INDIA OPTIMA FUND

OPERATIONS MANUAL

VERSION 1.0 DATED August 01, 2006FOR REVIEW AND COMMENTS

Operation Manual For IOF-Mutual Fund Omnibus account

1.Background

ICICI International Limited, Mauritius obtained the Foreign Institutional Investor (FII) license from the Securities Exchange Board of India (SEBI) in May 2005. The FII proposes to sponsor a sub-account registered as a Fund for investments into Indian capital markets. The Fund Company (India Optima Fund) will have a multi share class structure wherein some of the share classes would invest directly into Indian Mutual Funds (acting as feeder funds) and other share classes would be offered for Portfolio Management Services (PMS) where investments would happen directly into Indian equity markets.

1.1 Products offered

India Optima Fund proposes to offer the following products to the target customers:

· Portfolio Management Services

· Offshore Mutual Funds

1) Omnibus Accounts

2) Non-omnibus Accounts

1.2 Omnibus Account:

A single account opened by asset management company/Bank/distributor with IIL in which the transactions of two or more persons are combined and carried in the name of the originating AMC/Bank/distributor rather than of the individual customers.

2. Process flow for omnibus account

2.1. Account Opening of Omnibus:

STEP-1: IIL will do the following due diligence of distributor:

1. Gather sufficient information regarding the applicant for business (the financial institution) to understand its business and to determine from publicly available information its professional reputation;2. Assess the adequacy of the financial institution’s CDD process;3. Ascertain whether the financial institution has a physical presence in the jurisdiction in which it is incorporated. The Investment Business must neither establish nor maintain an omnibus account for a financial institution that has neither a physical presence in that jurisdiction nor is affiliated with a regulated financial group that has such a presence;4. Identify and document the respective responsibilities of each institution.

STEP-2: IIL after doing due diligence will obtain approval of the Board of Directors before establishing new omnibus

STEP-3: Once board of directors gives their consent, IIL will execute the agreement with global distributor. The minutes of the meeting will be filed along with the application forms submitted by the Distributor.

STEP-4: Global distributor will fill application form and will furnish documents. Please refer Appendix-1 for the process to open an account for investment in IOF.

STEP-5: IIL operation team would scrutinize the documents furnished by clients and would fill the compliance checklist (documents required as per AML policy and KYC, Appendix-1).

STEP-6: IIL will enter the details of documents received in WIP excel sheet to do follow up with clients in case of discrepancies.

STEP-7: IIL ops would follow up with client to procure original documents. If documents are pending for more than five days then IIL operation team would highlight it to Operation and compliance head who in turn would follow up with distributor to get originals on immediate basis

STEP-8: The Ops team will verify if the forms and documents are proper and if the compliance officer has signed the checklist. For any deviation, they’d have to take approval from Compliance Officer in Mauritius.

STEP-9: On receipt of original documents, IIL operation team would file agreement and original documents along with the Board approval in client file (separate alphabetical client files are made for filing agreement and original documents).

STEP-10: IIL ops would send the client file to IFS.

STEP-11: IFS shall send confirmation to distributor on e-mail / letter (for format of e-mail refer to Appendix-4). E-mail would primarily consist of confirmation that verification is complete and all documents are in order.

STEP-12: IIL Sales team will co-ordinate with distributors in providing them relevant material like: - Application form, process note, presentation and would help them in solving their queries.

Opening of new account in the ‘Miles Integra’ system

The user on clicking ‘MwIntegra’ icon, the following screen gets displayed. Click on

‘Run’ button.

User on clicking ‘Run’ key, following login screen appears. The database selected

will be ‘Integra’

On login, the following screen appears

2.2 Process of Subscription to a Mutual Fund Share Class

On T

STEP-1: Client would send the application form to IFS through scanned copy/fax clearly mentioning the amount in USD to be invested in particular fund along with instruction given to its bank to transfer the funds in IOF USD account maintained with Deutsche Bank Mauritius.

STEP-2: IFS will check/verify the authenticity and ingenuity of application form and will revert to client in case of any discripency. Deadline to recieve application form is 11 am MT and funds should be sighted in IOF USD account in Mauritius within the same deadline. If subscription form is recieved after 11 am (or) funds are not sighted before 11.00am, the subscription would be processed the next day.

Please note: Application would be processed only after sighting of funds in morning in IOF USD account in Mauritius.

2.2.1 Process for Signature verification

STEP-3: IFS shall verify signature on application form as per authorized signatory list provided in latest Board resolution and would refer Board resolution to check whether single or joint signature is required to execute application form.

Two people independently would verify the signature as per signatory list and Board Resolution and would affix their signature after verification.

STEP-4: IFS team would log into Deutsche Bank’s web site the next morning and would type in user id and password to view and download account statement of IOF USD account. (International Bank Account Number (‘IBAN’) is MU91 DBML 1501 04 500992 0000)

The above account is the interest-bearing account held by IOF. The International Bank Account Number (‘IBAN’) of the non-interest bearing account held by IOF is MU91 DBML 1501 04 500993 0000.

Description of the IBAN is as follows:

Country Code – MU

Check Digits – 43

SWIFT CODE – DBML

Bank Code – 15

Branch Code – 01

National Account Number – 500992/500993

STEP-5: Once the funds are reflected in account statement, IFS would check if there is any discrepancy between the amount received in the USD account and the amount mentioned in the Application Form.

STEP-6: In case of any discrepancy between the actual Funds received and the Amount mentioned in the Subscription Form, IFS would clarify the same with the Client and ask for a fresh Subscription Form.

If a fresh Subscription Form is not received within the said deadline, the lower of the Subscription Form Amount and the Actual Funds received will be taken for Subscription into the Fund.

IFS will instruct DB by 11.30am MT (refer instruction format in Appendix-2) to transfer funds to IOF INR account maintained with I-Bank custody, Mumbai.

DB will confirm the exchange rate, and the total INR amount to be credited into ICICI Bank Custody over email both to IFS and IIL-Ops.

2.2.2 Fund Transfer process for new/recurring investments

Fx-Conversion would happen at DB and funds are transfered to DB’s India nostro a/c maintained with NY and MT103 is sent to DB India. DB India would act based on MT103 confirmation and shall book the cash deal to convert USD into INR. After conversion DB India would transfer funds to I-bank custody INR a/c through RTGS.

STEP-7: IIL will send instructions to ICICI Bank Custody for subscription into the respective Mutual Funds. (Refer Appendix-3 for format). Based on the rate provided by DB, the individual INR amounts that will be invested in individual Mutual Fund schemes is calculated and then provided in the mail that is sent to ICICI Bank Custody.

Generating Receipt Voucher in the ‘Miles Integra’ System

Click on Transaction-> Accounts-> Receipt Voucher (Others) pool and the following

screens appear.

Click on the above option to arrive at the following screen:

Click on the option 'New' to enter a new receipt voucher for the day. If you want to

edit an existing receipt voucher, click on 'Edit' after entering the required Date

Range.

The receipt voucher is being generated for the USD amount that IOF has received.

Hence, the Bank Account that needs to be chosen in the drop down menu is the

corresponding interest bearing (500992)or the non-interest bearing (500993) Bank

Account of IOF held with Deutsche Bank. Other details that need to be filled:

● Currency is automatically pre-filled

● Account Type (Mandatory): can be chosen as 'Corpus' (since this is a new

Corpus)

● Ledger Account (Mandatory): is 'Corpus ($)' (since this is a USD amount)

● Amount (Mandatory): Corresponding to the Account Name (in the case of

Feeder Funds, the Mauritius Fund is the 'Client' and hence the Account

Name. For eg, IOF Power Fund is one of the Account Names), the amount

that is being invested into that scheme (Account Name) needs to be

entered.

● Cr/Dr (Mandatory): 'Cr' needs to be chosen

● Instrument Type (Mandatory): could be chosen as 'Direct Credit'

● Allocate by: Choose the option 'Flat'

● Narration (Mandatory): The remarks should refer to the mail sent by IFS

containing details of investments (amounts) into each scheme, and the mail

sent by DB confirming the exchange rate and the total INR amount to be

credited into IOF's INR account. For eg. 'As per (a) mail sent by Ally from IFS

dated 16th August, 9.55am and (b) mail sent by Pritam from DB dated 16th

August, 11.05am'

● Amount (Mandatory): The text field corresponding to 'Amount' just below

'Exch Rate' needs to be filled with the total amount that is being invested in

all the schemes together. This amount should ideally correspond to the

amount credited into IOF's USD Bank Account with DB for the purpose of

investing into Feeder Funds.

Once the above details are entered, the screen will appear as below:

Click on 'Save' to record the transfer into IOF's USD A/C with DB

Next, the INR amount that is invested into each Underlying Fund needs to be

recorded. For this purpose, the exchange rate, and the INR amount that is credited

into IOF's INR Bank A/C with ICICI Bank will have to be known. These details are

part of the instruction that IIL-Ops gives to ICICI Bank Custody. Once these details

are known, they are entered into the system as given below:

Next, click on 'Pool' to get the following screen:

The conversion and transfer from IOF's USD Bank Account with DB to the INR Bank

A/C with ICICI Bank in India is replicated within the system with the 'Bank to Bank

Transfer – Pool'. To record the details of the transfer, click on 'New' if it is a new

transaction and on 'Edit' if an existing transfer needs to be edited. Select the

required Date range in the 'From' and 'To' drop-down. When you click on 'New', the

following screen is shown:

In the screen, the following details need to be entered:

● In the 'Transfer From' drop down, IOF's USD Bank Account with DB where

the Client money has been credited is chosen. Currency is automatically

prefilled.

● In the 'Transfer to' drop-down, IOF's INR Bank A/C with ICICI Bank Custody

where the converted money that will be invested in the Underlying Fund, is

chosen. Currency is automatically prefilled.

● In the text-field for 'Amount', the USD amount that is being transferred by

DB is entered. This amount should be the same as the one for which the

instruction has been given to DB.

● In the text-field for 'Total Amount', the INR amount that is being credited

into IOF's INR bank A/C is entered. This amount should be the same as the

one mentioned in the email sent by DB to IIL-Ops confirming the exchange

rate and the INR amount to be credited.

● The 'Exch. Rate' text field is automatically filled when the 'Amount' and the

'Total Amount' are entered. Please note that the exchange rate is not

entered manually but is automatically calculated by the system.

● In the form containing the Client Names, the amount (in USD) and Total

Amount (in INR) corresponding to each Client (the IOF Fund / Underlying

Fund) is entered

● Narration: Enter the reference to the mail sent by DB confirming the

exchange rate as well as the INR amount, and the mail sent by IFS

confirming the USD amounts in each Fund.

Simultaneously, the order for Investment needs to be entered into the system. The

following is the procedure to enter the same into the system.

For entering the order, the following screen is to be used:

On clicking on 'Order Manual – Pool', the following screen is shown:

The default tab as shown in the screen is that of a 'Purchase'. For placing a

purchase order, click on 'New'. The following screen will be shown:

The above screen is used to enter the 'Purchase Order' for the Underlying Mutual

Fund.

● Choose the 'Value Date' as the Date of Purchase

● In the 'Remarks' text-box, provide reference to the email sent by IFS

● Choose AMC and Scheme from the drop-down boxes. The last NAV available

is populated automatically from the Database

● Choose the INR Bank A/C of IOF from where the payment to the AMC will be

made in the drop-down for the Bank Account

● If the Client (IOF Fund) has made earlier investments, then there will be an

existing 'Account' that can be chosen from the drop-down

● Enter the 'Amount' that you wish to invest in the Underlying Fund in the

'Amount' text-box as well as in the form, corresponding to the Account

Name

● Click on 'Save' to record the Order in the system

The screen will appear as shown below:

Click on 'Save' to record the order in the system. Once the order is saved, the

following screen will be shown:

Once the order is created in the system, it needs to be processed. For processing

the order, choose the following option in the system:

When you click on the above option, a screen like the one shown below will

appear:

The processing of an order placed with an AMC is done in 3 steps within the

system:

● 'Pick' the Order

● 'Apply' to the AMC

● Record the confirmation sent by the AMC using the tab 'AMC Confirmation'

Once the order is 'picked', the color of the row with details of the order turns

green, as shown below:

Then, click on 'Apply' to apply the order to the AMC. When you click on the Tab

'Apply', the following screen is shown:

In the above form, the following details need to be entered:

● Bank – This field is prefilled. Verify that the Account Name is IOF's INR Bank

A/C with ICICI Bank.

● Payment For: Choose 'Mutual Fund Applicaion

● Voucher Amount needs to be the same as the INR amount being applied for

● Cheque Number is mandatory, and hence a number (that is part of the

cheque numbers list entered already in the Master) (This requirement of

cheque number being mandatory needs to be removed in the system)

● In 'Particulars', the reference to the email sent by IFS and DB needs to be

entered.

● In the form containing 'Client Names', the 'Amount' of investment

corresponding to each 'Client' (IOF Fund) into the Underlying Fund, needs to

be entered

Click on 'Save' to save the Application to the AMC. The following screen will appear

confirming that the order has been 'Applied':

STEP-9: I-Bank custody will confirm reciept of instruction to IIL through e-mail. IOF

team will take the print out of confirmation and attach it with application form.

I- bank custody after reciept of funds and instruction would fill the application form of particular scheme of mutual fund and would send it to fund house. If funds are successfully transfered to I-bank custody by 1 pm i-bank would fill the form and send it to fund house before 3PM.

If fund house receive the duly filled application form by 3pm then units would be allotted to IIL on same day’s NAV otherwise on next day’s NAV.

STEP-10: IIL will download the NAV file of the mutual fund from the AMFI website and will also crosscheck it with e-mail from fund house. This NAV file is uploaded into the system to update the existing set of NAVs with that of T.

The process for the same is as shown below:

The first step is to download the NAV file from the AMFI site. The URL to be used for downloading is : http://www.amfiindia.com/pu-navdownload.asp

Select 'All' in the 'Select Mutual Fund' drop-down, and click on 'Download complete NAV Report in Text Format'

A screen like the one shown below will be opened:

The contents as shown above need to be saved in a text format. The name of the file needs to be in the format DDMMYYYY.txt (For eg, the file above needs to be named 11082006.txt). Location for the file is C:\pmsintegra\upload\AMFI\11082006.txt

Once the file is saved in the above location, it needs to be uploaded into the system. For this choose the following option:

When you click on the above option, the following screen is shown:

Choose the File Name and the Date appropriately. When choosing the 'File Name', the default location shown will be the drive on the Citrix Server itself. Since the file location is on the user's desktop and not the Citrix Server, the location needs to be changed appropriately. Typically, it is V: drive, which is directly mapped to C($), which is the desktop's C: drive.

While the NAV prices are being updated, the screen shown is as below:

Once the NAV prices are updated, a screen like the one shown below appears indicating that the updation has been completed:

Once you click on 'OK', an error screen displaying the list of schemes for which the NAVs have not been updated is shown. The NAVs will not be updated if (a) the scheme that is part of the AMFI NAV file is not entered into the system or (b) if the AMFI code for the corresponding scheme is either incorrect or missing. The error screen appears as shown below:

STEP-11: I-Bank custody would confirm the unit allotted to IIL up to four decimal places through e-mail on same day.

This confirmation by the AMC, and in turn by ICICI Bank Custody to IIL is also entered into the system. The details are entered into the screen as shown below after the file with the NAV values is uploaded for the day

In the above screen, the Order No., Bank Name and Scheme Name are prefilled. The Account No. is to be entered after receiving confirmation from the AMC for the first time. Thereon, the Account No. is also prefilled.

● The correct Value Date is chosen

● NAV and Applied NAV will be the same if there is no entry load or any other fee that is charged.

● The number of units is automatically calculated based on the amount invested and the NAV that is applied, and is shown in the form.

● Account No. needs to be entered if the transaction is the first. Otherwise, it is prefilled

● In the Remarks box, the reference to the confirmation sent by ICICI Bank Custody confirming the number of units alloted to IOF, is entered.

Click on 'Save' to complete the transaction.

If the NAV for the Value Date entered is not available in the system, the system will prompt that the NAV for the Value Date mentioned is not available (like in the screen below), and if you want to proceed. Typically, if such a prompt is encountered, one should not proceed further, and instead should go back to Step 10, and upload the NAV file so that the values are updated in the system. Number of units need to be calculated based only on the NAV of T, and not any other Value Date.

Once the above step is executed, the system will come back to the following screen with the transaction being shown as 'Executed'

STEP-12: Till now, the NAV of the Underlying Fund has only been updated. The Management Fees is now applied to the INR AUM. Once this is done, this INR AUM (NAV) is converted into USD at the Currency Rate that is entered into the system for that day (RBI TT rate corresponding to that day).

The following screen is shown once you click on 'Day End Process':

Click on 'OK' to start the 'Day End Process'. Once the process is completed, the INR AUM (NAV) with the Management Fees deducted is reflected in the system. There are various reports that show the INR AUM (NAV) along with the Management Fees payable. The most useful reports are as follows:

● Investment Distribution Statement (Reports --> Client --> IDS)

● Valuation Statement (Reports --> Mutual Fund --> Valuation Statement)

● Bank Book (Reports --> Accounts --> Bank Book --> Non-Pool/Pool)

● Management Fees Payable (Reports --> Accounts --> Ledger --> Non-Pool/Pool)

Some of the reports are as shown below:

1) Investment Distribution Statement:

2) Management Fees Payable:

The report below is a 'Pool' report for all the Clients.

The Client-wise (or scheme-wise) Management Fees payable is as shown below: (non-pool report)

3) Bank Book:

This again can be represented in a 'Pool' or a 'Non-Pool' format. The one shown below is a 'Non-Pool' format

Again, there are various ways in which the above report can be seen. The specific Bank Account for which one needs to view the report can also be chosen. The transactions for the schemes can be clubbed together or seen individually.

4) Valuation Statement

In addition to the above reports, there are several others that could provide more information.

The USD AUM can be taken either from the 'Valuation Statement' or from the 'IDS'. The USD AUM is basically the NAV of the IOF Fund (Mauritius Fund). When this value is divided by the number of RPS in issue (this figure is provided on a daily basis by IFS to IIL-Ops) the previous day (T-1), the figure for NAV per RPS is arrived at.

This figure is then communicated to IFS over email.

2.2.4. Issuance of share by IFS

STEP-13: IIL will send the information to IFS clearly mentioning the Fund name, amount subscribed and NAV calculated on valuation day based on which IFS would calculate the number of RPS to be offered to client. IFS would also record it in shareholder book. (Refer Appendix for format of Communication)

2.2.5 Client communication

STEP-14: IIL would compute the number of RPS to be given and would send the confirmation to client containing following details:

· Value Date is confirmed to client of investment in the share class: Date on which fund is sighted by IOF in Mauritius.

· NAV is issued to the client (based on the amount invested in the share class)

· Number of RPS issued, NAV per share.

STEP-15: IIL team will sign on the activity checklist (as per Appendix-4) after completion of activity to ensure that nothing has missed out. Activity checklist would be attached with the application form.

Application form along with checklist and confirmation would be filled date wise in transaction file.

2.3. Process of Redemption from a Mutual Fund Share Class

On T

STEP-1: Client would send the redemption form request to IFS, request for Redemption will be taken either in Amount’ or in ‘Number of RPS’ or ‘ALL’. Deadline to recieve redemption request is 11:00 am MT.

STEP-2: IFS after performing due diligence would verify if the details are complete in all respects and clear. In case of lack of clarity or discrepancy, IFS would revert to client through e-mail and ask for a fresh Redemption Form.

STEP-3: IFS will send an email to IIL ops giving details of the ‘Amount’ or/and the ‘Number of RPS’ to be redeemed in the IOF Fund.

STEP-4: Based on the details regarding the redemption provided by IFS, IIL-Ops would calculate the number of units of Underlying Funds to be redeemed. For detailed working please refer to NAV calculation sheet (Appendix-7).

STEP-5: IIL would instruct I-bank custody to send redemption request to fund house clearly specifying number of units to be redeemed.

Activities in the System:

This redemption order is entered into the system and then, processed subsequently. To enter the redemption order, use the following screen:

Click on ‘New’ to enter a new redemption Order. The screen appears as follows:

The details are entered as given below:

Choose the appropriate Value Date (Typically, the Value Date will be the same as the ‘Order Date’. If it is different, the reason needs to be entered in the ‘Remarks’ text box)

In the ‘Remarks’ text box, the reference to the mail sent by IFS (for eg, mail sent by Ally) including the date and time, needs to be entered.

The appropriate AMC and Scheme Name are chosen from the drop-down

The NAV values are automatically prefilled

Choose the appropriate ‘Account No.’ from the drop-down

IOF’s INR Bank A/C into which the Redemption proceeds need to be credited is chosen from the drop-down for the Bank Account

In the drop-down for ‘Units to be redeemed’, choose ‘Some Units’ (All the redemption orders placed will be in units, so either choose ‘Some Units’ or ‘All’)

Enter the ‘Number of Units’ to be redeemed against the Client Name (IOF Fund Name)

Click on ‘Save’ to record the Redemption Order in the system. Once the order is saved, the screen will look as follows:

Next, the Redemption Order that has been entered in the system needs to be processed. For processing the redemption transaction, the process followed is very similar to that followed for a ‘Purchase’. Choose the following option for picking the transaction:

Click on the ‘Redemption’ tab, and choose the appropriate Date Range and click on ‘Get Data’ button to get the data corresponding to the date range. The screen will look like the one shown below:

Click on the row containing the redemption transaction that you want to process. The tabs – ‘Pick’ and ‘Reject’ are automatically activated. (These buttons are shown inactive in the screen above as the row has not yet been chosen)

Click on ‘Pick’ to pick the order. The ‘Status’ column changes to green and shows ‘Picked - Username’ as shown below:

Click on ‘Apply’ once the confirmation is received from the ICICI Bank Custody that the Application Form for redemption has been submitted to the AMC.

STEP-6: I bank custody would send the redemption request to fund house by 3Pm.

Once the NAV for the day has been uploaded into the system, the AMC confirmation for the redemption is entered into the system.

Click on ‘AMC Confirmation’ to confirm the details of the redemption transaction. The screen appears as follows:

The details are entered as follows:

The section above the line in the form containing details such as ‘Order No.’, ‘Bank Name’, ‘Account No.’ ‘Scheme Name’ and ‘Redemption Units’ are prefilled

The appropriate Value Date is chosen. (Typically, it is the same as the day on which the redemption order is submitted to the AMC, if it is submitted by 3.00pm). If the ‘Value Date’ chosen here is different from the Value Date that is entered in the ‘Order’, the following screen will appear, and you’ll need to enter a valid reason.

Clicking on ‘OK’ will lead to the following screen:

Choose the ‘Account Name’ from the drop-down in the form. Clicking on ‘Tab’ will fill the ‘Units’ column automatically.

Choose ‘Payment Mode’ as ‘Direct Credit’

Enter the values for ‘NAV’, and ‘Applied NAV’.

The form will appear as below:

Click on ‘Save’ now to confirm the ‘Redemption’ details in the system. If there is no NAV available for the ‘Value Date’ chosen, there will be a pop-up indicating that the NAV for the corresponding Value Date is not available and if the user wants to proceed. Choose ‘Ok’ if it is fine. After the confirmation, the screen will appear as below:

On T+3

STEP-7: Custody would confirm to IIL Ops via email the receipt of proceeds in IOF INR account from fund house on T+3.

STEP-8: Custody would book cash deal to convert the INR into equivalent USD.

STEP-9: Custody would transfer funds to IOF USD account with DB Mauritius on same day.

STEP-10: Custody would also send confirmation of redemption proceeds transferred into IOF’s account maintained with DB in Mauritius to IIL team.

STEP-11: IIL team will forward the email to IFS.

Activities in the System:

The procedure for entering the details of the Fund transfer from IOF’s INR Bank A/C with ICICI Bank to IOF’s USD Bank A/C with DB within the ‘MwIntegra system’ is very similar to what was followed when money was transferred from IOF’s USD Bank A/C with DB to IOF’s INR Bank A/C with ICICI Bank. The steps are exactly the same, but the choice of Bank Accounts the reverse of what had been chosen earlier during a purchase.

Choose the following option in the ‘system’ to record the bank to bank transfer (from INR to USD) in the system: (As you would notice, the option is the same as what was chosen when carrying out the transfer from USD to INR)

The following screen is shown when the above option is chosen:

Click on ‘New’ to enter the details of a new ‘Bank to Bank Transfer’. The details are entered as follows:

The details are entered as follows:

Transfer From: Choose IOF’s INR Bank A/C with ICICI Bank where the redemption proceeds will be credited

Transfer To: Choose IOF’s USD Bank A/C with DB where the USD amount after conversion and transfer will be credited.

Amount: Needs to be currency of the ‘Transfer From’ Bank A/C. Hence, this will be the INR amount that will be redeemed

Total Amount: This field needs to be in the currency of the ‘Transfer To’ Bank A/C. In the above case, it is the USD amount that will be credited into IOF’s USD Bank A/C with DB.

Exch Rate: This is automatically calculated by the system, and is not entered manually. When the transfer is from USD to INR, the exchange rate is a Multiplying factor for the INR amount. In the above case, it is 0.0216, and is shown as 2.16

Again, the split up of the ‘Amount’ and the ‘Total Amount’ is entered Client wise (IOF Fund-wise). While the ‘Amount’ needs to be in INR (for redemption), the ‘Total Amount’ needs to be in USD.

In the ‘Narration’ box, provide reference to the email sent by Custody confirming the exchange rate and the total USD amount that will be credited into IOF’s USD account.

Click on ‘Save’ to record the transfer.

To verify whether the amounts have been credited, and are reflected in the right bank accounts, look at the ‘Bank Book’ report. The procedure for viewing the report has already been described above in the process for ‘Purchase’.

On T+4

STEP-12: IFS would check the receipt of funds in IOF USD account and in case of discrepancy would highlight the same to the IIL Ops team. If there is no discrepancy, IFS will intimate IIL team via email about details of funds to be transferred to client’s account clearly specifying amount, beneficiary account number and name.

STEP-13: IIL would instruct DB (instruction format is attached in Appendix-5) to transfer fund to client’s bank account maintained in system, instruction would have maker checker signature to ensure accuracy of instruction. IIL team will also send confirmation of funds transferred to client through e-mail and will file the print out with redemption form.

Activities in the System:

Once the amount has been credited into IOF’s USD Bank A/C with DB, the next transfer is from IOF’s Bank A/C to the Client’s Bank A/C. To enter the details of the same, create a ‘Payment Voucher’ in the system. The screens and the process is exactly the same as that for creating a ‘Receipt Voucher’

To create the ‘Payment Voucher’, use the following option:

The following screen is shown when the above option is used:

Click on ‘New’ to create a new Payment Voucher. The following screen is shown:

Once the details are entered in the above screen and saved, the payment voucher is created, and the corresponding debit entry in IOF’s USD Bank A/C with Deutsche Bank is created.

STEP-14: IFS will sign on the activity checklist (as per Appendix-6) after completion of activity to ensure that all activities have been completed. Activity checklist would be attached with the redemption form.

STEP-15: Redemption form along with checklist and confirmation's would be filled date wise in transaction file-redemptions.

3.0 Sub-Processes

3.1 Procedure For NAV Calculation

Definitions:

Dealing Day is the day on which

the Subscription form along with the Cleared Funds (or)

the Redemption Form

is received by IOF within the said deadline (11.00am MT)

Valuation Day is the day on which the Net Asset Value (‘NAV’) is calculated and shall be the day following each Dealing Day

Valuation Point is the close of the Business Day immediately preceding the relevant Valuation Day.

Principle for calcluation: NAV per RPS as at any Valuation Day shall be the NAV at the applicable Valuation Point divided by the total number of RPS of that Fund in issue immediately before that Valuation Point and rounding the resultant amount to the nearest four decimal places. The Net Asset Value and Net Asset Value per Participating Share will include both realized and unrealized gains and losses in securities and other assets of that Fund

The NAV calculation along with several scenarios for ‘Subscription’ and ‘Redemption’ has been illustrated with examples in Appendix 7.

NAV Computation of RPS:

underlying MF unit(T-1)*Nav of underlying MF(T)*RBI TT rate

Nav(T) = ----------------------------------------------------------------------------

Toatal number of RPS issued till T-1

NAV calculation at EOD in the ‘Miles Integra’ system

Screen 1: Login to India ops maker ID, Tools->Process-> Day End Process

Screen 2:

NAV GENERATION

Screen 3: Select Tools-> Process-> NAV Generation. Tick on Calculate Gain/Loss

and client as ‘ALL’. The From and To date should be the date of execution.

Appendix-2

ICICI INTERNATIONAL LIMITED

IFS Court, TwentyEight, Cybercity, Ebene, Mauritius

Tel: (230) 467 3000 Fax: (230) 467 4000

Date:

By fax

The Manager

Deutsche Bank (Mauritius) Limited

Le Caudan Waterfront

Port Louis Fax: 202 7905

Dear Sir

Account number 500992 – Instruction of Fund transfer to India Optima Fund's account with ICICI-Bank Custody

Kindly transfer USD from our USD account number 500992 to IOF's INR account with ICICI-Bank Custody

Amount:

Account Number:

Account Nomenclature:

Purpose:

Please also let us know over e-mail once the transfer is done.

Yours faithfully

Authorised signatory

PLEASEDO NOT DUPLICATE

Appendix-3

ICICI INTERNATIONAL LIMITED

IFS Court, TwentyEight, Cybercity, Ebene, Mauritius

Tel: (230) 467 3000 Fax: (230) 467 4000

By fax

The Manager

ICICI Custodial Services

Mumbai

India Fax: +91 5667 2740/79

Dear Sir

INR account number ____________ – Mutual Fund subscription instruction

Please fill subscription form as per following details and send it to fund house before 3:00 pm.

Amount to apply:

Fund House Name:

Scheme Name:

Please also let us know over e-mail once the units are allotted.

Yours faithfully

Authorized signatory

PLEASEDO NOT DUPLICATE

Appendix-4

Appendix-5

ICICI INTERNATIONAL LIMITED

IFS Court, TwentyEight, Cybercity, Ebene, Mauritius

Tel: (230) 467 3000 Fax: (230) 467 4000

Date:

By fax

The Manager

Deutsche Bank (Mauritius) Limited

Le Caudan Waterfront

Port Louis Fax: 202 7905

Dear Sir

Account number 500992 – Forex transfer instruction

Kindly transfer USD from our USD account number 500992 to the following beneficiary

Correspondent bank: ,

SWIFT of correspondent bank:

Beneficiary Bank:

swift of Beneficiary bank:

Beneficiary a/c no:

Beneficiary Name:

Please also let us know over e-mail once the transfer is done.

Yours faithfully

Authorised signatory

PLEASEDO NOT DUPLICATE

Appendix-6

Appendix-7

Nav Calculation Sheet: