Official Gazette Notification Text
Official TranscriptSCHEME INFORMATION DOCUMENT SECTION I Std. Obs. 1, 3 and 7 Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF (An open ended Scheme replicating/tracking Nifty 10 yr Benchmark G-Sec Index. A relatively high interest rate risk and relatively low credit risk) (Scheme code: - to be added) (Scrip Code NSE Symbol: to be added) This product is suitable for Scheme Risk-o-meter Benchmark Risk-o-meter investors...
SCHEME INFORMATION DOCUMENT
SECTION I Std. Obs. 1, 3 and 7 Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF (An open ended Scheme replicating/tracking Nifty 10 yr Benchmark G-Sec Index. A relatively high interest rate risk and relatively low credit risk) (Scheme code: - to be added) (Scrip Code NSE Symbol: to be added) This product is suitable for Scheme Risk-o-meter Benchmark Risk-o-meter investors who are seeking* Nifty 10 yr Benchmark G-sec • Returns that correspond to the Total Return Index performance of the Nifty 10 yr Benchmark G-Sec Index, subject to tracking error.
• Investment in securities of Nifty 10 yr Benchmark G-Sec Index *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The above Product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Std. Obs. 2 and 4 Potential Risk Class Credit Risk of the scheme→ Relatively Low Moderate Relatively High (Class A: CRV >=12) (Class B : CRV >=10) (Class C: CRV <10) Interest Rate Risk of the scheme ↓ Relatively Low (Class I:
MD<=1 year) Moderate (Class II: MD<=3 years) Relatively High (Class III: A-III Any Macaulay duration 1Offer for Units of face value Rs. 10 per unit during the New Fund Offer and Continuous offer for Units at NAV based price.
New Fund Offer Opens on: ****
New Fund Offer Closes on: **** Scheme re-opens on: **** Name of Mutual Fund Motilal Oswal Mutual Fund (MOMF) Name Asset Management Company Motilal Oswal Asset Management Company Limited
(AMC) (MOAMC) Name 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 https://www.motilaloswalmf.com/ The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 2026, (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 have 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 Considerations, Tax and Legal issues and
general information on https://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.
2Disclaimers:
NSE 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 dated August 13, 2026 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 the 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 unit 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 reason whatsoever.
The validity of the letter is coterminous with the validity of SEBI approval.
3NSE Indices Ltd.
The Product i.e. Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF is not sponsored, endorsed, sold or promoted by NSE Indices Ltd. NSE Indices Ltd. does not make any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Nifty 10 yr Benchmark G-Sec Index to track general stock market performance in India. The relationship of NSE Indices Ltd. to Motilal Oswal Asset Management Company Limited (MOAMC) is only in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE Indices Ltd. without regard to the Issuer or the Product. NSE Indices Ltd. does not have any obligation to take the needs of the Issuer or the owners of the Product into consideration in determining, composing or calculating the Nifty 10 yr Benchmark G-Sec Index. NSE Indices Ltd. is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be converted into cash. NSE Indices Ltd has no obligation or liability in connection with the administration, marketing or trading of the Product.
NSE Indices Ltd. do not guarantee the accuracy and/or the completeness of the Nifty 10 yr Benchmark G-Sec Index or any data included therein and NSE Indices Ltd. shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE Indices Ltd. does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product, or any other person or entity from the use of the Nifty 10 yr Benchmark G-Sec Index or any data included therein. NSE Indices Ltd. makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE Indices Ltd. expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.
An investor, by subscribing or purchasing an interest in the Product, will be regarded as having acknowledged, understood and accepted the disclaimer referred to in Clauses above and will be bound by it.
This Scheme Information Document is dated October 14, 2026 4Table of contents Page no
Section I I. Highlights / summary of the scheme 6 Due diligence by the asset management company 14 II. Information about the scheme 15 A. How will the scheme allocate its assets 15 B. Where will the scheme invest 18 C. What are the investment strategies 19 D. How will the scheme benchmark its performance 20 E. Who manages the scheme 20 F. How is the scheme different from existing schemes of the mutual fund 20 G. How has the scheme performed 25 H. Additional scheme related disclosures 25 III. Other details 26 A. Computation of NAV 26 B. New fund offer (NFO) expenses 27 C. Annual scheme recurring expenses 27 D. Load structure 30
Section II I. Introduction 32 A. Definitions 32 B. Requirement of minimum investors in the scheme 32 C. Risk factors 32 D. Risk mitigation strategies 39 E. Special consideration 41 II. Information about the scheme 44 A. Where will the scheme invest 44 B. What are the investment restrictions 44 C. Fundamental attributes 47 D. Index methodology 48 E. Other scheme specific disclosures 51 III. Other details 68 A. Periodic disclosures 68 B. Transparency/ nav disclosures 68 C. Transaction charges and stamp duty 71 D. Associate transactions 72 E. Taxation 72 F. Rights of unitholders 72 G. List of official points of acceptance 72 H. Penalties, pending litigation or proceedings, findings of inspections or investigations for 73 which action may have been taken or is in the process of being taken by any regulatory authority 5Part I HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. Title Description No.
I. Name of the scheme Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF Std. Obs. 1 II. Category of the Scheme Other schemes - Exchange Traded Fund III. Scheme type An open ended scheme replicating/tracking Nifty 10 yr Benchmark G- Sec Index. A relatively high interest rate risk and relatively Low credit risk.
IV. Scheme code To be added later Std. Obs. 7 V. Investment objective The investment objective of the scheme is to provide returns that, closely correspond to the total returns of the performance of the Nifty Std. Obs. 5 10 yr Benchmark G-Sec Index, subject to tracking error.
However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
VI. Liquidity/listing details The units are proposed to be listed on the 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 Units of the Scheme may be bought or sold on all trading days at prevailing listed price on such Stock Exchange.
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.
Transactions Directly with the Mutual Fund 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 Market Makers may transact directly with AMC, provided the units offered for subscription and/or redemption are not less than Creation Unit size & in multiples thereof. Large investors can subscribe/redeem directly 6with the AMC for an amount greater than INR 25 crores.
The number of units of the Scheme that Market Makers (MM’s) /Authorized Participant (AP’s) can subscribe to is 1,10,000 units and in multiples thereafter.
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
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.
7VII. Benchmark (Index) Nifty 10 yr Benchmark G-sec Total Return Index Std. Obs. 25
Justification: The above benchmark has been chosen as this Scheme, primarily invests in securities which are constituents of Nifty 10 yr Benchmark G-Sec Index. Thus, the composition of the aforesaid benchmark is such that it is most suited for comparing performance of the Scheme. The Trustee reserve the right to change the benchmark if due to a change in market conditions, a different index /indices appears to provide a more appropriate basis for comparison of fund performance.
VIII. NAV disclosure The first NAV will be calculated and announced not later than 5 business days from the date of allotment in the NFO.
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 https://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.
The AMC may also calculate intra-day indicative NAV (computed based on snapshot prices of the underlying securities traded and available on NSE) and will be updated during the market hours on its website
https://www.motilaloswalmf.com/ In addition to above, the indicative NAV (iNAV) will be updated on AMC’s website during market hours as per Clause no. 4.5.9 of SEBI Master circular dated March 20, 2026. The AMC may also calculate intra- day indicative NAV (computed based on snapshot prices of the underlying securities traded and available on the stock exchanges) and will be updated
during the market hours on its website https://www.motilaloswalmf.com/ Intra-day indicative NAV will not have any bearing on the creation or redemption of units directly with the Fund. iNAV of an ETF shall be disclosed on a continuous basis on the BSE and NSE, where the units of 8these ETFs are proposed to be listed and traded. The iNAV shall be disclosed at least four times a day i.e. opening and closing iNAV and at least two times during the intervening period with minimum time lag of 90 minutes between the two disclosures.
According to para 9.4.4 of SEBI Master Circular on Mutual Funds; for transactions in units of Exchange Traded Funds (ETFs) by Authorized Participants / large investors directly with the AMCs, intra-day NAV, based on the executed price at which the securities representing the underlying index or underlying commodity(ies) are purchased / sold, shall be applicable.
Further details in Section II.
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.
The transfer of redemption or repurchase proceeds to the unitholders shall be made within three working days from the date of redemption or repurchase. However, in case of exceptional circumstances as
provided by AMFI vide its letter no. AMFI/ 35P/ MEMCOR/ 74 / 2022- 23 dated January 16, 2023, the redemption or repurchase proceeds will be transferred / dispatched to unitholders within the time frame prescribed for such exceptional circumstances.
A penal interest of 15% p.a. or such other rate as may be prescribed by SEBI from time to time, will be paid in case the payment of redemption proceeds is not made within the stipulated timelines.
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: Nil XII. M inimum Application On Exchange: Investors can buy/sell units of the Scheme in round lot of Amount/switch in 1 unit and in multiples thereof.
Directly with the Mutual Fund
For Large investors:
9Direct transaction pertaining to subscription / redemption shall be facilitated by AMC for investors only for transactions greater than INR 25 Cr. Any order placed for redemption or subscription directly with the AMC must be execution value of greater than INR 25 Cr.
For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,10,000 units and in multiples thereafter.
Switches – Not Applicable XIII. Minimum Additional Not Applicable Purchase Amount XIV. Minimum On the Exchange: As the Scheme is listed on the exchange, the investor Redemption/switch out can sell units on an ongoing basis on the NSE at the traded prices. The amount units are redeemed in round lots of 1 unit.
Directly with the Mutual Fund:
For Market makers:
All direct redemption transaction by MMs / APs 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 1,10,000 units and in multiples thereafter.
For Large 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.
All direct transaction by Market Makers and large 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 prescribed by SEBI from time to time shall not be applicable for direct transaction with AMCs in ETFs by Market Makers and other eligible investors.
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.
10Any person transacting with the fund will have to reimburse transaction charges -brokerage, STT, demat charges etc, if any.
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 Total bid size on the exchange is less than half of creation units size daily, averaged over a period of 7 consecutive trading days Switches – Not Applicable XV. New Fund Offer Period New Fund Offer Opens on: XX
This is the period during New Fund Offer Closes on: XX which a new scheme sells its units to the investors. MStidn.i mOubms. d3u4r ation to be 3 working days and will not be kept open for more than 15 days.
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 7.20.5 of SEBI Master
Circular on Mutual Funds.
In case the NFO Opening/ Closing Date is subsequently declared as a non-Business Day, the following Business Day will be deemed to be the NFO Opening/ Closing Date. • Any modification to the New Fund Offer Period shall be announced by way of an addendum Uploaded on AMC website i.e.
https://www.motilaloswalmf.com/downloads/addendums XVI. 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.
11XVII. Segregated SEBI vide para 5.5 of SEBI Master Circular on Mutual Funds, has portfolio/side pocketing advised that portfolios by mutual fund schemes investing in debt and disclosure money market instruments should have provision in the concerned SID for creating portfolio segregation with a view to, Std. Obs. 54
1) Reducing Sharp fall in NAV of Schemes.
2) Reducing Redemption pressure & liquidity risk.
3) Safeguarding good quality papers & creating confidence in market, and
4) Mitigating reputational risk.
5) Accordingly, this policy is being laid down to comply with the SEBI instructions.
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.
Main Portfolio: Scheme portfolio excluding segregated portfolio Total
Portfolio: Scheme portfolio including the securities affected by credit events 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.
The AMC will follow all relevant provisions of para 5.5.4 to 5.5.8 of SEBI Master Circular on Mutual Funds pertaining to segregated portfolio.
For further details, kindly refer SAI.
XVIII. Swing pricing disclosure Not Applicable XIX. Stock lending • The scheme shall not engage in Stock Lending.
XX. How to Apply and other This section must be read in conjunction with Statement of Additional details Information Fund (herewith referred as “SAI”). Investors should mandatorily use the Application Forms, Transactions Request included Std. Obs. 35 12in the KIM and other standard forms available at the Investor Service Centers/ https://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 and +91 22 40548002.
Investors can also visit our website https://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 numbers 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 TheThe scheme does not offer any special products except ASBA during available during the NFO.
NFO and on ongoing basis 13TheThe 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 Nifty 10 yr Benchmark G-Sec 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. Weblink Link for factsheet:
https://www.motilaloswalmf.com/downloads/factsheets
Link for TER:
https://www.motilaloswalmf.com/nav-ter 14DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY Std. Obs. 56
It is confirmed that:
(i) The draft Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 2026 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, 2026 and the guidelines there under shall be applicable. Std. Obs. 65
(viii) The Trustees have ensured that the Motilal Oswal Nifty 10 yr Benchmark G-Sec 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: October 14, 2026 (Investment Manager for Motilal Oswal Mutual Fund) Sd/- Aparna Karmase Head- Compliance, Legal and Secretarial 15PART II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS Under normal circumstances, the asset allocation pattern of the Scheme is as follows:
Indicative Allocations (% of total assets) Instruments Minimum Maximum Constituents of Nifty 10 yr Benchmark G- Sec Index 95 100 Debt and Money Market Instrument 0 5 Std. Obs. 21 Money Market Instruments includes Commercial papers, Commercial bills, Treasury bills, Government securities Std.
having an unexpired maturity up to one year, call or notice money, certificate of deposit, Bills Rediscounting, Repos, Obs.
13 Triparty Repo, 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 para 13.18.1 of SEBI Master Circular on Mutual Funds, the cumulative gross exposure through Std.
Constituents of Nifty 10 yr Benchmark G- Sec Index and Debt and money market instruments, cash and cash Obs.
17 equivalents, derivative positions, other permitted securities/assets and such other securities/assets as may be permitted by SEBI from time to time will not exceed 100% of the net assets of the scheme.
Cash and cash equivalents as per Pursuant to para 13.18.6 (a) of SEBI Master Circular on Mutual funds and SEBI Std. letter no. SEBI/HO/IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021 which includes T-bills, Obs.
14 Government Securities and Repo on Government Securities having residual maturity of less than 91 calendar Days, shall not be considered for the purpose of calculating gross exposure limit.
The Scheme, in general will hold all the securities that comprise of underline Index in the same proportion as the index. 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.
In accordance with Clause 4.4.6 of Master Circular of Mutual Fund the underlying index shall comply with the portfolio concentration norms as prescribed.
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.
Pending deployment of funds as per investment objective may be parked in short term deposits of scheduled commercial banks, subject to guidelines and limits specified by SEBI.
16Std. Obs. 18 Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sl. no Type of Instrument Percentage of exposure Circular references
1. Securities Lending/ Stock The Scheme shall not engage in Stock NA Lending Lending.
2. Derivatives for non- The Scheme shall not invest in NA Std. Obs. 20 hedging purposes Derivatives for non- hedging purposes
3. Securitised Debt The Scheme shall not invest in NA Securitised Debt.
4 Overseas Securities The Scheme shall not invest in NA Overseas Securities.
5 InVITS The Scheme shall not invest in InvITs. NA 6 AT1 and AT2 Bonds The Scheme shall not invest in AT1 NA and AT2 Bonds.
7 Repo in corporate debt and The scheme will not invest in Repo in NA corporate reverse repo. corporate debt.
8 Unrated debt instrument. The scheme will not invest in unrated NA debt instrument.
9 Credit Default Swaps The scheme will not invest in Credit NA
(CDS). Default Swaps (CDS).
10 Debt instruments having The scheme will not invest in NA Structured Obligations / Structured Obligation / Credit Credit Enhancements Enhancements.
11. Short Selling The Scheme shall not engage in Short NA selling.
12. Units of Mutual Fund The Scheme may also invest in Para 3 of the Sixth Schedule of the Schemes other schemes managed by the AMC SEBI (Mutual Funds) or in the schemes of any other Regulations, 2026, read with Para Mutual Fund (only in units of 13.14.1 of SEBI Master Circular on domestic Overnight funds, Liquid Mutual Funds funds and Money Market Mutual Funds) not more than 5% of the Net Asset Value of the Mutual Fund,
provided it is in conformity with the investment objectives of the Scheme. The scheme will not invest in units of any SIF.
Rebalancing due to Short Term Defensive Consideration:
Std. Obs. 22, 23 & 24 Due to market conditions, the AMC may invest beyond the range set out in the asset allocation. Subject to the Regulations, the asset allocation pattern indicated above for the Scheme may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. In the event 17that 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 para 1.9.1(b) of SEBI Master Circular on Mutual Funds.
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 para 4.5.5 of SEBI Master Circular on Mutual Funds. Where the portfolio is not rebalanced within 7 calendar days, justification for the same shall be placed before the Investment Committee and reasons for the same shall be recorded in writing. The Investment Committee shall then decide on the course of action.
Portfolio Rebalancing due to Passive Breach:
Std. Obs. 22, 23 & 24 In accordance with para 4.5.5 of SEBI Master Circular on Mutual Funds, in case of 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.
Timelines for deployment of funds collected in NFO – In line with para 7.24.1 of SEBI Master circular on Mutual Funds, the 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
5. Trustees shall monitor the deployment of funds collected in NFO and take steps, as may be required, to ensure 18that the funds are deployed within a reasonable timeframe
6. To effectively manage the fund flows in NFO, the fund manager may extend or shorten the NFO period based on his view of the market dynamics, availability of assets and his ability to deploy funds collected in NFO.
However, the same shall be subject to compliance with Paragraph 1.7.1( NFO should be open for subscription for a minimum period of 3 working days17 and not more than 15 calendar days) of Master Circular B. WHERE WILL THE SCHEME INVEST Std. Obs. 27 The Scheme would invest in securities comprising the Nifty 10 yr Benchmark G-Sec Index in the same proportion
(weightage) as in the Index and track the benchmark index. The Scheme may also invest in money market instruments, in compliance with Regulations to meet liquidity requirements.
Money Market instruments includes Commercial Paper, Commercial Bills, Treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, Certificate of deposit, Bills Rediscounting, Repos, Triparty Repo, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time.
The Scheme, being a G- Sec Scheme replicating a Constant Maturity index, may invest in securities with residual maturity within +/- 10% of maturity range of the index.
A brief narration of Money Market Instruments are as under:
1. Certificate of Deposits (CDs) is a negotiable money market instrument issued by scheduled commercial banks and select all- India Financial Institutions that have been permitted by the RBI to raise short term resources.
2. Commercial Paper (CPs) is an unsecured negotiable money market instrument issued in the form of promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. They are issued at a discount to the face value as may be determined by the issuer. CP is traded in secondary market and can be freely bought and sold before maturity.
3. Treasury Bills (T-Bills) are issued by the Government of India to meet their short term borrowing requirements.
T-Bills are issued for maturities of 91 calendar days, and 364 calendar days. T-bills are issued at a discount to their face value and redeemed at par.
4. Tri-party Repo.
5. Securities created and issued by the Central Governments as may be permitted by RBI, securities guaranteed by the Central Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). Central Government Securities are sovereign debt obligations of the Government of India with zero-risk of default and issued on its behalf by RBI. They form part of Government’s annual borrowing programme and are used to fund the fiscal deficit along with other short term and long term requirements. Such securities could be fixed rate, fixed interest rate with put/call option, zero coupon bond, floating rate bonds, capital indexed bonds, Fixed Interest security with staggered maturity payment etc.
196. Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. When the seller sells the security with an agreement to repurchase it, it is Repo transaction whereas from the perspective of buyer who buys the security with an agreement to sell it at a later date, it is reverse repo transaction. The scheme can participate in Repo/Reverse Repo in G-Secs and T-Bills.
For detailed information kindly refer Section II.
C. WHAT ARE THE INVESTMENT STRATEGIES Std. Obs. 29 The Scheme employs an investment approach designed to track the performance of Nifty 10 yr Benchmark G- Sec Index. The Scheme seeks to achieve this goal by investing in securities constituting the Nifty 10 yr Benchmark G- Sec Index in same proportion as in the Index. The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme follows a passive strategy to achieve scheme’s investment objective.
The Scheme may also invest in money market instruments to meet the liquidity and expense requirements. The Scheme may also take exposure in other G- Sec instruments for short duration when securities of the Underlying Index are not readily available in needed quantities within the required time frame, or for rebalancing at the time of change in Underlying Index or in case of corporate actions and accordingly the portfolio of the scheme will be rebalanced within a period of 7 calendar days.
As per para 4.4.6 (a) of SEBI Master circular on Mutual Funds, the duration of the portfolio of the Scheme shall replicates the duration of the underlying index within a maximum permissible deviation of +/- 10%.
In line with par 4.4.6 (c) of SEBI Master Circular, the Scheme, replicating a Constant Maturity index, will invest in securities with residual maturity within +/- 10% of maturity range of the index.
Portfolio Turnover Portfolio Turnover is defined as the lower of sales or purchase divided by the average corpus during a specified period of time. Generally, Portfolio Turnover would depend upon the rebalancing of the portfolio due to change in composition of the Index or due to corporate actions of the securities constituting the Index.
Tracking Error Std. Obs. 10 Tracking error is defined as the annualized standard deviation of the difference between the daily returns of the Underlying Index and the NAV of the Scheme based on past one year rolling data shall not exceed 2%. 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 Basket including changes to the constituents, regulatory policies, ability of the Fund Manager to closely replicate the Underlying Index, etc. The Scheme’s returns may therefore deviate from those of its Underlying Basket. 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 subscriptions, redemption, etc.
3. Corporate actions
204. The Scheme has to invest in the securities in whole numbers and has to round off the quantity of securities shares.
5. Changes in the constituents of the underling Basket. Whenever there are any changes, the Scheme has to reallocate its investment as per the revised Basket but market conditions may not offer an opportunity to rebalance its portfolio to match the Basket and such delay may affect the NAV of the Scheme.
6. Lack of Liquidity The AMC would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible. Under normal market circumstances, such tracking error shall not exceed by 2%.
The Scheme shall disclose the tracking error based on past one year rolling data, on a daily basis, on the website of
AMC https://www.motilaloswalmf.com and AMFI (www.amfiindia.com).
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.
Std. Obs. 10
Tracking Difference:
Tracking difference i.e. the annualized difference of daily returns between the index or goods and the NAV of the ETF will be disclosed on the website of the AMC and AMFI, on a monthly basis, for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units.
The annualized tracking difference averaged over one-year period shall not exceed 1.25%. In case the average annualized tracking difference over one year period is higher than 1.25%, the same shall be brought to the notice of trustees with corrective actions taken by the AMC, if any.
D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? Std. Obs. 25
Benchmark: The First Tier benchmark of the Scheme is Nifty 10 yr Benchmark G-Sec Index.
Justification: The above benchmark has been chosen as this Scheme, primarily invests in securities which are constituents of Nifty 10 yr Benchmark G-Sec Index. Thus, the composition of the aforesaid benchmark is such that it is most suited for comparing performance of the Scheme. The Trustee reserve the right to change the benchmark if due to a change in market conditions, a different index /indices appears to provide a more appropriate basis for comparison of fund performance.
E. WHO MANAGES THE SCHEME? Std. Obs. 33 21Name and Age and Other schemes managed by the fund manager Experience Designation Qualificati of the fund on manager Mr. Rakesh Age: 45 Fund Manager – • Mr. Rakesh Shetty years 1. Motilal Oswal Nifty 50 Index Fund Shetty has Fund Qualificati 2. Motilal Oswal Nifty 500 Index Fund more than 15 Manager – on: 3. Motilal Oswal Nifty Bank Index Fund years of Debt 4. Motilal Oswal Nifty Midcap 150 Index Fund overall Component Bachelors 5. Motilal Oswal Nifty Next 50 Index Fund experience of 6. Motilal Oswal Nifty Smallcap 250 Index Fund and expertise Commerce 7. Motilal Oswal S&P 500 Index Fund in trading in (B.Com) 8. Motilal Oswal Nifty 5 year benchmark G-Sec ETF equity, debt
9. Motilal Oswal 5 Year G-Sec Fund of Fund segment,
10. Motilal Oswal Nifty 50 ETF Exchange 1 1. Motilal Oswal Nifty Midcap 100 ETF Trade Fund’s management,
13. Motilal Oswal Asset Allocation Fund of Fund- Aggressive Corporate
14. Motilal Oswal Asset Allocation Fund of Fund- Conservative Treasury and
15. Motilal Oswal Nasdaq 100 Fund of Fund Banking.
16. Motilal Oswal Nasdaq Q50 ETF
17. Motilal Oswal Nifty 200 Momentum 30 Index Fund • Prior to
18. Motilal Oswal Nifty 200 Momentum 30 ETF joining
19. Motilal Oswal BSE Low Volatility ETF Motilal
20. Motilal Oswal BSE Low Volatility Index Fund Oswal Asset
21. Motilal Oswal BSE Healthcare ETF Management
22. Motilal Oswal BSE Financials ex Bank 30 Index Fund Company
23. Motilal Oswal BSE Enhanced Value Index Fund Limited, he
24. Motilal Oswal BSE Enhanced Value ETF has worked
25. Motilal Oswal BSE Quality Index Fund
26. Motilal Oswal BSE Quality ETF with
27. Motilal Oswal Gold and Silver Fund of Funds Company
28. Motilal Oswal Nifty Microcap 250 Index Fund engaged in
29. Motilal Oswal Developed Market Ex US ETFs Overseas EquitCya Ppaitsasli ve FOF
30. Motilal Oswal Nifty 500 ETF Market
31. Motilal Oswal Nifty Realty ETF Business
32. Motilal Oswal Nifty Smallcap 250 ETF wherein he
33. Motilal Oswal Nifty India Defence Index Fund was in charge
34. Motilal Oswal Nifty India Defence ETF of equity and
35. Motilal Oswal Nifty 500 Momentum 50 Index Fund debt ETFs,
36. Motilal Oswal Nifty 500 Momentum 50 ETF customized
37. Motilal Oswal Nifty MidSmall Financial Services Index Fund indices and
38. Motilal Oswal Nifty MidSmall India Consumption Index Fundh as also been 22Name and Age and Other schemes managed by the fund manager Experience Designation Qualificati of the fund on manager
39. Motilal Oswal Nifty MidSmall Healthcare Index Fund part of
40. Motilal Oswal Nifty MidSmall IT and Telecom Index Fund product
41. Motilal Oswal Nifty Capital Market Index Fund development
42. Motilal Oswal Nifty 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 BSE 1000 Index Fund
50. Motilal Oswal Nifty Midcap 150 Momentum 50 ETF
51. Motilal Oswal Nifty Alpha 50 ETF
52. Motilal Oswal Gold ETF
53. Motilal Oswal Silver ETF
54. Motilal Oswal Nifty 100 ETF
55. Motilal Oswal Nifty Energy ETF
56. Motilal Oswal BSE Select IPO ETF
57. Motilal Oswal Nifty Services Sector ETF
58. Motilal Oswal Nifty MNC ETF
59. Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds
60. Motilal Oswal Multi Factor Passive Fund of Funds
61. Motilal Oswal Large and Midcap Fund
62. Motilal Oswal Midcap Fund
63. Motilal Oswal Focused Fund
64. Motilal Oswal ELSS Tax Saver Fund
65. Motilal Oswal Liquid Fund
66. Motilal Oswal Ultra Short Term Fund
67. Motilal Oswal Balanced Advantage Fund
68. Motilal Oswal Flexi Cap Fund
69. Motilal Oswal Small Cap Fund
70. Motilal Oswal Large Cap Fund
71. Motilal Oswal Multi Cap Fund
72. Motilal Oswal Quant Fund
73. Motilal Oswal Business Cycle Fund
74. Motilal Oswal Manufacturing Fund
75. Motilal Oswal Digital India Fund
76. Motilal Oswal Arbitrage Fund
77. Motilal Oswal Innovation Opportunities Fund 23Name and Age and Other schemes managed by the fund manager Experience Designation Qualificati of the fund on manager
78. Motilal Oswal Active Momentum Fund
79. Motilal Oswal Infrastructure Fund
80. Motilal Oswal Services Fund
81. Motilal Oswal Special Opportunities Fund
82. Motilal Oswal Consumption Fund
83. Motilal Oswal Financial Services Fund
84. Motilal Oswal BSE Top 10 Banks ETF
85. Motilal Oswal Contra Fund
86. Motilal Oswal Nifty Oil & Gas ETF 8 7. Motilal Oswal Nifty Metal 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/FOF schemes of Motilal Oswal Mutual Fund Sr. No Name of the Schemes
1. Motilal Oswal Nifty 50 Index Fund
2. Motilal Oswal Nifty 500 Index Fund
3. Motilal Oswal Nifty Bank Index Fund
4. Motilal Oswal Nifty Midcap 150 Index Fund
5. Motilal Oswal Nifty Next 50 Index Fund
6. Motilal Oswal Nifty Smallcap 250 Index Fund
7. Motilal Oswal S&P 500 Index Fund
8. Motilal Oswal Nifty 5 yr benchmark G-Sec ETF
9. Motilal Oswal 5 Year G-Sec Fund of Fund
10. Motilal Oswal Nifty 50 ETF
11. Motilal Oswal Nifty Midcap 100 ETF
12. Motilal Oswal Nasdaq 100 ETF
13. Motilal Oswal Asset Allocation Fund of Fund- Aggressive
14. Motilal Oswal Asset Allocation Fund of Fund- Conservative
15. Motilal Oswal Nasdaq 100 Fund of Fund
2416. Motilal Oswal Nasdaq Q50 ETF
17. Motilal Oswal Nifty 200 Momentum 30 Index Fund
18. Motilal Oswal Nifty 200 Momentum 30 ETF
19. Motilal Oswal BSE Low Volatility ETF
20. Motilal Oswal BSE Low Volatility Index Fund
21. Motilal Oswal BSE Healthcare ETF
22. Motilal Oswal BSE Financials ex Bank 30 Index Fund
23. Motilal Oswal BSE Enhanced Value Index Fund
24. Motilal Oswal BSE Enhanced Value ETF
25. Motilal Oswal BSE Quality Index Fund
26. Motilal Oswal BSE Quality ETF
27. Motilal Oswal Gold and Silver Passive Fund of Funds
28. Motilal Oswal Nifty Microcap 250 Index Fund
29. Motilal Oswal Developed Market Ex US ETFs Overseas Equity Passive FOF
30. Motilal Oswal Nifty 500 ETF
31. Motilal Oswal Nifty Realty ETF
32. Motilal Oswal Nifty Smallcap 250 ETF
33. Motilal Oswal Nifty India Defence Index Fund
34. Motilal Oswal Nifty India Defence ETF
35. Motilal Oswal Nifty 500 Momentum 50 Index Fund
36. Motilal Oswal Nifty 500 Momentum 50 ETF
37. Motilal Oswal Nifty MidSmall Financial Services Index Fund
38. Motilal Oswal Nifty MidSmall India Consumption Index Fund
39. Motilal Oswal Nifty MidSmall Healthcare Index Fund
40. Motilal Oswal Nifty MidSmall IT and Telecom Index Fund
41. Motilal Oswal Nifty Capital Market Index Fund
42. Motilal Oswal Nifty 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 BSE 1000 Index Fund
50. Motilal Oswal Nifty Midcap 150 Momentum 50 ETF
51. Motilal Oswal Nifty Alpha 50 ETF
52. Motilal Oswal Gold ETF
53. Motilal Oswal Silver ETF
54. Motilal Oswal Nifty 100 ETF
55. Motilal Oswal Nifty Energy ETF
56. Motilal Oswal BSE Select IPO ETF
2557. Motilal Oswal Nifty Services Sector ETF
58. Motilal Oswal Nifty MNC ETF
59. Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds
60. Motilal Oswal Multi Factor Passive Fund of Funds
61. Motilal Oswal BSE Top 10 Bank ETF
62. Motilal Oswal BSE Clean Environment Index Fund
63. Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund
64. Motilal Oswal Contra Fund
65. Motilal Oswal Nifty Oil & Gas ETF
66. Motilal Oswal Nifty Metal ETF
67. Motilal Oswal Nifty REITs & Realty Index Fund
Investors are requested to refer the following link for the differentiation between existing schemes of MOMF:
https://www.motilaloswalmf.com/downloads/sid-related-documents 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. SCHEME’S PORTFOLIO HOLDINGS 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 The Scheme is a new scheme and hence the same is not applicable.
iii. FUNCTIONAL WEBSITE LINK FOR PORTFOLIO DISCLOSURE - FORTNIGHTLY / MONTHLY.
The Scheme is a new scheme and hence the same is not applicable. iv. PORTFOLIO TURNOVER RATIO The Scheme is a new scheme and hence the same is not applicable.
26v. FUNCTIONAL WEBSITE LINK TO THE RESPECTIVE ADDENDUM TO THE SID AFTER
THE LAST UPDATE OF SID:
https://www.motilaloswalmf.com/downloads/addendums vi. AGGREGATE INVESTMENT IN THE SCHEME BY CONCERNED FUND MANAGERS:
The Scheme is a new scheme and hence the same is not applicable. vii. INVESTMENTS OF AMC IN THE SCHEME – Std. Obs. 59 Subject to SEBI (Mutual Fund) Regulation 22(3)(a) and para 7.13 of SEBI Master Circular on Mutual Funds, the AMC may invest in the scheme during the New Fund Offer (NFO) or continuous offer period. However, the AMC shall not charge any fees on such investments.
For the details pertaining to the said investment visit https://www.motilaloswalmf.com/downloads/regulatory- updates 27PART 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 VII 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 + Current Assets - Current Liabilities and Provision _____________________________________________________________ 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 announced on each working day.
The NAV Calculation shall be in accordance with SEBI MF Regulations and is available on the mutual fund
website https://www.motilaloswalmf.com/ . The NAV shall be calculated and disclosed on each business day on AMFI’s website www.amfiindia.com, by 11.00 p.m. and also on https://www.motilaloswalmf.com/.The computation of NAV shall be in conformity with SEBI Regulations and guidelines as prescribed from time to time.
The NAV shall be calculated and announced on each working day.
Hence, for the purposes of valuation and calculating NAV of the Scheme for a particular day, the last available prices of securities on principal stock exchange shall be considered (which would be the previous day’s closing prices). This will enable the disclosure of the NAV of the Scheme before the deadline as provided by SEBI guidelines.
ILLUSTRATION OF NAV: Std. Obs. 43 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) Repurchase/ Resale is at Net Asset Value (NAV) related prices with repurchase/ resale loads as applicable (within limits) as specified under SEBI Regulations 2026, While determining the price of the units, the fund will ensure that the repurchase price is not lower than 97 per cent of the Net Asset Value.
28B. 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, till the date of allotment of mutual fund units to investors, will be borne by AMC or trustee or Sponsor.
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 0.90% of the daily net assets of the scheme shall be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of MOMF.
Particulars % p.a. of daily Net Assets Investment Management and Advisory Fees Upto 0.90% Audit fees/fees and expenses of trustee Custodial fees Registrar & Transfer Agent Fees including cost of providing account statement/IDCW/redemption cheque/warrants Marketing & Selling expense including fees, commission and charges towards distribution of mutual fund scheme **Cost related to investor communications Cost of fund transfer from location to location Cost toward investor Education & Awareness and financial inclusion Brokerage cost pertaining to execution of trade exceeding limit mentioned under Reg 66(9) ### Costs of statutory Advertisements Incentives paid to Market Makers, if any^ Other Expenses (to be specified as per Reg 66 of SEBI MF Regulations) Maximum Base expense ratio (BER) permissible under Upto 0.90% Regulation 66 $Statutory levies (including GST) on all expenses excluding As per prevailing rate brokerage and transaction cost (GST of 18% or any other rate as may be levied from time to time on the Taxable/Invoice/Contra 29ct amount. Additionally, levies such as Stamp Duty, STT etc. as applicable) $Statutory levies (including GST) on brokerage and As per prevailing rate transaction cost (Will be charged on Turnover of securities which will be at prescribed rates.)
The BER shall include: • Investment and Advisory fees (sub-regulation 4 of Regulation 66) • Recurring expenses (sub-regulation 5 of Regulation 66) • Charges/ commission/ fees related to distribution of mutual fund schemes (Sub regulation 6 of Regulation 66) The following expenses are charged to the scheme in terms of Regulation 66(9) and 66(10) of SEBI (MF) Regulations, 2026:
i. ###Schemes may charge expense incurred towards brokerage, for the purpose of execution of trade, over and above the base expense ratio subject to a maximum of 0.06 per cent of trade value in case of cash market transactions and 0.02 per cent of trade value in case of derivatives transactions.
Expense charged towards brokerage, over and above the specified limit, shall not be part of the base expense ratio limit specified in the table given above. ii. Transaction cost means regulatory levies and any other expenses charged by the stock exchanges, clearing corporation, and clearing house, as applicable. Such transaction costs shall not form part of the base expense ratio.
• $All statutory levies will be over and above the base expense ratio limits as defined in regulation 66(7). Statutory levy means levy imposed by state government and central government.
Std.
Obs • **As per para 11.9.1 of SEBI Master Circular on Mutual Funds, the charges applicable for investor . 44 education and awareness initiatives from ETFs/Index Funds shall be 0.01% of daily net assets of the scheme. Further with reference to para 11.6.3 of SEBI Master Circular on Mutual Funds, the additional distribution commission shall be paid from the 2 basis points on daily net assets, mandatorily set aside annually by the AMC towards investor education, awareness, and financial inclusion initiatives, subject to applicable clawback provisions.
• Any expense other than those specified in sub-regulation 66 (4), sub-regulation 66 (5), sub regulation 66(6), sub-regulation 66(9) and sub-regulation 66(10), shall not be charged to the scheme and shall be borne by the AMC or trustee or sponsors.
• No charges other than the base expense ratio, brokerage cost, transaction cost, statutory levy and exit load including levies as may be specified by the SEBI, shall be charged to the investors. • Any expenditure in excess of the base limits specified in these regulations shall be borne by the asset management company or the trustees or sponsors. If any expense of the scheme is borne by asset Std. Obs. 40 management company or by the trustee or sponsors, the same shall be done only after the 30investment and advisory fees charged to the scheme, if any, is fully reversed.
• ^As per clause 4.5.1. (d) of SEBI Master Circular on Mutual Funds, incentive to be paid to Market Makers shall be charged to the ETF scheme but within the maximum permissible limit of TER.
Following 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.
• 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 BER (Base Expense Ratio) 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.
Total Expenses Ratio (Regulation 67 of SEBI Mutual Fund Regulations 2026):
Total Expense Ratio (‘TER’)” means the ratio of total of all expenses charged to the investors of the scheme to the total asset under management of the scheme and includes BER, brokerage cost for execution of trade, transaction cost and statutory levies.
• The Mutual Fund would update the current expense ratios on the website (www.motilaloswalmf.com) atleast three working days prior to the effective date of the change.
Investors can refer to “Base Expense Ratio” section on https://www.motilaloswalmf.com/nav-ter for Total Expense Ratio (BER) details.
Illustration of impact of expense ratio on returns of the Scheme Std. Obs. 45 Particulars Regular Plan Direct Plan Amount (Rs.) Amount Invested at the beginning of the year NA 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 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. • 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.
31D. LOAD STRUCTURE Load is an amount which is paid by the investor to subscribe to the units or to redeem the units from the Scheme.
This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC https://www.motilaloswalmf.com/ or may call at toll free no. 91 8108622222 and +91 22 40548002 or your distributor.
Type of Load Load chargeable (as %age of NAV) Exit Load* 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.
Please Note that:
For any change in load structure AMC will issue an addendum and display it on the website/Investor Service Centers.
The investor is requested to check the prevailing load structure of the Scheme before investing.
Std. Obs. 48 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.
Liquidity window for Investors of ETFs with AMCs:
The 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 32iii. 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.
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 (https://www.motilaloswalmf.com/).Any other measure that the Mutual Fund shall consider necessary 33SECTION II I. INTRODUCTION A. DEFINITIONS/INTERPRETATION All references to “Master Circular” refer to Master Circular for Mutual Funds no. HO/24/13/11(1)2026-IMD- POD-1/I/7602/2026 issued by SEBI dated March 20, 2026 as amended from time to time.
For detailed description please refer https://www.motilaloswalmf.com/downloads/sid-related-documents B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME Motilal Oswal Nifty 10 yr Benchmark G-Sec 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 vide para 7.19 of SEBI Master Circular on Mutual Funds.
C. RISK FACTORS Std. Obs. 8
Standard Risk Factors: • Investment in Mutual Fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. • As the price / value / interest rate of the securities in which the Scheme invests fluctuates, the value of your investment in the Scheme may go up or down depending on various factors and forces affecting the capital market/debt market.
• Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Scheme. • The name of the Scheme does not in any manner indicate either the quality of the Scheme or its future prospects and returns.
• The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 100,000 made by it towards setting up the Fund. • The present Scheme is not a guaranteed or assured return Scheme.
• The NAV of the Scheme can go up or down depending on the factors and forces affecting the securities markets. • Changes in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors in the Scheme.
• Investors in the Scheme are not being offered any guaranteed/indicated returns.
Scheme Specific Risk Factors:
The scheme carries interest rate risk, as G-Sec prices move inversely to yields, impacting NAV. Being tracked to a single 10-year benchmark security, it has concentration risk with no diversification. Reconstitution of the benchmark upon new issuance may alter duration/yield. RBI monetary policy, inflation, fiscal deficit, and government borrowing programme changes can materially affect G-Sec yields and scheme returns.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 34• Market Risk The Scheme’s NAV will react to stock market movements. The Investor may lose money over short or long period due to fluctuation in Scheme’s NAV in response to factors such as performance of companies whose stock comprises the underlying portfolio, economic and political developments, changes in interest rates, inflation and other monetary factors and movement in prices of underlining investments.
• Risk associated with investing in fixed income securities and Money Market Instruments a. Credit risk: Credit risk or default risk refers to the risk which may arise due to default on the part of the issuer of the fixed income security (i.e. will be unable to make timely principal and interest payments on the security).
Because of this risk, debentures are sold at a yield spread above those offered on Treasury securities, which are sovereign obligations and generally considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon the actual changes in the perceived level of credit risk as well as the actual event of default.
b. Counterparty risk: Counterparty refers to the counterparty’s inability to honor its commitments (payment, delivery, repayment, etc.) and to risk of default. This risk relates to the quality of the counterparty to which the scheme has exposures. Losses can occur in particular for the settlement/delivery of financial instruments.
c. Interest Rate risk: This risk is associated with movements in interest rate depends on various factors such as government borrowing, inflation, economic performance etc. The value of investments will appreciate/depreciate if the interest rates fall/rise. However, if the investments are held on till maturity of the investments, the value of the investments will not be subjected to this risk.
d. Reinvestment risk: This risk arises from uncertainty in the rate at which cash flows from the securities may be reinvested. This is because the bond will pay coupons, which will have to be reinvested. The rate at which the coupons will be reinvested will depend upon prevailing market rates at the time the coupons are received.
e. Liquidity or Marketability Risk: This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market.
f. Different types of fixed income securities in which the Scheme would invest carry different levels and types of risk. Accordingly, the Scheme risk may increase or decrease depending upon its investment pattern. e.g.
corporate bonds carry a higher level of risk than Government securities. Further even among corporate bonds, bonds, which are AAA rated, are comparatively less risky than bonds, which are AA rated. g. The Net Asset Value (NAV) of the Scheme, to the extent invested in Debt and Money Market securities, will be affected by changes in the general level of interest rates. The NAV of the Scheme is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 35• Risks associated with investing in Government of India Securities a. 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. b. 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.
• Market Trading Risks a. Absence of Prior Active Market: Although the scheme will be listed on stock exchange, there can be no assurance that an active secondary market will develop or be maintained. b. Lack of Market Liquidity: Trading in the units of the scheme on stock exchange may be halted because of market conditions or for reasons that in view of stock exchange or SEBI, trading in the units of the scheme are not advisable. In addition, trading of the units of the scheme are subject to trading halts caused by extraordinary market volatility and pursuant to stock exchange and SEBI ‘circuit filter’ rules. There can be no assurance that the requirements of stock exchange necessary to maintain the listing of the units of the scheme will continue to be met or will remain unchanged.
c. Units of the scheme may trade at prices other than NAV: The units of the scheme may trade above or below their NAV. The NAV of the scheme will fluctuate with changes in the market value of scheme holdings. The trading prices of the units of the scheme will fluctuate in accordance with changes in their NAV as well as market supply and demand for the units of the scheme. However, given that units of the scheme can be created and redeemed in creation units directly with the fund, it is expected that large discounts or premiums to the NAV of units of the scheme will not sustain due to arbitrage opportunity available.
d. Regulatory Risk: Any changes in trading regulations by stock exchange or SEBI may affect the ability of market maker to arbitrage resulting into wider premium/discount to NAV. ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 36e. Right to Limit Redemptions: The Trustee, in the general interest of the unit holders of the scheme 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 depending on the total “Saleable Underlying Stock” available with the fund.
f. Redemption Risk: Investors may note that even though the Scheme is open-ended Scheme, the Scheme would ordinarily repurchase units in creation unit size. Thus unit holdings less than the creation unit size can only be sold through the secondary market on the exchange.
g. Asset Class Risk: The returns from the types of securities in which the scheme invest may underperform returns of general securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance and under-performance in comparison of securities markets.
h. 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.
i. The units will be issued only in demat form through depositories. The records of the depository are final with respect to the number of units available to the credit of unit holder. Settlement of trades, repurchase of units by the mutual fund depends up on the confirmations to be received from depository (ies) on which the mutual fund has no control.
j. Tracking Error 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 respective scheme, corporate actions, cash balance, changes to the underlying index and regulatory policies which may affect AMC’s ability to achieve close correlation with the underlying index of the scheme. The scheme’s returns may therefore deviate from those of 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 respective scheme. Tracking Error may arise due to the following reasons: - • Expenditure incurred by the fund.
• The holding of a cash position and accrued income prior to distribution of income and • payment of accrued expenses. The fund may not be invested at all times as it may keep a portion of the funds in cash to meet redemptions or for corporate actions.
• Corporate actions such as debenture or warrant conversion, rights, merger, change in constituents etc. • Rounding off of quantity of shares in underlying index. • Disinvestments to meet redemptions, recurring expenses, IDCW payouts etc.
• Execution of large buy / sell orders • Transaction cost (including taxes and insurance premium) and recurring expenses ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 37• Realisation of Unit holders’ funds • Index provider undertakes a periodical review of the scripts that comprise the underlying index and may either drop or include new securities. In such an event, the fund will try to reallocate its portfolio but the available investment/reinvestment opportunity may not permit absolute mirroring immediately.
It will be the endeavor of the fund manager to keep the tracking error as low as possible. Under normal circumstances, such tracking error is not expected to exceed 2% per annum. However, in case of certain corporate actions and market volatility during rebalancing of the portfolio following the rebalancing of the underlying index, etc. or in abnormal market circumstances, the tracking error may exceed the above limits.
There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the Index. • Concentration Risk:
The scheme may have no diversification within its portfolio. This could have implications on the performance of the scheme. The scheme may be more sensitive to economic, business, political or other changes and this may lead to sizeable fluctuation in the Net Asset Value of the scheme.
Motilal Oswal 10 yr G-Sec ETF Fund will restricts its investments only in the Security of the underlying index (Nifty 10 yr Benchmark G-sec Index) which replicates a single security and will therefore be subject to the risks associated with such concentration.
• 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.
For detailed restrictions, please refer to Section II Part D, "Right to Limit Redemptions." • Asset Class Risk The returns from the types of securities in which the Scheme invests may under perform from the various general securities markets or different asset classes. Different types of securities tend to go through cycles of out- performance and under-performance in comparison with the general securities markets.
• 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 Nifty 10 yr Benchmark G-Sec ETF 38• 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 realize 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.
• Risk associated with ETF
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF
397. Though the Scheme is listed on the NSE and BSE, 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.
8. 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.
9. 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 times, in potential losses to the Scheme, and there can be a subsequent decline in the value of the securities held in the Scheme portfolio.
10. Investors should note that even though the Scheme is an open ended Scheme, subscription/redemptions directly with the Fund would be limited to such investors who have the ability to subscribe/redeem the units of the Scheme in specific lot sizes. Generally, these lot sizes are larger as compared to normal funds. Even though this Scheme is open ended due to large lot size, very few investors can directly subscribe and redeem the units of the Scheme. However, investors wishing to subscribe/redeem units in other than specific lot sizes can do so by buying/selling the same on the Stock Exchange unless no quotes are available on the exchange for 3 trading days consecutively.
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 unit 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, IDCW received, 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.
However, the Fund would endeavor to keep the tracking error as low as possible.
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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 40through 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 Control Std. Obs. 9 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. Further, AMC has implemented Bloomberg Portfolio Order Management System as the Front Office System for managing risk. 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 Std. Obs. 9 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 passively managed scheme, it will invest in the prices of securities invested by the Scheme, which securities included in its Underlying Index.
could have a material bearing on the overall returns from the Scheme. The value of the underlying Scheme investments, may be affected generally by factors affecting 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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 41Liquidity risk The Scheme will try to maintain a proper asset-liability The liquidity of the Scheme’s investments is match to ensure redemption payments are made on time inherently restricted by trading volumes in the and not affected by illiquidity of the underlying stocks.
securities in which they invests.
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 and underlying Index on any given day or over any Benchmark. The objectives of the scheme are too given period. closely track the performance of the 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 may be As and when the Scheme trades in the derivatives permitted by SEBI. All derivatives trade will be market there are risk factors and issues concerning done only on the exchange with guaranteed the 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 Market Risk/ Interest Rate Risk The Scheme may invest in money market As with all fixed income securities, changes in instruments having relatively shorter maturity interest rates may affect the Scheme’s Net Asset thereby mitigating the price volatility due to interest Value as the prices of securities generally increase rate changes generally associated with long-term as interest rates decline and generally decrease as securities.
interest rates 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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 42Liquidity or Marketability Risk The Scheme may invest in money market This refers to the ease with which a security can be instruments having relatively shorter maturity.
sold at or near to its valuation yield- to maturity While the liquidity risk for short maturity securities
(YTM). 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 • 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.
• 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. 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.
• 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.
• 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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 43• 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.
• 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.
• Motilal Oswal Asset Management Company Limited (MOAMC) undertakes the following activities other
than that of managing the Schemes of MOMF and has also obtained NOC from SEBI for the same: a. MOAMC is a registered Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993 bearing registration number INP000000670 dated August 21, 2017.
b. 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.
c. MOAMC has incorporated a wholly owned subsidiary in Mauritius which acts as an Investment Manager to the funds based in Mauritius. d. MOAMC has incorporated a wholly owned subsidiary in India which currently undertakes Investment Advisory 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 disclosures are made of source of conflict, potential ‘material risk or damage’ to investor interest and develop parameters for the same.
• 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 21(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: - ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 44i) 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;
ii) 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.
Explanation: For the purpose of this regulation, the term ‘broad based fund’ shall mean the fund which has at least twenty investors and no single investor account for more than twenty five percent of corpus of the fund.
• 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.
• 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”.
• 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.
• Termination of the scheme(s) The Trustees reserve the right to terminate the scheme at any time. Regulation 36 of the SEBI Regulations
provides that any scheme of a mutual fund may be wound up after repaying the amount due to the unitholders:
(a) On the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up; or
(b) If seventy-five percent of the unitholders of a scheme pass a resolution that the scheme be wound up; or
(c) If SEBI so directs in the interest of the unitholders.
(d) 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 38 of the SEBI (mutual Funds) Regulations, 2026 shall apply. ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 45II. INFORMATION ABOUT THE SCHEME A. WHERE WILL THE SCHEME INVEST? The Scheme would invest in securities comprising the Nifty 10 yr Benchmark G-Sec Index in the same proportion
(weightage) as in the Index and track the benchmark index. The Scheme may also invest in money market instruments, in compliance with Regulations to meet liquidity requirements.
Money Market instruments includes Commercial Paper, Commercial Bills, Treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, Certificate of deposit, Bills Rediscounting, Repos, Triparty Repo, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time.
The Scheme, being a G- Sec Scheme replicating a Constant Maturity index, may invest in securities with residual maturity within +/- 10% of maturity range of the index.
A brief narration of Money Market Instruments are as under:
7. Certificate of Deposits (CDs) is a negotiable money market instrument issued by scheduled commercial banks and select all- India Financial Institutions that have been permitted by the RBI to raise short term resources.
8. Commercial Paper (CPs) is an unsecured negotiable money market instrument issued in the form of promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. They are issued at a discount to the face value as may be determined by the issuer. CP is traded in secondary market and can be freely bought and sold before maturity.
9. Treasury Bills (T-Bills) are issued by the Government of India to meet their short term borrowing requirements.
T-Bills are issued for maturities of 91 calendar days, and 364 calendar days. T-bills are issued at a discount to their face value and redeemed at par.
10. Tri-party Repo.
11. Securities created and issued by the Central Governments as may be permitted by RBI, securities guaranteed by the Central Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). Central Government Securities are sovereign debt obligations of the Government of India with zero-risk of default and issued on its behalf by RBI. They form part of Government’s annual borrowing programme and are ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 46used to fund the fiscal deficit along with other short term and long term requirements. Such securities could be fixed rate, fixed interest rate with put/call option, zero coupon bond, floating rate bonds, capital indexed bonds, Fixed Interest security with staggered maturity payment etc.
Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price.
The transaction results in collateralized borrowing or lending of funds. When the seller sells the security with an agreement to repurchase it, it is Repo transaction whereas from the perspective of buyer who buys the security with an agreement to sell it at a later date, it is reverse repo transaction. The scheme can participate in Repo/Reverse Repo in G-Secs and T-Bills.
B. WHAT ARE THE INVESTMENT RESTRICTIONS? The following are the investment restrictions as contained in the Sixth Schedule of the SEBI (Mutual Funds) Regulations, 2026, read with Chapter 13 of SEBI Master Circular on Mutual Funds 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 that a Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by the SEBI, however, the scheme will not invest in derivatives.
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.
The scheme shall not engage in in short selling of securities or carry forward transactions.
2. The Mutual Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights.
3. 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.
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 para 13.19 of ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 47SEBI Master Circular on Mutual Funds.
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. Provided that this clause shall not apply to any fund of funds scheme.
6. Pending deployment of funds of a Scheme in terms of investment objectives of the Scheme, the Mutual Fund may invest the funds of the scheme in short-term deposits of scheduled commercial banks, subject to the following guidelines issued by SEBI and as may be amended from time to time.
Pursuant to para 13.7 of SEBI Master Circular on Mutual Funds, where the cash in the scheme is parked in short term deposits of Scheduled Commercial Banks pending deployment, the scheme shall abide by the
following guidelines: a. “Short Term” for such parking of funds by the Scheme shall be treated as a period not exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. b. The Scheme shall not park more than 15% of net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustees.
c. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. d. The Scheme shall not park funds in short term deposit of a bank which has invested in that Scheme.
Trustees/AMCs shall also ensure that the bank in which a scheme has STD do not invest in the said scheme until the scheme has STD with such bank e. The AMC will not charge any investment management and advisory fees for funds under a Plan parked in short term deposits of scheduled commercial banks.
f. The above provisions will not apply to term deposits placed as margins for trading in cash and derivatives market.
7. For the purpose listed debt instruments shall include listed and to be listed debt instruments. All fresh investments by mutual fund schemes in CPs would be made only in CPs which are listed or to be listed and would be restricted to residual portion of 5%.
8. 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 Sponsors, which is in excess of 25% of the net assets except for investments by equity oriented exchange traded funds and index funds and subject to such conditions as may be specified by the SEBI.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF
489. The Scheme shall not make any investment in any fund of funds scheme.
10. The Mutual Fund may borrow to meet liquidity needs, for the purpose of repurchase, redemption of units or payment of interest or IDCW 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 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 - a. 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.
12. As per para 4.4.6 (a) of SEBI Master circular on Mutual Funds, the duration of the portfolio of the Scheme shall replicates the duration of the underlying index within a maximum permissible deviation of +/- 10%. In line with par 4.4.6 (c) of SEBI Master Circular, the Scheme, replicating a Constant Maturity index, will invest in securities with residual maturity within +/- 10% of maturity range of the index.
13. 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/ Trustees from time to time may alter these investment restrictions in conformity with the SEBI Regulations, so as to permit the Scheme to make its investments in the full spectrum of permitted investments to achieve its investment objective.
C. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the Scheme, in terms of para 1.9 of SEBI Master Circular on Mutual
Funds:
(i) Type of a Scheme: An open ended scheme replicating/tracking Nifty 10 yr Benchmark G-Sec Index. A relatively high interest rate risk and relatively Low credit risk.
(ii) Investment Objective:
o Investment Objective: Please refer to section ‘Investment Objective’. o Investment pattern - Please refer to section ‘Asset Allocation’.
(iii) Terms of Issue: ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 49• 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 22(9)(c)) of the SEBI (MF) Regulations, 2026 and Paragraph 1.9.2 of SEBI Master
Circular for Mutual Funds the Trustees shall ensure that no change in the fundamental attributes 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 (including digital modes such as email/sms etc.) about the proposed change is sent to each Unitholder and details as specified by the Board are appropriately displayed on the website of the AMC; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing NAV 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 About Nifty 10 yr Benchmark G-Sec Index • Index Objective: The Nifty 10 yr Benchmark G-Sec Index is constructed using the price of 10-year bond issued by the Central Government, India. The index seeks to track the performance of the 10 year benchmark security.
• Index service provider: NSE Indices Limited is the index provider of the underlying index. NSE Indices Limited (formerly known as India Index Services & Products Limited - IISL) is a subsidiary of the National Stock Exchange of India Limited. It is setup to provide a variety of indices and index-related services and products for the Indian capital markets.
• Highlights ▪ The index seeks to measure the performance of the 10 year on the run G-Sec ▪ The index is reconstituted upon issuance of new 10 year G-Sec subject to meeting eligibility criteria ▪ The index has a base date of January 03, 2011 and a base value of 1000 Historical values available since September 03, 2001.
▪ The index is calculated and disseminated on real time basis ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 50• Methodology:
❖ The index measures the performance of 10 year on the run G-Sec ❖ G-Sec should not be a special security, floating rate security, inflation linked ❖ security and Sovereign Green Bond (SGrB) ❖ The index is computed using the total return methodology ❖ The bond valuation is sourced from the NSE Data and Analytics Limited (FIMMDA valuations prior to 01st August 2018) ❖ Accrued interest is calculated using 30/360 day count convention ❖ The prices are sourced from the Clearing Corporation of India Ltd. (CCIL) and NSE ❖ G-sec valuations for valuation of the bonds for calculation of real time and end of day index values respectively Reconstitution & Rebalancing – A notice of five working days is given to the market before making change to the index. The prices are sourced from the CCIL and NSE G-sec valuations.
Index Returns as on September 30, 2026:
Annualized Stats returns Annualized Volatility 1 Year 1.76% 3.22% 3 Year 6.39% 2.80% 5 Year 5.05% 3.35% 7 Year 5.23% 3.65% 10 Year 5.51% 4.21% Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF will ensure compliance w.r.t. para 4.4.6 of SEBI Master
Circular on Mutual Funds.
Particular Parameter Total Number of Securities 1 Highest Weight of a Security in Index 100% Total weight of Top 3 Constituents 100% 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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 51Computation of Unit creation for Subscription and Redemption of Units directly with the Fund Each Creation Unit consists of 1,10,000 units of Motilal Oswal Nifty 10 yr Benchmark G-Sec 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 Nifty 10 Year Benchmark G Sec ETF that investors can create / redeem is 1,10,000 units of each security that constitute the Portfolio Deposit will remain constant unless 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 September 30, 2026 for Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF
is as follows:
Security Name Price Weightage Quantity Amount
6.94% GOVT. STOCK 2036 98.29 100.08% 11,200 11,00,848 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:
September 30, Date 2026 NAV 10 Creation Unit 1,10,000 Amount 11,00,000 CU Amount 11,00,848 Accrued Interest 17,489 Cash Component -18,337 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 52E. 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 Regulation 35 of SEBI (Mutual Fund), 2026, 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 Nifty 10 yr Benchmark G-Sec ETF 53Dematerialization of units Dematerialization Std. Obs. 57 The Units of the Scheme will also be available in the Dematerialized
(electronic) mode, if so selected by the Investor in the Application Form. i. The Units of the Growth Option issued under the Scheme, will be distinct from each other and would have different ISINs. .
Units held in Demat Form are freely transferable. ii. The Investor under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL / CDSL and will be required to indicate in the application the DP’s name, DP ID Number and beneficiary account number of the applicant with the Depositary Participant or such details requested in the Application Form / Transaction Form.
iii. For Investors proposing to hold Units in dematerialized mode, applications without relevant details of his / her / its Depository account are liable to be rejected.
If KYC details of the investor including IPV is not updated with DP, the Units will be allotted in non-demat mode subject to compliance with necessary KYC provisions.
Minimum Target amount Rs. 10 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 There is no upper limit on the total amount to be collected in the raised (if any) New Fund Offer Allotment Subject to the receipt of the minimum subscription amount, allotment would be made to all the valid applications of the Std. Obs.60 Unitholders received during the New Fund Offer (NFO) period.
The Fund will allot units and dispatch statement of ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 54accounts/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:
Allotment 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 1/100th of the Benchmark Nifty 10 yr Benchmark G-Sec Index (in INR terms) on the allotment date.
Amount Collected 500 Investible Amount (after 499.98 deducting 0.005% Stamp Duty)(a) Suppose value of Nifty 10 8509.5 yr Benchmark G-Sec Index as on date (b) Allotment Price (1/10)th of 8.5095 the value of Motilal Oswal Nifty 10 yr Benchmark G- Sec 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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 55details 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 regulation 35, The units shall be freely transferrable.
The allotment of units is subject to realization of the payment instrument.
Any application for subscription of units may be rejected if found incomplete by the AMC/Trustee.
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 receipt of the fund. 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 of the Scheme: financial advisor to ascertain whether the scheme is suitable to 1. Resident adult individuals, either singly or jointly (not their risk profile. exceeding three) or on anyone or Survivor basis.
2. Minors through Parents/Lawful Guardian. AMC will follow Std. Obs. 37 uniform process ‘in respect of investments made in the name of a minor through a guardian’ in terms of para 15.13 of SEBI Master Circular on Mutual Funds.
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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF
567. 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 Institutional Investors (FII) registered with SEBI on repatriation basis (subject to RBI approval).
11. Foreign Portfolio Investors registered with SEBI.
12. 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.
13. Army, Air Force, Navy, Para-military funds and other eligible institutions.
14. Scientific and Industrial Research Organizations.
15. Multilateral Funding Agencies or Bodies Corporate incorporated outside India with the permission of Government of India Reserve Bank of India.
16. 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.
17. Provident / Pension / Gratuity / Superannuation and such other retirement and employee benefit and other similar funds as and when permitted to invest.
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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 57transactions shall be allowed till the status of the minor is changed to major.
22. Pursuant to para 15.13 of SEBI Master Circular on Mutual Funds 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 account 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).
Investors are requested to refer SAI for detailed information.
Who cannot invest 1. Persons residing in the Financial Action Task Force (FATF) Non-Compliant Countries and Territories (NCCTs).
2. Pursuant to RBI Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.
3. 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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 58when identified by the AMC / Mutual Fund, which are not in compliance with the terms and conditions prescribed in this regard.
4. 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.
The 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 and other details This section must be read in conjunction with Statement of Additional Information Fund (herewith referred as “SAI”).
Std. Obs. 35 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.
Investors are advised to fill up the details of their bank account numbers on the application form in the space provided. In order to protect the interest of the Unit holders from fraudulent encashment of cheques, SEBI has made it mandatory for investors in mutual funds to state their bank account numbers in their applications. SEBI has also made it mandatory for investors to mention their Permanent Account Number (PAN) transacting in the units of Motilal Oswal Mutual Fund (herewith referred as “MOMF”), irrespective of the amount of transaction.
Please also note that the KYC is mandatory for making investment in mutual funds schemes irrespective of the amount, for details please refer to SAI. The application (both ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 59direct application and application routed through Distributor) should be complete in all respects along with the cheque / pay
order / demand draft / other payment instruction should be submitted at the Investor Service Center, Official Point of Acceptance of Transaction, at the registered and corporate office of the AMC and the office of the Registrar during their Business Hours on their respective Business Day. No outstation cheques or stock invests will be accepted. Currently, the option to invest in the Scheme through payment mode as Cash is not available. The Trustees reserves the right to change/modify above provisions at a later date.
Investors can execute transactions online through the official
website https://www.motilaloswalmf.com/investonline, Please refer to the SAI and Application form for the detailed instructions.
Pursuant to the clause 15.14 of SEBI Master Circular on Mutual Funds, 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.
The applications where neither nomination is provided nor declaration for opting out of nomination is provided, are liable to be rejected.
1. 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
2. For Registrar and Transfer agent details and Collecting Banker details – Please refer point G of Part III (Other details) of
Section II For more details, please refer SAI.
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.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 60Restrictions, if any, on the As the units of the Scheme will be issued in demat form, the units right to freely retain or dispose will be transferred and transmitted in accordance with the provisions of units being offered. of SEBI (Depositories and Participants) Regulations, as may be amended from time to time.
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 This is the time before which your eligible investors.
application (complete in all respects) should reach the official In case of the underneath scenarios, applications received from points 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, averaged over a period of 7 consecutive trading days.
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 registered office of the AMC only submitted? by Market Makers or other eligible investors.
Minimum amount for During NFO and Ongoing Basis: purchase/redemption/switches On Exchange: Investors can buy/sell units of the Scheme in round (mention the provisions for ETFs, lot of 1 unit and in multiples thereof.
as may be applicable, for direct subscription/ redemption with Directly with the Mutual Fund:
AMC. For Large 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.
For Market makers:
The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,10,000 units and in multiples ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 61thereafter.
Accounts Statements • Units issued by the AMC under the scheme shall be credited to the investor’s beneficiary account with a Depository Participant
(DP) of CDSL or NSDL. The AMC will credit the units to the beneficiary account of the unitholder within five business days from the date of receipt of credit of the Cash. With a view to create one record for all financial assets of every individual. In accordance with clause 14.4.3 of SEBI Master Circular dated June 27, 2024 enabled a single consolidated view of all the investments of an investor in Mutual Funds (MF) and securities held in demat form with the Depositories. In accordance with the above, the following shall be applicable for unitholders having a Demat Account.
• Investors having MF investments and holding securities in Demat account shall receive a Single Consolidated Account Statement from the Depository. • Consolidation of account statement shall be done on the basis of PAN. In case of multiple holding, it shall be PAN of the first holder and pattern of holding. The CAS shall be generated on a monthly basis.
• If there is any transaction in any of the Demat accounts of the investor or in any of his mutual fund folios depositories shall send the CAS within ten days from the month end. In case there is no transaction in any of the mutual fund folios and demat accounts then CAS with holding details shall be sent to the investor on half yearly basis. The Consolidated Account statement will be in accordance to clause 14.4.3 of SEBI Master Circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024.
Investors are requested/encouraged to register/update their email id and mobile number of the primary holder with the AMC/RTA through our Designated Investor Service Centres (DISCs) in order to facilitate effective communication
Annual Account Statement:
The Mutual Fund shall provide the Account Statement to the Unitholders who have not transacted during the last six months prior to the date of generation of account statements. The Account Statement shall reflect the latest closing balance and value of the Units prior to the date of generation of the account statement, the ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 62account statements in such cases may be generated and issued along with the Portfolio Statement or Annual Report of the Scheme.
Alternately, soft copy of the account statements shall be mailed to the investors’ e-mail address, instead of physical statement, if so mandated.
Note: If the investor(s) has/have provided his/their email address in the application form or any subsequent communication in any of the folio belonging to the investor(s), Mutual Fund / Asset Management Company reserves the right to use Electronic Mail (email) as a default mode to send various communication which include account statements for transactions done by the investor(s). The investor shall from time to time intimate the Mutual Fund / its Registrar and Transfer Agents about any changes in the email address.
It may be noted that the primary holder’s own email id and mobile no should be provided for speed and ease of communication in a convenient and cost effective manner, and to help prevent fraudulent transactions.
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 15.5 of SEBI Master
Circular for Mutual Funds.
However, in case of exceptional circumstances as mentioned in AMFI letter no. AMFI/ 35P/ MEM-COR/ 74 / 2022-23 dated January 16, 2023, the redemption or repurchase proceeds will be transferred / dispatched to Unitholders within the time frame prescribed for such exceptional circumstances.
A penal interest of 15% p.a. or such other rate as may be prescribed by SEBI from time to time, will be paid in case the payment of redemption proceeds is not made within the stipulated timelines.
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 Std. Obs. 61 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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 63application may be rejected. The Application Form without the Bank account details would be treated as incomplete and rejected.
Notwithstanding any of the above conditions, any application may be accepted or rejected at the sole and absolute discretion of the Trustee.
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 para 15.4 of SEBI Master
Circular for Mutual Funds for the period of such delay Unclaimed Redemption Amount In accordance with para 15.5 of SEBI Master Circular on Mutual Funds, Mutual Funds shall provide the details of investors on their Std. Obs. 53 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.
Further, 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.
Provided that such schemes where the unclaimed redemption amounts are deployed shall be only those Overnight scheme/ Liquid scheme / Money Market Mutual Fund schemes which are placed in A-1 cell (Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of Potential Risk Class matrix as per Para 6.18 of SEBI Master Circular on Mutual Fund. Further, no exit load shall be charged in these plans capped as per TER of direct plan of such scheme or at 50bps whichever is lower.
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 ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 64of 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 minors uniform process ‘in respect of investments made in the name of a minor through a guardian’ in terms of para 15.13 of SEBI Master Std. Obs. 37
Circular on Mutual Funds.
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 mention 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, switches 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 non-financial 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 Nifty 10 yr Benchmark G-Sec ETF 65Role of Authorised Participant / The role of Authorised Participants is to offer liquidity of the units Market Makers of the Scheme on the Stock Exchange where the Units are listed.
Authorised Participants may offer to buy and sell quotes (bid and ask quotes) on the Exchanges such that buy and sell orders get executed in the market subject to price compatibility. Authorised Participants may for the purpose of creating liquidity subscribe or redeem the units of the Scheme directly with the Mutual Fund.
Purchase / Sale of the units of Buying / Selling of units of the Scheme on the Exchange is just like Scheme on the Exchange buying / selling any other normal listed security. If an investor has bought units, an investor has to pay the purchase amount to the broker / subbroker such that the amount paid is realised before the funds pay-in day of the settlement cycle on the exchange. If an investor has sold units, an investor has to deliver the units to the broker / sub-broker before the securities pay-in day of the settlement cycle on the exchange. The units (in the case of units bought) and the funds (in the case of units sold) are paid out to the broker on the payout day of the settlement cycle on the exchange. The trading member would pay the money or units to the investor in accordance with the time prescribed by the stock exchange regulation.
If an investor has bought units, he/she should give standing instructions for ‘Delivery-In’ to his/her DP for accepting units in his/her beneficiary account. An investor should give the details of his/her beneficiary account and the DP-ID of his/her DP to his/her trading member. The trading member will transfer the units directly to his/her beneficiary account on receipt of the same from exchange clearing corporation. An investor who has sold units should instruct his/her Depository Participant (DP) to give ‘Delivery Out’ instructions to transfer the units from his/her beneficiary account to the Pool Account of his/her trading member through whom he/she have sold the units. The details of the pool a/c of his/her trading member to which the units are to be transferred, unit quantity etc.
should be mentioned in the Delivery Out instructions given by him/her to the DP. The instructions should be given well before the prescribed securities pay-in day. SEBI has advised that the Delivery Out instructions should be given at least 24 hours prior to the cut- off time for the prescribed securities pay-in to avoid any rejection of instructions due to data entry errors, network problems, etc.
Acceptance of financial Non-individual unitholders desiring to avail the facility of carrying transactions through email in out financial transactions through email in respect of Motilal Oswal respect of non-individual Mutual Fund schemes shall:
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 66investors a) Submit a copy of the Board resolution or an authority letter on their letter head (signed by competent authority), granting appropriate authority to the designated officials of their entity.
b) The board resolution/authority letter should explicitly consist of:
(i) List of approved authorized officials who are authorized to transact on behalf of non-individual investors along with their designation and email IDs.
(ii) An Undertaking that the instructions for any financial transactions sent by email by the authorized officials shall be binding upon the entity as if it were a written agreement. c) In case the document is submitted electronically with a valid Digital Signature Certificate (DSC) or through Aadhaar based e-signature by the authorized official/s shall be considered as valid and acceptable and shall be binding on the non-individual investor even if the transaction request is not received from the registered email id. of the authorized official/s. However, in such cases, the domain name of the email ID should be from the same organization's official domain name d) In addition to acceptance of financial transaction via email, scanned copy of duly signed transaction form/request letter bearing wet signatures of the authorized signatories of the entity, received from some other official / employee of the non- individual investor may also be accepted, and shall be binding on the non-individual investor provided –
(i) The email is also cc'd (copied) to the registered email ID of the authorized official / signatory of the non-individual unitholder; and
(ii) the domain name of the email ID of the sender of the email is from the same organization's official domain name. e) No change in bank details or addition of bank account of the entity or any non-financial transactions shall be allowed / accepted via email.
f) Request for change in bank details or addition of bank account of the entity shall be submitted by the non-individual investor using the prescribed service request form duly signed by the entity's authorized signatories with wet signature of the designated authorized signatories.
g) Change in the registered email address / contact details of the entity shall be accepted only through a physical letter (including scanned copy thereof) with wet signature of the designated ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 67authorized officials of the entity, duly supported by copy of the board resolutions/authority letter on the entity's letter head.
h) In addition to acceptance of financial transactions via email, scanned copies of signed transaction form /request letters bearing wet signatures of the authorized signatories of the entity, received from the registered MFD of the entity or a third party authorized by the non-individual unitholder may also be
accepted subject to fulfilment of the following requirements:
(i) Authorization letter from the non-individual unitholder authorizing the MFD/person to send the scanned copies of signed transaction form/request letter on behalf the non- individual investor and
(ii) the non-individual unitholder's registered email ID is also cc’d
(copied) in the email sent by the authorized MFD/person sending the scanned copies of the duly signed transaction form/request letter.
Terms and Conditions for acceptance of financial transactions
through email are as below:
1. Investor is aware of all the risks involved in transacting through email mode and that the investor is also aware of the risks involved including those arising out of transmission of electronic mails.
2. Motilal Oswal AMC /RTA shall not be liable in case the transaction sent or purported to be sent by the investor is not received by the Motilal Oswal AMC/ RTA due to any reason and hence not processed.
3. Investor should maintain adequate safeguards / measures to ensure the security of email communication.
4. Investor availing the facility for submitting financial transactions via email shall retain records of such transactions in line with the applicable laws / regulations.
5. Investor should follow appropriate procedure for addition/deletion in the name of authorized signatories of the Investor along with the manner of notification of the same to the Motilal Oswal AMC.
6. Any change in the registered email id/contact details shall be accepted only from the designated officials authorized to notify such changes vide board resolutions/authority letter. Further, such change request shall be submitted through physical request ____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 68letter (or a scanned copy thereof with wet signature of the designated authorized officials) only.
7. No change in /addition to the bank mandate shall be allowed via email. Change in bank details or addition of bank account of the investor shall be permitted only via the prescribed service request form duly signed by the investor’s authorized signatories with wet signature of the designated authorized officials.
8. Appropriate authorization from the non-individual investor to the AMC to accept and act on any email transmission received from non-individual investor including a registered MF distributor/third party authorized by the investor to send a scanned copy of the transaction request on behalf of such non- individual investor.
9. Electronic Time stamping mechanisms and audit trail for email transactions.
10. Any change in the registered email address/ contact details of the entity shall be accepted only through a physical letter (including scan copy thereof) with wet signature of the designated authorized officials of the entity, duly supported by copy of the board resolutions/authority letter on the entity's letter head Further in case the document is executed electronically with a valid DSC or through Aadhaar based e-signatures of the authorized official/s, shall be considered valid, and the same shall be binding on the non-individual investor even if the same is not received from the registered email id of authorized officials. However, the domain name of the email ID through which such email is received should be the same as the non-individual investor's official domain name.
____________________________________________________________________________________________ Draft SID of Motilal Oswal Nifty 10 yr Benchmark G-Sec ETF 69I. OTHER DETAILS A. PERIODIC DISCLOSURES Net Asset Value 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 Std. Obs. 41 & 42 www.amfiindia.com by 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.
NAV of an ETF shall be disclosed on a continuous basis on the BSE and 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 as per Para 9.4.4 of SEBI Master Circular on Mutual Funds for transactions by Authorized Participants / large investors directly with the AMC, intra-day NAV based on the executed price at which the securities representing the underlying index or underlying commodity(ies) are purchased / sold shall be applicable.
Investors can also contact the office of the AMC to obtain the NAV of the Scheme.
Monthly & Annual Disclosure of The fund shall communicate any change in risk-o-meter by way of Risk-o-meter 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 (https://www.motilaloswalmf.com/downloads/regulatory-updates) and on AMFI website within 10 calendar 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 para 6.17 of SEBI Master Circular on Mutual Funds , meter the AMC shall disclose risk-o-meter of the scheme and benchmark in all disclosures including promotional material or that stipulated Std. Obs. 38 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 SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 70are invested as on the date of such disclosure.
https://www.motilaloswalmf.com/downloads/regulatory-updates
Fortnightly Portfolio Disclosures: The Mutual Fund shall disclose portfolio as on the last day of the fortnight for all their schemes on its website (https://www.motilaloswalmf.com/downloads/scheme-portfolio- details) and on the website of AMFI within 5 days from the end of fortnight. In case of unitholders whose e-mail addresses are registered, the Mutual Fund/ AMC shall send via email the fortnightly statement of scheme portfolio within 5 days from the close of each fortnight.
Monthly Disclosures: Portfolio The Mutual Fund / AMC shall disclose portfolio (along with ISIN) This is a list of securities where the in a user friendly & downloadable spreadsheet format, as on the last day of the month for the scheme(s) on its website corpus of the scheme is currently (https://www.motilaloswalmf.com/ ) and on the website of AMFI invested. The market value of these (www.amfiindia.com) within 10 calendar days from the close of investments is also stated in portfolio each month.
disclosures.
AMC shall declare on their website the hosting of the monthly/fortnightly statement of its schemes portfolio on its website
https://www.motilaloswalmf.com/ and on the website of AMFI www.amfiindia.com.
In case of investors whose email addresses are registered with MOMF, the AMC shall send via email both the monthly statement of scheme portfolio within 10 calendar days from the close of each month/half year respectively. Investors may place a specific request through modes such as SMS, telephone, email or written request
(letter) through which a unit holder can submit a request for a physical or electronic copy of the statement of scheme portfolio.
Physical copy of statement of scheme’s portfolio shall be provided without charging any cost, on specific request received from the unitholder.
Scheme Summary Document The AMC has provided on its website (https://www.motilaloswalmf.com/downloads/scheme-summary- Std. Obs. 38 documents) Scheme summary document which is a standalone scheme document for all the Schemes which contains all the details of the Scheme.
Half yearly Disclosures: Financial The Mutual Fund shall within one month from the close of each half Results year, that is on 31st March and on 30th September, host a soft copy of its unaudited financial results on its website (https://www.motilaloswalmf.com/downloads/financials ). The mutual fund shall send a written communication including digital modes such as email/SMS etc. to unitholders about the availability of financial results.
SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 71Annual Report The Mutual Fund / AMC will host the Annual Report of the Schemes on its website (https://www.motilaloswalmf.com/downloads/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.
The scheme wise annual report and abridged summary thereof shall be hosted on the website of MOMF (
https://www.motilaloswalmf.com/downloads/financials ) and on the website of AMFI (www.amfiindia.com).
Product Dashboard In accordance with para 6.8.2 of SEBI Master Circular on Mutual Funds , the AMC has designed and developed the dashboard on their website(Mutual Funds Performance | Top Performing Mutual Funds to Invest in India (https://www.motilaloswalmf.com/) 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.
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 Std. Obs. 39 and the NAV of the ETF/ Index Fund, based on past one year rolling data shall not exceed 2%.
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.
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.
SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 72Disclosure 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 Std. Obs. 39 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.
Disclosure of Debt Index The AMC shall disclose Debt Index Replication Factor (DIRF) of Replication Factor the underlying index by the portfolio along with the Tracking Error and TD on their AMC’s website (https://www.motilaloswalmf.com/) for Debt oriented passive schemes. DIRF shall also be disclosed along with the portfolio disclosure of the debt passive schemes.
B. TRANSPARENCY/NAV DISCLOSURE Std. Obs. 42 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 https://www.motilaloswalmf.com/ and also on AMFI website www.amfiindia.com by 11.00 p.m. on any business day. 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.
Investors can also contact the office of the AMC to obtain the NAV of the Scheme.
The AMC may also calculate intra-day indicative NAV (computed based on snapshot prices of the underlying securities traded and available on NSE) and will be updated during the market hours on its website
https://www.motilaloswalmf.com/ . Intra-day indicative NAV will not have any bearing on the creation or redemption of units directly with the Fund.
In addition to above, the indicative NAV (iNAV) will be updated on AMC’s website during market hours as per Clause no. 4.5.9 of SEBI Master circular dated March 20, 2026. The AMC may also calculate intra-day indicative NAV (computed based on snapshot prices of the underlying securities traded and available on the stock exchanges) and will be updated during the market hours on its website
https://www.motilaloswalmf.com/ Intra-day indicative NAV will not have any bearing on the creation or redemption of units directly with the Fund. iNAV of an ETF shall be disclosed on a continuous basis on the BSE and NSE, where the units of these ETFs are proposed to be listed and traded. The iNAV shall be disclosed at least four times a day i.e.
opening and closing iNAV and at least two times during the intervening period with minimum time lag of 90 minutes between the two disclosures C. TRANSACTION CHARGES AND STAMP DUTY
Transaction charges: In line with the provisions of SEBI Circular No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2025/115 dated August 08, 2025, transaction charges paid to Mutual Fund distributors has been discontinued.
Stamp Duty – SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 73Pursuant 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 para 11.1 of SEBI Master Circular on Mutual Funds, a stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions. 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.
D. ASSOCIATE TRANSACTIONS- Please refer to Statement of Additional Information (SAI) E. TAXATION-
For details on taxation please refer to the para 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 2026-27:
Nature of Income Holding period STCG Tax LTCG Tax (To qualify for LTCG) Redeemed anytime during FY 2025-26 >24 months Slab rate 12.50% Investment after 1stApril, 2023 - Not Applicable Slab rate Slab rate Redeemed any time during FY 2025-26 *subject to grandfathering para Capital Gains tax rates are excluding Surcharge & education cess.
For details on taxation, please refer to the para 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 impli cations, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the spec ific 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) SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 74Registrar 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 Std. Obs. 49 and 50
Details of pending litigations are as follows:
Link for Brief on litigation cases:
https://www.motilaloswalmf.com/downloads/sid-related-documents Notwithstanding anything contained in the Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 2026 and the guidelines there under shall be applicable.
SID of Motilal Oswal Nifty 10 YR Benchmark G Sec ETF 75