Motilal Oswal Nifty MNC ETF

SCHEME INFORMATION DOCUMENT Name of Mutual Fund Motilal Oswal Mutual Fund (MOMF) Name of Asset Management Company Motilal Oswal Asset Management Company Limited (MOAMC) Address of AMC Registered Office: 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai-400025 Website of AMC www.motilaloswalmf.com Name of Trustee Company Motilal Oswal Trustee Company Limited (MOTC) Address of Trustee Company Registered Office: 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai-400025 Name of the Scheme Motilal Oswal Nifty MNC ETF (An open-ended scheme replicating/tracking the Nifty MNC Total Return Index) Category of Scheme Exchange Traded Fund (Other ETFs) *Equity/ Debt/ Hybrid ETF/Gold or Silver ETF/FoFs (single domestic or overseas index). *In case of Hybrid funds, indicate the sub category (Balanced/ Equity oriented/ debt oriented) Scheme Code: (shall be added later on) Scrip Code (Scrip Code for NSE will be added after listing of the units) NFO open date: xxxx NFO close date: xxxx Offer of Units of Rs. 10 each, issued at a premium approximately equal to the difference between face value and Allotment Price during the New Fund Offer and at NAV based prices on an ongoing basis. Investment objective - Scheme Risk-o-meter Benchmark Risk-o- meter (as applicable) The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by Nifty MNC Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objectives of the scheme will be achieved. Draft SID of Motilal Oswal Nifty MNC ETF 1Investors are advised to refer to the Statement of Additional Information (SAI) for details of the Motilal Oswal Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and other general information on www.motilaloswalmf.com. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI. 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. This Scheme Information Document is dated September 16, 2025. Stock Exchange Disclaimer Clause: As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/5883 dated August 06, 2025 permission to the Mutual Fund to use the Exchange's name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund's units are proposed to be listed subject to, the Mutual Fund fulfilling various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund's units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund. Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever." MOMF has obtain all other necessary statutory approvals of the concerned regulatory authorities for the offer. The Exchange is also pleased to grant it’s in principle approval of the MOMF listing application seeking permission for the units of Motilal Oswal Nifty MNC ETF to be dealt in on the Exchange subject to MOMF completing post-offer requirements and complying with the necessary statutory, legal & listing formalities. The validity of the letter is coterminous with the validity of SEBI approval. Draft SID of Motilal Oswal Nifty MNC ETF 2HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Benchmark (TRI) The performance of the Scheme will be benchmarked to Nifty MNC Total Return Index. As the Scheme is an Exchange Traded Fund (ETF) Scheme and would primarily invest in securities which are constituents of Nifty MNC Index, the said index is an appropriate benchmark for the Scheme. Total Return variant of the index (TRI) will be used for performance comparison. II. Plans and Options The Scheme does not offer any Plans/Options for investment Plans/ Options and sub options under the Scheme III. Load Structure Exit Load is an amount which is paid by the investor to redeem the units from the Scheme. For the current applicable structure, please refer to the website of the AMC www.motilaloswalmf.com or may call at toll free no. 91 8108622222 and +91 2240548002 or your distributor. 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. The AMC shall ensure the repurchase price will not be lower than 95% of the Applicable NAV. Please Note that the investor is requested to check the prevailing load structure of the Scheme before investing. IV. Minimum Application During NFO: Rs. 500/- and in multiples of Re. 1/- thereafter. Amount/switch in OR Alternative to launch of NFO for ETFs The AMC may contribute the initial fund for unit creation. Subsequently, the AMC can transfer the units of ETF to Market Makers or other investors, subject to compliance with all applicable provisions for launch of ETF vide clause 6.12.2.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June Draft SID of Motilal Oswal Nifty MNC ETF 327, 2024. Ongoing Basis: On Exchange: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till August 31, 2025 – a. Schemes managed by Employee Provident Fund Organisation, India b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,25,000 units and in multiples thereafter. Switches – Not applicable V. Minimum Additional Ongoing Basis: Purchase Amount On Exchange: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof. Directly with the Mutual Fund: For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till August 31, 2025 – a. Schemes managed by Employee Provident Fund Organisation, India b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. For Market makers: The number of units of the Scheme that Market Makers/authorized participant can subscribe is 1,25,000 units and in multiples thereafter. Draft SID of Motilal Oswal Nifty MNC ETF 4VI. Minimum Redemption/ On the Exchange: As the Scheme is listed on the exchange, the switch out amount investor can sell units on an ongoing basis on the NSE at the traded prices. The units are redeemed in round lots of 1 unit and in multiples thereof. Directly with the Mutual Fund: For Market makers: All direct redemption transaction by Market Makers / Authorised Participants and eligible investors shall be at intra-day NAV based on the actual execution price of the underlying portfolio. The number of units of the Scheme that authorized participant can redeem is 1,25,000 units and in multiples thereafter. For Eligible investors*: Direct transaction with AMC pertaining to subscription / redemption by any investor other than Authorized Participants / Market Makers shall be in multiple of unit creation size and the execution value of such transaction should be more than Rs. 25 Crs. *the provisions relating to Eligible investors will not be applicable for the below mentioned investors till August 31, 2025 – a. Schemes managed by Employee Provident Fund Organization, India. b. Recognized Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961. All direct transaction by Market Makers and eligible investors shall be at intra-day NAV based on the actual execution price of the underlying portfolio. The following provision of relevant circulars shall not be applicable: The requirement of “cut-off” timing for NAV applicability as 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. 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’ Draft SID of Motilal Oswal Nifty MNC ETF 5size 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 VII. Tracking Error The tracking error i.e. the annualized standard deviation of the difference in daily returns between the underlying index or goods and the NAV of the ETF/ Index Fund, based on past one year rolling data shall not exceed 2%. 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. Regular Plan Direct Plan The Scheme being ETF, the same is not applicable. VIII. Tracking Difference Tracking difference i.e. the annualized difference of daily returns between the index or goods and the NAV of the Scheme will be disclosed on the website of the AMC and AMFI, on a monthly basis, for tenures 1 year, 3 years, 5 years, 10 years and since the date of allotment of units. Regular Plan Direct Plan The Scheme being ETF, the same is not applicable. IX. Computation Of NAV The Net Asset Value (NAV) of the units under the Scheme shall be calculated as follows: NAV (Rs.) = Market or Fair Value of Scheme’s investments + Receivables + Accrued Income + Other Assets - Accrued Expenses- Payables- Other Liabilities ______________________________________________________ No. of Units outstanding under Scheme on the Valuation Day Draft SID of Motilal Oswal Nifty MNC ETF 6The NAV will be calculated up to four decimals. Detailed Disclosure on computation of NAV is provided on – https://www.motilaloswalmf.com/download/sid-related-documents X. Asset Allocation This scheme tracks Nifty MNC Index. The asset allocation pattern of the Scheme would be as follows: Indicative Allocations (% of total assets) Instruments Minimum Maximum Constituents of Nifty MNC Index 95% 100% Debt and money market instruments, cash and cash 0% 5% equivalents Money Market Instruments includes Commercial papers, Commercial bills, Treasury bills, TREPS, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, Bills Rediscounting, usance bills, and any other like instruments as specified by the Reserve Bank of India(RBI)/ Securities and Exchange Board of India (SEBI) from time to time. Pursuant to clause 12.24 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, the cumulative gross exposure through Constituents of Nifty MNC Index and Debt and money market instruments, cash and cash equivalents, derivative positions, other permitted securities/assets and such other securities/assets as may be permitted by the Board from time to time will not exceed 100 % of the net assets of the scheme. The Scheme, will hold all the securities that comprise of underline Index in the same proportion as the index subject to tracking error. Expectation is that, over a period of time, the tracking error of the Scheme relative to the performance of the Underlying Index will be relatively low. The Investment Manager would monitor the tracking error of the Scheme on an ongoing basis. 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. Draft SID of Motilal Oswal Nifty MNC ETF 7Cash and cash equivalents as per SEBI letter no. SEBI/HO/IMD- II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021 which includes T-bills, Government Securities and Repo on Government Securities having residual maturity of less than 91 Days, shall not be considered for the purpose of calculating gross exposure limit. However, at all times the portfolio will adhere to the overall investment objectives of the Schemes. Indicative Table: Sr. Type of Percentage of Circular No. Instrument exposure references* 1. Securities  Not more than 20% of Subject to the Lending/ Stock the net assets of the SEBI (MF) Lending Scheme can generally Regulations and be deployed in Stock in accordance Lending. with Securities Lending  Not more than 5% of Scheme, 1997, the net assets of the SEBI vide Scheme can generally clause 12.11 of be deployed in Stock SEBI Master Lending to any single Circular No. counter party (as may SEBI/HO/IMD/ be applicable). IMD-PoD- 1/P/CIR/2024/9 0 dated June 27, 2024, as may be amended from time to time, the Scheme intends to engage in Stock Lending. 2. Equity The Scheme may take In accordance Derivatives for exposure to equity with clause hedging derivatives of the 12.25 of SEBI purposes index itself or its Master Circular constituent stocks may No. SEBI/ HO/ be undertaken when IMD/ IMD- equity shares are PoD-1/ P/ CIR/ unavailable, 2024/ 90 dated insufficient or for June 27, 2024. rebalancing in case of corporate actions for a Draft SID of Motilal Oswal Nifty MNC ETF 8temporary period. Other than for above purposes, the Scheme will not invest in Equity Derivatives. These investments would be for a short period of time i.e. 7 days. Exposure towards Equity Derivatives instruments shall not exceed 20% of the net assets of the Scheme. If the exposure falls outside the above mentioned asset allocation pattern, the portfolio to be rebalanced by AMC within 7 days from the date of said deviation. The Fund shall not write options or purchase instruments with embedded written options. When constituent’s securities of underlying Index are available again, derivative positions in these securities would be unwound. 3. Securitized  The scheme will not - Debt make any investment in Securitized Debt. 4. Overseas  The scheme shall have - Securities no Overseas Securities/ ADR & GDRs. 5. REITS/ InVITS The Scheme shall not - invest in REITS/ InVITS. 6. AT1 and AT 2 The Scheme shall not - bonds. invest in AT1 and AT2 Draft SID of Motilal Oswal Nifty MNC ETF 9bonds. 7. Short selling  The scheme will not - invest in Short selling. 8. Repo i n The Scheme shall not - corporate debt invest in repo in and corporate corporate debt and reverse repo corporate reverse repo. 9. Unrated Deb t The Scheme shall not - instrument. invest in unrated debt instrument. 10. Credit Defau lt The Scheme shall not - Swaps (CDS) invest in Credit Default Swaps (CDS). 11. Structured  The Scheme will not - Obligations / invest in debt Credit instruments having Enhancements. Structured Obligations / Credit Enhancements. 12. Schemes  The Scheme may also Clause 4 of the managed by invest in other Seventh the AMC schemes managed by Schedule of the the AMC or in the SEBI (Mutual schemes of any other Funds) Mutual Fund not more Regulations, than 5% of the Net 1996 Asset Value of the Mutual Fund, provided it is in conformity with the investment objectives of the Scheme. Rebalancing due to Short term defensive consideration: Subject to the Regulations, the asset allocation pattern indicated above for the Scheme may change from time to time, keeping in view applicable regulations and political and economic factors. In the event that the asset allocation of the Scheme should deviate from the ranges as noted in the asset allocation table above, then the portfolio of the Scheme will be rebalanced by the Fund Manager to the position indicated in the asset allocation table above. Such changes in the asset allocation will be for short term and defensive considerations as per clause 1.14.1.2 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024. Draft SID of Motilal Oswal Nifty MNC ETF 10In case of deviation, if any, from the asset allocation pattern, the AMC shall rebalance the portfolio within a period of 7 calendar days in accordance with Clause 3.5.3.11 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024. Portfolio Rebalancing due to Passive Breach: In accordance with clause 3.6.7 of SEBI Master Circular No. SEBI/ HO/ IMD/ IMD-PoD-1/ P/ CIR/ 2024/ 90 dated June 27, 2024, change in constituents of the index due to periodic review, the portfolio of ETF shall be rebalanced within 7 calendar days. Any transactions undertaken in the scheme portfolio of ETF in order to meet the redemption and subscription obligations shall be done while ensuring that post such transactions replication of the portfolio with the index is maintained at all points of time. Additionally, in the event of involuntary corporate action, the scheme shall dispose the security not forming part of the underlying index within 7 calendar days from the date of allotment/ listing. Timelines for deployment of funds collected in NFO – In line with SEBI circular no. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2025/23 dated February 27, 2025, funds collected in new fund offer shall be deployed as per following manner: 1. The AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. 2. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. 3. The Investment Committee may extend the timeline by 30 business days, while also making recommendations on how to ensure deployment within 30 business days going forward and monitoring the same. The Investment Committee shall examine the root cause for delay in deployment before granting approval for part or full extension. The Investment Committee shall not ordinarily give part or full extension where the assets for any scheme are liquid and readily available. 4. In case the funds are not deployed as per the asset allocation mentioned in the SID as per the aforesaid mandated plus extended timelines, AMC shall: i. not be permitted to receive fresh flows in the same scheme till the time the funds are deployed as per the asset allocation mentioned in the SID. ii. not be permitted to levy exit load, if any, on the investors exiting such scheme(s) after 60 business days of not complying with the asset allocation of the scheme. Draft SID of Motilal Oswal Nifty MNC ETF 11iii. 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. For details, please refer Annexure 1. XI. Fund manager details Mr. Swapnil Mayekar and Mr. Dishant Mehta will be the designated Fund Managers for the Scheme. Mr. Rakesh Shetty will be the Fund Manager for debt securities of the Scheme. Sr. No. Name of the Fund Managing Total Manager Since Experience 1 Mr. Swapnil This is a new Over 20 years Mayekar scheme of experience 2 Mr. Dishant Mehta This is a new Over 14 years scheme of experience 3 Mr. Rakesh Shetty This is a new Over 14 years scheme of experience XII. Annual Scheme The AMC has estimated that upto 1% daily net assets of the scheme Recurring Expenses will be charged to the scheme as expenses. For detailed disclosure, kindly refer - https://www.motilaloswalmf.com/download/sid-related-documents XIII. Transaction charges and The AMC/Mutual Fund shall deduct the Transaction Charges on stamp duty purchase / subscription received from first time mutual fund investors and investors other than first time mutual fund investors through the distributor or through the stock exchange platforms viz. BSE Star MF/ NSE NMF II platforms (who have specifically opted- in to receive the transaction charges) as under: i. For existing investor in a Mutual Fund: Rs.100/- per subscription of Rs. 10,000/- and above; ii. For first time investor in Mutual Funds: Rs.150/- per subscription of Rs. 10,000/- and above. However, there will be no transaction charge on: i. Subscription of less than Rs. 10,000/-; or ii. Transactions other than purchases/subscriptions relating to new inflows such as STP/SWP/DTP, etc.; or iii. Direct subscription (subscription not routed through distributor); or iv. Subscription routed through distributor who has chosen to ‘Opt- out’ of charging of transaction charge. Draft SID of Motilal Oswal Nifty MNC ETF 12The transaction charge as mentioned above will be deducted by AMC from subscription amount of the Unitholder and paid to distributor and the balance shall be invested in the Scheme. The distributors shall also have the option to either opt in or opt out of levying transaction charge based on type of the product. Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019 and Clause 10.1 of SEBI Master Circular dated June 27, 2024, a stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions, with effect from July 01, 2020. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase/ switch-in transactions to the unitholders would be reduced to that extent. Details to be provided in SAI. XIV. Information available Investors can refer the link http://www.motilaloswalmf.com for through weblink below mentioned points:  Liquidity/listing details - https://www.motilaloswalmf.com/download/sid-related- documents  NAV disclosure - https://www.motilaloswalmf.com/download/sid-related- documents  Applicable timelines for dispatch of redemption proceeds etc. - https://www.motilaloswalmf.com/download/sid-related-documents  Breakup of Annual Scheme Recurring expenses - https://www.motilaloswalmf.com/download/sid-related- documents  Definitions - https://www.motilaloswalmf.com/CMS/assets/uploads/Document s/ae50c-definitions-etf.pdf  Applicable risk factors - https://www.motilaloswalmf.com/download/sid-related- documents  Detailed disclosures regarding the index, index eligibility criteria, methodology, index service provider, index constituents, impact cost of the constituents/ underlying fund in case of fund of funds – Refer Point no. XXII “Index methodology/ Details of underlying fund in case of Fund of Funds” in this document.  List of official points of acceptance - https://www.motilaloswalmf.com/contact-us Draft SID of Motilal Oswal Nifty MNC ETF 13 Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations – https://www.motilaloswalmf.com/CMS/assets/uploads/Docume nts/4151e-data-pertaining-to-penalties-pending-litigations.pdf  Investor services - https://www.motilaloswalmf.com/download/sid-related- documents  Portfolio Disclosure - https://www.motilaloswalmf.com/download/sid-related- documents  Detailed comparative table of the existing schemes of AMC - https://www.motilaloswalmf.com/download/sid-related-documents  Scheme performance - Refer Point no. XXIII “Scheme Performance” in this document.  Periodic Disclosures - https://www.motilaloswalmf.com/download/sid-related- documents  Any disclosure in terms of Consolidated Checklist on Standard Observations - https://www.motilaloswalmf.com/download/sid- related-documents  Scheme specific disclosures (as per the prescribed format) – Risk associated with MNC Sector The scheme is subject to risks associated with multinational companies, including sector concentration, limited financial services exposure, and influence from parent companies. It may also face currency and global economic risks, liquidity concerns, and performance variability during growth cycles. Adverse developments in constituent companies or the sector could impact the scheme's performance.. For further details, please refer https://www.motilaloswalmf.com/download/sid-related- documents  Scheme Factsheet - https://www.motilaloswalmf.com/download/factsheets XV. How to Apply Investors should mandatorily use the Application Forms, Transactions Request, included in the KIM and other standard forms available at the Investor Service Centers/ www.motilaloswalmf.com, for any financial/non-financial transactions. Any transactions received in any non-standard forms are liable to be rejected. Details regarding availability of application form from either the Investor Service Centers (ISCs)/Official Points of Acceptance (OPAs) of AMC or may be downloaded from the website of AMC should be specified. Please refer to the SAI and Application form for the instructions. Draft SID of Motilal Oswal Nifty MNC ETF 14Pursuant to the clause 17.16 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Investors subscribing to units of the Scheme are compulsorily required to provide: a. Nomination; or b. A declaration form for opting out of nomination. Pursuant to SEBI Circular vide SEBI/HO/IMD/IMD-I POD1/P/CIR/2024/29 dated April 30, 2024 the nomination for mutual funds shall be exempted for jointly held folios. The applications where neither nomination is provided nor declaration for opting out of nomination is provided, are liable to be rejected. XVI. Where can applications The application forms for purchase/redemption of units directly with for subscription/ the Fund can be submitted at the Designated Collection Center redemption/ switches be (DCC)/ Investor Service Center (ISC) of Motilal Oswal Mutual Fund submitted as mentioned in the SID and also at DCC and ISC of our Registrar and Transfer Agent (RTA), KFin Technologies Limited. The details of RTA’s DCC and ISC are available at the link https://www.kfintech.com/contact-us/. it is mandatory to mention their bank account numbers in their applications/requests for redemption. Investors can also subscribe to the Units of the Scheme through MFSS and/or NMF II facility of NSE and BSE StAR MF facility of BSE. In addition to subscribing Units through submission of application in physical, investor / unit holder can also subscribe to the Units of the Scheme through RTA’s website i.e. www.kfintech.com. The facility to transact in the Scheme is also available through mobile application of Kfin i.e. ‘KFINTRACK’. Switches – Not applicable For detailed disclosure, kindly refer SAI. XVII. Specific attribute of the Not Applicable. scheme (such as lock in/ duration in case of target maturity scheme/close ended schemes etc.) (as applicable) Draft SID of Motilal Oswal Nifty MNC ETF 15XVIII. Special product/facility The scheme does not offer any special products except ASBA. available during the NFO and on ongoing basis The Mutual Fund will offer ASBA facility during the NFO of the Scheme. ASBA is an application containing authorization given by the Investor to block the application money in his specified bank account towards the subscription of the units offered during the NFO of Scheme. If an Investor is applying through ASBA facility, the application money towards the subscription of units shall be NFO SID of Motilal Oswal Nifty MNC 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. XIX. Segregated portfolio/ side SEBI vide clause 4.4.3.5 of SEBI Master Circular No. pocketing disclosure SEBI/HO/IMD/IMD-PoD1/P/CIR/2024/90 dated June 27, 2024, has advised that portfolios by mutual fund schemes investing in debt and money market instruments should have provision in the concerned SID for creating portfolio segregation. Segregated Portfolio: The portfolio comprising of debt and money market instruments, which might be affected by a credit event and shall also include the unrated debt or money market instruments affected by actual default. The AMC / Trustee shall decide on creation of segregated portfolio of the Scheme in case of a credit event/actual default at issuer level, subject to SEBI Regulations and other prevailing guidelines if any. Accordingly, Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer. The Security comprised of segregated portfolio may not realise any value. Further, listing of units of segregated portfolio in recognized stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. For further details, kindly refer SAI. Draft SID of Motilal Oswal Nifty MNC ETF 16XX. Stock lending Not more than 20% of the net assets of the Scheme can generally be deployed in Stock Lending. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock Lending to any single counter party (as may be applicable). Subject to the SEBI (MF) Regulations and in accordance with Securities Lending Scheme, 1997, SEBI vide clause 12.11 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, as may be amended from time to time, the Scheme intends to engage in Stock Lending. For Details, kindly refer SAI. XXI Creation unit size  Each Creation Unit consists of 1,25,000units of Motilal Oswal Nifty MNC 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 MNC ETF that investors can create / redeem is 1,25,,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 June 30, 2025 for Motilal Oswal Nifty MNC ETF is as follows: Weighta Quanti Security Name Price Amount ge ty Hindustan 2,295 9.92% 156 3,57,958 Unilever Ltd. Maruti Suzuki 12,400 9.56% 28 3,47,200 India Ltd. Nestle India Ltd. 2,465 9.16% 134 3,30,350 Vedanta Ltd. 461 8.10% 636 2,93,101 Britannia 5,851 7.15% 44 2,57,444 Industries Ltd. Cummins India 3,399 4.76% 51 1,73,369 Ltd. United Spirits 1,428 4.37% 111 1,58,519 Ltd. Ambuja Cements 577 3.92% 245 1,41,475 Ltd. Ashok Leyland 251 3.72% 536 1,34,488 Draft SID of Motilal Oswal Nifty MNC ETF 17Ltd. Abb India Ltd. 6,081 3.30% 20 1,21,610 Colgate Palmolive (India) 2,407 3.29% 49 1,17,948 Ltd. Hyundai Motor 2,220 3.28% 53 1,17,644 India Ltd. Siemens Ltd. 3,252 2.98% 33 1,07,300 Bosch Ltd. 32,680 2.94% 3 98,040 Hitachi Energy 20,007 2.64% 5 1,00,035 India Ltd. Oracle Financial Services 8,986 2.21% 9 80,874 Software Ltd. Abbott India Ltd. 35,670 1.93% 2 71,340 Schaeffler India 4,047 1.69% 15 60,710 Ltd. Crisil Ltd. 6,048 1.53% 9 54,432 Gland Pharma 1,834 1.51% 30 55,008 Ltd. United Breweries 1,951 1.46% 27 52,680 Ltd. Linde India Ltd. 6,656 1.45% 8 53,244 J.B. Chemicals & Pharmaceuticals 1,679 1.41% 30 50,379 Ltd. Timken India 3,498 1.30% 13 45,478 Ltd. Cohance 968 1.28% 48 46,459 Lifesciences Ltd. Skf India Ltd. 4,816 1.16% 9 43,342 Escorts Kubota 3,335 1.15% 12 40,015 Ltd. Castrol India Ltd. 222 1.11% 181 40,133 Honeywell Automation India 39,355 0.90% 1 39,355 Ltd. 3m India Ltd. 28,500 0.83% 1 28,500 The Value of Portfolio Deposit and Cash Component would vary from time to time and would be declared by the Fund on a daily basis. The cash component is arrived in the following manner: Date 30-June-25 Index Value 28,938 Draft SID of Motilal Oswal Nifty MNC ETF 18Tracking Ratio 1,000 NAV 28.9377 Creation Unit 1,25,000 Amount 36,17,213 CU Amount 36,18,429 Cash Component 1,216.74 The above is just an example to illustrate the calculation of cash component. Cash Component will vary depending upon the actual charges incurred. Please note: 1. Transaction charges like brokerage, depositary charges etc. are payable by the investor on per creation. 2. request and will be as determined by the AMC at the time of transaction. 3. Cash component is an indicative amount and will be collected/paid as applicable on the date of purchase/redemption. It will vary depending upon the actual charges incurred and other incidental charges for creating units. 4. For accrued interest calculation of dated Government securities, the day count convention of 30/360 is followed. XXII Index methodology/ Index: Nifty MNC Total Return Index Details of underlying fund in case of Fund of  Disclosure regarding the Index - The Nifty MNC Index is Funds designed to reflect the behavior and performance of companies in which the foreign promoter shareholding is over 50%.  Index Eligibility Criteria – Constituents of the Nifty 500 index  Security Selection – Companies in which the foreign promoter shareholding is over 50%.  Weighting – Based on Free-Float Market cap  Stocks – Maximum of 30 stocks can be included in the Index  Capping – Single stock cap of 10%  Reconstitution & Rebalancing – Reconstitution on a Semi- Annual basis in March and September  Principles of incentive structure for market makers (for ETFs) - The principles of incentive structure for market makers will be in line with the agreement with authorized participants.  Index Service Provider - 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. Draft SID of Motilal Oswal Nifty MNC ETF 19For detailed Index Methodology refer link: https://www.niftyindices.com/indices/equity/thematicindices/nifty- mnc Index Methodology (as on June 30, 2025): Sr. Impact Security Name Weightage No. Cost 1 Hindustan Unilever Ltd. 9.92% 0.02 2 Maruti Suzuki India Ltd. 9.56% 0.02 3 Nestle India Ltd. 9.16% 0.03 4 Vedanta Ltd. 8.10% 0.02 5 Britannia Industries Ltd. 7.15% 0.02 6 Cummins India Ltd. 4.76% 0.03 7 United Spirits Ltd. 4.37% 0.03 8 Ambuja Cements Ltd. 3.92% 0.03 9 Ashok Leyland Ltd. 3.72% 0.02 10 Abb India Ltd. 3.30% 0.02 Colgate Palmolive (India) 11 3.29% 0.03 Ltd. 12 Hyundai Motor India Ltd. 3.28% 0.03 13 Siemens Ltd. 2.98% 0.04 14 Bosch Ltd. 2.94% 0.03 15 Hitachi Energy India Ltd. 2.64% 0.08 Oracle Financial Services 16 2.21% 0.04 Software Ltd. 17 Abbott India Ltd. 1.93% 0.06 18 Schaeffler India Ltd. 1.69% 0.05 19 Crisil Ltd. 1.53% 0.05 20 Gland Pharma Ltd. 1.51% 0.05 21 United Breweries Ltd. 1.46% 0.05 22 Linde India Ltd. 1.45% 0.05 J.B. Chemicals & 23 1.41% 0.05 Pharmaceuticals Ltd. 24 Timken India Ltd. 1.30% 0.06 25 Cohance Lifesciences Ltd. 1.28% 0.08 26 Skf India Ltd. 1.16% 0.05 27 Escorts Kubota Ltd. 1.15% 0.04 28 Castrol India Ltd. 1.11% 0.04 Honeywell Automation India 29 0.90% 0.06 Ltd. 30 3m India Ltd. 0.83% 0.06 Draft SID of Motilal Oswal Nifty MNC ETF 20Index Performance (as of June 30, 2025): Annualized Stats Annualized returns Volatility 1 Year -3.46% 14.35% 3 Year 19.26% 12.60% 5 Year 18.42% 13.32% 7 Year 12.04% 16.21% 10 Year 12.77% 15.60% Portfolio Concentration Norms: In line with clause 3.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, specifies following portfolio concentration norms to be adopted by index fund: a) The index shall have a minimum of 10 stocks as its constituents. b) For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index. For other than sectoral/ thematic indices, no single stock shall have more than 25% weight in the index c) The weightage of the top three constituents of the index, cumulatively shall not be more than 65% of the Index. d) The individual constituent of the index shall have a trading frequency greater than or equal to 80% and an average impact cost of 1% or less over previous six months. Following are the details of the underlying Index constituents in compliance with the above regulatory requirements: Parameter Total Number of Securities 30 Highest Weight of a Security in 9.92% Index Total weight of Top 3 28.64% Constituents Minimum Frequency of >=90% Trading 6 Months 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. XXIII Scheme performance This scheme is a new scheme and does not have any performance track record. Draft SID of Motilal Oswal Nifty MNC ETF 21XXIV Disclosure w.r.t The Scheme is a new scheme and hence the same is not applicable. investments by key personnel and AMC directors including regulatory provisions XXV Investment Restrictions The following are the investment restrictions as contained in the Seventh Schedule and amendments thereof to SEBI (MF) Regulations which are applicable to the Scheme at the time of making investments: 1. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided further that the Mutual Fund may engage in securities lending and borrowing specified by the Board. Provided further that a Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by the SEBI: Provided further that sale of Government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. 2. The Mutual Fund shall get the securities purchased or transferred in the name of the Mutual Fund on account of the concerned scheme, wherever investments are intended to be of long-term nature. 3. The Mutual Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights. For the purpose of determining the above limit, a combination of positions of the underlying securities and stock derivatives will be considered. 4. Transfers of investments from one scheme to another scheme in the same Mutual Fund shall be allowed only if, a) such transfers are done at the prevailing market price for quoted instruments on spot basis. [Explanation - “Spot basis” shall have same meaning as specified by stock exchange for spot transactions;] b) the securities so transferred shall be in conformity with investment objective of the scheme to which such transfer has been made and the Policy on Inter Scheme Transfer prepared in compliance with clause 12.30 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 as amended from time to time. Draft SID of Motilal Oswal Nifty MNC ETF 225. The Scheme may invest in another scheme under the same asset management company or any other Mutual Fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the Mutual Fund. 6. The provisions of clause 12.16 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 pertaining to pending deployment of funds of a Scheme in terms of investment objectives of the Scheme, will not apply to term deposits placed as margins for trading in cash and derivatives market 7. The Scheme shall not make any investment in: a) any unlisted security of an associate or group company of the sponsor; or b) any security issued by way of private placement by an associate or group company of the sponsor; or c) the listed securities of group companies of the sponsor which is in excess of 25 per cent of the net assets. 8. The Scheme shall not make any investment in any fund of funds scheme. 9. All investments by the scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed. 10. The Mutual Fund may borrow to meet liquidity needs, for the purpose of repurchase, redemption of units or payment of interest or dividend to the Unitholders and such borrowings shall not exceed 20% of the net asset of the Scheme and duration of the borrowing shall not exceed 6 months. The Mutual Fund may borrow from permissible entities at prevailing market rates and may offer the assets of the Mutual Fund as collateral for such borrowing. 11. No term loans will be advanced by the Scheme. 12. No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have - Draft SID of Motilal Oswal Nifty MNC ETF 23a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or b) representation on the board of the asset management company or the trustee company of any other mutual fund. 13. Vide clause 12.8.3.1 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, a mutual fund scheme will, within the limits specified in the clause 1 of Seventh Schedule of the MF Regulation, following prudential limits shall be followed, for schemes other than Credit risk funds: i. A mutual fund scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. However, since the asset allocation permits investment in debt and money market instruments only up to 5% of the total assets, the investment in such securities shall be further restricted to a maximum of 5% of the total assets. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in clause 1 of Seventh Schedule of MF Regulation. The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating. Exposure to government money market instruments such as TREPS on G-Sec/ T-bills shall be treated as exposure to government securities. 14. A mutual fund scheme shall not invest more than 5% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Draft SID of Motilal Oswal Nifty MNC ETF 24a. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and collateralized borrowing and lending obligations. b. Provided further that investment within such limit can be made in mortgaged backed securitised debts which are rated not below investment grade by a credit rating agency registered with the Board. 15. The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments. Provided that the Scheme may invest in unlisted non- convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by SEBI from time to time. Provided further that the Scheme shall comply with the norms under the above clauses within the time and in the manner as may be specified by SEBI. Provided further that the norms for investments by the Scheme in unrated debt instruments shall be as specified by SEBI from time to time. Every mutual fund shall get the securities purchased or transferred in the name of the mutual fund on account of the concerned scheme, wherever investments are intended to be of long-term nature. The Scheme will comply with any other Regulations applicable to the investments of Mutual Funds from time to time. All investment restrictions shall be applicable at the time of making investments. The AMC may alter these limitations/objectives from time to time to the extent the SEBI Regulations change so as to permit Scheme to make its investments in the full spectrum of permitted investments to achieve its investment objective. The Trustees may from time to time alter these restrictions in conformity with the SEBI Regulations. XXVI Due diligence by the asset It is confirmed that: management company (i) The Draft Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Draft SID of Motilal Oswal Nifty MNC ETF 25Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations. (vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (viii) The Trustees have ensured that the Motilal Oswal Nifty MNC 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. Notes: 1. Further, any amendments / replacement / re-enactment of SEBI Regulations subsequent to the date of the Scheme Information Document shall prevail over those specified in this Document. 2. The Scheme under this Scheme Information Document was approved by the Trustees on June 17, 2025. 3. The Trustees have ensured that Motilal Oswal Nifty MNC 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. 4. Notwithstanding anything contained in the Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. For Motilal Oswal Asset Management Company Limited (Investment Manager for Motilal Oswal Mutual Fund) Sd/- Aparna Karmase Head- Compliance, Legal and Secretarial Place: Mumbai Date: September 16, 2025 Draft SID of Motilal Oswal Nifty MNC ETF 26Annexure 1 AMC to choose the applicable provisions based on intended asset allocation Equity derivatives  Calculation of cumulative gross exposure – of underlying Pursuant to clause 12.24 of SEBI Master Circular No. SEBI/HO/IMD/IMD- securities forming PoD-1/P/CIR/2024/90 dated June 27, 2024, the cumulative gross exposure part of the index through Constituents of Nifty MNC Index and Debt and money market may also be instruments, cash and cash equivalents, derivative positions, other permitted available as an securities/assets and such other securities/assets as may be permitted by the investment option Board from time to time will not exceed 100% of the net assets of the scheme. in case the underlying  Numerical example of risk involved – security is not Using Index Futures to increase percentage investment in equities available for Derivatives may be used for the purpose of deploying ideal cash and/or purchase. pending its investment in equites so as to efficiently replicate the underlying index and reduce tracking error. There may be a time lag between the inflow of funds and their deployment in stocks. If so desired, the scheme would be able to take immediate exposure to equities via index futures. The position in futures may be reversed in a phased manner, as the funds are deployed in the equity markets. Example: The scheme has a corpus of Rs. 100 crore and there is an inflow of Rs. 10 crore in a day. The AMC may buy index futures contracts of a value of Rs. 10 crore. Later as the money is deployed in the underlying equities, the value of the index futures contracts can be suitably reduced. Equity Total Derivative Portfolio Portfolio gain/(Loss) Portfolio Event gain/(Loss) gain/(Loss) (Rs. in (Rs. in (Rs. in crore) crore) crore) 10% rise in Rs. 100 Crore equity 10 Nil 10 equity exposure prices Rs. 100 Crore equity exposure + 10% rise in Rs. 10 Crore long equity 10 1 11 position index prices futures Equity Total Derivative Portfolio Portfolio gain/(Loss) Portfolio Event gain/(Loss) gain/(Loss) (Rs. in (Rs. in (Rs. in crore) crore) crore) Draft SID of Motilal Oswal Nifty MNC ETF 2710% fall in Rs. 100 Crore equity -10 Nil -10 equity exposure prices Rs. 100 Crore equity exposure + 10% fall in Rs. 10 Crore long equity -10 -1 -11 position index prices futures Risks associated with Investing in Derivatives Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of the fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby the Scheme may not be able to sell or purchase derivative quickly enough at a fair price. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.  Disclosure relating to extent and manner of participation in derivatives to be provided The Scheme may take exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when equity shares are unavailable, insufficient or for rebalancing in case of corporate actions for a temporary period. Other than for above purposes, the Scheme will not invest in Equity Derivatives. These investments would be for a short period of time i.e. 7 days. Exposure towards Equity Derivatives instruments shall not exceed 20% of the net assets of the Scheme. If the exposure falls outside the above mentioned asset allocation pattern, the portfolio to be rebalanced by AMC within 7 days from Draft SID of Motilal Oswal Nifty MNC ETF 28the date of said deviation. The Fund shall not write options or purchase instruments with embedded written options. When constituent’s securities of underlying Index are available again, derivative positions in these securities would be unwound. Investments Limitations and Restrictions in Derivatives In accordance with Clause 12.25 of SEBI Master Circular SEBI/HO/IMD/IMD- PoD-1/P/CIR/2024/90 dated June 27, 2024, the following investment restrictions shall apply with respect to investment in Derivatives: 1. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100 % of the net assets of the scheme. However, cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure. 2. The Scheme shall not write options or purchase instruments with embedded written options. 3. The total exposure related to option premium paid shall not exceed 20% of the net assets of the scheme. 4. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. b. Hedging positions shall not be taken for existing derivative positions. Exposure due to such positions shall be added and treated under gross cumulative exposure limits mentioned under Point 1. c. Any derivative instrument used to hedge shall have the same underlying security as the existing position being hedged. d. The quantity of underlying associated with the derivative position taken for hedging purposes shall not exceed the quantity of the existing position against which hedge has been taken. 5. The scheme may enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes. The value of the notional principal in such cases shall not exceed the value of respective existing assets being hedged by the scheme. In case of participation in IRS is through over the counter transactions, the counter party shall be an entity recognized as a market maker by RBI and exposure to a single counterparty in such transactions shall not exceed 10% of the net assets of the scheme. However, if mutual funds are transacting in IRS through an electronic trading platform offered by the Clearing Corporation of India Ltd. (CCIL) and CCIL is the central counterparty for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not be applicable. 6. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under gross cumulative exposure limits mentioned under Point1. Apart from the investment restrictions prescribed under SEBI (MF) Regulations Draft SID of Motilal Oswal Nifty MNC ETF 29the Fund does not follow any internal norms vis-a-vis limiting exposure to a particular scrip or sector etc. ETCDs  Risk factors w.r.t ETCDs – Not Applicable (applicable to  Calculation of cumulative gross exposure – Not Applicable ETFs only)  Investment limits - Not Applicable  Disclosure relating to extent and manner of participation in derivatives to be provided – Not Applicable Hybrid schemes Not Applicable Close ended debt Not Applicable schemes Gold or Silver Not Applicable ETF/FoFs (single domestic/overseas index) Draft SID of Motilal Oswal Nifty MNC ETF 30