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ANGEL BROKING PRIVATE LIMITED (Formerly known as Angel Broking Ltd) (SEBI REGISTRATION NO. INP000001546)
RISK DISCLOSURE DOCUMENT
RISK DISCLOSURE DOCUMENT
FORM – ‘C’ SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) REGULATIONS, 1993 (Regulation 14) Angel Broking Private Ltd. Registered office: G-l, Akruti Trade Centre, road No 7, MIDC, Marol, Andheri (E), Mumbai-400093. Tel: (022) 28358800/30837700 Fax: (022) 28358811 Email ID: - email@example.com
Dear Investor, We confirm that: I. The Disclosure Document forwarded to the Board is in accordance with the SEBI (Portfolio Managers) Regulations, 1993 and the guidelines and directives issued by the Board from time to time; The disclosures made in the document are true, fair and adequate to enable the investors to make a well informed decision regarding entrusting the management of the portfolio to us / investment in the Portfolio Management Strategy; The Disclosure Document has been duly certified by an Independent Chartered Accountant Mr. Bimal Doshi (M .No 40494 ) Partner of M/S Bhana Shah Doshi & Co., 3, Solitaire Building, Ground Floor, Santacruz (west), S.V. Road, Mumbai – 400054.Tel: (022) 26006006/26055484.
Date: 14 March, 2013 Place: Mumbai
Name : Mr. Anil Ranka Designation : Principal Officer Address : G-l, Akruti Trade Center, Road No.7, MIDC, Marol, Andheri (E), Mumbai-400 093.
RISK DISCLOSURE DOCUMENT
DISCLOSURE DOCUMENT (As required under Regulation 14 of SEBI (Portfolio Managers) Regulation, 1993)
This document has been filed with the Board along with the certificate in the prescribed format in terms of Regulations 14 of the SEBI (Portfolio Manager) Regulations, 1993. The purpose of the Document is to provide essential information about the Portfolio Management Services (PMS) in a manner to assist and enable the investors in making informed decision for engaging Angel Broking Private Limited as a Portfolio Manager, This disclosure document sets forth concisely the necessary information about Angel Broking Private Ltd that a prospective investor ought to know before investing. The investor should carefully read the Disclosure document prior to making a decision to avail of the portfolio management services and retain this Disclosure document for future reference, The name, phone number, e-mail address of the principal officer so designated by the portfolio manager is:
Name of the Principal Officer Phone Email Address
Mr. Anil Ranka +91 22 2835800 / 30837700 firstname.lastname@example.org G-1, Akruti Trade Centre, Road No.7, MIDC, Marol, Andheri (East), Mumbai-400 093.
1 7.2 7. 5 5 8 3.1 Disclaimer Clause Definitions History.3 12 4 5 6 7 7. Present Business And Background Of The Portfolio Manager Promoters of the Portfolio Manager.RISK DISCLOSURE DOCUMENT INDEX Particulars 1 2 3.2 10 3.3 8 9 10 11 12 13 13 14 16 23 23 26 26 27 29 30 30 32 33 . Directors and their Background Top 10 Group companies/firms of the Portfolio Manager on turnover basis Details of services being offered by the Portfolio Manager Penalties /Pending litigations etc. Products Offered Risk Factors General Risk Factors Client Representation Disclosure in respect of transactions with related parties Financial performance of the Portfolio Manager (based on audited financial statement) Nature of Expenses Taxation Implications Accounting Policy Investor Service General Page No.
unless repugnant to the context or meaning thereof. with the Portfolio Manager for Portfolio Management. maintained and operated by the Portfolio Manager in the name of the clients or a pool account in the name of the Portfolio Manager to keep the funds of all clients. "Assets" means (i) the Portfolio and/or (ii) the Funds.1 Definitions & Interpretations In this document & agreements to be executed subsequently.RISK DISCLOSURE DOCUMENT 1. III. "Agreement" means agreement between Portfolio Manager and its Client and shall include all schedules and Annexure attached thereto: "Act" means the Securities and Exchange Board of India. "Board" means the Securities and Exchange Board of India established under subsection (1) of Section 3 of the Securities and Exchange Board of India Act. 1993 as amended till date and the same is filed with Securities and Exchange Board of India (SEBI). “Bank” means scheduled commercial bank. the provisions of the Agreement shall prevail. IV. Upon execution of the Agreement by the Portfolio Manager. 2. In this document & Agreement to be executed subsequently. have the same meaning as assigned thereto in the Regulations of the SEBI (Portfolio Managers) Regulations 1993. 2. V. unless repugnant to the context or meaning thereof. Disclaimer This Disclosure Document has been prepared in accordance with the Securities and Exchange Board of India (Portfolio Managers) Regulations. 2.2 I. words and expressions which are used herein but not defined shall. unless the context otherwise requires. with which the Portfolio Manager will open and operate the Bank Accounts for the purposes of the Portfolio Management Services “Bank Account" one or more bank accounts opened. VI VII. II. VIII. where the Funds of the clients will be separately identified in a accounts maintained in back office accounting system for the purpose of the portfolio management services to be provided by the Portfolio Manager. Act 1992 (15 of 1992) “Application" means the application made by the Client to the Portfolio Manager to place the monies and/or securities. "Client" or "Constituent" means the person who enters into an Agreement with the Portfolio Manager for managing its portfolio and/or funds. mentioned therein. Provided that in case of any conflict between the contents of the Application and the provisions of the Agreement. and / or for availing the services of portfolio management. This Disclosure Document has neither been approved nor disapproved by SEBI nor has SEBI certified the accuracy or adequacy of the contents of the Disclosure Document. 5 . the Application shall be deemed to form an integral part of the Agreement.
XVIII. "Fund Manager" means any person(s) appointed by Portfolio Manager in pursuant to contract or agreement with the client for managing Strategy(ies). "Depository" means Depository defined in the Depositories Act. XIV. for the purpose of providing the Portfolio Management Services. "Financial year" means the year starting from April 1 and ending on 31st March of the following year. 1949 (38 of 1949) and who has obtained a certificate of practice under Sub-section (1) of Section 6 of that Act.RISK DISCLOSURE DOCUMENT IX. prepared in terms of Regulation 14 and Schedule V of the SEBI (Portfolio Managers) Regulations. in such manner as the Portfolio manager may deem fit. (CDSL). India or any other entity. "Discretionary Portfolio Management Services" mean Portfolio Management Services rendered to the clients by the Portfolio Manager on the terms and conditions contained in the agreement with respect to assets of the client where the Portfolio Manager exercise its sole and absolute discretion to with respect to investments or management of the Assets of the client. entirely at client’s risk. "Disclosure Document" means this disclosure document issued by the Portfolio Manager for offering Portfolio Management Services. being a Depository Participant. XV. "Depository Account" means the pool account styled as "Angel Broking Private Ltd PMS Strategy A/c for all its clients for all and/or some of their Strategy / products and/or individual pool accounts for each of their Strategy / products or individual accounts of clients or a combination of all or any of these at the sole discretion of the Portfolio Manager and opened. so long as the same is managed by the Portfolio Manager. "Funds" means the monies managed by the Portfolio Manager on behalf of the Client pursuant to this Agreement and includes the monies mentioned in the Application. XVI. dividend or other monies arising from the Assets. XI. “Depository Participant” means any person/entity with whom the securities of the client may be held in dematerialized form in an account opened for that purpose. "Funds managed" means the market value of the assets of the Client as on a particular date. any further monies placed by the Client with the Portfolio Manager for being managed pursuant to this Agreement the proceeds of the sale or sale or other realization of the Portfolio and interest. "Fll" means Foreign Institutional Investors registered with SEBI under securities and 6 . XV. XVII. 1993. X. 1996(22 of 1996) and includes National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd. XIX. XIII. XII. maintained and operated by the Portfolio Manager on behalf of the Client with Angel Broking Private Ltd. "Custodian" means any person who carries on or proposes to carry on the business of providing custodial services. 'Chartered Accountant' means a Chartered Accountant as defined in Clause (b) of Sub-section (1) of Section 2 of the Chartered Accountants Act.
corporation. subject to express prior instructions issued by the Client from time to time. a company incorporated under the Companies Act. cooperative society. XXVII. "Regulations" means the Securities and Exchange Board of India (Portfolio Managers) Regulations. valued at the closing market price of the previous working day of the date of activation of client’s account on recognized stock exchange. partnership firm. XXIII. Marol. 1995. and "Party" shall be construed accordingly. Mumbai-400093 who. advises or directs or undertakes on behalf of the client (whether as discretionary portfolio manager or otherwise) the management or administration of portfolio of securities or the funds of the client. Andheri (E). "Person" includes any individual. limited liability partnership firm. "Portfolio" means the value of total holdings of securities belonging to any client. MIDC. 1993. "Initial Corpus" means the value of the funds and/or the value of securities. XXVI. Akruti Trade Centre. 7 . cash & cash equivalents less outstanding liabilities. XX. society. "Investor" means Client or Constituent for this document / Strategy offered by the Portfolio Manager. XXIX “Product/Strategy” means any of the current investment plan/strategy or such plans/strategies that may be introduced at any time in future designed to suit objectives of various categories of investors according to their risk taking capabilities. central or state government. body corporate. "Non-discretionary Portfolio Management Services" means Portfolio Management Services under which the Portfolio Manager. for an agreed fee structure. whether incorporated or not. brought in by the client at the time of registering as a client with the Portfolio Manager and accepted by the Portfolio Manager. trust. invests in respect of the Client's account in any type of security entirely at the Client's risk and to ensure that all benefits accrue to the Client's Portfolio. 1956 and having its registered office at G-l. "Parties" means the Portfolio Manager and the Client. 1993. XXV. XXI. XXVIII "Principal Officer" means employee of the portfolio manager who has been designated as such by the portfolio manager. as may be amended from time to time.RISK DISCLOSURE DOCUMENT Exchange Board of India (Foreign Institutional Investors) Regulations. as may be amended from time to time. XXX. pursuant to a contract or arrangement with a client. Hindu Undivided Family or any other body of persons. "Net Asset Value" (NAV): Net Asset Value is the market value of assets in portfolio consisting of equity. road No 7. as the case may be. XXII. XXXI. "Rules" means Securities and Exchange Board of India (Portfolio Managers) Rules. XXIV. "Portfolio Manager" means Angel Broking Private Ltd. debt. company.
futures. bonus. trading member of The National Stock Exchange of India Limited (NSE) in Cash. stocks. F&O and Currency Derivative segment. fixed return investments. derivatives. the Central Government. trading member of MCX SX Stock Exchange Limited and Over the Counter Exchange of India and a registered Depository Participant of CDSL. preference. 1956 having its registered office at G-l. 1934(2 of 1934).RISK DISCLOSURE DOCUMENT XXXII. foreign currency commitments. any entity. money market instruments. 1956.1 History. Shares. 1934. commercial paper. convertible and non-convertible debentures. XXXIII. A Certificate of Registration bearing Registration No. scripts. any State Government or any local or statutory authority and all money rights or property that may at any time be offered or accrue (whether by rights. 8 . negotiable instruments. 3. Andheri (E) Mumbai-400093 ABL was merged with Angel Global Capital Private Limited and subsequently name of Angel Global Capital Private Limited was changed to Angel Broking Private Limited (ABPL) pursuant to scheme of Amalgamation sanctioned by the Hon’ble High Court of Judicature at Bombay by Orders passed in Company Petition No 710 of 2011 and the approval granted by the Registrar of Companies. redemption. 7. options. Akruti Trade Centre. derivative instruments. units issued by the Unit Trust of India and/or by any mutual funds. deposits. MIDC Marol. certificates of deposit. bonds. "Scheduled Commercial Bank" means any bank included in the second Schedule to the Reserve Bank of India Act. and any other instruments or investments (including borrowing or lending of securities) as may be permitted by applicable law from time to time. mortgage backed or other asset backed securities."SEBI" means the Securities and Exchange Board of India established under subsection (1) of Section 3 of the Securities and Exchange Board of India Act 1992. hedges. ABPL is primarily a retail stock broker with a clientele of more than 7 lakhs. warrants. ABPL is also a registered trading member of The Bombay Stock Exchange Limited (BSE) on the Cash & Derivative segments. INP000001546 as Portfolio Manager is being held in the name of APBL and is valid up to 15/1/2015. XXXIV. Road no. sub-brokers. XXXV "Securities" as defined under the Securities Contracts (Regulation) Act. swaps or netting off and any other securities issued by any company or other body corporate. "RBI" means Reserve Bank of India. ABPL has the discretion to appoint brokers. (ABL) was incorporated under the provisions of the Companies Act. ABPL is now in the process of obtaining approval for change of name from SEBI and various exchanges. any trust. equity linked instruments. 3. Present Business And Background Of The Portfolio Manager Angel Broking Ltd. established under the Reserve Bank of India Act. custodians and other intermediaries in relation to the discretionary /nondiscretionary/ advisory portfolio management services. option or otherwise) and whether in physical or dematerialized form in respect of any of the foregoing or evidencing or representing rights or interest therein.
being registered as a stock broker and as a Depository Participant of CDSL or any of the services provided by its affiliates from time to time for the purpose of rendering Portfolio Management Services. held on 10th October 2011. ABPL was awarded under following the category: ¾ “Best Retail Broking House”. ABPL has been awarded the ‘Major Volume Driver’ trophy by BSE for eight consecutive years from 2004-2005 to 2011-2012. At Bloomberg UTV Financial Leadership Awards 2011 held on 27th March 2011 the following award was given: ¾ Best Contribution in Investor Education & Category Enhancement of the Year At the Dun & Bradstreet Equity Broking Awards 2011. Delhi. Bengaluru. Jaipur. Indore. Dun & Bradstreet. Cochin. ABPL was awarded 2 awards under following the categories: ¾ “Best Retail Broking House”. 9 . ¾ “Fastest Growing Equity Broking House (Large Firms)” At the Dun & Bradstreet Equity Broking Awards 2012. . as a Portfolio Manager. Hyderabad. Pune. Ludhiana. ABPL was awarded 2 awards under following the categories: ¾ “Broking House with Largest Distribution Network” ¾ “Best Retail Broking House”. The Regional offices are located at Ahmedabad. Mumbai-Powai. had conducted study in June-2007 wherein ABPL was ranked as Number one among the broking houses in terms of trading terminal. Kolkata. ABPL operates through a widespread established network of 17 regional offices and 141 branch offices. At the Dun & Brand street Equity Broking Awards 2009. may use services of its broking and depository divisions. Lucknow. held on 08th October 2012. Surat and Vadodara.RISK DISCLOSURE DOCUMENT ABPL. There are approximately 8000 registered sub-brokers of ABPL. a reputed international business information provider. Coimbatore. Chennai. Rajkot. held in Mumbai on 26th May 2009.
840 1.123.903 Face Value 10 10 10 10 10 10 10 10 10 10 10 10 10 10 Amount 6.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name Ashok Dariyanumal Thakkar Deepak T Thakkar Nirwan Monetary Services Pvt.630 100.903 5.175.55 8.000 50.46 4.000.231 1.000 5. 641.500.963 10.030 89.00 0.163.903 8.04 0.57 0.43 0.000 500. Ltd.43 1.116.86 0.00 1.062 3.01 0.06 0.35 12.77 2.130.000 100.560 10.084 123.394 82.06 0.620 2.04 10 .81 0.399.440 448.940 822.356 1.70 7.880 6.500 10 8.610 18.049.089. 143.049.310 12.000 8. The shareholding pattern of the Company is as follows: Shareholding Pattern as on 31 December 2012:- Sr.85 15 817.000 1.935 10 10 10 10 10 10 10 10 10 10 6.160 1.388 616 154 150.350 4.353.984 654.540 1.030 89.761 1.213.620 33.862 204.030 % of Shareholding 4.000 1.812.964 204.62 0. Dinesh D Thakkar Lalit T Thakkar Kanta Dinesh Thakkar Dinesh D Thakkar HUF Mahesh D Thakkar Jaya Prakash Ramchandani (Naina Thakkar) Sunita Magnani Nita Thakkar Ashwin S Thakker Mukesh Gandhi jointly with Bela Mukesh Gandhi Bela M Gandhi jointly with Mukesh Gandhi Nishith Jitendra Shah jointly with Jitendra Nimchand Shah Bharat Chimanlal Shah Jointly with Hansa Bharat Shah Hansa Bharat Shah jointly with Bharat Chimanlal Shah Ekta Bharat Shah Jointly with Bharat C Shah Ashok Popatlal Shah Chandresh Popatlal Shah Manjula Ramnik Gala Rajiv R Phadke Amit Majumdar Vinay Agrawal Nikhil H Daxini Number of shares 639.244 44.35 0. 750.233.537.903.903 8.542.640 2.69 16 17 18 19 20 21 22 23 24 25 690.07 0.840 6.300 408.31 1.000 89.030 59.45 23.000 4.RISK DISCLOSURE DOCUMENT The paid up capital of the Company is Rs.06 0.000 11.
364.35 18.000 25. New Link Road.641. Product Development and E-broking initiative. Vinay Agrawal F-1701. Mehta jointly with Asha G Mehta Asha Govind Mehta jointly with Govind R Mehta Roy H Thomas Jairam Chanchalani International Finance Corporation (IFC) TOTAL 5. His technical and fundamental outlook has provided impetus to Angel’s market research team. Bldg No. Dinesh Thakkar India’s first retail-focused stock-broking house was established in 1987.552 14.750 0.550 11.02 0.870 11. Mulund (West). He is actively involved in exploring new ways to adopt technology for business enhancement. Lalit Thakkar is the motivating force behind ABPL’s highly acclaimed Research team. Lokhandwala Township.01 0. The print and electronic media often seek his views on the market trend as well as investment strategies.2 Ketan B Shah Pinky Kothari Nishita H Mehta jointly with Haresh Govind Mehta Govind R.187 2. LBS Marg.585. Mumbai.03 0. Mr.855.870 23.870 500. 1401.000 2. a Chartered Accountant.870 11.00 100. Vinay Agrawal.04 0.187 1. He’s been a part of the senior management team since the Angel Group’s inception. Operations. Mr. Lalit Thakkar 1601/B Vikas Paradise Building. A Chartered Accountant by qualification. ABPL became the first broking house to embrace new technology for faster. Whispering Palms Xxclusive. Raheja Classique. Kandivali (E). Mr.155 1. Mehta jointly with Asha Govind Mehta Romi G.187 1. Under the leadership of Mr. A. Oshiwara.RISK DISCLOSURE DOCUMENT 26 27 28 29 30 31 32 33 34 3. His hands-on experience and fundamental knowledge of the market can predict the market trend early. Andheri(W). which comprises Business Development. Thakkar is valued for his understanding of the economy and the stock-market. Mr. leads the Equity Broking business at Angel. Mumbai-400080 Mr.01 0.01 0. 2. 14th Floor. Akurli Road.374 1. more effective and affordable services to retail investors.740 11. Mumbai 400 1013 Mr. 11 .175 10 10 10 10 10 10 10 10 10 59.360 41.400061.520 143.01 0.00 Promoters and Directors of the Portfolio Manager and their background:The details of the promoters and directors of ABPL are given below: Mr.187 50. Dinesh Thakkar Flat No.Wing.936 4.
Amit Majumdar is a key member of Angel’s strategic decision-making process. Mr.400011 Mr. banking.. Opp. Debra Lynn Perry 2608 36th Pl Nw Washington. Syam followed up his Engineering degree with an MBA. United States Of America Ms.RISK DISCLOSURE DOCUMENT Agrawal began his career with the Angel Group as Finance and Operations Consultant. . and since then he’s quickly climbed up the corporate ladder. 380060. investment. Angel Commodities Broking Private Limited.. His area of focus is Business Development. Kesar Sal Hospital Sola Road. He has rich experience in finance. Mr. Risk Management and Operations. 12 . Santanu Syam 191 Kalpataru Heights. Ahmedabad. Washington. Before joining the Angel Group. Nr. He has also attended Banking & Technology seminars organized by SCB Singapore. consultancy and advisory services. 20007. Syam has been with the group since July 2008. Nr. Agripada P S. A L Nair Road. Dc. Mr.3 • • • Top 10 Group companies/firms of the Portfolio Manager on turnover basis Angel Securities Limited. Powai. He has been with the group since August 2004. Treasury Banking. Mumbai Central Mumbai. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel. Wholesale Banking. He has handled several functions of the group like finance and operations. Mr. to name a few. Phase III. Mr. Ambit Corporate Finance and Ernst & Young Mr. He brings with him over 18 years of experience in the field of Transaction Banking. Dr. Mimansa Software Systems Private Limited. Super Bunglows. Nikhil Daxini 38. Consumer Banking and CBS. treasury. He started his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Banking. Mr. Mr. Near Gopal Sharma School. Daxini has immense experience in the marketing of financial products and services. Majumdar has been associated with Rabo India Finance. Perry is the Principal Investment Officer at International Finance Corporation 3. Mr. Gujarat With an MBA in finance. BSE India & Euro Finance. Ms. Majumdar has led many successful initiatives for the group. Mumbai 400 076 A Chartered Accountant by qualification. Science City. Lake Lucerne Lake Homes. Amit Majumdar D 1801/02.
for an agreed fee structure and for a definite period as described. regulations. Craftsman Apparel Pvt Ltd Angel Fincap Private Limited Angel Wellness Private Limited The aforesaid companies are not listed in the order of their turnover 4 Details of services being offered by the Portfolio Manager. guidelines and notification in force from time to time. Nirwan Monetary Systems Private Limited. fraud. bonus as well as residual cash balances. returns. entitlements. substitutions and/or replacements or any other beneficial interest including dividend. rights. dividend. interest. conflict of interest or gross negligence. renewing and reshuffling the portfolio. The deployment of Funds is the sole discretion of the Client and is to be exercised by the Portfolio Manager in a manner that strictly 13 .RISK DISCLOSURE DOCUMENT • • • • • • Angel Financial Advisors Private Limited. refunds. accruals. The right of portfolio Manager will be exercised strictly in accordance with the relevant acts. the investment decisions of the Portfolio Manager are guided by the instructions received from the Client under an agreement executed between the Portfolio Manager and the Client. allotments. the Portfolio Manager shall deploy the Assets brought in by a Client by investing or divesting suitably in the capital markets as per agreement executed with the client subject to the applicable Act and Regulations. bonus. rights etc. The Portfolio Manager will provide Discretionary Portfolio Management Services which shall be in the nature of investment management. benefits. and may include the responsibility of managing. B) Non-Discretionary Portfolio Management Services: Under this category. so that all benefits accrue to the Client's Portfolio. calls. Periodical statements in respect Client's Portfolio shall be sent to the respective Client. The Portfolio Manager's decision (taken in good faith) in deployment of the client's funds is absolute and final and cannot be called in question or be open to review at any time during the currency of the agreement or any time thereafter except on the ground of mala fide. The Portfolio Manager shall be acting in a fiduciary capacity. keeping safe custody of the securities and monitoring book closures. privileges. with regard to the Client's assets and account consisting of investments. both. rules. buying and selling the securities. as an agent as well as a trustee. entirely at the Client's risk. A) Discretionary Portfolio Management services Under the Discretionary Portfolio Management Services. if any (represented both by quantity and in monetary value). The Portfolio Manager shall have the sole and absolute discretion to invest on behalf of the client in any type of security as per executed Agreement and make such changes in the investments and invest some or all of the Funds in such manner and in such markets as it deems fit. Angel Insurance Brokers and Advisors Pvt Ltd.
For the purpose of acting on the Client’s instructions. entirely at the Client’s risk. C) Investment Advisory Services: The Portfolio Manager will provide advisory portfolio management services. The role of the Portfolio Manager apart from adhering to investments or divestments upon instructions of the Client is restricted to providing market intelligence. bonus. trade statistics and such other material which will enable the Client to take appropriate investment decisions. FIIs. acts. in terms of the SEBI (Portfolio Manager) Regulations 1993. The Portfolio Manager shall. findings of inspection or investigations for which action may have been taken or initiated by a regulatory authority: Sr. 1 Particulars Cases of penalties imposed by the board or the directions issued by the Board under the Act or Rules or Regulations made there under The nature of penalty / direction Penalties imposed for economic offence and / or for violation of any securities laws Any pending material litigation / legal proceedings against the Portfolio Manager / key personnel with separate disclosure regarding pending criminal cases.RISK DISCLOSURE DOCUMENT complies with the Client’s instruction. if any Any deficiency in the systems and Details of Penalties/Litigations Nil* 2 3 Not Applicable Nil 4 As per Schedule 1 5 Nil 14 . rights etc. dividend. However the Portfolio Manager will continue to act and be strictly guided by relevant guidelines. entirely at the Client’s risk. in this regard. pending litigation or proceedings. provide advisory services in accordance with such guidelines and/ or directives issued by the regulatory authorities and /or the Client . etc The Portfolio Manager shall be solely acting as an advisor to the portfolio of the client and shall not be responsible for the investment / divestment of securities and / or an administrative activities on the clients portfolio. The decision of the Client in deployment of Funds and the handling of his / her / its Portfolio is absolute and final. trading strategies. for an agreed fee structure and for a definite described period. the Portfolio Manager shall take instructions in writing or through any other media mutually agreed such as e-mail or suitable and secured message and may include managing. from time to time. keeping safe custody of the securities and monitoring book closures. which shall be in the nature of investment advisory and shall include the responsibility of advising on the portfolio strategy and investment and divestment of individual securities on the clients portfolio. Penalties. 5. renewing and reshuffling the portfolio. buying and selling the securities. research reports. Rules. Regulations and notifications in force from time to time. for an agreed fee structure and for a period hereinafter described. No. so that all benefits accrue to the Client’s Portfolio. to all eligible category of investors who can invest in Indian market including NRIs.
EAC6/BM/JR/10927/2012 dated May 16. Schedule 1 1 2 3 4 Manubhai Tanna. ABPL has filed an appeal before Securities Appellate Tribunal (SAT) against the said SEBI order. filed a criminal complaint before Judicial Magistrate Court in Gorakhpur . Principal Officer or employee or any person directly or indirectly connected with the Portfolio Manager or its directors. Adjudicating Officer observed that certain trades were carried out for clients who were related to promoters of Bank of Rajasthan and payments for the trades were received from entities other than clients. w. SEBI. Client. under the Act or Rules or Regulations made there under 6 As per Schedule 1 • The penalties imposed on and/or directions given to ABPL in ordinary course of its business as stock broker and are of operational in nature have not been considered. There was an investigation carried out by SEBI against ACDL for execution of trades on behalf of its client Mr. SEBI imposed a penalty of Rs. 1st October. The case was filed before the metropolitan Magistrate court at Andheri. were circular /synchronized trades. Principal Officer or employee.. An order was passed in the matter of Sun Infoways Ltd. according to SEBI. SAT allowed appeal and the said SEBI order was set aside. An adjudication proceeding was initiated by SEBI against the group company Angel Capital and Debt Market Ltd (ACDL) which has been merged in Angel Broking Ltd. Naval Kishore Nathani. The matter is pending at SAT. which according to SEBI were of synchronized in nature. vide Adjudication Order No.f.e. The case is pending. 2012 5 15 . on 30th January 2013 wherein SEBI prohibited Angel Broking Ltd from taking up any new assignments for the period of two weeks. 75000/vide order dated September 28. had imposed a penalty on ACDL (registered stock broker) in relation to the transactions executed on behalf of the clients in F&O. 2010 under a Scheme of Amalgamation. ACDL had filed an appeal before Securities Appellate Tribunal (SAT) against the said SEBI order and based on submissions made.Uttar Pradesh against -ABPL. ISD/F&O/AO/DRK/SS/EAD-dated 19/3/2009. PoA holder of Client.RISK DISCLOSURE DOCUMENT operations of the Portfolio Manager observed by the Board or any regulatory agency Any enquiry / adjudication proceedings initiated by the Board against the Portfolio Manager or its directors. for alleged breach of trust. 2012 in the matter of Bank of Rajasthan. Case is pending. SEBI has challenged the SAT order before the honorable Supreme Court which is subjudiced at present. which. An inquiry has been initiated by SEBI vide letter reference no. Nalini Tanna filed criminal complaint against ABPL and others alleging falsification of documents and criminal conspiracy. Heerachand Salecha in the scrip of Sun Infoways Ltd.
placements and right offers. units of Debt oriented schemes of Mutual Funds. unlisted. bonds issued by Public Sector and State Level Undertakings. initial public offers. sectors with good prospects. The Strategy is aimed at higher risk taking investors with a short to medium term perspective. Investments will be made through Secondary Market purchases. The investment choice will be primarily influenced by technical factors like price. The securities could be listed. Securitized instruments.2 Types of Products: Discretionary Portfolio Management I Pure Debt Product Objective of this product is to generate regular income stream without taking high risk on capital erosion and therefore suitable for investors who aims to have regular income flow from their investment without taking high risk on their capital investment amount. Secondary factors will be reasonable levels of market capitalisation. These investments will seek to achieve optimum returns through investments across companies and sectors that have the potential to generate adequate returns over medium term. The investment objectives would be one or more of following or combination of thereof a. This is a 100% debt product and investments will only be in one or more or combination of various debt instruments such as Govt. competitive position in the industry. of India Securities (G-Sec). Bank Deposits. 16 . patterns and volume indicators. other public offers. good liquidity. and/or any other instruments permitted by SEBI.1 PRODUCTS OFFERED The Present Investment Objectives: The portfolio manager provides various investment products/ strategies based on the Consent of Client and subject to the scope of investment as per the agreements between client and portfolio manager. II Angel Traders Delight The main objective of this Product is to generate capital appreciation through short term to medium term investments in equities and equity related instruments. RSI. moving averages and other studies. 6. Money Market instruments. privately placed. etc. rated/unrated of any maturity of any tenor. To generate short term and / or long term capital appreciation c. To provide investment flexibility to client across various market segments 6.RISK DISCLOSURE DOCUMENT 6. secured/unsecured. Corporate Bonds. MACD. RBI Relief Bonds. State Development Loans (SDL). To generate regular return on investments b.
The portfolio will take large exposures on few stocks. At any time. Small and mid cap stocks. The Strategy will invest in all equity and equity related instruments with emphasis on fundamentally sound.RISK DISCLOSURE DOCUMENT III Angel Growth The main objective of the product is to generate capital appreciation through investments in equities with a long-term perspective. leadership status in sectors or potential to achieve such status. etc and that have the potential to deliver growth over the long term. The main objective of the product is to generate capital appreciation through investments in equities with a long-term perspective. IV Angel Focus The objective of this product is to build a focused equity portfolio for capital growth in the long term. The focus will be on medium and small capitalisation companies which have quality management. 17 . The product is suitable for those NRI investors having medium risk appetite and willing to invest in equity market over a long-term period. VI Angel Oyster Fund The objective of this product is to build an equity portfolio of good quality large. in order to generate capital appreciation from a medium term perspective. However selective investment in large capitalisation companies may also be considered depending on market condition. wellresearched blue chip companies perceived to be undervalued from the point of view of their long-term growth prospects. The Strategy will invest in all equity and equity related instruments with emphasis on fundamentally sound. the portfolio will comprise a maximum of 7 scrips. The product is aimed at medium risk taking investors willing to invest in equities over a long-term period. well researched companies. The focus will be on medium to large capitalisation companies which have a proven track record or earning capability. The risk is sought to be controlled through detailed research and active monitoring. This portfolio is subject to a one-year lock in and is suitable for clients willing to invest with a long-term capital growth objective. thereby making it a very concentrated one. well-researched companies perceived to be undervalued from the point of view of their medium & long-term growth prospects. V Angel NRI This product is designed keeping in mind the RBI guidelines for NRIs and due care will be taken to ensure that the restrictions that are placed on certain stocks by RBI are adhered to. quality management. This portfolio is suitable for clients willing to assume high volatility in the portfolio. leadership status in sectors or potential to achieve such status. The investment will be made in all equity and equity related instruments with emphasis on fundamentally sound. etc and that have the potential to deliver growth over the long term.
who can stay invested for the long term. management quality. The client can specify the asset mix they prefer. The product. Selection of scrip within asset class will be based on the assessment and understanding of the risk profile of the client with aim to generate optimum returns. The Portfolio Manager will invest the funds primarily in the Cash Segment and simultaneously sell in the Futures Segment to take advantage of the premiums existing in the Futures Segment. aims at taking covered positions and is suitable for those investors who are willing to take very low risk with expectation of reasonable returns. X Angel Blue Chip The Objective of Angel Blue-Chip product is to invest in a diversified portfolio of large cap/blue-chip companies with strong fundamentals to give reasonable protection against market volatility and to insulate the investor from severe economic and market cycles. The debt portion will be invested in units of debt-oriented schemes of mutual funds. Corporate bonds. Government Securities. debt and debt related instruments including debt mutual funds etc. VII Angel Secure The objective of the product is to reduce risk and generate reasonable returns by exploiting price mismatches and doing arbitrage across Cash and Futures Segments of same or different exchanges or between futures and options. VIII Angel Diversified The objective of the product is to achieve a reasonable appreciation combined with some regular income stream with prudent use of both debt and equity products depending on the assessment of the prospects for each of these segments. portfolio manager will use his discretion in selecting scrips within various asset classes in the defined allocation ratio. etc. The Strategy is aimed at medium risk taking investors willing to invest in companies over a medium to long-term period. business fundamentals and valuation. RBI Relief Bonds. Asset classes include equity or equity related instruments including Mutual Funds. The equity portion may be invested directly in equities or units of equity schemes of mutual funds. Client has liberty to opt for 100 percent investment in a particular asset class.enduring business model. The asset allocation between debt and equity and investments within the asset class will be at the discretion of the Portfolio Manager. IX Angel Customized The objective of this product is to generate optimum returns based chosen asset classes for investment by the client. Once the % allocation of funds among of asset classes is determined by the client. it shall be ensured that it does not result in leverage. securitized instruments and/or any other instrument permitted by SEBI. While exercising this strategy. deposits. 18 .RISK DISCLOSURE DOCUMENT and perceived to be undervalued from the point of view of their long-term growth prospects. The product is aimed at investors with a low to medium risk profile. therefore. The stock selection process will lay emphasis on the following four factors . The product aims to cater medium risk taking investors. or by taking a Future position and selling an option.
for investors. The product will make investments in the Cash segment and take a contra position in the Futures segment.RISK DISCLOSURE DOCUMENT XI Angel-Interest Arbitrage Fund The objective of the product is to achieve returns by capturing the differential in the interest rates in the market. XIV Angel Lotus Fund The objective of the product is to generate wealth over medium to long term by delivering superior returns through investments in equities. This product is suitable for medium risk taking investors. as determined in the spot price and futures price of securities. The risk associated with this investment will be medium. This Strategy is suitable for short to medium term. The debt asset class includes investment in units of debt-oriented schemes of mutual funds. Also. XII Angel Out-Performance The objective of this fund is to capitalize on the long term trend of nifty and to better the rate of return by capitalizing on the arbitrage opportunities. securitized instruments and/or any other instrument permitted by SEBI. 19 . Corporate bonds. The product will seek to achieve returns through participation in stocks of companies that offer a return through exploitation of. The Portfolio Manager may square up both positions during or at the end of the month or may carry the position in the Cash segment while taking a fresh position in the Futures segment at the expiry. who seek to achieve reasonable returns in comparison to returns of debt instruments. Here. The allocation of investment amount between said asset classes as well as within the particular asset class will be at the discretion of the Portfolio Manager. RBI Relief Bonds. Also arbitrage opportunity will be tapped by buying stocks in cash market and selling in future segment. deposits. The fund manager has prerogative to choose opportunities irrespective of market capitalization of the stock. debt and equity depending on the assessment of the prospects for each of these segments. XIII Active Asset Allocation Fund The objective of the product is to achieve a reasonable appreciation with prudent use of both asset class viz. the Portfolio Manager shall invest the Portfolio funds (net of margin requirements of the Exchange concerned) in securities / indices listed on the Cash and Derivatives segment of the recognized stock exchanges. Risk factors of this Strategy include execution risk. Government Securities. in such securities in which the price in the Futures segment is higher than in the Cash segment. arbitrage opportunities. The future position may be rolled over if the price advantage is available or. The equity asset class includes direct investment in equities or units of equity oriented schemes of mutual funds. The future of the scrip for which the stocks are bought in cash segment will be sold. a Nifty future is purchased. lack of opportunity to square up and higher than anticipated cost of squaring up. use of Equity derivatives instrument will be done against equity to hedge and enhance the returns. the position may be closed and fresh arbitrage opportunities are explored in the same scrip /new scrip. Under this Strategy.
RISK DISCLOSURE DOCUMENT Investment Strategy • • • To generate wealth on medium to long term basis rather than outperform by taking higher risk Early identification of stocks to ride through the entire investment cycle Selecting stocks by bottom-up approach Parameters Guiding the Investment Decision • • • • Blend of Growth and Value stocks Investment in companies regardless of market capitalization Keen selection of stocks (based on potential for value unlocking) based on key events Focus on companies which display scalable business potential. Execution Process • Buy stocks meeting the evaluation process and conviction level of fund managers on the business of the company 20 . market opportunity and favorable economic cycle Investor Profile The scheme is best suited for investors with moderate risk appetite with recommended investment horizon of 18 to 24 months. Key Parameters • • • • Strong management that scores very high on execution & corporate governance Business Model Valuation – The appropriate price at the time of entry and exit Future Growth prospects The weight age assigned to quality of management is highest in the stock selection.investing in less known & unpopular businesses having potential to deliver much superior returns A Bottoms up stock picking is the key to generating alpha. Manager carries out extensive research to select companies mainly on its individual merits that offer higher growth potential. XV Angel Evergreen Large Cap Portfolio Endeavour to provide capital appreciation over the medium to longer term by predominantly investing in companies having large market capitalization Investment Strategy • • • • Principles of Value and Growth investing followed Focus on Capital preservation Impetus to low-risk high-return stock. by capturing the complete up moves in the stock Contrarian at times .
24 months Advisory cum Non Discretionary Portfolio Management XVI ANGEL SELECT PORTFOLIO – KEY Feature: • Investment Profile best suited for investors with moderate risk profile • Advice to clients based on adequate research and changing market dynamics.RISK DISCLOSURE DOCUMENT • • • • Diversification of portfolio across sectors and businesses in order to avoid excessive concentration in a single sector or stock Disciplined. with continuous risk management of the portfolio along with realigning it with newer opportunities for superior returns Profit booking at opportune moments Suitability The portfolio is suitable for investors – • • • Seeking relatively superior returns. consumption growth. inflation.50lacs • Investment horizon of 18 to 24 months OBJECTIVE Endeavour to generate wealth over medium to long term. investment advice and trade execution facility to the Client • Minimum subscription amount: Rs. infrastructure development. INVESTMENT STRATEGY Blend of Growth and Value investing Investment in companies regardless of market capitalization Keen selection of stocks (based on potential for value unlocking) based on key events Focus on companies which display scalable & sustainable business models . with moderate risk tolerance Suitable for investors seeking portfolio with high correlation with the markets Having an investment horizon of 18 . long term & patient portfolio management approach STOCK SELECTION PROCESS • • Evaluating macro parameters like GDP growth.investing in less known & unpopular businesses having potential to deliver much superior returns Disciplined. • Transactions in securities as per directions of the Client and in terms of the PMS Agreement • The Portfolio Manager’s role is limited to providing research. government policies etc. Post evaluation of the macro parameters the sectors which specifically show high growth from medium to long term perspective. interest rates. by investing primarily in Indian Capital Markets thereby delivering superior returns irrespective of market capitalization of the stock. long term & patient portfolio management approach Active Portfolio management. 21 . market opportunity and favorable economic conditions Contrarian at times .
Index Options. whenever it deems necessary. competitive advantage front and returns front. • Evaluating the companies on relative front with the competitors on valuation front. The policies for investments in associates / group companies of the Portfolio Manager and the maximum percentage of such investments therein subject to the applicable laws / regulations / guidelines. • ¾ ¾ ¾ ¾ 22 . risk appetite of client and capital preservation level. The un-invested amounts in all the above products may be deployed in liquid fund schemes. Derivatives instruments may take the form of Index Futures. Gilt schemes. strength. interest Rate Swaps. EXECUTION PROCESS • Risk Profiling of the client to be done in order to understand the Risk Appetite of the client. Initial Public Offering (IPO). for interest. the securities invested / disinvested by the Portfolio Manager for clients in the same product may differ from client to client. The Portfolio Manager may. • Fund Manger to recommend the stocks based on the evaluation process and risk appetite as well as conviction level of fund managers on the business of the company • Fund Manager to execute transactions as per the instructions of Client and provide confirmation of the same. bank deposits and other short-term avenues for investment. The Portfolio Manager may also invest in other instruments / products as allowed by SEBI from time to time. from time to time. or related to composition of the benchmark. opportunities and threats etc of the sorted companies. due to inherent differences in the construction of the portfolios. review the benchmark selection process and make suitable changes as to use of the benchmark. The performance of the portfolios may not be strictly comparable with the performance of the Indices. as per the discretion of the Portfolio Manager depending on the investment horizon. weakness. valuation fronts in sectors with high growth rate with the help of in house software. Note applicable to all the above products: ¾ The portfolio of each client may differ from that of the other client in the same product. The Client may give informal guidance to customize the portfolio under the product. The Portfolio Manager may from time to time. with the consent of the Client. • Evaluating the business model. The Portfolio Manager may also use various derivatives and hedging products. however the final decision rests with the Portfolio Manager. In all the above products. debt oriented schemes of mutual funds. Forward Rate Agreements or such other derivative instruments as may be appropriate. Options on individual equities / securities.RISK DISCLOSURE DOCUMENT Sorting the companies based on various parameters. lend the securities through an Approved Intermediary.
By the same rationale. as actual market movements may be at variance with anticipated trends. Dividend declaration by such companies will be entirely at the discretion of the shareholders of such companies. 7. in case of a subsequent decline in the value of securities held in the Portfolio. invest in lower rated/ unrated securities offering higher yields. The dividend earnings of the portfolio may. from the underlying investments in various dividend yielding companies. The inability of the Portfolio to make intended securities purchases due to settlement problems could cause the Portfolio to miss certain investment opportunities.1 a) Risk Factors: General risk factors applicable to all the Strategies:Securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the investments will be achieved.e. Trading volumes.RISK DISCLOSURE DOCUMENT 7. it should be noted that the actual distribution of dividends and frequency thereof . There will be no prior intimation or prior indication given to the Clients when the composition/ asset allocation pattern changes.by the high-dividend yielding companies in future would depend on the quantum of profits available for distribution by each of such companies. Such investments shall be subject to the scope of investments as laid down in the Agreement. interest rates. Further. This may increase the risk of the portfolio. Past performance of the Portfolio Manager does not indicate the future performance of the Portfolio Manager. based on the recommendations of its Board of Directors. if any. in potential losses to the Portfolio. such as price and volume volatility in the capital markets. currency exchange rates. taxation laws or any other appropriate authority policies and other political and economic developments which may have an adverse bearing on individual securities. may be affected generally by factors affecting securities markets. changes in policies of the Government. The valuation of the Portfolio's investments. The Portfolio Manager may. at times. Investors may note that Portfolio Manager's investment decisions may not be always profitable. considering the overall level of risk of the portfolio. The liquidity of the Portfolio's investments is inherently restricted by trading volumes in the securities in which it invests. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. a specific sector or all sectors including equity and debt markets. settlement periods and transfer procedures may restrict the liquidity of the investments made by the Portfolio. In case of Dividend Yield Portfolio^ returns of the Portfolio could depend on the dividend earnings and capital appreciation. either of Principal or appreciation on the portfolio. Investors are not being offered any guaranteed or assured return/s i. the inability to sell securities held in the portfolio due to the absence of a well developed and liquid secondary market for debt securities would result. vary from year to year based on the philosophy and other consideration of each of the high-dividend yielding companies. Past track record of dividend distribution b) c) d) e) f) g) h) i) 23 .
lack a well-developed secondary market. distributions and income may be adversely affected by changes/fluctuation in the value of certain foreign currencies relative to the Indian Rupee. will be unable to make timely principal and interest payments on the security). are inherently illiquid in nature and carry a larger amount of liquidity risk. To the extent that the portfolio will be invested in securities denominated in foreign currencies. the ability to sell these investments is limited by the overall trading volume on the stock exchanges. the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). This may however increase the risk of the portfolio. j) Securities. Money market securities. Further the dividend yielding stocks may be relatively less liquid as compared to growth stocks. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. the Indian Rupee equivalent of the net assets. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. changes in interest rates may affect valuation of the Portfolios. While securities that are listed on the stock exchange carry lower liquidity risk. The greater the credit risk.. Indian debt markets can be volatile leading to the possibility of price movements up or down in fixed income securities and thereby to possible movements in the valuations of Portfolios. in comparison to securities that are listed on the exchanges or offer other exit options to the investor. Interest Rate Risk: As with all debt securities. Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed income security may default (i. distributions and income may be adversely affected by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. Liquidity risk is today characteristic of the Indian fixed income market. as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise.RISK DISCLOSURE DOCUMENT may not be treated as indicative of future dividend declarations. Prices of long-term securities generally fluctuate more in response to interest rate changes than prices of short-term securities. Normally. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities under a particular Portfolio are authorities in India. which may restrict the selling ability of the Portfolio(s) and may lead to the investment(s) incurring losses till the security is finally sold. the greater the yield required for someone to be compensated for the increased risk. Such investments shall be subject to the scope of investments as laid down in the Agreement. k) i) m) n) o) p) 24 .e. the Indian Rupee equivalent of the net assets. while fairly liquid. including a put option. which are not quoted on the stock exchanges. The Portfolio Manager may choose to invest in unlisted securities that offer attractive yields. Because of this risk corporate debentures are sold at a higher yield above those offered on Government Securities which are sovereign obligations and free of credit risk. To the extent that the portfolio of the Strategy will be invested in securities/ instruments denominated in foreign currencies.
rates and indices. Other risks include the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets. The Employee of the Portfolio Manager may also subscribe to any of the product(s) offered by the Portfolio Manager. Usage of derivatives will expose the Portfolio to certain risks inherent to such derivatives. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Interest Rate Swaps.RISK DISCLOSURE DOCUMENT q) The Portfolio Manager may use various derivative products as permitted by the Regulations. r) s) t) 25 . The Portfolio Manager may use derivatives instruments like Stock Index Futures. The Portfolio Manager may change the Fund Manager in the interest of the product(s) at any time without any reason assigning to it and / or without any information to the investors. Forward Rate Agreements or other derivative instruments. as' permitted under the Regulations and guidelines.
1 2 Relationship Holding Company Fellow Subsidiary Company Names Angel Global Capital Private Limited Angel Commodities Broking Private Limited Angel Financial Advisors Private Limited Angel Securities Limited Mimansa Software Systems Private Limited Aparna Finstock Private Limited Dinesh Thakkar Kanta Thakkar Mahesh Thakkar Bhavana Thakkar Ashok Thakkar Lalit Thakkar Anuradha Thakkar Deepak Thakkar Reshma Thakkar Dinesh Thakkar Amit Majumdar Vinay Agrawal 3 Individuals owning directly or indirectly interest in voting power that gives them prime control or significant influence and relatives of such individuals 4 Key Management personnel (KMP) 5 Enterprises over which key (3) are able to Nirwan Monetary Services Private Limited exercise significant influence with whom Jack & Jill Kids Private Limited transactions have taken place 26 .66 72.2 Client Representation Discretionary / Non Discretionary As on As on As on As on As on As on As on As on 31.22 0 33.10 31.03.03.11 31.10 31.12 28.49 49.2013 (if available) Nil Nil Nil Nil Nil Nil Nil Nil N/A No.03.) Category of Clients Associate / Group Companies Others 470 0 Total 7.RISK DISCLOSURE DOCUMENT 7.12 28.50 0.50 50.03.03.02. Cr.02.11 31.00 Discretionary Non Discretionary Complete disclosures in respect of transactions with related parties pertaining to Portfolio Management services.03.2013 31.3 470 1526 0 1526 1529 0 1529 895 1 896 33.66 0 88.49 0 72. of clients Funds Managed (Rs. RELATED PARTY DISCLOSURES: S.22 88. No.
54 1.50 445.25 5.760.422.872.713.29 154.023. 8.313.45 38.77 1. (Amount in Rs.19 619.23 6.585.225.865.17 39.69 40.RISK DISCLOSURE DOCUMENT 6 Relative of KMP Juhi Agarwal The details of transactions with related parties as per last audited accounts for the year ended 31st March.037.753.225.25 1.02 11.243.61 637.00 6.220.524.44 5. 2012 are annexed as Annexure A.36 25. 8.49 36.07 27.242. Financial Performance of the Portfolio Manager.225.50 1032.00 4.218.75 1. Lac) Balance Sheet Sources of Funds Paid up capital Equity share capital Reserves & Surplus Secured Loans Unsecured loans Total 31-Mar-12 31-Mar-11 31-Mar-10 1.53 164.986.53 1.00 5.99 1.268.545. The following exhibit captures key financial data pertaining to the Portfolio Manager as per the audited financial statements.66 1.38 1.305.55 11.1 Summarized Financial Statements (as per audited annual reports).652.36 850.06 1.99 25.025.856.76 6.545.50 Application of funds Net Fixed Assets Deferred Tax Assets Net Current Assets Total Income Statement Total Income Total Expenditure Profit/(Loss) before Depreciation Depreciation Profit/(Loss) before taxes & extraordinary items Profit/(Loss) before extraordinary items taxes but after 4.131.713.95 Less: Provision for Tax/ Written back of tax provision Profit/(Loss) After Tax 27 .19 1652.50 30.73 1.272.753.97 20.313.129.61 1.27 1.53 1.853.633.256.066.53 463.34 2.44 6.39 2.11 2.883.24 2.14 16.99 4.271.856.346.
66 6.87 0 NSE** 24.RISK DISCLOSURE DOCUMENT 8.42 Benchmark Product BSE * 7.51 6.64 -17.54 7.44 13.14 -3.55 20.58 -9.34 70.98 6.71 35.71 14.07 9.32 6.8 0 160.57 -9.91 0 NSE** 18.34 -4.38 -9.91 20.62 -10.93 -22.21 0 77. Net of all fees and charges levied by the portfolio manager.3 11.95 6.31 -8.57 0 Prod uct Performance Benchmark BSE* 24.96 36.59 12.7 0 16.41 7.87 NSE** 7. Financial Year (April 01 2012 – September 30 2012) Performance Product Year 1 (Financial year) 2009-10 Year 2 (Financial year) 2010-11 Year 3 (Financial year) 2011-12 Performance Benchmark BSE* 11.18 0 Performance Product Benchmark BSE* -7.03 NSE** -9.77 6.61 * SENSEX ** S&P CNX NIFTY *** Product Launched on 01/10/2011 28 . 1993.80 5.2 Portfolio Management performance of the portfolio manager for the last three years.5 -18.72 -6.92 11.46 9.11 11.9 6. and in case of discretionary Portfolio Manager disclosure of performance Indicators calculated using weighted average method in terms of Regulation 14 of the SEBI (Portfolio Managers) Regulations.84 -10.91 76.52 0 0.52 20.87 Angel Active Asset Allocation Fund Angel Bluechip Fund Angel Growth Fund Angel Lotus Fund Angel Oyster Fund Angel Evergreen Large cap Portfolio *** 3.48 -9.81 7. Portfolio Performance (%).26 -8.78 16.77 -6.58 9.81 16.14 -10.08 11.27 0 71.37 88.01 42.04 7.
stamp duty. units and other financial instruments. 29 . telegraphic. The fee may be a fixed charge or a fixed percentage of the quantum of funds managed and may be return/performance based or a combination of any of these. attestations required by bankers or regulatory authorities. deposits. 9.3 Registrar and transfer agent fee Charges payable to registrars and transfer agents in connection with effecting transfer of securities and bonds including stamp charges cost of affidavits. postage stamp and courier charges. 9. stocks. taxation and legal services. The exact basis of charge relating to each of the following services shall be annexed to the Portfolio Management Agreement and the agreements in respect of each of the services availed at the time of execution of such agreements. notary charges. postal. debt. 9.1 Management Fees Professional charges relate to the Portfolio management services offered to clients. bonds and units. opening and operation of bank accounts etc.RISK DISCLOSURE DOCUMENT Notes • The returns reported above are generated from back office accounting software and are post expenses. bonds.2 Custodian/Depository Fees The charges relating to opening and operation of dematerialized accounts. transaction costs. custody and transfer charges for shares. • The Performance of a Portfolio Manager is calculated using weighted average method taking each individual category of Investments. 9. 9. Nature expenses The following are indicative types of costs and expenses for clients availing the Portfolio Management services.6 Incidental Expenses Charges in connection with the courier expenses. turnover tax. exit and entry loads on the purchase and sale of shares.5 Certification and professional charges Charges payable for out sourced professional services like accounting.4 Brokerage and transaction costs The brokerage charges and other charges like service charge. 9. • The products for which no clients have been registered from the date of launching the product till date of this document are not reflected above. rematerialisation and other charges in connection with the operation and management of the depository accounts. notarisations etc for certifications. dematerialization. audit fees paid to independent Chartered Accountants to get the individual client accounts audited under regulation. service tax. 9. stamp duty.
1 Basis of Accounting:Books and Records would be separately maintained in the name of the client to account for the assets and any additions. The existing policies are:1.7 Securities lending and borrowing charges The charges pertaining to the lending of securities. The Portfolio Manager shall deduct directly from the account of the client all the fees/costs as specified above and shall send a statement to the client for the same. fees. which are not quoted on the stock exchange. dividend income would be recognized on the date of declaration of dividend. SEBI wide letter no. Taxation Implications for Clients. In view of the individual nature of tax consequences the Client is best advised to consult his / her / their tax advisor /consultant for appropriate advice on tax treatment. Besides the above indicative costs and charges. custody.RISK DISCLOSURE DOCUMENT 9. of the Client’s Portfolio or the rendering of the Portfolio Management Services or the performance of any act pursuant to or in connection with the Client Agreement shall be recovered by the Portfolio Manager from the respective Clients. MRD/DoP/CDSL/ST/19867/2010 DATED 17/3/10 has clarified that in case of PMS clients. but on the date the share is quoted on an ex-dividend basis. costs of borrowing and costs associated with transfer of securities connected with the lending and borrowing transfer operations. not on the date the dividend is declared. as amended from time to time. accounting policies followed by the Portfolio Manager while accounting for the portfolio investments of the clients accounting under the respective portfolios is being done in accordance with general accounting principles. Accounting Policies The following Accounting policy will be applied for the portfolio investments of clients and Accounting under the respective portfolios is being done in accordance with general accounting principles 11. The Portfolio Manager shall not be responsible for assisting in or completing the fulfillment of the client tax obligations. bank account details of the clients shall be 30 . sale and/or transfer. 2. 11. 10. As SEBI (Portfolio Management) Regulations 1993. income. all other reasonable costs. charges and expenses incurred by the Portfolio Manager or any other person appointed by the Portfolio Manager arising out of or in connection with or in relation to the management. holding. Dividend income earned by the Portfolio shall be recognized. The Client shall be liable for all tax liabilities arising out of his investments in Securities and availing services hereunder. do not explicitly lay down detailed accounting policies. acquisition. receipts and disbursement in connection therewith as provided by the SEBI (Portfolio Management) Regulations 1993. For investments.
cost of original share is taken as same % which opening ex price of such share bear to closing cum price and balance cost is taken as cost of demerged shares. the First in First out (FIFO) method is followed for each security. Mumbai on an ex-bonus basis. The apportionment of cost between old share and new share is made based on the information provided by the company. When such instruments are purchased. date of recognition of bonus shares is construed as date of acquisition for the purpose of computing short term/ long-term capital gain. In cases of corporate action of demerger. Similarly. Management Fees and Custody fees are recognized /accrued in accordance with the Discretionary Portfolio Management Services Agreement. In view of the said clarification. income shall be accrued on a day-to-day basis as it is earned.RISK DISCLOSURE DOCUMENT captured in the Depository System instead of bank details of PMS. 5. Accordingly. interest paid for the period from the last interest due date up to the date of purchase should not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. 7. 9. all the dividend will now be credited to the bank account mapped to the demat account where securities purchased under PMS are held. The cost of investments acquired or purchased shall include brokerage but does not include service tax. Bonus shares to which the portfolio becomes entitled shall be recognized only when the original shares on which the bonus entitlement accrues are traded on the Stock Exchange. rights entitlements shall be recognized only when the original shares on which the right entitlement accrues are traded on the stock exchange on an ex-right basis. so that the effect of all investments traded during a financial year are recorded and reflected in the financial statements for that year. security transaction tax (STT) and other charges customarily included in the broker’s bought note 8. For the purpose of accounting dividend receipt entries in books of the client maintained by PMS. in case where such information about cost apportionment is not available on ex date. In determining the holding cost of investments and the gain/loss on sale of securities. Similarly sale consideration of investments sold shall be reduced by amount of brokerage but does not reduce service tax. the new shares received on de-merger is recorded in books on ex-date but the date of purchase of original shares is reckoned as date of acquisition for new de-merged stock for the purpose of computing gain/(loss). 4. interest received at the time of sale for the period from the last interest due date up to the date of sale must not be treated as an addition to sale value but shall be credited to Interest Recoverable Account. 31 . 6. However. In respect of investment in interest-bearing instruments. security transaction tax (STT) and other charges customarily included in the broker’s bought note. Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the settlement date. dividend shall be deemed to have been received and paid back as corpus outward and accordingly entries will be recorded in books maintained by PMS 3. Similarly.
independence and the wherewithal to handle investor complaints. The Portfolio Manager will ensure that this official is vested with the necessary authority. The date on which such shares are recorded in books as corpus handed over shall be construed as date of sale and value at which they are recorded as corpus handed over is considered as sale consideration for the purpose of computing gains / returns. Mutual Funds and Debt instruments will be valued at the closing market prices of the exchanges (BSE or NSE as the case may be) or the Repurchase Net Asset Value declared for the relevant schemes of the mutual funds on the date of the report or any cut off date or the market value of the debt instrument at the cut off date.RISK DISCLOSURE DOCUMENT 10. 12.1 Investor Services: Contact Information Name. Alternatively.2 Grievance Redressal and dispute settlement mechanism The Portfolio Manager shall attend to and address any client query or concern as soon as possible to mutual satisfaction. for whatever reason. 11. Securities Transaction Tax (STT) is recognized on the trade day when the securities are accounted for on which such Securities Transaction Tax is levied. then closing price of the previous working day on NSE shall be taken. 11. 12. Mr. The date on which such shares are in warded as corpus shall be construed as date of acquisition and value at which they are in warded as corpus is considered as cost of acquisition for the purpose of computing gains / returns. the last available prices on the exchange or the most recent NAV will be reckoned. address and telephone number of the investor relations officer who shall attend to the investor queries and complaints. then closing price of the previous working day on NSE shall be taken. If the investor remains dissatisfied with the remedies offered or the stand taken by the Portfolio Manager. In case of corpus received in form of stock. the same shall be valued at the closing price of the previous working day of the date of activation on BSE.2 Portfolio Valuation Investments in Equities. If the stock is not listed on BSE. Mumbai 400093. Bhavik Zaveri– PMS Operations Ackruti Star. Marol. In case of corpus redeemed in form of stock. MIDC. the investor and the Portfolio Manager shall abide by the 32 . the same shall be valued at its closing price of the previous working day of the date of activation on BSE. Tel No: 22 3941 3940 The official mentioned above will ensure prompt investor services. Road No 7. The Portfolio Manager will endeavor to address all complaints regarding service deficiencies or causes for grievance. If the stock is not listed on BSE. in a reasonable manner and time. 12 12. 5th floor. Andheri(East).
claims and questions whatsoever arising between the Client and the Portfolio Manager and /or their respective representatives shall be settled in accordance with and subject to the provisions of The Arbitration and Conciliation Act. Amit Majumdar Signature 2 Mr. Santanu Syam 33 . construed and enforced in accordance with the laws of India. No. Date : 14 March. Any action or suit involving the agreement with a client or the performance of the agreement by the either party of its obligations will be conducted exclusively in courts located within city of Mumbai in the state of Maharashtra or such other places as Portfolio Manager thinks fit. 13 General: The Portfolio Manager and the client can mutually agree to be bound by specific terms through a written two-way agreement between themselves in addition to the standard agreement. 1 Name of the Director Mr.RISK DISCLOSURE DOCUMENT following mechanisms. differences. The investor has an option to register its complaints on SEBI SCORES http://scores. The agreement with the client shall be governed by. 2013 Place : Mumbai Name and Signature of Directors Sr.in/ where the regulator (SEBI) will then intervene and make efforts to redress the complaints All disputes. or any statutory requirement.gov. modification or re-enactment thereof. 1996. Such Arbitration proceedings shall be held at Mumbai or such other place as the Portfolio Manager thinks fit and be conducted in English language.
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