EXECUTIVE DIRECTOR

INVESTMENT MANAGEMENT DEPARTMENT

SEBI/IMD/CIR No.8 / 73580/06

August 4, 2006

All Mutual Funds Registered with SEBI

Association of Mutual Funds in India (AMFI)

Dear Sirs,

Sub: Filing of Annual Information Return to be filed by Mutual Funds

This is with reference to the Annual Information Return required to be filed by Mutual Funds under section 285 BA in the Income-tax Act under which the trustees of Mutual Funds or such other person managing the affairs of the Mutual Funds as may be duly authorized by the trustees in this behalf have to report specified financial transactions in electronic media to Income Tax Department giving PAN of the transacting parties in an Annual Information Return (AIR).

We have been informed by Directorate of Income Tax (Systems) that though the returns were filed as prescribed, there were several errors which were common to most mutual funds such as:

·  Not mentioning PAN of several transacting parties, or mentioning invalid PAN.

· Entering incomprehensible / incomplete names of transacting parties, e.g. names of 2 or 3 letters.

·  Entering incomprehensible / incomplete addresses of transacting parties, e.g. ‘Nil’, ‘N/A’, ‘_’, in all address fields, incomplete postal addresses, names of buildings split into separate fields, names of two cities in address fields, wrong PIN codes, etc.

·   Incorrect district and state codes

·  Incorrect transaction codes

·  Wrongly showing transaction as of ‘Govt.’ party.

AIRs are required to be filed only by the mutual fund and no separate AIR has to be furnished for each scheme of the mutual fund.

It may be noted that Annual Information Returns (AIRs) constitute an important source of information to Income Tax Department and, as such, it is imperative that the data furnished to them is complete and accurate in all respects. It is therefore advised that to re-check the accuracy of the data furnished by your office for the Financial Year 2004-05 and ensure that all the columns are correctly filled-in and submit a ‘Supplementary Information Report’, if need be, to the Income Tax Department.

The AIRs for the financial year 2005-2006 are required to be filed before August 31, 2006.

This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

R K NAIR

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