inserted later) (Scrip Code: will be inserted later) This product is suitable for Scheme Risk-o-meter Benchmark Risk-o-meter investors who are seeking*: BSE Top 10 Banks Total Return Index • Return that corresponds to the performance of the BSE Top 10 Banks Total Return Index subject to tracking error. • Long-term capital growth. * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. New Fund Offer Opens on: XXXX New Fund Offer Closes on: Not XXXX Scheme re-opens/ Listing on: XXXX Name of Mutual Fund Motilal Oswal Mutual Fund (MOMF) Name of Asset Management Company Motilal Oswal Asset Management Company Limited (AMC) (MOAMC) Name of Trustee Company Motilal Oswal Trustee Company Limited (MOTC) Address Registered Office: 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai- 400025 Website www.motilaloswalmf.com The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 1have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Motilal Oswal Mutual Fund (MOMF), Standard Risk Factors, Special Consideration, Tax and Legal issues and general information on www.motilaloswalmf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated March 13, 2026. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 2Table Of Contents Page No Section I I. Highlights / Summary of the Scheme 4 Due Diligence by the Asset Management Company 13 II. Information about the Scheme 14 A. How will the Scheme allocate its assets 14 B. Where will the Scheme invest 17 C. What are the investment strategies 18 D. How will the Scheme benchmark its performance 19 E. Who manages the Scheme 20 F. How is the Scheme different from existing schemes of the mutual fund 27 G. How has the Scheme performed 29 H. Additional Scheme related disclosures 29 III. Other Details 30 A. Computation of NAV 30 B. New Fund Offer (NFO) Expenses 31 C. Annual Scheme Recurring Expenses 31 D. Load Structure 34 Section II I. Introduction 36 A. Definitions 36 B. Minimum Number of Investors 36 C. Risk Factors 36 D. Risk Mitigation Strategies 42 E. Special Consideration 44 II. Information about the Scheme 47 A. Where will the Scheme invest 47 B. What Are The Investment Restrictions 48 C. Fundamental Attributes 51 D. Index Methodology 52 E. Other Scheme Specific Disclosures 56 III. Other Details 69 A. Periodic Disclosures 69 B. Transparency/ NAV Disclosures 72 C. Transaction Charges and Stamp Duty 72 D. Associate Transactions 73 E. Taxation 73 F. Rights of Unitholders 74 G. List of Official Points of Acceptance 74 H. Penalties, Pending Litigation Or Proceedings, Findings Of Inspections Or Investigations For Which 74 Action May Have Been Taken Or Is In The Process Of Being Taken By Any Regulatory Authority ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 3Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the scheme Motilal Oswal BSE Top 10 Banks ETF II. Category of the Scheme Exchange Traded Fund III. Scheme type An open-ended scheme replicating/tracking the BSE Top 10 Banks Total Return Index IV. Scheme code To be updated V. Investment objective The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by BSE Top 10 Banks Index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. VI. Liquidity/listing details The units are proposed to be listed on Stock Exchange(s) to provide liquidity through secondary market. The units of the Scheme can be bought / sold on all trading days on the National Stock Exchange of India Ltd. (NSE) where the Scheme is proposed to be listed. The price of the Units in the secondary market on the Stock Exchange(s) will depend on demand and supply at that point of time. The AMC will appoint Authorized Participant(s) to provide liquidity in secondary market on an ongoing basis. The AMC/Trustee reserves the right to list the units of the Scheme on, any other recognized stock exchange as and when the AMC/Trustee consider it necessary in the interest of the Unitholders of the scheme, subject to SEBI Regulations and other prevailing guidelines if any. Directly with the Mutual Fund For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 4for the below mentioned investors till February 28, 2026 – a. Schemes managed by Employee Provident Fund Organisation, India b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe to is 1,50,000 Units and in multiples thereafter. Dematerialization: The Units of the Scheme are available only in dematerialized (electronic) form. Investors intending to invest in Units of the Scheme will be required to have a beneficiary account with a Depository Participant (DP) of the NSDL/CDSL and will be required to mention in the application form DP’s Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units during NFO and in on an ongoing offer directly from the fund in Creation Unit Size. In case the demat details are not mentioned in the application or the mentioned details are incorrect / incomplete/illegible/ambiguous, such applications will be rejected. The Units of the Scheme will be issued, traded and settled compulsorily in dematerialized (electronic) form. The Units of the Scheme will be issued, traded and settled compulsorily in dematerialized (electronic) form. VII. Benchmark (Total The performance of the Scheme will be benchmarked to BSE Top 10 Return Index) Banks Total Return Index. As the Scheme is an Exchange Traded Fund (ETF) Scheme and would primarily invest in securities which are constituents of BSE Top 10 Banks, the said index is an appropriate benchmark for the Scheme. Total Return variant of the index (TRI) will be used for performance comparison. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 5VIII. NAV disclosure The AMC will calculate and disclose the first NAV of the Scheme within a period of 5 Business days from the date of allotment under the NFO. Thereafter, the NAV will be calculated on all business days and disclosed in the manner specified by SEBI. The AMC shall update the NAVs on its website www.motilaloswalmf.com and also on AMFI website www.amfiindia.com before 11.00 p.m. on every business day. If the NAVs are not available before 11.00 p.m. on any business day, the reason for delay in uploading NAV would be explained to AMFI in writing. If the NAV is not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. iNAV of an ETF shall be disclosed on a continuous basis on NSE, where the units of these ETFs are proposed to be listed and traded. The iNAV shall be disclosed within a maximum time lag of 15 seconds from underlying market. Investors can also contact the office of the AMC to obtain the NAV of the Scheme. Further, Mutual Fund/ AMC will provide facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard. For Details, refer Section II of this document. IX. Applicable timelines Dispatch of redemption proceeds: The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. Dispatch of IDCW: Not applicable as the Scheme does not have IDCW option. X. Plans and Options The Scheme does not offer any Plans/Options for investment. Plans/Options and sub options under the Scheme XI. Load Structure Exit Load: Not Applicable XII. Minimum Application Alternative to launch of NFO for ETFs Amount/switch in The AMC intends to contribute the initial fund for unit creation. Subsequently, the AMC can transfer the units of ETF to Market ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 6Makers or other investors, subject to compliance with all applicable provisions for launch of ETF vide clause 6.12.2.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. Ongoing Basis: On Exchange: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till February 28, 2026 – a. Schemes managed by Employee Provident Fund Organisation, India b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,50,000 Units and in multiples thereafter. Switches – Not applicable XIII. Minimum Additional Ongoing Basis: Purchase Amount On Exchange: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 7for the below mentioned investors till February 28, 2026 – c. Schemes managed by Employee Provident Fund Organisation, India d. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,50,000 Units and in multiples thereafter. XIV. Minimum On the Exchange: As the Scheme is listed on the exchange, the Redemption/switch out investor can sell units on an ongoing basis on the NSE at the traded amount prices. The units are redeemed in round lots of 1 unit. Directly with the Mutual Fund: For Market makers: All direct redemption transaction by Market Makers / Authorised Participants and eligible investors shall be at intra-day NAV based on the actual execution price of the underlying portfolio. The number of units of the Scheme that authorized participant can redeem is 1,50,000 Units and in multiples thereafter. For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till February 28, 2026 – a. Schemes managed by Employee Provident Fund Organization, India. b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. All direct transaction by Market Makers and eligible investors shall be at intra-day NAV based on the actual execution price of the underlying portfolio. The following provision of relevant circulars shall not be applicable: The requirement of “cut-off” timing for NAV applicability as ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 8prescribed by SEBI from time to time shall not be applicable for direct transaction with AMCs in ETFs by Market Makers and other eligible investors. Liquidity window for Investors of ETFs with AMCs: In case of redemption of units of the Scheme upto INR 25 Crores, directly with AMC, without any exit load, in case of the following scenarios: i. Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV for 7 continuous trading days, or ii. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or iii. Total bid size on the exchange is less than half of creation units size daily, averaged over a period of 7 consecutive trading days. In case of the above scenarios, applications received from investors for redemption upto 3.00 p.m. on any trading day, shall be processed by the AMC at the closing NAV of the day. Any person transacting with the fund will have to reimburse transaction charges -brokerage, STT, demat charges etc, if any. Switches – Not applicable XV. New Fund Offer Period NFO opens on: Not Applicable This is the period during NFO closes on: Not Applicable which a new scheme sells its units to the Minimum duration to be 3 working days and will not be kept open investors. for more than 15 days. Any changes in dates will be published through notice on AMC website i.e. https://www.motilaloswalmf.com/download/addendums. Alternative to launch of NFO for ETFs The AMC intends to contribute the initial fund for unit creation. Subsequently, the AMC can transfer the units of ETF to Market Makers or other investors, subject to compliance with all applicable provisions for launch of ETF vide clause 6.12.2.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 9XVI. New Fund Offer Price: Offer of Units of Rs. 10 each, issued at a premium approximately This is the price per unit equal to the difference between face value and Allotment Price during that the investors have to the New Fund Offer and at NAV based prices on an ongoing basis. pay to invest during the NFO. XVII. Segregated portfolio/side SEBI vide clause 4.4.3.5 of SEBI Master Circular No. pocketing disclosure SEBI/HO/IMD/IMD-PoD1/P/CIR/2024/90 dated June 27, 2024, has advised that portfolios by mutual fund schemes investing in debt and money market instruments should have provision in the concerned SID for creating portfolio segregation. Segregated Portfolio: The portfolio comprising of debt and money market instruments, which might be affected by a credit event and shall also include the unrated debt or money market instruments affected by actual default. The AMC / Trustee shall decide on creation of segregated portfolio of the Scheme in case of a credit event/actual default at issuer level, subject to SEBI Regulations and other prevailing guidelines if any. Accordingly, Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer. The Security comprised of segregated portfolio may not realise any value. Further, listing of units of segregated portfolio in recognized stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. For further details, kindly refer SAI. XVIII Swing pricing disclosure Not applicable XIX. Stock lending/short Subject to the SEBI Regulations as applicable from time to time, the selling Scheme may, if the Trustees permit, participate in securities lending. Subject to the SEBI (MF) Regulations and in accordance with Securities Lending Scheme, 1997, SEBI vide clause 12.11 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD1/P/CIR/2024/90 dated June 27, 2024, as may be amended from time to time, the Scheme intends to engage in Stock Lending. The Scheme shall adhere to the following limits should it engage in Stock Lending. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 10• Not more than 20% of the net assets of the Scheme can be deployed in Stock Lending. • Not more than 5% of the net assets of the Scheme can be deployed in Stock Lending to any single counter party (as may be applicable). Subject to the SEBI Regulations as applicable from time to time, the Scheme may, participate in securities lending. For Details, kindly refer SAI. XX. How to Apply Investors should mandatorily use the Application Forms, Transactions Request, included in the KIM and other standard forms available at the Investor Service Centers/ www.motilaloswalmf.com, for any financial/non-financial transactions. Any transactions received in any non-standard forms are liable to be rejected. Please refer to the SAI and Application form for the instructions Please refer Details in Section II. XXI. Investor services For General Service request and Complaint Resolution Mr. Juzer Dalal Motilal Oswal Asset Management Company Limited 10th Floor, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai – 400025 Tel No.: +91 8108622222 and +91 22 40548002 Fax No.: 02230896884 Email.: amc@motilaloswal.com Investors are advised to contact any of the Designated Collection Center / Investor Service Center or the AMC by calling the toll free no. of the AMC at +91 8108622222 & +91 22 40548002. Investors can also visit our website http://www.motilaloswalmf.com for complete details. Investor may also approach the Compliance Officer / CEO of the AMC. The details including, inter-alia, name & address of Compliance Officer & CEO, their e-mail addresses and telephone ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 11numbers are displayed at each offices of the AMC. For any grievances with respect to transactions through stock exchange mechanism, Unit Holders must approach either their stock broker or the investor grievance cell of the respective stock exchange or their distributor. XXII. Specific attribute of the Not Applicable. scheme (such as lock in, duration in case of target maturity scheme/close ended schemes) (as applicable) XXIII Special product/facility The scheme does not offer any special products except ASBA during available during the NFO. NFO and on ongoing basis The Mutual Fund will offer ASBA facility during the NFO of the Scheme. ASBA is an application containing authorization given by the Investor to block the application money in his specified bank account towards the subscription of the units offered during the NFO of Scheme. If an Investor is applying through ASBA facility, the application money towards the subscription of units shall be NFO SID of Motilal Oswal BSE Top 10 Banks ETF debited from his specified bank account only if his/her application is selected for allotment of units. Please refer to the SAI for more details. XXIV Web link Link for factsheet: https://www.motilaloswalmf.com/download/factsheets Link for TER: https://www.motilaloswalmf.com/total-expense-ratio ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 12DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Draft Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations. (vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (viii) The Trustees have ensured that the Motilal Oswal BSE Top 10 Banks ETF approved by them is a new product offered by Motilal Oswal Mutual fund and is not a minor modification of any existing scheme/fund/product. Place: Mumbai For Motilal Oswal Asset Management Company Limited Date: March 13, 2026 (Investment Manager for Motilal Oswal Mutual Fund) Sd/- Aparna Karmase Head - Compliance, Legal and Secretarial ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 13PART II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? The asset allocation pattern of the Scheme would be as follows: Indicative Allocations (% of total assets) Instruments Minimum Maximum Constituents of BSE Top 10 Banks Index 95% 100% Units of Liquid Schemes / Money Market Instrument 0% 5% Money Market Instruments includes Commercial papers, Commercial bills, Treasury bills, TREPS, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, Bills Rediscounting, usance bills, and any other like instruments as specified by the Reserve Bank of India(RBI)/ Securities and Exchange Board of India (SEBI) from time to time. Pursuant to clause 12.24 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, the cumulative gross exposure through Constituents of BSE Top 10 Banks Index and Units of Liquid Schemes and money market instruments, cash and cash equivalents, derivative positions, other permitted securities/assets and such other securities/assets as may be permitted by the Board from time to time will not exceed 100% of the net assets of the scheme. The Scheme, will hold all the securities that comprise of underline Index in the same proportion as the index subject to tracking error. Expectation is that, over a period of time, the tracking error of the Scheme relative to the performance of the Underlying Index will be relatively low. The Investment Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible. There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the Underlying Index. Cash and cash equivalents as per SEBI letter no. SEBI/HO/IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021 which includes T-bills, Government Securities and Repo on Government Securities having residual maturity of less than 91 Days, shall not be considered for the purpose of calculating gross exposure limit. However, at all times the portfolio will adhere to the overall investment objectives of the Schemes. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 14Indicative Table Sr. Type of Instrument Percentage of exposure Circular references* No. 1. Securities Lending/ • Not more than 20% of the net assets Subject to the SEBI (MF) Stock Lending of the Scheme can generally be Regulations and in accordance with deployed in Stock Lending. Securities Lending Scheme, 1997, SEBI vide clause 12.11 of SEBI • Not more than 5% of the net assets of Master Circular No. the Scheme can generally be SEBI/HO/IMD/IMD-PoD- deployed in Stock Lending to any 1/P/CIR/2024/90 dated June 27, single counter party (as may be 2024, as may be amended from applicable). time to time, the Scheme intends to engage in Stock Lending. 2. Equity Derivatives The Scheme may take exposure to In accordance with clause 12.25 of for hedging equity derivatives of the index itself or SEBI Master Circular No. SEBI/ purposes its constituent stocks may be undertaken HO/ IMD/ IMD-PoD-1/ P/ CIR/ when equity shares are unavailable, 2024/ 90 dated June 27, 2024. insufficient or for rebalancing in case of corporate actions for a temporary period. Other than for above purposes, the Scheme will not invest in Equity Derivatives. These investments would be for a short period of time i.e. 7 days. Exposure towards Equity Derivatives instruments shall not exceed 20% of the net assets of the Scheme. If the exposure falls outside the above mentioned asset allocation pattern, the portfolio to be rebalanced by AMC within 7 days from the date of said deviation. The Fund shall not write options or purchase instruments with embedded written options. When constituent’s securities of underlying Index are available again, derivative positions in these securities would be unwound. 3. Securitized Debt • The scheme will not make any - investment in Securitized Debt. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 15Sr. Type of Instrument Percentage of exposure Circular references* No. 4. Overseas Securities • The scheme shall have no Overseas - Securities/ ADR & GDRs. 5. InVITS • The Scheme shall not invest in InVITS. - 6. AT1 and AT2• The Scheme shall not invest in AT1 and - bonds. AT2 bonds. 7. Short selling • The scheme will not invest in Short - selling. 8. Repo in corporate• The Scheme shall not invest in repo in - debt and corporate corporate debt and corporate reverse reverse repo repo. 9. Unrated Debt• The Scheme shall not invest in unrated - instrument. debt instrument. 10. Credit Default• The Scheme shall not invest in Credit - Swaps (CDS) Default Swaps (CDS). 11. Structured • The Scheme will not invest in debt - Obligations / Credit instruments having Structured Enhancements. Obligations / Credit Enhancements. 12. Schemes managed by • The Scheme may also invest in other Clause 4 of the Seventh Schedule the AMC schemes managed by the AMC or in the of the SEBI (Mutual Funds) schemes of any other Mutual Fund not Regulations, 1996 more than 5% of the Net Asset Value of the Mutual Fund, provided it is in conformity with the investment objectives of the Scheme. Rebalancing due to Short term defensive consideration: Subject to the Regulations, the asset allocation pattern indicated above for the Scheme may change from time to time, keeping in view applicable regulations and political and economic factors. In the event that the asset allocation of the Scheme should deviate from the ranges as noted in the asset allocation table above, then the portfolio of the Scheme will be rebalanced by the Fund Manager to the position indicated in the asset allocation table above. Such changes in the asset allocation will be for short term and defensive considerations as per clause 1.14.1.2 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024. In case of deviation, if any, from the asset allocation pattern, the AMC shall rebalance the portfolio within a period of 7 calendar days in accordance with Clause 3.5.3.11 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 16Portfolio Rebalancing due to Passive Breach: In accordance with clause 3.6.7 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024, change in constituents of the index due to periodic review, the portfolio of ETF shall be rebalanced within 7 calendar days. Any transactions undertaken in the scheme portfolio of ETF in order to meet the redemption and subscription obligations shall be done while ensuring that post such transactions replication of the portfolio with the index is maintained at all points of time. Additionally, in the event of involuntary corporate action, the scheme shall dispose the security not forming part of the underlying index within 7 days from the date of allotment/ listing. Timelines for deployment of funds collected in NFO – In line with SEBI circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025, funds collected in new fund offer shall be deployed as per following manner: 1. The AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. 2. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. 3. The Investment Committee may extend the timeline by 30 business days, while also making recommendations on how to ensure deployment within 30 business days going forward and monitoring the same. The Investment Committee shall examine the root cause for delay in deployment before granting approval for part or full extension. The Investment Committee shall not ordinarily give part or full extension where the assets for any scheme are liquid and readily available. 4. In case the funds are not deployed as per the asset allocation mentioned in the SID as per the aforesaid mandated plus extended timelines, AMC shall: i. not be permitted to receive fresh flows in the same scheme till the time the funds are deployed as per the asset allocation mentioned in the SID. ii. not be permitted to levy exit load, if any, on the investors exiting such scheme(s) after 60 business days of not complying with the asset allocation of the scheme. iii. inform all investors of the NFO, about the option of an exit from the concerned scheme without exit load, via email, SMS or other similar mode of communication. iv. report deviation, if any, to Trustees at each of the above stages. B. WHERE WILL THE SCHEME INVEST? The Scheme will invest in Equity and Equity related instruments including derivatives. The Scheme may invest its corpus in units of liquid schemes and Money Market Instruments. Subject to the Regulations and other prevailing Laws as applicable, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities: ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 17• Equity and Equity related instruments including derivatives • Units of Liquid Schemes and Money Market Instruments (including reverse repos, Commercial Deposit, Commercial Paper, Treasury Bills and Tri-Party Repos) permitted by SEBI/RBI or in alternative investment for the call money market as may be provided by RBI to meet the liquidity requirements. • Derivative including Index Futures, Stock Futures, Index Options and Stock Options etc. and such other derivatives instruments permitted under Regulations. • Mutual Fund units • Any other instruments as may be permitted by RBI/SEBI under prevailing laws from time to time. The investment restrictions and the limits are specified in the Schedule VII of SEBI Regulations which is mentioned in the section ‘Investment Restrictions’. The Securities mentioned above could be listed, unlisted, secured, unsecured, rated or unrated and of any maturity. The Securities may be acquired through initial public offerings, secondary market operations, and rights offers or negotiated transactions. For detailed information kindly refer Section II. C. WHAT ARE THE INVESTMENT STRATEGIES? The Scheme follows a passive investment strategy and seeks to invest in the constituent of the benchmark Index. The scheme aims to achieve returns equivalent to the benchmark subject to tracking error. The scheme would also invest in units of Liquid/ debt schemes, debt, and money market instruments as stated in the asset allocation table. Subject to the SEBI regulations as applicable from time to time, the scheme may participate in securities lending. Investment of Subscription Money: The Mutual Fund may deploy NFO proceeds in TREPS before closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on funds deployed in TREPS during the NFO period. The appreciation received from investment in TREPS shall be passed on to investors. Further, in case the minimum subscription amount is not garnered by the Scheme during the NFO period, the interest earned upon investment of NFO proceeds in TREPS shall be returned to investors, in proportion of their investments, along-with the refund of the subscription amount. Portfolio Turnover Portfolio Turnover is defined as the lower of sales or purchase divided by the average corpus during a specified period of time. The Scheme, being an open ended Scheme, it is expected that there would be a number of subscriptions and redemptions on a daily basis. However, it is difficult to measure with reasonable accuracy the likely turnover in the portfolio of the Scheme. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 18Tracking Error Tracking error is defined as the standard deviation of the difference between the daily returns of the Underlying Index and the NAV of the Scheme. Theoretically, the corpus of the Scheme has to be fully invested in the securities comprising the Underlying Index in the same proportion of weightage as the securities have in the Underlying Index. However, it is not possible to invest as per the objective due to reason that the Scheme has to incur expenses, corporate actions pertaining to the Index including changes to the constituents, regulatory policies, ability of the Fund Manager to closely replicate the Underlying Index, lack of liquidity, etc. The Scheme’s returns may therefore deviate from those of its Underlying Index. Tracking Error may arise due to the following reasons: 1. Fees and expenses of the Scheme. 2. Cash balance held by the Scheme due to dividend received, subscriptions, redemption, etc. 3. Halt in trading on the stock exchange due to circuit filter rules. 4. Corporate actions 5. The Scheme has to invest in the securities in whole numbers and has to round off the quantity of securities shares. 6. Delay in dividend payout, and withholding tax on dividend. 7. Changes in the constituents of the underlying Index. Whenever there are any changes, the Scheme has to reallocate its investment as per the revised Index but market conditions may not offer an opportunity to rebalance its portfolio to match the Index and such delay may affect the NAV of the Scheme. 8. Lack of Liquidity The AMC would monitor the tracking error of the Scheme on an ongoing basis. Under normal market circumstances, such tracking error is not expected to exceed by 2% p.a. In case of unavoidable circumstances in the nature of force majeure, which are beyond the control of the AMC, the tracking error may exceed 2% and the same will be intimated to the Trustees with corrective actions taken by the AMC, if any. Tracking Error: The Fund shall disclose the tracking error based on past one year rolling data, on a daily basis, on the website of the Mutual Fund and AMFI. Tracking Difference: The annualized difference of daily returns between the index and the NAV of the Fund shall be disclosed on the website of the Mutual Fund and AMFI, on a monthly basis, for tenures 1 year, 3 years, 5 years, 10 years and since the date of allotment of units. For detailed derivatives strategies, please refer SAI. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The performance of the Scheme will be benchmarked to BSE Top 10 Banks Total Return Index. The index mentioned as benchmark above, is ideal benchmark for this scheme, since the investment ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 19objective of the scheme is to replicate / track the performance of the index. E. WHO MANAGES THE SCHEME? Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes Mr. Swapnil Age: 41 years Fund Manager - Mr. Swapnil Mayekar Mayekar 1. Motilal Oswal Asset Allocation has rich experience in Qualification: Passive Fund of Fund - Aggressive the field of Research. Fund Manager Master of 2. Motilal Oswal Asset Allocation He had earlier worked Commerce Passive Fund of Fund – Conservative with organization like (Finance 3. Motilal Oswal BSE Enhanced Value Business Standard Management) ETF Limited where he was 4. Motilal Oswal BSE Enhanced Value primarily responsible Index Fund for research on 5. Motilal Oswal BSE Financials ex Bank Banking Sector, 30 Index Fund Mutual Fund, Debt 6. Motilal Oswal BSE Healthcare ETF market, International 7. Motilal Oswal BSE Low Volatility and Indian Stock ETF Market using valuation 8. Motilal Oswal BSE Low Volatility models. He is Index Fund associated with 9. Motilal Oswal BSE Quality ETF MOAMC since March 10. Motilal Oswal BSE Quality Index 2010 where his Fund primarily role is to 11. Motilal Oswal Developed Market Ex develop model Us ETF'S Fund of Funds structure, to perform 12. Motilal Oswal Gold and Silver ETFs portfolio assessments Fund of Funds on a periodic basis for 13. Motilal Oswal Nasdaq 100 ETF investment strategies & 14. Motilal Oswal Nasdaq 100 Fund of models and analysis of Fund Exchange Traded 15. Motilal Oswal Nasdaq Q 50 ETF Funds, Mutual fund 16. Motilal Oswal Nifty 200 Momentum scheme and stocks. 30 ETF 17. Motilal Oswal Nifty 200 Momentum 30 Index Fund 18. Motilal Oswal Nifty 50 ETF 19. Motilal Oswal Nifty 50 Index Fund 20. Motilal Oswal Nifty 500 ETF ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 20Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes 21. Motilal Oswal Nifty 500 Index Fund 22. Motilal Oswal Nifty 500 Momentum 50 ETF 23. Motilal Oswal Nifty 500 Momentum 50 Index Fund 24. Motilal Oswal Nifty Bank Index Fund 25. Motilal Oswal Nifty India Defence ETF 26. Motilal Oswal Nifty India Defence Index Fund 27. Motilal Oswal Nifty Microcap 250 Index Fund 28. Motilal Oswal Nifty Midcap 100 ETF 29. Motilal Oswal Nifty Midcap 150 Index Fund 30. Motilal Oswal Nifty Next 50 Index Fund 31. Motilal Oswal Nifty Realty ETF 32. Motilal Oswal Nifty Smallcap 250 ETF 33. Motilal Oswal Nifty Smallcap 250 Index Fund 34. Motilal Oswal S&P 500 Index Fund 35. Motilal Oswal Nifty MidSmall India Consumption Index Fund 36. Motilal Oswal Nifty MidSmall Healthcare Index Fund 37. Motilal Oswal Nifty MidSmall Financial Services Index Fund 38. Motilal Oswal Nifty MidSmall IT and Telecom Index Fund 39. Motilal Oswal Nifty Capital Market Index Fund 40. Motilal Oswal Capital Market ETF 41. Motilal Oswal Nifty 50 Equal Weight ETF 42. Motilal Oswal Nifty Next 50 ETF 43. Motilal Oswal BSE India ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 21Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes Infrastructure ETF 44. Motilal Oswal Nifty India Manufacturing ETF 45. Motilal Oswal Nifty PSE ETF 46. Motilal Oswal Nifty India Tourism ETF 47. Motilal Oswal BSE 100 Index Fund 48. Motilal Oswal Nifty Midcap150 Momentum 50 ETF 49. Motilal Oswal Nifty Alpha 50 ETF 50. Motilal Oswal Gold ETF 51. Motilal Oswal Silver ETF 52. Motilal Oswal Nifty 100 ETF 53. Motilal Oswal Nifty Energy ETF 54. Motilal Oswal BSE Select IPO ETF 55. Motilal Oswal Nifty Services Sector ETF 56. Motilal Oswal Nifty MNC ETF Dishant Mehta Age: 36 years Associate Fund Manager- Mr. Dishant Mehta has Associate Fund 1. Motilal Oswal BSE Enhanced Value more than 14 years of Manger Qualification: ETF experience and Graduate 2. Motilal Oswal BSE Enhanced Value expertise in Financial In B.S.C Index Fund markets across different 3. Motilal Oswal BSE Financials ex Bank segment -Equities, 30 Index Fund Derivatives, 4. Motilal Oswal BSE Healthcare ETF Commodities and 5. Motilal Oswal BSE Low Volatility Currencies. Managed ETF Institutional and 6. Motilal Oswal BSE Low Volatility Foreign Portfolio Index Fund Investment clients. 7. Motilal Oswal BSE Quality ETF 8. Motilal Oswal BSE Quality Index He is associated with Fund Motilal Oswal Asset 9. Motilal Oswal Nasdaq 100 ETF Management Company 10. Motilal Oswal Nasdaq 100 Fund of Ltd. from November Fund 2021 onwards as 11. Motilal Oswal Nasdaq Q 50 ETF Passive Fund Dealer. 12. Motilal Oswal Nifty 200 Momentum ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 22Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes 30 ETF 13. Motilal Oswal Nifty 200 Momentum 30 Index Fund 14. Motilal Oswal Nifty 50 ETF 15. Motilal Oswal Nifty 50 Index Fund 16. Motilal Oswal Nifty 500 ETF 17. Motilal Oswal Nifty 500 Index Fund 18. Motilal Oswal Nifty 500 Momentum 50 ETF 19. Motilal Oswal Nifty 500 Momentum 50 Index Fund 20. Motilal Oswal Nifty Bank Index Fund 21. Motilal Oswal Nifty India Defence ETF 22. Motilal Oswal Nifty India Defence Index Fund 23. Motilal Oswal Nifty Microcap 250 Index Fund 24. Motilal Oswal Nifty Midcap 100 ETF 25. Motilal Oswal Nifty Midcap 150 Index Fund 26. Motilal Oswal Nifty Next 50 Index Fund 27. Motilal Oswal Nifty Realty ETF 28. Motilal Oswal Nifty Smallcap 250 ETF 29. Motilal Oswal Nifty Smallcap 250 Index Fund 30. Motilal Oswal S&P 500 Index Fund 31. Motilal Oswal Nifty MidSmall India Consumption Index Fund 32. Motilal Oswal Nifty MidSmall Healthcare Index Fund 33. Motilal Oswal Nifty MidSmall Financial Services Index Fund 34. Motilal Oswal Nifty MidSmall IT and Telecom Index Fund 35. Motilal Oswal Nifty Capital Market ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 23Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes Index Fund 36. Motilal Oswal Capital Market ETF 37. Motilal Oswal Nifty 50 Equal Weight ETF 38. Motilal Oswal Nifty Next 50 ETF 39. Motilal Oswal BSE India Infrastructure ETF 40. Motilal Oswal Nifty India Manufacturing ETF 41. Motilal Oswal Nifty PSE ETF 42. Motilal Oswal Nifty India Tourism ETF 43. Motilal Oswal BSE 100 Index Fund 44. Motilal Oswal Nifty Midcap150 Momentum 50 ETF 45. Motilal Oswal Nifty Alpha 50 ETF 46. Motilal Oswal Gold ETF 47. Motilal Oswal Silver ETF 48. Motilal Oswal Nifty 100 ETF 49. Motilal Oswal Nifty Energy ETF 50. Motilal Oswal BSE Select IPO ETF 51. Motilal Oswal Nifty Services Sector ETF 52. Motilal Oswal Nifty MNC ETF Rakesh Shetty – Age: 44 years Fund Manager – Mr. Rakesh Shetty has Fund Manager 1. Motilal Oswal Asset Allocation more than 14 years of (For Debt Qualification: Passive Fund of Fund - Aggressive overall experience and Component) Bachelors of 2. Motilal Oswal Asset Allocation expertise in trading in Commerce Passive Fund of Fund – Conservative equity, debt segment, (B.Com) 3. Motilal Oswal Balanced Advantage Exchange Trade Fund’s Fund management, Corporate 4. Motilal Oswal BSE Enhanced Value Treasury and Banking. ETF 5. Motilal Oswal BSE Enhanced Value Prior to joining Index Fund Motilal Oswal Asset 6. Motilal Oswal BSE Financials ex Bank Management 30 Index Fund Company Limited, he 7. Motilal Oswal BSE Healthcare ETF has worked with ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 24Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes 8. Motilal Oswal BSE Low Volatility Company engaged in ETF Capital Market 9. Motilal Oswal BSE Low Volatility Business wherein he Index Fund was in charge of 10. Motilal Oswal BSE Quality ETF equity and debt ETFs, 11. Motilal Oswal BSE Quality Index customized indices Fund and has also been part 12. Motilal Oswal Business Cycle Fund of product 13. Motilal Oswal Developed Market Ex development. Us ETF'S Fund of Funds 14. Motilal Oswal Digital India Fund 15. Motilal Oswal ELSS Tax Saver Fund 16. Motilal Oswal Flexi Cap Fund 17. Motilal Oswal Focused Fund 18. Motilal Oswal Gold and Silver ETFs Fund of Funds 19. Motilal Oswal Large and Midcap Fund 20. Motilal Oswal Large Cap Fund 21. Motilal Oswal Liquid Fund 22. Motilal Oswal Manufacturing Fund 23. Motilal Oswal Midcap Fund 24. Motilal Oswal Multi Cap Fund 25. Motilal Oswal Nasdaq 100 Fund of Fund 26. Motilal Oswal Nasdaq Q 50 ETF 27. Motilal Oswal Nifty 200 Momentum 30 ETF 28. Motilal Oswal Nifty 200 Momentum 30 Index Fund 29. Motilal Oswal Nifty 5 year Benchmark G-Sec ETF 30. Motilal Oswal Nifty 50 ETF 31. Motilal Oswal Nifty 50 Index Fund 32. Motilal Oswal Nifty 500 ETF 33. Motilal Oswal Nifty 500 Index Fund 34. Motilal Oswal Nifty 500 Momentum 50 ETF 35. Motilal Oswal Nifty 500 Momentum ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 25Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes 50 Index Fund 36. Motilal Oswal Nifty Bank Index Fund 37. Motilal Oswal Nifty India Defence ETF 38. Motilal Oswal Nifty India Defence Index Fund 39. Motilal Oswal Nifty Microcap 250 Index Fund 40. Motilal Oswal Nifty Midcap 100 ETF 41. Motilal Oswal Nifty Midcap 150 Index Fund 42. Motilal Oswal Nifty Next 50 Index Fund 43. Motilal Oswal Nifty Realty ETF 44. Motilal Oswal Nifty Smallcap 250 ETF 45. Motilal Oswal Nifty Smallcap 250 Index Fund 46. Motilal Oswal Quant Fund 47. Motilal Oswal S&P 500 Index Fund 48. Motilal Oswal Small Cap Fund 49. Motilal Oswal Ultra Short Term Fund 50. Motilal Oswal 5 Year G-sec Fund Of Fund 51. Motilal Oswal Nifty MidSmall India Consumption Index Fund 52. Motilal Oswal Nifty MidSmall Healthcare Index Fund 53. Motilal Oswal Nifty MidSmall Financial Services Index Fund 54. Motilal Oswal Nifty MidSmall IT and Telecom Index Fund 55. Motilal Oswal Nifty Capital Market Index Fund 56. Motilal Oswal Arbitrage Fund 57. Motilal Oswal Innovation Opportunities Fund 58. Motilal Oswal Capital Market ETF ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 26Name and Age and Other schemes managed by the fund Experience Designation of the Qualification manager and tenure of managing the fund manager schemes 59. Motilal Oswal Active Momentum Fund 60. Motilal Oswal Nifty 50 Equal Weight ETF 61. Motilal Oswal Nifty Next 50 ETF 62. Motilal Oswal Infrastructure Fund 63. Motilal Oswal BSE India Infrastructure ETF 64. Motilal Oswal Nifty India Manufacturing ETF 65. Motilal Oswal Nifty PSE ETF 66. Motilal Oswal Nifty India Tourism ETF 67. Motilal Oswal Services Fund 68. Motilal Oswal BSE 100 Index Fund 69. Motilal Oswal Nifty Midcap150 Momentum 50 ETF 70. Motilal Oswal Nifty Alpha 50 ETF 71. Motilal Oswal Gold ETF 72. Motilal Oswal Silver ETF 73. Motilal Oswal Special Opportunities Fund 74. Motilal Oswal Nifty 100 ETF 75. Motilal Oswal Nifty Energy ETF 76. Motilal Oswal Consumption Fund 77. Motilal Oswal BSE Select IPO ETF 78. Motilal Oswal Nifty Services Sector ETF 79. Motilal Oswal Nifty MNC ETF F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? The following list consists of existing passively managed open ended equity Index/ ETF schemes of Motilal Oswal Mutual Fund. Sr. No. Name of the Scheme 1 Motilal Oswal 5 Year G-Sec Fund Of Fund 2 Motilal Oswal Nifty 5 Year Benchmark G-Sec ETF ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 273 Motilal Oswal Asset Allocation Passive Fund Of Fund - Aggressive 4 Motilal Oswal Asset Allocation Passive Fund Of Fund - Conservative 5 Motilal Oswal BSE Enhanced Value ETF 6 Motilal Oswal BSE Enhanced Value Index Fund 7 Motilal Oswal BSE Financials Ex Bank 30 Index Fund 8 Motilal Oswal BSE Healthcare ETF 9 Motilal Oswal BSE Low Volatility ETF 10 Motilal Oswal BSE Low Volatility Index Fund 11 Motilal Oswal BSE Quality ETF 12 Motilal Oswal BSE Quality Index Fund 13 Motilal Oswal Developed Market Ex Us ETF Fund Of Funds 14 Motilal Oswal Gold And Silver ETF Fund Of Funds 15 Motilal Oswal Nasdaq 100 ETF 16 Motilal Oswal Nasdaq 100 Fund Of Fund 17 Motilal Oswal Nasdaq Q 50 ETF 18 Motilal Oswal Nifty 200 Momentum 30 ETF 19 Motilal Oswal Nifty 200 Momentum 30 Index Fund 20 Motilal Oswal Nifty 50 Index Fund 21 Motilal Oswal Nifty M50 ETF 22 Motilal Oswal Nifty 500 ETF 23 Motilal Oswal Nifty 500 Index Fund 24 Motilal Oswal Nifty 500 Momentum 50 ETF 25 Motilal Oswal Nifty 500 Momentum 50 Index Fund 26 Motilal Oswal Nifty Bank Index Fund 27 Motilal Oswal Nifty India Defence ETF 28 Motilal Oswal Nifty India Defence Index Fund 29 Motilal Oswal Nifty Microcap 250 Index Fund 30 Motilal Oswal Nifty Midcap 100 ETF 31 Motilal Oswal Nifty Midcap 150 Index Fund 32 Motilal Oswal Nifty Midsmall Financial Services Index Fund 33 Motilal Oswal Nifty Midsmall Healthcare Index Fund 34 Motilal Oswal Nifty Midsmall India Consumption Index Fund 35 Motilal Oswal Nifty Midsmall It And Telecom Index Fund 36 Motilal Oswal Nifty Next 50 Index Fund 37 Motilal Oswal Nifty Realty ETF 38 Motilal Oswal Nifty Smallcap 250 ETF 39 Motilal Oswal Nifty Smallcap 250 Index Fund ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 2840 Motilal Oswal S&P 500 Index Fund 41 Motilal Oswal Nifty Capital Market Index Fund 42 Motilal Oswal Capital Market ETF 43 Motilal Oswal Nifty 50 Equal Weight ETF 44 Motilal Oswal Nifty Next 50 ETF 45 Motilal Oswal BSE India Infrastructure ETF 46 Motilal Oswal Nifty India Manufacturing ETF 47 Motilal Oswal Nifty PSE ETF 48 Motilal Oswal Nifty India Tourism ETF 49 Motilal Oswal Nifty Midcap150 Momentum 50 ETF 50 Motilal Oswal Nifty Alpha 50 ETF 51 Motilal Oswal Gold ETF 52 Motilal Oswal Silver ETF 53 Motilal Oswal Nifty 100 ETF 54 Motilal Oswal Nifty Energy ETF 55 Motilal Oswal BSE Select IPO ETF 56 Motilal Oswal Nifty Services Sector ETF 57 Motilal Oswal Nifty MNC ETF 58 Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds For detailed comparative table please refer link https://www.motilaloswalmf.com/download/sid-relateddocuments The Trustees have ensured that the Scheme is a new product offered by Motilal Oswal Mutual Fund and is not a minor modification of its existing Scheme. G. HOW HAS THE SCHEME PERFORMED? This scheme is a new scheme and does not have any performance track record. H. ADDITIONAL SCHEME RELATED DISCLOSURES i. Top 10 holdings of the Scheme: The Scheme is a new scheme and hence the same is not applicable. ii. Disclosure of Name and Exposure to Top 7 Issuers, Stocks, Groups and Sectors as a percentage of NAV of the Scheme in Case of Debt and Equity ETFs/Index Funds through a functional website link that contains detailed description ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 29The Scheme is a new scheme and hence the same is not applicable. iii. Functional Website link for Portfolio Disclosure: The Scheme is a new scheme and hence the same is not applicable. iv. Portfolio Turnover Rate: The Scheme is a new scheme and hence the same is not applicable. v. Aggregate Investment in the Scheme by concerned Fund Manager: The Scheme is a new scheme and hence the same is not applicable. vi. Investments of AMC in the Scheme For investments as may be required under Regulation 28(4) of the Regulations, the AMC may invest in the Scheme during the New Fund Offer (NFO) or continuous offer period subject to the SEBI (MF) Regulations. However, AMC shall not charge any fees on such investments. Part III- OTHER DETAILS A. COMPUTATION OF NAV The Net Asset Value (NAV) per unit under the Scheme will be computed by dividing the net assets of the Scheme by the number of units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time. The Net Asset Value (NAV) of the units under the Scheme shall be calculated as follows: NAV (Rs.) = Market or Fair Value of Scheme’s investments + Receivables + Accrued Income + Other Assets - Accrued Expenses- Payables- Other Liabilities _____________________________________________________________ No. of Units outstanding under Scheme on the Valuation Day The NAV will be calculated up to four decimals. The NAV shall be calculated and disclosed on each business day. The computation of NAV shall be in conformity with SEBI Regulations and guidelines as prescribed from time to time. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 30Illustration of NAV: If the net assets of the Scheme, after considering applicable expenses, are Rs.10,45,34345.34 and units outstanding are 10,00,0000, then the NAV per unit will be computed as follows: 10,45,34,345.34 / 10,00,000 = Rs. 10.4534 per unit (rounded off to four decimals) The repurchase price shall not be lower than 97% of the NAV. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of NAV etc. refer to SAI. B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees, marketing and advertising, registrar expenses, printing and stationary, bank charges etc. The entire NFO expenses will be borne by AMC. C. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the Scheme. These expenses include but are not limited to Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer agents’ fees & expenses, marketing and selling costs etc. The AMC has estimated that upto 1.00% of the daily net assets of the scheme will be charged to the scheme as expenses as permitted under Regulation 52 of SEBI (MF) Regulations. For the actual current expenses being charged, the investor should refer to the website of the Fund. Particulars % p.a. of daily Net Assets Investment Management and Advisory Fees Trustee fee Audit fees Custodian fees Registrar & Transfer Agent Fees Marketing & Selling expense including agents’ commission Upto 1.00% Cost related to investor communications Cost of fund transfer from location to location Brokerage and transaction cost pertaining to distribution of unit Costs of statutory Advertisements Cost towards investor education & awareness (1bps) ** ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 31Incentives paid to Market Makers, if any^ Brokerage & transaction cost over and above 12 bps and 5 bps for cash and derivative market trades respectively Goods and Service Tax (GST) on expenses other than investment management and advisory fees GST on brokerage and transaction cost Other Expenses* Maximum total expense ratio (TER) permissible under Regulation 52 (6) Upto 1.00% (c) * Subject to the Regulations and as permitted under Regulation 52 of SEBI (MF) Regulations, 1996 and clause 10.1.1 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, any other expenses which are directly attributable to the Scheme, may be charged with approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited. As per clause 10.1.3 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, it has been decided that inflows of amount upto Rs. 2,00,000/- per transaction, by the individual investors shall be considered as inflows from retail investors. ** As per clause 10.1.16 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, it has been decided that with effect from July 1, 2022, the charges applicable for investor education and awareness initiatives from ETFs/ Index Funds shall be 1bps of daily net assets of the scheme. All scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not from the books of the Asset Management Companies (AMC), its associate, sponsor, trustee or any other entity through any route. Provided that the expenses that are very small in value but high in volume may be paid out of AMC’s books. Such expenses can be paid out of AMC’s books at actuals or not exceeding 2 bps of respective scheme AUM, whichever is lower. However, the upfront trail commission shall be paid from AMC’s books for inflows through SIPs from new investors as per the applicable regulations. The said commission shall be amortized on daily basis to the scheme over the period for which the payment has been made. A complete audit trail of up fronting of trail commissions from the AMC’s books and amortization of the same to scheme(s) thereafter shall be made available for inspection. The said commission should be charged to the scheme as ‘commissions’ and should also account for computing the TER differential between regular and direct plans in each scheme. ^ As per clause 3.6.1.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, it is hereby clarified that with effect from July 1,2022, incentive to be paid to Market Makers shall be charged to the ETF scheme but within the maximum permissible limit of TER. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 32Following are the principles of incentive structure: • MOAMC may decide to pay compensation or remuneration to MMs depending upon various criteria such as volumes, bid-ask spread, inventory maintain by MMs / APs. • Maintenance by MM of minimum unit creation size of ETF available on both bid and ask side of trades, as may be decided by AMC and MM from time to time. The expenses towards Investment Management and Advisory Fees under Regulation 52 (2) and the various sub-heads of recurring expenses mentioned under Regulation 52 (4) of SEBI (MF) Regulations will be charged in line with SEBI Mutual Fund Regulations. Thus, there shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 52 (2) and (4) respectively. All fees and expenses charged in a direct plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in a regular plan. The TER of the Direct Plan will be lower to the extent of the distribution expenses/commission which is charged in the Regular Plan and no commission for distribution of Units will be paid / charged under the Direct Plan. In addition to expenses under Regulation 52(6) and (6A), AMC may charge GST on investment and advisory fees, expenses other than investment and advisory fees and brokerage and transaction cost as below: 1. GST on investment and advisory fees charged to the scheme will be in addition to the maximum limit of TER as prescribed in regulation 52 (6) of the SEBI Regulations. 2. GST on expenses other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER as per regulation 52 of the SEBI Regulations. 3. GST on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under regulation 52 of the SEBI Regulations. In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations 1996 or the Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or expenses may be charged to the scheme. As per clause 10.1.14 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, brokerage and transaction costs which are incurred for the purpose of execution of trade up to 0.12% of trade value in case of cash market transactions and 0.05% of trade value in case of derivatives transactions. Mutual funds/AMCs shall make complete disclosures in the half yearly report of Trustees to SEBI regarding the efforts undertaken by them to increase geographical penetration of mutual funds and the details of opening of new branches, especially at locations beyond top 30 cities. The Mutual Fund would update the current expense ratios on the website (www.motilaloswalmf.com) atleast ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 33three working days prior to the effective date of the change. Investors can refer to “Total Expense Ratio” section on https://www.motilaloswalmf.com/downloads/mutual-fund/totalexpenseratio for Total Expense Ratio (TER) details. Illustration of impact of expense ratio on returns of the Scheme Particulars Regular Plan Direct Plan Amount (Rs.) Amount Invested at the beginning of the year 10,000 Net asset before expenses 11,500 Expenses other than Distribution Expenses _0.15% 17,25 Distribution Expenses 0.50% 0.00 Returns after Expenses at the end of the Year N.A 1,482.75 • The purpose of the above illustration is purely to explain the impact of expense ratio charged to the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments. • It is assumed that the expenses charged are evenly distributed throughout the year. The expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan under the Scheme. • Calculations are based on assumed NAVs, and actual returns on your investment may be more, or less. Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to consult his or her own financial advisor. D. LOAD STRUCTURE Exit Load is an amount which is paid by the investor to redeem the units from the Scheme. For the current applicable structure, please refer to the website of the AMC www.motilaloswalmf.com or may call at toll free no. 91 8108622222 and +91 2240548002 or your distributor. Type of Load Load chargeable (as %age of NAV) Exit Not Applicable There is no entry/exit load on units of the Scheme bought or sold through the secondary market on the Stock Exchange. However, an investor would be paying cost in the form of a bid and ask spread and brokerage, as charged by his broker for buying/selling units of the Scheme. The AMC shall ensure the repurchase price will not be lower than 97% of the Applicable NAV. Please Note that the investor is requested to check the prevailing load structure of the Scheme before investing. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 34* Liquidity window for Investors of ETFs with AMCs: In case of redemption of units of the Scheme upto INR 25 Crores, directly with AMC, without any exit load, in case of the following scenarios: i. Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV for 7 continuous trading days, or ii. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or iii. Total bid size on the exchange is less than half of creation units size daily, averaged over a period of 7 consecutive trading days. In case of the above scenarios, applications received from investors for redemption upto 3.00 p.m. on any trading day, shall be processed by the AMC at the closing NAV of the day. The above instances shall be tracked by the AMC on a continuous basis and in case if any of the above mentioned scenario arises, the same shall be disclosed on the website of AMC. The investor is requested to check the prevailing load structure of the Scheme before investing. For any change in load structure, AMC will issue an addendum and display it on the website/Investor Service Centers. Any imposition or enhancement in the load structure shall apply on a prospective basis and in no case the same would affect the existing investors adversely. Under the Scheme, the AMC reserves the right to modify/alter the load structure if it so deems fit in the interest of smooth and efficient functioning of the scheme, subject to maximum limits as prescribed under the SEBI Regulations. The load may also be changed from time to time and in case of exit/redemption, load may be linked to the period of holding. For any change in the load structure, the AMC would undertake the following steps: 1. The addendum detailing the changes will be attached to SID and Key Information Memorandum (KIM). The addendum will be circulated to all the distributors so that the same can be attached to all SID and KIM already in stock. 2. Arrangements shall be made to display the changes/modifications in the SID in the form of a notice in all Investor Service Centers and distributors/brokers offices. 3. The introduction of the exit load along with the details shall be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such load. 4. The Fund shall display the addendum on its website (www.motilaloswalmf.com). 5. Any other measure that the Mutual Fund shall consider necessary. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 35SECTION II I. INTRODUCTION A. DEFINITIONS/INTERPRETATION For detailed description please refer https://www.motilaloswalmf.com/download/sid-related-documents B. REQUIREMENT OF MINIMUM INVESTORS As Motilal Oswal BSE Top 10 Banks ETF is an exchange traded fund, the provision of minimum number of investors and maximum holding by the investor is not applicable as per SEBI Circular having reference to clause 6.11.4.2 of SEBI Master Circular for Mutual Funds no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. C. RISK FACTORS • Scheme Specific Risk Factors The scheme employs a market capitalization–based approach with exclusive exposure to the banking sector, making it highly sensitive to sector-specific developments and regulatory changes. Banking stocks may experience sharp price movements during periods of interest rate volatility, asset quality stress or adverse macroeconomic conditions. The limited number of constituents may lead to concentration risk and higher volatility. Furthermore, the index construction and periodic capping methodology may result in increased portfolio turnover and deviations from pure market-capitalization exposure, thereby increasing overall portfolio risk. • Risks associated with investing in Equities a. Investments in the equity shares of the Companies constituting the Underlying Index are subject to price fluctuation on daily basis. The volatility in the value of equity is due to various micro and macro-economic factors like economic and political developments, changes in interest rates, etc. affecting the securities markets. This may have adverse impact on individual securities/sector and consequently on the NAV of Scheme. b. The Scheme would invest in the securities comprising the Underlying Index in the same proportion as the securities have in the Index. Hence, the risk associated with the corresponding Underlying Index would be applicable to the Scheme. The Underlying Index has its own criteria and policy for inclusion/exclusion of securities from the Index, its maintenance thereof and effecting corporate actions. The Fund would invest in the securities of the Index regardless of investment merit, research, without taking a view of the market and without adopting any defensive measures. The Fund would not select securities in which it wants to invest but is guided by the Underlying Index. As such the Scheme is not actively managed but is passively managed. c. Risks of Total Return Dividends are assumed to be reinvested into the constituents of underlying index after the ex-dividend date of the constituents However in practice, the dividend is received with a lag. This can lead to tracking error. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 36• Market Risk The Scheme’s NAV will react to stock market movements. The value of investments in the scheme may go down over a short or long period due to fluctuations in Scheme’s NAV in response to factors such as performance of companies whose stock comprises the underlying portfolio, economic and political developments, changes is government policies, changes in interest rates, inflation and other monetary factors causing movement in prices of underlining investments. • Concentration risk This is the risk arising from over exposure to few securities/issuers/sectors. • Passive Investments The Scheme is not actively managed. Since the Scheme is linked to index, it may be affected by a general decline in the Indian markets relating to its underlying index. The Scheme as per its investment objective invests in Securities which are constituents of its underlying index regardless of their investment merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets. • Right to Limit Redemptions The Trustee, in the general interest of the unit holders of the Scheme offered under this SID and keeping in view of the unforeseen circumstances/unusual market conditions, may limit the total number of Units which can be redeemed on any Business Day subject to the guidelines/circulars issued by the Regulatory Authorities from time to time. • Risk Factors relating to Portfolio Rebalancing In the event that the asset allocation of the Scheme deviates from the ranges as provided in the asset allocation table in this SID, then the Fund Manager will rebalance the portfolio of the Scheme to the position indicated in the asset allocation table. However, if market conditions do not permit the Fund Manager to rebalance the portfolio of the Scheme then the AMC would notify the Board of the Trustee Company and the Investment Committee of the AMC with appropriate justifications. Risks Associated with Money Market Instruments • Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. • Credit Risk Credit Risk means that the issuer of a security may default on interest payments or even paying back the principal amount on maturity. (i.e. the issuer may be unable to make timely principal and interest payments on the security). Even where no default occurs, the prices of security may go down because the credit rating of an issuer goes down. It must be, however, noted that where the Scheme has invested in Government securities, there is no risk to that extent. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 37• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is today characteristic of the Indian fixed income market. • Reinvestment Risk: Investments in fixed income securities may carry reinvestment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate. • Pre-payment Risk: Certain fixed income securities give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the fund to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the fund. • Spread Risk: In a floating rate security, the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security, this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. • Different types of securities in which the scheme would invest as given in the SID carry different levels and types of risk. Accordingly, the scheme’s risk may increase or decrease depending upon its investment pattern. E.g., corporate bonds carry a higher amount of risk than Government securities. Further, even among corporate bonds, bonds, which are AA rated, are comparatively more risky than bonds, which are AAA rated. • Risks associated with Investing in Derivatives Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of the fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby the Scheme may not be able to sell or purchase derivative quickly enough at a fair price. The risks associated with the use of derivatives are different from or possibly greater than, the risks ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 38associated with investing directly in securities and other traditional investments. • Risks associated with Segregated portfolio The AMC / Trustee shall decide on creation of segregated portfolio of the Scheme in case of a credit event/actual default at issuer level. Accordingly, Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer. The Security comprised of segregated portfolio may not realise any value. Further, Listing of units of segregated portfolio in recognised stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. • Risks associated with Securities Lending Securities Lending is a lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. In case the Scheme undertakes stock lending as prescribed in the Regulations, it may, at times be exposed to counter party risk and other risks associated with the securities lending. Unitholders of the Scheme should note that there are risks inherent to securities lending, including the risk of failure of the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities lent. The Fund may not be able to sell such lent securities and this can lead to temporary illiquidity. • Tracking Error and Tracking Difference Risk The Fund Manager would not be able to invest the entire corpus exactly in the same proportion as in the underlying index due to certain factors such as the fees and expenses of the Scheme, corporate actions, cash balance and changes to the underlying index and regulatory restrictions, lack of liquidity, which may result in Tracking Error. Hence, it may affect AMC’s ability to achieve close correlation with the underlying index of the Scheme. The Scheme’s returns may therefore deviate from its underlying index. "Tracking Error" is defined as the standard deviation of the difference between daily returns of the underlying index and the NAV of the Scheme. The Fund Manager would monitor the Tracking Error of the Scheme on an ongoing basis. There can be no assurance or guarantee that the Scheme will achieve any particular level of Tracking Error relative to performance of the underlying Index. Tracking difference refers to annualized difference of daily returns between the index and the NAV of the ETF / Index fund. • Trading through mutual fund trading platforms of BSE and/ or NSE In respect of transaction in Units of the Scheme through BSE and/ or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing/settlement by BSE and/ or NSE and their respective clearing corporations on which the Mutual Fund has no control. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 39• Risks associated with investing in Government of India Securities • Market Liquidity risk with fixed rate Government of India Securities even though the Government of India Securities market is more liquid compared to other debt instruments, on certain occasions, there could be difficulties in transacting in the market due to extreme volatility leading to constriction in market volumes. Also, the liquidity of the Scheme may suffer in case the relevant guidelines issued by Reserve Bank of India undergo any adverse changes. • Interest Rate risk associated with Government of India Securities - while Government of India Securities generally carry relatively minimal credit risk since they are issued by the Government of India, they do carry price risk depending upon the general level of interest rates prevailing from time to time. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates decline, the prices of fixed income securities increase. The extent of fall or rise in the prices is a function of the coupon rate, days to maturity and the increase or decrease in the level of interest rates. The price-risk is not unique to Government of India Securities. It exists for all fixed income securities. Therefore, their prices tend to be influenced more by movement in interest rates in the financial system than by changes in the government's credit rating. By contrast, in the case of corporate or institutional fixed income Securities, such as bonds or debentures, prices are influenced by their respective credit standing as well as the general level of interest rates. • Risks associated with investing in TREPS Segments The mutual fund is a member of securities and TREPS segments of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in TREPS segments are settled centrally through the infrastructure and settlement systems provided by CCIL; thus reducing the settlement and counterparty risks considerably for transactions in the said segments. The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL). The mutual fund is exposed to the extent of its contribution to the default fund of CCIL at any given point in time. In the event that the default waterfall is triggered and the contribution of the mutual fund is called upon to absorb settlement/default losses of another member by CCIL, the scheme may lose an amount equivalent to its contribution to the default fund allocated to the scheme on a pro-rata basis. • Risk associated with ETF 1. Passive Investments: As the scheme proposes to invest not less than 95% of the net assets in the securities of the benchmark Index, the Scheme will not be actively managed. The Scheme may be affected by a general decline in the Indian markets relating to its Underlying Index. The Scheme invests in the securities included in its underlying index regardless of their investment merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets. The value of the Scheme’s investments, may be affected generally by factors affecting equity markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or any other appropriate authority policies and other political and economic developments which may have an adverse bearing on individual securities, a specific sector or all sectors. Consequently, the NAV of the Units of the Scheme may fluctuate and can go up or down. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 402. Market risk: ETFs are typically designed to track the performance of certain indices, market sectors, or groups of assets such as stocks, bonds, or commodities. ETF managers may use different strategies to achieve this goal, but in general they do not have the discretion to take defensive positions in declining markets. Investors must be prepared to bear the risk of loss and volatility associated with the underlying index/assets. 3. Tracking errors: Tracking errors refer to the disparity in performance between an ETF and its underlying index/assets. Tracking errors can arise due to factors such as the impact of transaction fees and expenses incurred to the ETF, changes in composition of the underlying index/assets, and the ETF manager’s replication strategy. 4. Trading at discount or premium: An ETF may be traded at a discount or premium to its Net Asset Value (NAV). This price discrepancy is caused by supply and demand factors, and may be particularly likely to emerge during periods of high market volatility and uncertainty. 5. Liquidity risk: Authorized participants (APs) are Exchange Participants that provide liquidity to facilitate trading in ETFs. Although most ETFs are supported by one or more APs, there is no assurance that active trading will be maintained. 6. As the units of the Scheme are listed on the Stock Exchange, trading in the units of the Scheme may be halted due to market conditions or for reasons that in the view of the Exchange Authorities or SEBI. There could also be trading halts caused by extraordinary market volatility and pursuant to NSE/BSE and SEBI circuit filter rules and the Scheme would not be able to buy/sell securities in case of subscriptions/redemptions, which may impact the Scheme. Further, there can be no assurance that the requirements of the exchange necessary to maintain the listing of the Scheme will continue to be met or will remain unchanged. 7. Listing and trading of the units are undertaken on the Stock Exchanges within the rules, regulation and policy of the Stock Exchange and SEBI. Any change in trading rules, regulation and policy by the regulatory authority would have a bearing on the trading of the units of the Scheme and its prices. 8. Though the Scheme is listed on the NSE, there is no assurance that an active secondary market will develop or be maintained. Hence, there would be times when trading in the units of the Scheme would be infrequent. 9. The NAV of the Scheme reflect the valuation of its investment and any changes in market value of its investments would have a bearing on its NAV. When the units are traded on the Stock Exchange, the units of the Scheme may trade at prices which can be different from the NAV due to various factors like demand and supply for the units of the Scheme, perceived trends in the market outlook, etc. 10. In certain cases, settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities as in certain cases, settlement periods may be extended significantly by unforeseen circumstances. Similarly, the inability to sell securities held in the Scheme portfolio may result, at ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 41times, in potential losses to the Scheme, and there can be a subsequent decline in the value of the securities held in the Scheme portfolio. 11. Investors can directly approach the AMC for redemption of units of ETFs, for transaction of up to INR 25 Cr. without any exit load, in case of the following scenarios: i. Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV for 7 continuous trading days, or ii. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or iii.Total bid size on the exchange is less than half of creation units size daily, averaged over a period of 7 consecutive trading days. 12. Tracking error may arise due to various reasons like fees and expenses charged to the Scheme, dividend, corporate actions, change in the Underlying Index, etc. Tracking error has an impact on the performance of the Scheme. The Scheme’s returns may therefore deviate from those of its Underlying Basket. • Risk associated with potential change in Tax structure This summary of tax implications given in the taxation section (Units and Offer Section III) is based on the current provisions of the applicable tax laws. This information is provided for general purpose only. The current taxation laws may change due to change in the ‘Income Tax Act 1961’ or any subsequent changes/amendments in Finance Act/Rules/Regulations. Any change may entail a higher outgo to the scheme or to the investors by way of securities transaction taxes, fees, taxes etc. thus adversely impacting the scheme and its returns. Risk Control Risk is an inherent part of the investment function. Effective Risk management is critical to fund management for achieving financial soundness. Investment by the Scheme would be made as per the investment objective of the Scheme and in accordance with SEBI Regulations. AMC has adequate safeguards to manage risk in the portfolio construction process. Risk control would involve managing risk in order to keep in line with the investment objective of the Scheme. The risk control process would include identifying the risk and taking proper measures for the same. The system has incorporated all the investment restrictions as per the SEBI guidelines and enables identifying and measuring the risk through various risk management tools like various portfolio analytics, risk ratios, average duration and analyses the same and acts in a preventive manner. D. Risk mitigation strategies: Risk and Description Risk mitigates / management strategy Risks associated with Equity investment Market Risk Market risk is inherent to an equity scheme. Being a The Scheme is vulnerable to movements in the prices passively managed scheme, it will invest in the of securities invested by the Scheme, which could securities included in its Underlying Index. have a material bearing on the overall returns from the Scheme. The value of the underlying Scheme investments, may be affected generally by factors ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 42affecting securities markets, such as price and volume, volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or any other appropriate authority policies and other political and economic developments which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Liquidity risk The Scheme will try to maintain a proper asset- The liquidity of the Scheme’s investments is liability match to ensure redemption payments are inherently restricted by trading volumes in the made on time and not affected by illiquidity of the securities in which they invests. underlying stocks. Tracking Error risk (Volatility/ Concentration Tracking Error risk (Volatility/ Concentration risk): risk): The performance of the Scheme may not Over a short to medium period, the Scheme may carry commensurate with the performance of the the risk of variance between portfolio composition underlying Index viz. Motilal Oswal BSE Top 10 and Benchmark. The objectives of the scheme are Banks index on any given day or over any given too closely track the performance of the period. Underlying Index over the same period, subject to tracking error. The Scheme would endeavor to maintain a low tracking error by actively aligning the portfolio in line with the Index. Derivatives Risk Derivatives will be used in the form of Index Options, Index Futures and other instruments as As and when the Scheme trades in the derivatives may be permitted by SEBI. All derivatives trade market there are risk factors and issues concerning the will be done only on the exchange with guaranteed use of derivatives since derivative products are settlement. The AMC monitors the portfolio and specialized instruments that require investment regulatory limits for derivatives through its front techniques and risk analyses different from those office monitoring system. Exposure to derivatives associated with stocks and bonds. of stocks or underlying index will be done based on requisite research. Exposure with respect to derivatives shall be in line with regulatory limits and the limits specified in the SID. No OTC contracts will be entered into. Risks associated with money market investment ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 43Market Risk/ Interest Rate Risk The Scheme may invest in money market As with all fixed income securities, changes in interest instruments having relatively shorter maturity rates may affect the Scheme’s Net Asset Value as the thereby mitigating the price volatility due to interest prices of securities generally increase as interest rate changes generally associated with long-term rates decline and generally decrease as interest rates securities. rise. Prices of long-term securities generally fluctuate more in response to interest rate changes than do short- term securities. Indian debt markets can be volatile leading to the possibility of price movements up or down in fixed income securities and thereby to possible movements in the NAV. Liquidity or Marketability Risk The Scheme may invest in money market This refers to the ease with which a security can be sold instruments having relatively shorter maturity. at or near to its valuation yield- to maturity (YTM). While the liquidity risk for short maturity securities may be low, it may be high in case of medium to long maturity securities. Credit Risk Management analysis may be used for identifying Credit risk or default risk refers to the risk that an issuer company specific risks. Management’s past track of a fixed income security may default (i.e., will be record may also be studied. unable to make timely principal and interest payments on the security). E. Special Considerations: 1. Prospective investors should study this SID and SAI carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming units, before making a decision to invest/redeem/hold units. 2. Neither this SID and SAI nor the units have been registered in any jurisdiction. The distribution of this SID or SAI in certain jurisdictions may be restricted or totally prohibited to registration requirements and accordingly, any person who comes into possession of this SID or SAI is required to inform themselves about and to observe any such restrictions and/or legal compliance requirements of applicable laws and Regulations of such relevant jurisdiction. It is the responsibility of any persons in possession of this SID or SAI and any persons wishing to apply for units pursuant to this SID to inform themselves of and to observe, all applicable laws and Regulations of such relevant jurisdiction. Any changes in SEBI/Stock Exchange/RBI regulations and other applicable laws/regulations could have an effect on such investments and valuation thereof. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 443. The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this SID or SAI or as provided by the AMC in connection with this offering. Prospective Investors are advised not to rely upon any information or representation not incorporated in the SID or SAI or as provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee. 4. The tax benefits described in this SID and SAI are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India as on the date of this SID and the Unitholders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unitholder is advised to consult his / her own professional tax advisor. 5. Redemptions due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise. 6. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided in SAI. The Mutual Fund may disclose details of the investor’s account and transactions there under to those intermediaries whose stamp appears on the application form or who have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary. 7. MOAMC undertakes the following activities other than that of managing the Schemes of MOMF and has also obtained NOC from SEBI for the same: o MOAMC is a registered Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993 bearing registration number INP000000670 dated August 21, 2017. o MOAMC acts as an Investment Manager to the Schemes of Motilal Oswal Alternative Investment Trust and is registered under SEBI (Alternative Investment Funds) Regulations, 2012 as Category III AIF bearing registration number IN/AIF3/13-14/0044 and IN/AIF3/19-20/0799 respectively. o MOAMC has incorporated a wholly owned subsidiary in Mauritius which acts as an Investment Manager to the funds based in Mauritius. o MOAMC has incorporated a wholly owned subsidiary in India which currently undertakes Investment Advisory Services/Portfolio Management Services to offshore clients. AMC confirms that there is no conflict of interest between the aforesaid activities managed by AMC. In the situations of unavoidable conflicts of interest, the AMC undertakes that it shall satisfy itself that adequate ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 45disclosures are made of source of conflict, potential ‘material risk or damage’ to investor interest and develop parameters for the same. 8. Apart from the above-mentioned activities, the AMC may undertake any business activities other than in the nature of management and advisory services provided to pooled assets including offshore funds, insurance funds, pension funds, provident funds, if any of such activities are not in conflict with the activities of the mutual fund subject to receipt of necessary regulatory approvals and approval of Trustees and by ensuring compliance with provisions of regulation 24(b) (i to viii). Provided further that the asset management company may, itself or through its subsidiaries, undertake portfolio management services and advisory services for other than broad based fund till further directions, as may be specified by the Board, subject to compliance with the following additional conditions: - • It satisfies the Board that key personnel of the asset management company, the system, back office, bank and securities accounts are segregated activity wise and there exist system to prohibit access to inside information of various activities; • It meets with the capital adequacy requirements, if any, separately for each of such activities and obtain separate approval, if necessary under the relevant regulations. 9. The Trustee, in the general interest of the unit holders of the Scheme offered under this SID and keeping in view of the unforeseen circumstances/unusual market conditions, may limit the total number of Units which can be redeemed on any Business Day. 10. As the liquidity of the Scheme’s investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption requests. The Trustee has the right to limit redemptions under certain circumstances. Please refer to the section “Right to limit Redemption”. 11. Pursuant to the provisions of Prevention of Money Laundering Act, 2002 (PMLA), if after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND (Financial Intelligence Unit – India) or such other authorities as prescribed under the rules/guidelines issued thereunder by SEBI and/or RBI and take any other actions as may be required for the purposes of fulfilling its obligations under PMLA and rules/guidelines issued thereunder by SEBI and/or RBI without obtaining the prior approval of the investor/Unitholder/ any other person. 12. Termination of the scheme(s) The Trustees reserve the right to terminate the scheme at any time. Regulation 39(2) of the SEBI Regulations provides that any scheme of a mutual fund may be wound up after repaying the amount due to the unitholders: 1. On the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up; or 1. If seventy-five percent of the unitholders of a scheme pass a resolution that the scheme be wound up; or 2. If SEBI so directs in the interest of the unitholders. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 463. Where a scheme is wound up under the above Regulation, the trustees shall give a notice disclosing the circumstances leading to the winding up of the scheme: (a) to SEBI; and (b) in two daily newspapers having circulation all over India & a vernacular newspaper circulating at the place where the mutual fund is formed. In case of termination of the scheme, regulation 41 of the SEBI (mutual Funds) Regulations, 1996 shall apply. Mutual Fund schemes that are in the process of winding up The Scheme shall comply with the clause 7.2 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2024/90 dated June27, 2024 in the event of Winding-up in terms of Regulation 39(2)(a) of MF Regulations. The AMC, its sponsor, employees of AMC and Trustee shall not be permitted to transact (buy or sell) in the units of such schemes that are under the process of being wound up. The compliance of the same will be monitored both by the Board of AMC and Trustee. II. INFORMATION ABOUT THE SCHEME: A. Where will the Scheme invest: The Scheme will invest in Equity and Equity related instruments including derivatives. The Scheme may invest its corpus in debt and Money Market Instruments. Subject to the Regulations and other prevailing Laws as applicable, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities: 1. Equity and Equity related instruments including derivatives 2. Units of Liquid Schemes and Money Market Instruments (including reverse repos, Commercial Deposit, Commercial Paper, Treasury Bills and Tri-Party Repos) permitted by SEBI/RBI or in alternative investment for the call money market as may be provided by RBI to meet the liquidity requirements. 3. Derivative including Index Futures, Stock Futures, Index Options and Stock Options etc. and such other derivatives instruments permitted under Regulations. 4. Mutual Fund units 5. Any other instruments as may be permitted by RBI/SEBI under prevailing laws from time to time. The investment restrictions and the limits are specified in the Schedule VII of SEBI Regulations which is mentioned in the section ‘Investment Restrictions’. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 47The Securities mentioned above could be listed, unlisted, secured, unsecured, rated or unrated and of any maturity. The Securities may be acquired through initial public offerings, secondary market operations, rights offer or negotiated transactions. Investment in Derivatives The Scheme may take an exposure to equity derivatives of constituents of the Underlying Index when securities of the Index are unavailable, insufficient or for rebalancing at the time of change in Index or in case of corporate actions, for a short period of time. The total exposure to derivatives would be restricted to 20% of the net assets of the Scheme. The Scheme may use derivative instruments such as stock futures and options contracts, warrants, convertible securities, swap agreements or any other derivative instruments that are permissible or may be permissible in future under applicable regulations and such investments shall be in accordance with the investment objective of the Scheme. For details on derivative and options refer SAI. Risk Associated with these Strategies 1. The risk of mis-pricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. 2. Execution Risk: The prices which are seen on the screen need not be the same at which execution will take place. B. What are the Investment Restrictions? The following are the investment restrictions as contained in the Seventh Schedule and amendments thereof to SEBI (MF) Regulations which are applicable to the Scheme at the time of making investments: 1. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided further that the Mutual Fund may engage in securities lending and borrowing specified by the Board. Provided further that a Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by the SEBI: Provided further that sale of Government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. 2. The Mutual Fund shall get the securities purchased or transferred in the name of the Mutual Fund on account of the concerned scheme, wherever investments are intended to be of long-term nature. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 483. The Mutual Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights. For the purpose of determining the above limit, a combination of positions of the underlying securities and stock derivatives will be considered. 4. Transfers of investments from one scheme to another scheme in the same Mutual Fund shall be allowed only if, (a) such transfers are done at the prevailing market price for quoted instruments on spot basis. [Explanation - “Spot basis” shall have same meaning as specified by stock exchange for spot transactions;] (b) the securities so transferred shall be in conformity with investment objective of the scheme to which such transfer has been made and the Policy on Inter Scheme Transfer prepared in compliance with clause 12.30 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 as amended from time to time. 5. The Scheme may invest in another scheme under the same asset management company or any other Mutual Fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the Mutual Fund. 6. The provisions of clause 12.16 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 pertaining to pending deployment of funds of a Scheme in terms of investment objectives of the Scheme, will not apply to term deposits placed as margins for trading in cash and derivatives market. 7. The Scheme shall not make any investment in: (a)any unlisted security of an associate or group company of the sponsor; or (b)any security issued by way of private placement by an associate or group company of the sponsor; or (c)the listed securities of group companies of the sponsor which is in excess of 25 per cent of the net assets. 8. The Scheme shall not make any investment in any fund of funds scheme. 9. All investments by the scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed. 10. The Mutual Fund may borrow to meet liquidity needs, for the purpose of repurchase, redemption of units or payment of interest or dividend to the Unitholders and such borrowings shall not exceed 20% of the net asset of the Scheme and duration of the borrowing shall not exceed 6 months. The Mutual Fund may borrow from permissible entities at prevailing market rates and may offer the assets of the Mutual Fund as collateral for such borrowing. 11. No term loans will be advanced by the Scheme. 12. No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have - ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 49a. 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or b. representation on the board of the asset management company or the trustee company of any other mutual fund. 13. Vide SEBI circular dated November 29, 2022, a mutual fund scheme will, within the limits specified in the clause 1 of Seventh Schedule of the MF Regulation, following prudential limits shall be followed, for schemes other than Credit risk funds: i. A mutual fund scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. However, since the asset allocation permits investment in debt and money market instruments only up to 5% of the total assets, the investment in such securities shall be further restricted to a maximum of 5% of the total assets. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in clause 1 of Seventh Schedule of MF Regulation. The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating. Exposure to government money market instruments such as TREPS on G-Sec/ T-bills shall be treated as exposure to government securities. 14. A mutual fund scheme shall not invest more than 5% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. a. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and collateralized borrowing and lending obligations. b. Provided further that investment within such limit can be made in mortgaged backed securitised debts which are rated not below investment grade by a credit rating agency registered with the Board. 15. The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments. Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by SEBI from time to time. Provided further that the Scheme shall comply with the norms under the above clauses within the time and in the manner as may be specified by SEBI. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 50Provided further that the norms for investments by the Scheme in unrated debt instruments shall be as specified by SEBI from time to time. 16. Every mutual fund shall get the securities purchased or transferred in the name of the mutual fund on account of the concerned scheme, wherever investments are intended to be of long-term nature. The Scheme will comply with any other Regulations applicable to the investments of Mutual Funds from time to time. All investment restrictions shall be applicable at the time of making investments. The AMC may alter these limitations/objectives from time to time to the extent the SEBI Regulations change so as to permit Scheme to make its investments in the full spectrum of permitted investments to achieve its investment objective. The Trustees may from time to time alter these restrictions in conformity with the SEBI Regulations. C. Fundamental Attributes Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations and in terms of Clause 1.14 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 for Mutual Funds dated June 27, 2024: (i) Type of a Scheme: An open-ended scheme replicating/tracking the Motilal Oswal BSE Top 10 Banks Total Return Index. (ii) Investment Objective: • Investment Objective - The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by BSE Top 10 Banks Index , subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. • Investment pattern - Please refer to section ‘Asset Allocation’. (iii) Terms of Issue: • Liquidity Provisions: Provisions with respect to listing, repurchase, redemption, fees and expenses are mentioned in the SID. • Aggregate fees and expenses charged to the scheme: The aggregate fee and expenses to be charged to the Scheme is detailed in Section I - Part III(C) of this document. • Any Safety Net or Guarantee Provided: The Scheme does not provide any safety net or guarantee. In accordance with Regulation 18(15A) & 25(26) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Trustees shall ensure that no change in the fundamental ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 51attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal. • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load. • In addition to the conditions specified above for bringing change in the fundamental attributes of any scheme, trustees shall take comments of the Board before bringing such change(s). D. Index Methodology: BSE Top 10 Banks Total Return Index • Index Objective - The Index measures the performance of the BSE Top 10 Banks Index that exhibit the most persistence in their relative performance, based on their momentum scores. • Eligible Universe – Constituents of the BSE 500 Index classified as ‘Banks’ at industry level. • Security Selection – Stocks in the eligible universe ranked based on average 6-month free-float market capitalization. Top 10 stocks selected in the index. • Weighting Free float Market capitalization adjusted by Momentum scores. • Stocks – Top 10 stocks selected in the index. • Capping – Single Stock weight cap of 33% and top three constituents not more than 63%. • Reconstitution & Rebalancing – Reconstitution on a Quarterly basis in March, June, September and December • Principles of incentive structure for market makers (for ETFs):- The principles of incentive structure for market makers will be in line with the agreement with authorized participants. • Index Service Provider - Asia Index Pvt. Ltd (AIPL) is the index provider of the underlying index. AIPL is a wholly owned subsidiary of BSE Ltd. It is setup to provide a variety of indices and index-related services and products for the Indian capital markets. For detailed Index Methodology: Link: https://www.bseindices.com/indices-details/code/161/ • Index Composition (as of December 31, 2025) ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 52Sr. Security Name Weightage Impact cost No. 1 HDFC BANK LTD. 32.79% 0.01 2 ICICI BANK LTD. 20.80% 0.01 3 KOTAK MAHINDRA BANK LTD. 8.93% 0.01 4 STATE BANK OF INDIA 8.84% 0.01 5 AXIS BANK LTD. 8.57% 0.02 6 FEDERAL BANK LTD. 4.55% 0.02 7 INDUSIND BANK LTD. 3.92% 0.02 8 IDFC FIRST BANK LIMITED 3.92% 0.03 9 AU Small Finance Bank Limited 3.86% 0.03 10 BANK OF BARODA 3.82% 0.02 Index Performance (as of December 31, 2025): Stats Annualized returns Annualized Volatility 1 Year 15.55% 12.57% 3 Years 11.33% 14.45% 5 Years 13.82% 17.80% 7 Years 12.05% 23.37% 10 Years 13.76% 21.44% Portfolio Concentration Norms: In line with clause 3.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, specifies following portfolio concentration norms to be adopted by index fund: a) The index shall have a minimum of 30 stocks as its constituents. b) For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index. For other than sectoral/ thematic indices, no single stock shall have more than 25% weight in the index c)The weightage of the top three constituents of the index, cumulatively shall not be more than 65% of the Index. d)The individual constituent of the index shall have a trading frequency greater than or equal to 80% and an average impact cost of 1% or less over previous six months. Following are the details of the underlying Index constituents in compliance with the above regulatory requirements: Parameter Total Number of Securities 10 ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 53Highest Weight of a Security in Index 32.79% Total weight of Top 3 Constituents 62.51% Minimum Frequency of Trading 6 Months ≥ 80% The Fund Manager reserves the right to invest in such instruments and securities as may be permitted from time to time and which are in line with the investment objective of the scheme it should include subject to prior approval from SEBI, if any. NSE Disclaimer: (will be added as in in principal approval) "As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/5878 dated July 29, 2025 permission to the Mutual Fund to use the Exchange's name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund's units are proposed to be listed subject to, the Mutual Fund fulfilling various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund's units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund. Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever." MOMF has obtain all other necessary statutory approvals of the concerned regulatory authorities for the offer. The Exchange is also pleased to grant it’s in principle approval of the MOMF listing application seeking permission for the units of Motilal Oswal BSE Top 10 Banks ETF to be dealt in on the Exchange subject to MOMF completing post-offer requirements and complying with the necessary statutory, legal & listing formalities. The validity of the letter is coterminous with the validity of SEBI approval. Computation of Unit creation for Subscription and Redemption of Units directly with the Fund: Each Creation Unit consists of 150,000 Units of Motilal Oswal BSE Top 10 Banks ETF. The Creation Unit is made up of 2 components i.e. Portfolio Deposit and Cash Component. The Portfolio Deposit will be determined by the Fund as per the weights of each security in the Underlying Index. The value of this Portfolio Deposit will change due to change in prices during the day. The number of Motilal Oswal BSE Top 10 Banks ETF that investors can create / redeem is 150,000 Units of each security that constitute the Portfolio Deposit will remain constant ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 54unless there is any corporate action in the Underlying Index or there is a rebalance in the Underlying Index. The example of Creation Unit as on December 31, 2025 for Motilal Oswal BSE Top 10 Banks ETF is as follows: Security Name Price Weightage Quantity Amount HDFC BANK LTD. 992 32.79% 860 8,52,905 ICICI BANK LTD. 1,343 20.80% 403 5,41,189 KOTAK MAHINDRA BANK LTD. 2,201 8.93% 105 2,31,079 STATE BANK OF INDIA 982 8.84% 234 2,29,835 AXIS BANK LTD. 1,269 8.57% 176 2,23,291 FEDERAL BANK LTD. 267 4.55% 443 1,18,303 INDUSIND BANK LTD. 864 3.92% 118 1,01,999 IDFC FIRST BANK LIMITED 86 3.92% 1191 1,01,973 AU Small Finance Bank Limited 994 3.86% 101 1,00,434 BANK OF BARODA 296 3.82% 336 99,406 The Value of Portfolio Deposit and Cash Component would vary from time to time and would be declared by the Fund on a daily basis. The cash component is arrived in the following manner: Date 31-Dec-25 Index Value Tracking Ratio 50 NAV 10 Creation Unit 150,000 Amount 15,00,000 CU Amount 26,00,414 Cash Component 414.22 The above is just an example to illustrate the calculation of cash component. Cash Component will vary depending upon the actual charges incurred. Please note: 1. Transaction charges like brokerage, depositary charges etc. are payable by the investor on per creation request and will be as determined by the AMC at the time of transaction. 2. Cash component is an indicative amount and will be collected/paid as applicable on the date of purchase/redemption. It will vary depending upon the actual charges incurred and other incidental charges for creating units. 3. For accrued interest calculation of dated Government securities, the day count convention of 30/360 is followed. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 55E. Other Scheme Specific Disclosures: Listing and transfer of units The units of the Scheme will be listed on National Stock Exchange of India Ltd (NSE). The AMC/Trustee reserves the right to list the units of the Scheme on any other recognized stock exchange as and when the AMC/Trustee consider it necessary in the interest of the Unitholders of the Scheme. The AMC will appoint Market Makers to provide liquidity in secondary market on an ongoing basis. The Market Maker(s) would offer daily two-way quote (buy and sell quotes) in the market. Alternatively, the Market Makers and Large Investors may subscribe to and/or redeem the units of the Scheme with the Mutual Fund on any business day during the ongoing offer period commencing not later than 5(five) business days from the date of allotment at a price equivalent to applicable NAV and transaction charges, if any, provided the units offered for subscription and/or redemption are not less than Creation Unit size & in multiples thereof. All investors including Market Maker(s), Large Investors and other investors may sell their units in the stock exchange(s) on which these units will be listed on all the trading days of the stock exchange. Mutual fund will repurchase units from Market Maker(s) and Large Investors on any business day provided the value of units offered for repurchase is not less than creation unit size. Transfer of units In accordance with Paragraph 14.4.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, units of the scheme will be held in demat form and hence will be transferable and will be subject to the transmission facility in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018 as may be amended from time to time. If a person becomes a holder of the Units consequent to operation of law, or upon enforcement of a pledge, the transfer may be effected in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018, provided the transferee is otherwise eligible to hold the Units. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 56Dematerialization of units 1. The units of the Scheme are available in the Dematerialized (electronic) mode only. 2. The applicant under the Scheme are required to have a beneficiary account with a Depository Participant of NSDL/CDSL and are required to indicate in the application the DP’s name, DP ID Number and beneficiary account number of the applicant with the DP. 3. The units of the Scheme are issued/repurchased and traded compulsorily in dematerialized form. Applications without relevant details of their depository account are liable to be rejected. Minimum Target amount Rs. 5 Crores This is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. However, if AMC fails to refund the amount within 5 business days, interest as specified by SEBI (currently 15% p.a.) will be paid to the investors from the expiry of 5 business days from the date of closure of the subscription list. Maximum Amount to be raised (if There is no upper limit on the total amount to be collected in the New any) Fund Offer. Allotment Subject to the receipt of the minimum subscription amount, allotment would be made to all the valid applications of the Unitholders received during the New Fund Offer (NFO) period. The Fund will allot units and dispatch statement of accounts/allotment within 5 working days from the closure of the NFO. The Scheme will endeavor to invest the NFO proceeds in the underlying Security on or before the Allotment Date. After investment, the Scheme will determine the allotment price as follows: ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 57Allotment Price - Amount Collected in the NFO Less Refunds on account of application rejections, if any divided by Net Assets in the Scheme on the date of allotment / one tenth of the benchmark index on the date of allotment. The units of the Scheme would be allotted at a price approximately equal to 1/1000th of the Benchmark BSE Top 10 Banks ETF (in INR terms) on the allotment date. Example of allotment of units during the NFO: Amount Collected 500 Investible Amount (after deducting 0.005% Stamp 499.98 Duty)(a) Suppose value of BSE Top 10 Banks ETF index 8509.5 as on January 31, 2025 (b) Allotment Price (1/10)th of the value of BSE Top 8.5095 10 Banks ETF (in INR terms) (c) Units allotted d = a / c 59 All units would be allotted in whole numbers and no fractional units will be allotted. Hence, the number of units allotted would be rounded off to the earlier decimal. The above is just an example to illustrate the allotment of units. An allotment advice stating the number of units allotted would be dispatched by ordinary post courier / e-mail / SMS to each Unit holder’s registered email address and/or mobile number, confirming the number of Units allotted to the Unit holder, not later than 5 working days after the closure of NFO and the units will be credited to the DP account of the applicant as per the details provided in the application form. Any excess amount, if any, would be refunded to the Unitholder. The AMC shall, on production of instrument of transfer together with relevant unit certificates, register the transfer and return the unit certificate to the transferee within thirty days from the date of such production. As per SEBI regulation 37 of SEBI (Mutual Funds) Regulations, 1996, The units shall be freely transferrable. The allotment of units is subject to realization of the payment ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 58instrument. Any application for subscription of units may be rejected if found incomplete by the AMC/Trustee. Refer Section ‘Account Statements’ under the ‘Ongoing Offer Details’ for details regarding account statements. Alternatively, AMC may contribute the initial fund for unit creation. Such units will be allotted based on the actual execution value including the cost associated with such execution and creation of units. Refund If application is rejected, full amount will be refunded within 5 working days of closure of NFO. If refunded later than 5 working days @ 15% p.a. for delay period will be paid and charged to the AMC. Who can invest This is an indicative list and you are requested to consult your This is an indicative list and financial advisor. The following are eligible to subscribe to the units investors shall consult their financial of the Scheme: advisor to ascertain whether the 1. Resident adult individuals, either singly or jointly (not exceeding scheme is suitable to their risk three) or on anyone or Survivor basis. profile. 2. Minors through Parents/Lawful Guardian. AMC will follow uniform process ‘in respect of investments made in the name of a minor through a guardian’ in terms of clause 17.6.1 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. 3. Hindu Undivided Family (HUF) through its Karta. 4. Partnership Firms in the name of any one of the partner. 5. Proprietorship in the name of the sole proprietor. 6. Companies, Body Corporate, Societies, (including registered co- operative societies), Association of Persons, Body of Individuals, Clubs and Public Sector Undertakings registered in India if authorized and permitted to invest under applicable laws and regulations. 7. Banks (including co-operative Banks and Regional Rural Banks), Financial Institutions. 8. Mutual Fund schemes registered with SEBI. 9. Non-Resident Indians (NRIs) / Persons of Indian Origin (PIOs) residing abroad on repatriation basis and on non-repatriation basis. NRIs and PIOs who are residents of U.S. and Canada cannot invest in the Schemes of MOMF. # 10. Foreign Portfolio Investor (FPI) ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 5911. Charitable or Religious Trusts, Wakf Boards or endowments of private trusts (subject to receipt of necessary approvals as “Public securities” as required) and private trusts authorized to invest in units of Mutual Fund schemes under their trust deeds. 12. Army, Air Force, Navy, Para-military funds and other eligible institutions. 13. Scientific and Industrial Research Organizations. 14. Multilateral Funding Agencies or Bodies Corporate incorporated outside India with the permission of Government of India and the Reserve Bank of India. 15. Overseas Financial Organizations which have entered into an arrangement for investment in India, inter-alia with a Mutual Fund registered with SEBI and which arrangement is approved by Government of India. 16. Provident / Pension / Gratuity / Superannuation and such other retirement and employee benefit and other similar funds as and when permitted to invest. 17. Qualified Foreign Investors (subject to and in compliance with the extant regulations) 18. Other Associations, Institutions, Bodies etc. authorized to invest in the units of Mutual Fund. 19. Trustees, AMC, Sponsor or their associates may subscribe to the units of the Scheme. 20. Such other categories of investors permitted by the Mutual Fund from time to time, in conformity with the SEBI Regulations. 21. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, PAN details as mentioned under the paragraph “Anti Money Laundering and Know Your Customer”, updated bank account details including cancelled original cheque leaf of the new account and his specimen Signature duly authenticated by his banker. No further transactions shall be allowed till the status of the minor is changed to major. 22. Pursuant to clause 17.6 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 investors are required to note that the minor shall be the sole unit holder in a folio. Joint holders will not be registered. The minor unit holder shall be represented either by natural parent (father and mother) or by a legal guardian. Payment of investment shall be from the authorised banking channels and from the bank ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 60account of minor or joint account of minor with guardian. The process of minor attaining major and status of investment etc. is mention in Statement of Additional Information (SAI). Who cannot invest a) Persons residing in the Financial Action Task Force (FATF) Non- Compliant Countries and Territories (NCCTs). b) Pursuant to RBI Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds. c) United States Person (“U.S. person”*) and NRIs residing in Canada as defined under the laws of the United States of America and Canada respectively except lump sum subscription, System Investment Plan (SIP), switch transactions, Systematic Transfer Plan (STP), Systematic Withdrawal Plan (SWP), Fixed Amount Benefit Plan (formerly known as Cash Flow Plan and Motilal Oswal Value Index (MOVI) Pack Plan requests received from Non-resident Indians / Persons of Indian origin who at the time of such investment / first time registration of specified facility are present in India and submit a physical transaction request, or any other mode of transaction request at the discretion of the Investment Manager, along with such documents as may be prescribed by the AMC / Mutual Fund from time to time. The AMC shall accept such investments subject to the applicable laws and such other terms and conditions as may be notified by the AMC / Mutual Fund. The investor shall be responsible for complying with all the applicable laws for such investments. The AMC / Mutual Fund reserves the rights to put the transaction requests on hold / reject the transaction request / reverse allotted units, as the case may be, as and when identified by the AMC / Mutual Fund, which are not in compliance with the terms and conditions prescribed in this regard. d) Such other persons as may be specified by AMC from time to time. *The term “U.S. person” means any person that is a U.S. person within the meaning of Regulation S under the Securities Act of 1933 of U.S. or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc., as may be in force from time to time. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 61The Trustees/AMC reserves the right to include / exclude new / existing categories of investors to invest in the Scheme from time to time and change, subject to SEBI Regulations and other prevailing statutory regulations, if any. How to Apply Details regarding availability of application form from either the Investor Service Centers (ISCs)/Official Points of Acceptance(OPAs) of AMC or may be downloaded from the website of AMC should be specified. Please refer to the SAI and Application form for the instructions. Pursuant to the clause 17.16 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Investors subscribing to units of the Scheme are compulsorily required to provide: a. Nomination; or b. A declaration form for opting out of nomination. Pursuant to SEBI Circular vide SEBI/HO/IMD/IMD-I POD1/P/CIR/2024/29 dated April 30, 2024 the nomination for mutual funds shall be exempted for jointly held folios. The applications where neither nomination is provided nor declaration for opting out of nomination is provided, are liable to be rejected. The policy regarding reissue of Units once redeemed/repurchased will not be re-issued. repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the right As the units of the Scheme will be issued in demat form, the units will to freely retain or dispose of units be transferred and transmitted in accordance with the provisions of being offered. SEBI (Depositories and Participants) Regulations, as may be amended from time to time. Right to limit Redemptions The Trustee may, in the general interest of the Unitholders of the Scheme and when considered appropriate to do so based on unforeseen circumstances/unusual market conditions, impose restriction on redemption of Units of the Schemes. The following requirements will be observed before imposing restriction on ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 62redemptions: a. Restriction may be imposed when there are circumstances leading to a systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: i. Liquidity issues - when market at large becomes illiquid affecting almost all securities rather than any issuer specific security. AMCs should have in place sound internal liquidity management tools for schemes. Restriction on redemption cannot be used as an ordinary tool in order to manage the liquidity of a scheme. Further, restriction on redemption due to illiquidity of a specific security in the portfolio of a scheme due to a poor investment decision shall not be allowed. ii. Market failures, exchange closures - when markets are affected by unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies. iii. Operational issues - when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Such cases can only be considered if they are reasonably unpredictable and occur in spite of appropriate diligence of third parties, adequate and effective disaster recovery procedures and systems. b. Restriction on redemption may be imposed for a specific period of time not exceeding 10 working days in any 90 days’ period. c. Any such imposition requires specific approval of Board of AMCs and Trustees and the same shall be immediately informed to SEBI. d. When restriction on redemption is applied the following procedure shall be followed: a. Redemption requests upto Rs. 2lakh will not be subject to such restriction. b. In case of redemption requests above Rs. 2 lakhs, the AMC shall redeem the first Rs. 2 lakhs without restriction and remaining part over above be subject to such restriction. Units of the Scheme which are issued in demat (electronic) form will be transferred and transmitted in accordance with the provisions of ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 63SEBI (Depositories and Participants) Regulations, as may be amended from time to time. Right to Limit Fresh Subscription The Trustees reserves the right to withdraw / suspend the allotment / Subscription of Units in the Scheme temporarily or indefinitely, at the time of NFO or otherwise, if it is viewed that increasing the size of such Scheme may prove detrimental to the Unit holders of such Scheme. An order to Purchase the Units is not binding on and may be rejected by the Trustees or the AMC unless it has been confirmed in writing by the AMC and/or payment has been received, subject to SEBI Regulations and other prevailing guidelines if any. Cut off timing for subscriptions/ The requirement of “cut-off” timing for NAV applicability as redemptions/ switches prescribed by SEBI from time to time shall not be applicable for direct transaction with AMCs in ETFs by MMs / APs and other eligible This is the time before which your investors. application (complete in all respects) should reach the official points In case of the underneath scenarios, applications received from of acceptance. investors for redemption upto 3.00 p.m. on any trading day, shall be processed by the AMC at the closing NAV of the day. Investors can directly approach the AMC for redemption of units of ETFs, for transaction of up to INR 25 Cr. without any exit load, in case of the following scenarios: a. Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV for 7 continuous trading days, or b. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or c. Total bid size on the exchange is less than half of creation units size daily. Switches – Not applicable Where can the applications for The application forms for purchase/redemption of units directly with purchase/redemption switches be the Fund can be submitted at the Designated Collection Center submitted? (DCC)/ Investor Service Center (ISC) of Motilal Oswal Mutual Fund as mentioned in the SID and also at DCC and ISC of our Registrar and Transfer Agent (RTA), KFin Technologies Limited. The details of RTA’s DCC and ISC are available at the link https://www.kfintech.com/contact-us/. it is mandatory to mention their bank account numbers in their applications/requests for ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 64redemption. Investors can also subscribe to the Units of the Scheme through MFSS and/or NMF II facility of NSE and BSE StAR MF facility of BSE. In addition to subscribing Units through submission of application in physical, investor / unit holder can also subscribe to the Units of the Scheme through RTA’s website i.e. www.kfintech.com/ . The facility to transact in the Scheme is also available through mobile application of Kfin i.e. ‘KFINTRACK’. Switches – Not applicable Minimum amount for Ongoing Basis: On Exchange: Investors can buy/sell units of the purchase/redemption/switches Scheme in round lot of 1 unit and in multiples thereof. (mention the provisions for ETFs, as may be applicable, for direct Directly with the Mutual Fund: For Eligible investors*: Direct subscription/redemption with AMC. transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till February 28, 2026 – a. Schemes managed by Employee Provident Fund Organisation, India b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,50,000 Units and in multiples thereafter. Switches – Not applicable Accounts Statements 1. The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working days of receipt of valid application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form). 2. A Consolidated Account Statement (CAS) detailing all the ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 65transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by mail or email on or before 15th of the succeeding month. 3. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before 21st day of succeeding month, to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable For further details, refer SAI. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. For list of exceptional circumstances refer para 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024. Bank Mandate As per SEBI requirements, it is mandatory for an investor to provide his/her bank account number in the Application Form. The Bank Account details as mentioned with the Depository should be mentioned. If depository account details furnished in the application form are invalid or not confirmed in the depository system, the application may be rejected. The Application Form without the Bank account details would be treated as incomplete and rejected. Delay in payment of redemption / The Asset Management Company shall be liable to pay interest to repurchase proceeds/dividend the unitholders at rate as specified vide clause 14.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024 by SEBI for the period of such delay. Unclaimed Redemption Amount In accordance with clause 14.3 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, Mutual Funds shall provide the details of investors on their website like, their name, address, folios, etc. The website shall also include the process of claiming the unclaimed amount along with necessary forms and document. Further, the unclaimed amount along with its prevailing value shall be disclosed to investors separately in their periodic statement of accounts/CAS. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 66Further, pursuant to said circular on treatment of unclaimed redemption, redemption amounts remaining unclaimed based on expiry of payment instruments will be identified on a monthly basis and amounts of unclaimed redemption would be deployed in the respective Unclaimed Amount Plan(s) as follows: • Motilal Oswal Liquid Fund - Unclaimed Redemption - Upto 3 years • Motilal Oswal Liquid Fund - Unclaimed Redemption - Greater than 3 years. Investors are requested to note that pursuant to the circular investors who claim the unclaimed amounts during a period of three years from the due date shall be paid initial unclaimed amount along-with the income earned on its deployment. Investors, who claim these amounts after 3 years, shall be paid initial unclaimed amount along- with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. Disclosure w.r.t investment by Minors through Parents/Lawful Guardian. AMC will follow uniform minors process ‘in respect of investments made in the name of a minor through a guardian’ in terms of clause 17.6.1 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, PAN details as mentioned under the paragraph “Anti Money Laundering and Know Your Customer”, updated bank account details including cancelled original cheque leaf of the new account and his specimen Signature duly authenticated by his banker. No further transactions shall be allowed till the status of the minor is changed to major. The minor unit holder shall be represented either by natural parent (father and mother) or by a legal guardian. Payment of investment shall be from the authorised banking channels and from the bank account of minor or joint account of minor with guardian. The process of minor attaining major and status of investment etc. is ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 67mention in Statement of Additional Information (SAI). KYC Requirements Investor are requested to take note that it is mandatory to complete the KYC requirements (including updation of Permanent Account Number) for all unit holders, including for all joint holders and the guardian in case of folio of a minor investor. Accordingly, financial transactions (including redemptions, and all types of systematic plans) and non-financial requests are liable to be rejected, if the unit holders have not completed the KYC requirements. Notwithstanding in the above cases, the AMC reserves the right to ask for any requisite documents before processing of financial and nonfinancial transactions or freeze the folios as appropriate. Unit holders are advised to use the applicable KYC Form for completing the KYC requirements and submit the form at the point of acceptance. Further, upon updation of PAN details with the KRA (KRA-KYC)/ CERSAI (CKYC), the unit holders are requested to intimate us/our Registrar and Transfer Agent their PAN information along with the folio details for updation in our records. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 68I. OTHER DETAILS A. Periodic Disclosures Net Asset Value The AMC will calculate and disclose the first NAV of the This is the value per unit of the scheme Scheme within a period of 5 business days from the date of on a particular day. You can ascertain allotment. Subsequently, the NAV will be calculated on all the value of your investments by business days and disclosed in the manner specified by SEBI. multiplying the NAV with your unit The AMC shall update the NAVs on its website balance. www.motilaloswalmf.com and also on AMFI website www.amfiindia.com before 11.00 p.m. on every business day. If the NAVs are not available before 11.00 p.m. on every business day, the reason for delay in uploading NAV would be explained to AMFI in writing. If the NAV is not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. iNAV of an ETF shall be disclosed on a continuous basis on NSE, where the units of these ETFs are proposed to be listed and traded. The iNAV shall be disclosed within a maximum time lag of 15 seconds from underlying market. Investors can also contact the office of the AMC to obtain the NAV of the Scheme. Further, Mutual Fund/ AMC will provide facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard. Monthly & Annual Disclosure of The fund shall communicate any change in risk-o-meter by way Risk-o-meter of Notice cum Addendum and by way of an e-mail or SMS to unitholder. Further Risk-o-meter of scheme shall be evaluated on a monthly basis and Risk-o-meter along with portfolio shall be disclosed on website and on AMFI website within 10 days from the close of each month. Additionally, MOMF shall disclose the risk level of all schemes as on March 31 of every year, along with number of times the risk level has changed over the year, on its website and AMFI website. Disclosure of Benchmark Risk-o- Pursuant to clause 5.16.1 of SEBI Master Circular No. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 69meter SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, the AMC shall disclose risk-o-meter of the scheme and benchmark in all disclosures including promotional material or that stipulated by SEBI wherever the performance of the scheme vis-à-vis that of the benchmark is disclosed to the investors in which the unit holders are invested as on the date of such disclosure. Scheme Summary Document The AMC has provided on its website https://www.motilaloswalmf.com/download/scheme-summary- documents, Scheme summary document which is a standalone scheme document for all the Schemes which contains all the details of the Scheme. Monthly & Half yearly Disclosures: The Mutual Fund / AMC shall disclose portfolio (along with Portfolio ISIN) in a user friendly & downloadable spreadsheet format, as on the last day of the month/half year for the scheme(s) on its website (www.motilaloswalmf.com) and on the website of AMFI (www.amfiindia.com) within 10 days from the close of each month/half year. In case of investors whose email addresses are registered with MOMF, the AMC shall send via email both the monthly and half yearly statement of scheme portfolio within 10 days from the close of each month/half year respectively. The AMC shall publish an advertisement every half-year, in the all India edition of at least two daily newspapers, one each in English and Hindi, disclosing the hosting of the half yearly statement of the schemes portfolio on the AMC’s website (www.motilaloswalmf.com) and on the website of AMFI (www.amfiindia.com). The AMC shall provide physical copy of the statement of scheme portfolio on specific request received from investors. Half yearly Disclosures: Financial The Mutual Fund shall within one month from the close of each Results half year, that is on 31st March and on 30th September, host a soft copy of its unaudited financial results on its website. The mutual fund shall publish an advertisement disclosing the hosting of such financial results on their website https://www.motilaloswalmf.com/download/financials, in atleast ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 70one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the Mutual Fund is situated. Annual Report The Mutual Fund / AMC will host the Annual Report of the Schemes on its website (https://www.motilaloswalmf.com/download/financials) and on the website of AMFI (www.amfiindia.com) not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year). The Mutual Fund / AMC shall mail the scheme annual reports or abridged summary thereof to those investors whose e-mail addresses are registered with MOMF. The full annual report or abridged summary shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the investors on request at free of cost. Investors who have not registered their e-mail id will have to specifically opt-in to receive a physical copy of the Annual Report or Abridged Summary thereof. MOMF will publish an advertisement every year in the all India edition of at least two daily newspapers, one each in English and Hindi, disclosing the hosting of scheme wise Annual Report on the AMC website (www.motilaloswalmf.com) and on the website of AMFI (www.amfiindia.com). Product Dashboard In accordance with clause 5.8.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, the AMC has designed and developed the dashboard on their website wherein the investor can access information with regard to scheme’s AUM, investment objective, expense ratios, portfolio details and past performance of all the schemes. https://www.motilaloswalmf.com/mutual-funds Disclosure of Tracking Error The tracking error i.e. the annualized standard deviation of the difference in daily returns between the underlying index or goods and the NAV of the ETF/ Index Fund, based on past one year rolling data shall not exceed 2%. ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 71In case of unavoidable circumstances in the nature of force majeure, which are beyond the control of the AMC, the tracking error may exceed 2% and the same will be intimated to the Trustees with corrective actions taken by the AMC, if any. For ETFs in existence for a period of less than one year, the annualized standard deviation shall be calculated based on available data. The Scheme shall disclose the tracking error based on past one year rolling data, on a daily basis, on the website of AMC and AMFI. Disclosure of Tracking Difference Tracking difference i.e. the annualized difference of daily returns between the index or goods and the NAV of the Scheme will be disclosed on the website of the AMC and AMFI, on a monthly basis, for tenures 1 year, 3 years, 5 years, 10 years and since the date of allotment of units. B. Transparency/NAV Disclosure The NAV will be calculated on all business days and shall be disclosed in the manner specified by SEBI. The AMC shall update the NAVs on its website www.motilaloswalmf.com and also on AMFI website www.amfiindia.com before 11.00 p.m. on every business day. If the NAVs are not available before 11.00 p.m. on any business day, the reason for delay in uploading NAV would be explained to AMFI in writing. If the NAVs are not available before commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAVs. Further, AMC will extend facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard. iNAV of an ETF shall be disclosed on a continuous basis on NSE, where the units of these ETFs are proposed to be listed and traded. The iNAV shall be disclosed within a maximum time lag of 15 seconds from underlying market. Investors can also contact the office of the AMC to obtain the NAV of the Scheme. C. Transaction Charges and Stamp Duty The AMC/Mutual Fund shall deduct the Transaction Charges on purchase / subscription received from first time mutual fund investors and investors other than first time mutual fund investors through the distributor or through the stock exchange platforms viz. BSE Star MF/ NSE NMF II platforms (who have specifically opted-in to receive the transaction charges) as under: i. For existing investor in a Mutual Fund: Rs.100/- per subscription of Rs. 10,000/- and above; ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 72ii. For first time investor in Mutual Funds: Rs.150/- per subscription of Rs. 10,000/- and above. However, there will be no transaction charge on: i. Subscription of less than Rs. 10,000/-; or ii. Transactions other than purchases/subscriptions relating to new inflows such as STP/SWP/DTP, etc.; or iii. Direct subscription (subscription not routed through distributor); or iv. Subscription routed through distributor who has chosen to ‘Opt-out’ of charging of transaction charge. The transaction charge as mentioned above will be deducted by AMC from subscription amount of the Unitholder and paid to distributor and the balance shall be invested in the Scheme. The distributors shall also have the option to either opt in or opt out of levying transaction charge based on type of the product. Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019 and Clause 10.1 of SEBI Master Circular dated June 27, 2024, a stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions, with effect from July 01, 2020. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase/ switch-in transactions to the unitholders would be reduced to that extent. Details to be provided in SAI. D. Associate Transactions- Please refer to Statement of Additional Information (SAI) E. Taxation- For details on taxation please refer to the clause on Taxation in the SAI apart from the following: Motilal Oswal Mutual Fund is a Mutual Fund registered with SEBI and is governed by the provisions of Section 10(23D) of the Income Tax Act, 1961. Accordingly, any income of a fund set up under a scheme of a SEBI registered mutual fund is exempt from tax. The following information is provided only for general information purposes and is based on the Mutual Fund’s understanding of the Tax Laws as of this date of Document. Investors / Unitholders should be aware that the relevant fiscal rules or their explanation may change. There can be no assurance that the tax position or the proposed tax position will remain same. In view of the individual nature of tax benefits, each investor is advised to consult his or her own tax consultant with respect to the specific tax implications arising out of their participation in the Scheme The below Tax Rates shall be applicable for FY 2025-26: ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 73Nature of Income Resident Investor Mutual Fund Long Term Capital Gains (> 12 months) 12.5% above Rs.1.25 Lac* Nil Short Term Capital Gains (< 12 months) 20% Nil *subject to grandfathering clause Capital Gains tax rates are excluding Surcharge & education cess. For details on taxation, please refer to the clause on Taxation in the Scheme Additional Information (SAI). The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. F. Rights of Unitholders- Please refer to SAI for details. G. List of Official Points of Acceptance: To get more information on list of official point of acceptance, Please refer link: https://www.motilaloswalmf.com/contact-us Kfin Technologies Limited (Official Collection Centres) Registrar KFin Technologies Limited Address: Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally Hyderabad Rangareddi TG 500032 IN Tel: 040 79611000 / 67162222 Toll Free No: 18004254034/35 Email: compliance.corp@kfintech.com Website: www.kfintech.com/ To view the complete details of designated collection centres / Investor Service centres of KFin Technologies Limited Please visit link on MOMF website https://www.motilaloswalmf.com/contact-us . H. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations for which action may have been taken or is in the process of being taken by any Regulatory Authority Link for Brief on litigation cases: https://www.motilaloswalmf.com/download/sid-related-documents ____________________________________________________________________________________________ Draft SID of Motilal Oswal BSE Top 10 Banks ETF 74