Official Gazette Notification Text
Official TranscriptScheme Information Document Nippon India Nifty India Defence ETF (An open-ended scheme replicating/ tracking Nifty India Defence Index) (Scrip Code NSE and BSE: xxxxx) (scrip code to be updated after listing of units of the Scheme) Name of Mutual Fund: Nippon India Mutual Fund (NIMF) Name of Asset Management Company: Nippon Life India Asset Management Limited (NAM India) CIN :...
Scheme Information Document Nippon India Nifty India Defence ETF (An open-ended scheme replicating/ tracking Nifty India Defence Index) (Scrip Code NSE and BSE: xxxxx) (scrip code to be updated after listing of units of the Scheme)
Name of Mutual Fund: Nippon India Mutual Fund (NIMF)
Name of Asset Management Company: Nippon Life India Asset Management Limited (NAM India)
CIN : L65910MH1995PLC220793
Address of AMC: 30th Floor, One Lodha Place, Senapati Bapat Marg, Lower Parel, Mumbai – 400013.
Tel No. +91 022 6808 7000 Fax No. +91 022 6808 7097
Website of AMC: https://mf.nipponindiaim.com
Name of Trustee Company: Nippon Life India Trustee Limited (NLITL)
CIN : U65910MH1995PLC220528
Address of Trustee Company: 30th Floor, One Lodha Place, Senapati Bapat Marg, Lower Parel, Mumbai – 400013.
Tel No. +91 022 6808 7000 Fax No. +91 022 6808 7097
Name of the Scheme: Nippon India Nifty India Defence ETF
Category of Scheme: Other - ETFs
Scheme Code:
NFO open date:
NFO close date:
Scheme re-opens for continuous sale &
repurchase not later than:
Any modification to the New Fund Offer Period shall be announced by way of an Addendum uploaded on website of the AMC.
Offer of Units of Rs.10/- each for cash (on allotment, the value of each Unit would approximately equal to the value of 1/100th of the value of Nifty India Defence Index) to be issued at a premium, if any, approximately equal to the difference between face value and allotment price during the New Fund Offer (“NFO”) and at NAV based prices during the Ongoing Offer.
Investment Objective Scheme Riskometer: Benchmark Riskometer:
Nippon India Nifty India Defence ETF Nifty India Defence TRI Nippon India Nifty India Defence ETF To provide investment returns that commensurate to the total returns of the securities as represented by the Nifty India Defence Index before expenses, subject to tracking errors.
There is no assurance that the investment objective of the Scheme will be achieved.
Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The 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.
Investors are advised to refer to the Statement of Additional Information (SAI) for details of the Nippon India Mutual Fund Standard Risk Factors, Special Considerations, Tax and Legal issues and other general information on https://mf.nipponindiaim.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. 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.
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 should be read conjunction with the SAI and not in isolation.
The Scheme Information Document of Nippon India Nippon India Nifty India Defence ETF had been approved by the Board of Nippon Life India Trustee Limited on June 25, 2026. Scheme Information Document is dated October 16, 2026. 1DISCLAIMERS
Disclaimer:
1. Disclaimers by BSE “BSE Ltd. (“the Exchange”) has given vide its letter no. LO/IPO/PJ/MF/IP/66/2026-27 dated August 10, 2026, permission to Nippon India Mutual Fund to use the Exchange’s name in this SID as one of the Stock Exchanges on which this Mutual Fund’s Unit are proposed to be listed. The Exchange has scrutinized this SID for its limited internal purpose of deciding on the matter of granting the aforesaid permission to Nippon India Mutual Fund. The Exchange does not in any manner: - i) warrant, certify or endorse the correctness or completeness of any of the contents of this SID; or ii) warrant that this scheme’s unit will be listed or will continue to be listed on the Exchange; or iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its management or any scheme or project of this Mutual Fund; and it should not for any reason be deemed or construed that this SID has been cleared or approved by the Exchange. Every person who desires to apply for or otherwise acquires any unit of Nippon India Nifty India Defence ETF of this 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 for any other reason whatsoever”.
2. Disclaimers by 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 NSE/LIST/6147 dated August 10, 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 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."
3. Disclaimer of NSE Indices Limited: a. “The Product(s) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (“IISL”)). NSE Indices Limited does not make any representation or warranty, express or implied to the Unit holders of any product or any member of the public regarding the advisability of investing in Securities generally or in any product particularly or the ability of the underlying index to track general stock market performance in India. The relationship of NSE Indices Limited to Nippon Life India Asset Management Limited (NAM India) is only in respect of the licensing of certain trademarks and trade-names of the underlying index which is determined, composed and calculated by NSE Indices Limited without regard to the NAM India or any product. NSE Indices Limited has no obligation to take the needs of the NAM India or the Unit holders of the products into consideration in determining, composing or calculating the underlying index. NSE Indices Limited is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the products to be issued or in the determination or calculation of the equation by which the products are to be converted into cash. NSE Indices Limited has no obligation or liability in connection with the administration or marketing or trading of the products.” b. “NSE Indices Limited does not guarantee the accuracy and/or the completeness of the underlying index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. NSE Indices Limited makes no warranty, express or implied, as to the results to be obtained by the NAM India, Unit holders of the products or any other persons or entities from the use of the underlying index or any data included therein. NSE Indices Limited 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 underlying index or any data included therein. Without limiting any of the foregoing, in no event shall NSE Indices Limited have any liability for any 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(s), will be regarded as having acknowledged, understood and accepted the disclaimer referred to in Clauses above and will be bound by it.
2Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Benchmark (TRI) Nifty India Defence TRI.
The scheme is an Exchange Traded Fund (ETF). The composition of the benchmark is such that it is most suited for comparing performance of the scheme.
Total Return variant of the index (TRI) will be used for performance comparison.
About Nifty India Defence TRI - Nifty India Defence Index aims to track the performance of portfolio of stocks that broadly represent the Defence theme. From the Nifty Total Market index, stocks forming part of eligible basic industries or those which obtain at least 10% of revenues from the defence industry are eligible to be included in the index and are chosen based on 6 month average free-float market capitalisation. The weight of the stocks in the index is based on their free-float market capitalization. Stock weights are capped at 20% each.
II. Plans and Options The Scheme does not offer any Plans/Options for investment. However, Unit holders are requested to note that the Plans/Options and sub Trustees may at their absolute discretion reserve the right to declare IDCW from time to time (which will be paid out options under the to the Unit holders) in accordance with the IDCW Policy set out below. The AMC and the Trustees reserve the right to Scheme introduce such other plans/options as they deem necessary or desirable from time to time, in accordance with the SEBI Regulations.
III. Load Structure Entry Load: Not Applicable In accordance with para 11.7.1. of SEBI Master Circular on Mutual Funds as amended from time to time, there shall be no entry load.
Exit Load : Not Applicable There will be no exit load on Nippon India Nifty India Defence ETF bought or sold through the secondary market on the BSE/NSE. 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 Nippon India Nifty India Defence ETF.
The Fund may also allow Cash# subscription /redemption of Nippon India Nifty India Defence ETF in creation unit size by large investors.
No exit load will be levied on transactions with Authorized Participants/ Market Makers and Large Investors during NFO or continuous offer.
Investors other than APs/Large investors can directly approach AMC for transaction of up to INR 25 Cr and no exit load shall be charged for redemption of units if -: a) The 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 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..
In such a scenario valid applications received up to 3 p.m. the Mutual Fund shall process the redemption request basis the closing NAV of the day of receipt of application.
Such instances shall be tracked by NAM India on an ongoing basis and incase if any of the above mentioned scenario arises the same shall be disclosed on the website of Nippon India Mutual Fund i.e. https://mf.nipponindiaim.com For any change in load structure NAM India will issue an addendum and display it on the website and on i.e.
https://mf.nipponindiaim.com/ https://etf.nipponindiaim.com and Investor Service Centres. #RTGS, NEFT or transfer cheque 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 (https://mf.nipponindiaim.com / https://Etf.nipponindiaim.com) or may call at 18602660111 (charges applicable) and investors outside India can call Customer Care at 91-22- 69259696 (charges applicable) or your distributor.
Load amounts are variable and are subject to change from time to time. NAM India, in consultation with the Trustees, reserves the right to change the load structure if it so deems fit in the interest of smooth and efficient functioning of the scheme. Any imposition or enhancement in the load shall be applicable on prospective investments only.
However, NAM India shall not charge any load on issue of bonus units and units allotted on reinvestment of IDCW for existing as well as prospective investors. At the time of changing the load structure:
(i) The addendum detailing the changes may be attached to Scheme Information Documents and key information memorandum. The addendum may be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and key information memoranda already in stock.
3(ii) Arrangements may be made to display the addendum in the Scheme Information Document in the form of a notice in all the investor service centres and distributors/brokers office.
(iii) The introduction of the exit load along with the details may 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.
(iv) Any other measures which the mutual funds may feel necessary.
IV. Minimum Application Minimum Application Amount during NFO:
Amount/switch in Rs.1,000 & in multiples of Re.1 thereafter
On Continuous Basis:
Directly with Fund The facility of creating units in Creation Unit size is available to the Authorised Participants/ Market Makers (whose
names will be available on our website https://mf.nipponindiaim.com / https://etf.nipponindiaim.com) and Large Investors. However, in case of large investors, the execution value shall be greater than Rs. 25 crores.
Minimum number of Units (Creation Units) – 15,000 Units and in multiples thereof ‘Creation Unit’ is a fixed number of Nippon India Nifty India Defence ETF, which is exchanged for a basket of shares underlying the index called the “Portfolio Deposit” and a “Cash Component”. The facility of creating / redeeming units in Creation Unit size will be available to the Authorized Participants/ Market Makers and large Investors.
Additionally, in case of large investors, the execution value for direct Subscription / Redemption with the Fund shall be greater than Rs. 25 crores The list of authorized participants/ Market Makers will be available on the website of
the Fund https://mf.nipponindiaim.com. Further NAM India reserves the right to modify authorised participants/ Market Makers on an ongoing basis. The number of Nippon India Nifty India Defence ETF that investors can create / redeem in exchange of the Portfolio Deposit and Cash Component is 15,000 units and in multiples thereafter. The Fund may also allow Cash# subscription /redemption of Nippon India Nifty India Defence ETF in creation unit size by large investors provided the execution value for direct Subscription / Redemption with the Fund shall be greater than Rs. 25 crores.
#RTGS, NEFT or transfer cheque On the Exchange - The minimum number of Units that can be bought by the Investors on the Exchange is 1 (one) Unit and in multiples thereof.
Minimum Switch Amount Will be as per the minimum application amount in the respective scheme which may have been opted by the Investor for switching the units/amount where the switch facility is available.
A. Switch-in facility into applicable ETF schemes from eligible open-ended (Non-ETF) Liquid and Debt/Income Schemes For availing this facility, Investors are requested to note the following operational modalities:
a) Based on number of baskets the Investor wants to switch in to the ETF scheme, switch-out amount from Liquid or Debt/Income Fund should be calculated to nearest Basket lot size so that the minimum Switch -in amount as on switch-in date is greater than Rs. 25 crores as per the Intra-day NAV b) Switch-In to the ETF Scheme will be in terms of number of basket/ Creation Lot specified in the application form subject to minimum Switch-in amount of greater than Rs. 25 crores c) Switch transaction will be processed at the applicable NAV of the switch- out scheme and only if the value is available in the switch-out scheme.
d) The applicability of the NAV in the ETF (transferee) Scheme will be the Intra day NAV of the business day on which the Funds are realized in Scheme’s account before the cut-off time. e) In case the value of Intra-Day NAV X no. of applicable Creation Lot is greater than the Switch Funding amount, the Switch-In transaction will be rejected and the entire amount will be paid to the investor.
f) Investors to note that the pattern and sequence of holding both in the open-ended (Non-ETF) Folio and in demat account (used for ETF units) should be same.
NIMF/NAM India reserves the right to introduce, change, modify or withdraw any of the features available in this facility from time to time.
V. Minimum Additional Not Applicable Purchase Amount VI. Minimum Directly with Fund Redemption/switch out The facility of redeeming units in Creation Unit size is available to the Authorised Participants/ Market Makers (whose amount
names will be available on our website https://mf.nipponindiaim.com / https://etf.nipponindiaim.com) and Large Investors. However, in case of large investors, the execution value shall be greater than Rs. 25 crores.
Investors can directly approach the AMC for redemption of units of ETFs, for transaction of up to Rs. 25 crores without any exit load, in case of the following scenarios:
4i 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.
In case of the above scenarios, applications received from investors for redemption up to 3.00 p.m. on any trading day, shall be processed by the AMC at the closing NAV of the day of receipt of application within the above cut-off time, such instances shall be tracked by Nippon India AMC on an ongoing basis and in case if any of the above mentioned scenario arises the same shall be disclosed on the website of Nippon India Mutual Fund i.e.
https://mf.nipponindiaim.com / https://etf.nipponindiaim.com.
On the Exchange – The Units of the Scheme can be sold in round lot of 1 Unit and multiples thereof.
Minimum Switch Amount Will be as per the minimum application amount in the respective scheme which may have been opted by the Investor for switching the units/amount where the switch facility is available.
A. Switch-out facility from applicable ETF schemes to eligible open-ended (Non-ETF) Equity, Liquid and Debt/Income Schemes.
For availing this facility, investors are requested to note the following operational modalities: a. Switch-out from the Scheme will be allowed only in terms of Basket size (unit) and subject to minimum Switch -out amount of greater than INR 25 Cr.
b. Switch transaction will be processed subject to availability of all details as per regulatory guidelines. c. Switch out transaction will be processed at the Intra day NAV of the switch- out scheme d. The applicability of the NAV in the transferee Scheme will be the Intra day NAV of the business day on which the Funds are realized in Scheme’s account before cut-off time.
e. In case of any rejection in Switch-in to the transferee Scheme, the amount will be paid to the investor as redemption proceeds. f. Investors to note that the pattern and sequence of holding both in the open-ended (Non-ETF) Folio and in demat account (used for ETF unit holding) should be same.
g. Investors should have the clear balance of ETF units in their demat account for execution of the Switch- out transaction from the selected ETF Scheme.
NIMF/NAM India reserves the right to introduce, change, modify or withdraw any of the features available in this facility from time to time.
VII. Tracking Error Tracking error is defined as the annualized standard deviation of the difference in the daily returns between the NAV of the Scheme and the Underlying Index based on past one year rolling data.
For ETFs/ Index Funds in existence for a period of less than one year, the annualized standard deviation shall be calculated based on available data.
The AMC would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error. Under normal market circumstances, tracking error based on past one year rolling data shall not exceed 2%.
However, in case of unavoidable circumstances in the nature of force majeure, which are beyond the control of the AMCs, the tracking error may exceed 2% and the same shall be brought to the notice of Trustees with corrective actions taken by the AMC, if any.
The AMC shall disclose tracking error, on a daily basis, on the website of AMC and AMFI.
The disclosure of tracking error is provided on the AMC website on
https://mf.nipponindiaim.com/TotalExpenseRatio/Tracking-Error-and-Tracking-Difference-of-ETFs-and-Index- Funds.xlsx Regular Plan Direct Plan Not Applicable as this is a new scheme.
VIII. Tracking Difference Tracking Difference is defined as the annualized difference of returns between the NAV of the Scheme and the underlying index.
On completion of 1 year, the tracking difference scheme shall 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 disclosure of tracking difference is provided on the AMC website on
https://mf.nipponindiaim.com/TotalExpenseRatio/Tracking-Error-and-Tracking-Difference-of-ETFs-and-Index- Funds.xlsx Regular Plan Direct Plan Not Applicable as this is a new scheme.
IX. Computation of NAV The AMC will calculate and disclose the first NAV within 5 working days from the date of allotment. Subsequently, the NAV will be calculated and disclosed at the close of every Business Day and uploaded on the AMFI website 5www.amfiindia.com and Nippon India Mutual Fund website i.e. https://mf.nipponindiaim.com by 11.00 p.m. on the day of the declaration of the NAV. Further, AMC shall extend facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard.
The Net Asset Value (NAV) of the Units will be determined daily or as prescribed by the Regulations. The NAV shall be calculated in accordance with the following formula, or such other formula as may be prescribed by SEBI from time to time.
Market/Fair Value of Scheme’s Investments + Receivables + Accrued Income + Other Assets - Accrued Expenses- Payables- Other Liabilities NAV = Number of Units Outstanding Rounding off policy for NAV Net Asset Value of the Units in the Scheme is calculated in the manner provided in this Scheme Information Document or as may be prescribed by Regulations from time to time. The NAV will be computed upto four decimal places.
Detailed disclosure on computation of NAV is provided on
https://mf.nipponindiaim.com/investor-service/downloads/scheme-information-document X. Asset Allocation Under normal circumstances, the anticipated asset allocation would be:
Instruments Indicative asset allocation (% of total assets) Minimum Maximum Securities constituting Nifty India Defence Index 95 100 Cash & cash equivalents* and Money Market instruments and/or Schemes 0 5 which invest in the money market securities or Liquid Schemes# *Cash Equivalents include Government Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91 days.
#The Scheme may invest up to 5% net assets in money market / liquid schemes of Nippon India Mutual Fund and/ or any other mutual fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management company or in schemes under the management of any other AMC shall not exceed 5% of the NAV of the Mutual Fund in accordance with Clause 3 of Sixth Schedule of SEBI (Mutual Funds) Regulations, 2026.
The Scheme will not invest in securitized debt, ADR, GDR, Overseas Securities, InvITs, Fund of Fund Scheme, Credit default swaps, unrated debt and money market instruments (except G-Secs, T-Bills and other money market instruments), Debt Instruments with special features (AT1 and AT2 Bonds), Debt Instruments with SO / CE, nor will it engage in short selling and Repo in corporate debt.
Exposure to equity derivatives may be undertaken when equity shares are unavailable, insufficient or for rebalancing at the time of change in index or in case of corporate actions for a temporary period. The notional exposure of the Scheme in Equity Derivative instruments shall be restricted to 20% of the net assets of the scheme Such exposure to derivatives will be rebalanced within 7 days.
The cumulative gross exposure through Equity shares, Money Market Instruments, Derivatives position shall not exceed 100% of the net assets of the Scheme as per Clause 13.18 of SEBI Master Circular dated March 20, 2026.
As per SEBI Letter dated 3rd November 2021 Cash and cash equivalents having residual maturity of less than 91 Days are not considered for the purpose of calculating gross exposure limit.
The scheme may engage in Securities Lending not exceeding 15% of the net assets of the scheme and shall not lend more than 5% of its Net Assets to a single counterparty (here counterparty means an intermediary/broker through whom we deal in securities) or such other limits as may be permitted by SEBI from time to time after seeking necessary approval, whenever required .
Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sl. No Type of Instrument Percentage Circular references of exposure
1. Securities Lending 0-15% SEBI (Mutual Funds) Regulations, 2026, Securities Lending Scheme, 1997 and Clause
613.6 of SEBI Master Circular dated March 20, 2026
2. Equity Derivatives for non-hedging 0-20% Clause 13.15 of SEBI Master Circular dated purposes March 20, 2026
3. Securitized Debt Nil Clause 13.1(2) of SEBI Master Circular dated March 20, 2026
4. Overseas Securities Nil Clause 13.11 of SEBI Master Circular dated March 20, 2026
5. InVITS Nil Clause 13.13 of SEBI Master Circular dated March 20, 2026 i. Units of InvIT ii. Units of InvIT issued by a single issuer.
6. AT1 and AT2 Bonds Nil Clause 13.1(9) of SEBI Master Circular dated March 20, 2026
7. Unlisted Non-Convertible Nil Clause 13.1(3) of SEBI Master Circular dated Debentures (NCDs) March 20, 2026
8. * Unsupported rating of debt Nil Clauses 13.1(10) of SEBI Master Circular instruments (i.e. without factoring- dated March 20, 2026 in credit enhancements) is below investment grade and Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above investment grade at Scheme level.
9. * Unsupported rating of debt Nil Clauses 13.1(10) of SEBI Master Circular instruments (i.e. without factoring- dated March 20, 2026 in credit enhancements) is below investment grade and Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above investment grade for any group on debt portfolio of the schemes.
10. Repo transactions in corporate Nil Clauses 13.8 of SEBI Master Circular dated debt securities March 20, 2026
11. Schemes of Nippon India Mutual 0-5% Clause 3 of Sixth Schedule of SEBI (Mutual Fund and/ or any other mutual fund Funds) Regulations, 2026 which invest in the money market securities or Liquid Schemes * Of Debt portfolio.
For details, refer Annexure 1.
XI. Fund manager details The details of Fund Manager of the Scheme are as follows:
Name Managing since Total experience (in years) Mr. Jitendra Tolani This is a new scheme hence not applicable. Over 20 years XII. Annual Scheme Actual TER % - This is a new scheme hence Actual TER% is not available.
Recurring Expenses For detailed disclosure, kindly refer https://mf.nipponindiaim.com/investor-service/downloads/scheme- information-document XIII. Transaction charges Transaction Charges: and stamp duty No transaction charges shall be deducted from the subscription amount for transactions /applications received through the distributors (i.e. in Regular Plan).
Stamp Duty on Allotment/Transfer of Units:
Clause no. 11.1 of SEBI Master Circular dated March 20, 2026, a stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions, with effect from July 01, 2020.
1. The Stamp duty for transfer of units, if/where applicable, shall be payable by the transferor.
2. For calculation of the amount of stamp duty, the consideration value will be calculated as per the last available NAV (irrespective of the amount of consideration mentioned by the transferor in the transfer request).
73. The stamp duty if/where applicable, shall be collected by the RTAs from the transferor through online mode by ensuring that the payment is received from the bank account registered in the folio.
For further details, please refer to SAI.
XIV. Information available For following information, kindly refer the weblink as under: through weblink Particulars Link Liquidity/listing details NAV disclosure Applicable timelines for dispatch of redemption proceeds etc Breakup of Annual Scheme Recurring expenses
https://mf.nipponindiaim.com/investor-service/downloads/scheme- Definitions information-document Applicable risk factors 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
List of official points of acceptance https://mf.nipponindiaim.com/investor-services/customer- service/locate-a-branch Penalties, Pending Litigation or https://mf.nipponindiaim.com/investor-service/downloads/scheme- Proceedings, Findings of Inspections or information-document Investigations
Investor services https://mf.nipponindiaim.com/investor-service/downloads/scheme- information-document
Portfolio Disclosure https://mf.nipponindiaim.com/investor- service/downloads/factsheet-and-other-portfolio-disclosures
Detailed comparative table of the https://mf.nipponindiaim.com/investor-service/downloads/scheme- existing schemes of AMC information-document Scheme performance Not applicable as this is a new scheme. Thereafter, is shall be
available on https://mf.nipponindiaim.com/investor- service/downloads/scheme-information-document
Periodic Disclosures https://mf.nipponindiaim.com/investor- service/downloads/scheme-information-document Scheme specific disclosures (as per the https://mf.nipponindiaim.com/investor-service/downloads/scheme- prescribed format) information-document
Scheme Factsheet https://mf.nipponindiaim.com/investor- service/downloads/factsheet-and-other-portfolio- disclosures XV. How to Apply Authorised Participants / Large Investors may submit / mail the completed application forms at any of the Designated Investor Service Centers of Nippon India Mutual Fund. Investors in cities other than where the Designated Investor Service Centers (DISC) are located, may send their application forms to any of the nearest DISC. The list of the Designated Investor Service Centres (DISCs)/Official Points of Acceptance (OPAs) of the Mutual Fund are available on the website of the AMC i.e. https://mf.nipponindiaim.com.
Please refer to the SAI for detailed procedure and Application form for the instructions.
XVI. Where can applications The applications filled up and duly signed by the applicants should be submitted at the office of the Collection for Centres / DISCs / Official Points of Acceptance or may be downloaded from the website of AMC. The list of the subscription/redempti Designated Investor Service Centres (DISCs)/Official Points of Acceptance (OPAs) of the Mutual Fund are available on/ switches be on the website of the AMC i.e. https://mf.nipponindiaim.com. Please refer to the SAI for detailed procedure and submitted Application form for the instructions.
List of official points of acceptance, collecting banker details - Please visit
https://mf.nipponindiaim.com/investor-services/customer-service/locate-a-branch As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank account number in the application form. This is to safeguard the interest of unitholders from loss or theft of their redemption cheques / DDs.
Additionally, if the bank details provided by investors are different from the details available on instrument, AMC may seek additional details from investors to validate the bank details provided by investors.
8XVII. Specific attribute of the Not Applicable scheme (such as lock in/ duration in case of target Maturity scheme/close ended schemes etc.) (as applicable) XVIII. Special product/facility Special Products/Facilities Available during the NFO period:
available during the Switch into the Scheme NFO and on ongoing The fund will offer Switch facility from applicable Schemes of Nippon India Mutual Fund (except ETF Schemes) to basis Nippon India Nifty India Defence ETF during the NFO. However, NAM India reserves the right to extend or limit the said facility on such terms and conditions as may be decided from time to time. Investors who hold units in any of the schemes of Nippon India Mutual Fund except Nippon India Japan Equity Fund and Nippon India US Equity Opportunities Fund may switch all or part of their holdings to the Scheme during the NFO Period subject to the provisions in the SID of the respective transferor scheme. Switch-in requests are subject to the minimum application amount criteria specified for different investors category in this Scheme Information Document. All Switch requests during the NFO Period will be processed based on the applicable NAV of the transferor scheme as on the date of receipt/ processing of application, however, the Switch-in requests under the Scheme (Transferee Scheme) during the NFO Period will be processed on the date of the allotment of the NFO Units. If the Unit Holder has specified both the amount (in Rs.) and the number of Units, switch-out of units from the transferor scheme will be carried out based on the number of units specified by the Unit Holder Unit holders to note that in the event, the mode/ pattern of holding in the transferor scheme is different from the Demat account which is being used in the NFO purchase, the application will be liable for rejection.
1. Auto Switch Facility The fund will offer an auto switch facility from all liquid and debt schemes to Nippon India Nifty India Defence ETF during the NFO. However, NAM India reserves the right to extend or limit the said facility on such terms and conditions as may be decided from time to time
2. Applications Supported by Blocked Amount (ASBA) facility
3. Transactions through website of Nippon India Mutual Fund mf.nipponindiaim.com, Nippon India Mutual Fund mobile applications and other digital assets / platforms
4. Facilitating transactions through Stock Exchange Mechanism
5. Official Points of Acceptance of Transaction through MF utility
6. Transactions through Electronic platform of KFin Technologies Limited For detailed disclosure of above special products / facilities, kindly refer SAI.
Special facilities are available during ongoing basis:
1) Switch-in facility into applicable ETF schemes from eligible open-ended (Non-ETF) Liquid and Debt/Income Schemes For availing this facility, Investors are requested to note the following operational modalities:
a) Based on number of baskets the Investor wants to switch in to the ETF scheme, switch-out amount from Liquid or Debt/Income Fund should be calculated to nearest Basket lot size so that the minimum Switch -in amount as on switch-in date is greater than Rs. 25 crores as per the Intra-day NAV b) Switch-In to the ETF Scheme will be in terms of number of basket/ Creation Lot specified in the application form subject to minimum Switch-in amount of greater than Rs. 25 crores c) Switch transaction will be processed at the applicable NAV of the switch- out scheme and only if the value is available in the switch-out scheme.
d) The applicability of the NAV in the ETF (transferee) Scheme will be the Intra day NAV of the business day on which the Funds are realized in Scheme’s account before the cut-off time. e) In case the value of Intra-Day NAV X no. of applicable Creation Lot is greater than the Switch Funding amount, the Switch-In transaction will be rejected and the entire amount will be paid to the investor.
f) Investors to note that the pattern and sequence of holding both in the open-ended (Non-ETF) Folio and in demat account (used for ETF units) should be same.
NIMF/NAM India reserves the right to introduce, change, modify or withdraw any of the features available in this facility from time to time.
2) Switch-out facility from applicable ETF schemes to eligible open-ended (Non-ETF) Equity, Liquid and Debt/Income Schemes.
For availing this facility, investors are requested to note the following operational modalities: a) Switch-out from the Scheme will be allowed only in terms of Basket size (unit) and subject to minimum Switch -out amount of greater than Rs. 25 crores b) Switch transaction will be processed subject to availability of all details as per regulatory guidelines.
c) Switch out transaction will be processed at the Intra day NAV of the switch- out ETF scheme d) The applicability of the NAV in the transferee Scheme will be the NAV of the business day on which the Funds are realized in Scheme’s account before cut-off time.
e) In case of any rejection in Switch-in to the transferee Scheme, the amount will be paid to the investor as redemption proceeds.
9f) Investors to note that the pattern and sequence of holding both in the open-ended (Non-ETF) Folio and in demat account (used for ETF unit holding) should be same. g) Investors should have the clear balance of ETF units in their demat account for execution of the Switch-out transaction from the selected ETF Scheme.
NIMF/NAM India reserves the right to introduce, change, modify or withdraw any of the features available in this facility from time to time.
For detailed disclosure of above special products / facilities, kindly refer SAI.
XIX. Segregated portfolio/ The scheme has segregated portfolio disclosure. For Details Disclosure, kindly refer SAI side pocketing disclosure XX. Stock lending/short Securities Lending selling The scheme may engage in Securities Lending not exceeding 15% of the net assets of the scheme and shall not lend more than 5% of its Net Assets to a single counterparty (here counterparty means an intermediary/broker through whom we deal in securities) or such other limits as may be permitted by SEBI from time to time after seeking necessary approval, whenever required.
For details please refer SAI.
Short Selling The Scheme will not invest in Short Selling XXI. New Fund Offer Price: The face value of each unit of the Scheme will be Rs.10/-.
This is the price per unit Offer of Units of Rs.10/- each for cash (on allotment, the value of each Unit would approximately equal to the value that the investors have to of 1/100th of the value of Nifty India Defence Index) to be issued at a premium, if any, approximately equal to the pay to invest during the difference between face value and allotment price during the New Fund Offer (“NFO”) and at NAV based prices during NFO. the Ongoing Offer.
10Annexure 1 Equity derivatives of Calculation of cumulative gross exposure underlying securities forming The cumulative gross exposure through Equity shares, Money Market Instruments and Derivatives position shall not part of the index may also be exceed 100% of the net assets of the Scheme as per Clauses 13.18 of SEBI Master Circular dated March 20, 2026.
available as an investment As per SEBI Letter dated 3rd November 2021 Cash and cash equivalents having residual maturity of less than 91 Days option in case the underlying are not considered for the purpose of calculating gross exposure limit. Cash Equivalents include Government security is not available for Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91 days.
purchase.
Numerical example of risk involved
The few risks of using derivative strategies could be on account of: • Illiquidity. • Potential mis - pricing of the Futures/Options. • Inability of derivatives to correlate perfectly with the underlying (Indices, Assets, Exchange Rates).
• Cost of hedges can be higher than adverse impact of market movements. • Exposure to derivatives can also limit the profits from a genuine investment transaction. • The prices which are seen on the screen need not be the same at which execution will take place.
Numerical example:
Scheme ABC has to buy 2000 shares of stock A (constituent of the scheme). However, due to illiquidity or a corporate action the stock isn’t available in the secondary market. The futures of stock A is trading at a fair price (adjusted of cost of carry) and offers enough liquidity.
Date of Transaction April 02,2026 Fair Price of Stock A Rs. 100 Expiry Date of Future Contract April 26, 2026 Price of Future Stock A (Sep expiry) Rs. 102 No. of shares of Stock A in 1 contract 2000 Value of 1 contract = 102*2000 Rs. 2,04,000 Margin (%) 10% Margin (in Rs.) Rs. 20,400 Holding Period 10 days On 10th day the future contract was sold, and the underlying stock was bought in the secondary market as it was trading at a fair price and had enough liquidity.
Stock A was trading at Rs 105 on April 10, 2026.
The financial impact of the position is dependent on the price of futures contract with respect to that of the price of the stock in the cash market on the date of reversal of the trade. That impact is visible in the basis (the difference in the price of future contract and spot price of stock A). Higher basis indicates the difference has widened and vice a versa.
On April 2, 2026, the basis between the stock and its future contract was Rs 2. Assuming the same basis the fair price of future of stock should be Rs 107.
The various scenarios of the futures price of stock A on April 10, 2026 are as follows:
1. The basis remains constant i.e. Rs 2.
2. The basis expands and the futures of stock A trade more in premium to the spot.
3. The basis narrows to Re 1.
4. The basis falls to zero.
5. The basis becomes negative and the futures of stock A trades in discount to the spot.
The P&L arising from these scenarios are illustrated in the following table:
Change in Scenario Basis Value Spot Price Futures Price No. of Lots Basis Basis stays 2 105 107 1 0 same Basis widens 4 105 109 1 2 further Basis narrows 1 105 106 1 -1 11Basis 0 105 105 1 -2 becomes 0 Basis turns -2 105 103 1 -4 negative Disclosure relating to extent and manner of participation in derivatives to be provided Exposure to equity derivatives may be undertaken when equity shares are unavailable, insufficient or for rebalancing at the time of change in index or in case of corporate actions for a temporary period. The notional exposure of the Scheme in Equity Derivative instruments shall be restricted to 20% of the net assets of the scheme. Such exposure to derivatives will be rebalanced within 7 days 12