Who is a Non-Resident Indian (NRI)?
A non-resident Indian (NRI) is an Indian citizen or a person of Indian
origin who stays abroad for employment, business or vocation outside
India, or stays abroad under circumstances indicating an uncertain
duration.
Who is a Person of Indian Origin (PIO)?
A Person of Indian Origin means a citizen of any country (other than
Bangladesh or Pakistan), if the person: (a) at any time held an Indian
passport; or (b) or the person's parents or grandparents were citizens
of India; or (c) is a spouse of an Indian citizen, or of a person
referred to in (a) or (b) above.
Who is a Foreign Institutional Investor (FII)?
An FII is an institution established or incorporated outside India
which proposes to invest in Indian securities and is registered with
SEBI.
Can an NRI maintain a bank account in India?
Yes. NRIs can maintain accounts in rupees as well as in foreign currency.
Accounts in foreign currencies can, however, be maintained with authorised
dealers only.
What types of rupee accounts may NRIs maintain?
There are 4 types:
1. Non-resident (External) Rupee Accounts (NRE)
2. Non-Resident (Special) Rupee (NRSR) Account
3. Ordinary Non-resident Rupee Accounts (NRO)
4. Non-resident (Non-repatriable) Rupee deposit accounts (NRNR)
What are NRE, NRO and FCNR accounts?
Non-Resident (External) Rupee (NRE). This is a Rupee account
from which funds are freely repatriable.
It can be opened with either funds remitted from abroad or local funds
which can be remitted abroad.
Non-Resident Ordinary Rupee (NRO). This is a Rupee account
and can be opened with funds either remitted from abroad or generated
in India. These funds are non-repatriable.
Fully Convertible Non-Resident Rupee (FCNR). This account is
similar to the NRE account except that the funds are held in foreign
currencies and can be maintained in Pound Sterling, U.S. Dollar, Deutsche
Mark (upto December 2001), Euro and Japanese Yen. FCNR accounts can
be maintained only in the form of 'term deposits', i.e. a deposit
kept for fixed periods ranging from 6 months to 3 years.
How do NRE, NRO and NRSR accounts differ?
Balances held in NRE accounts can be repatriated abroad freely, whereas
funds in NRSR and NRO account cannot be remitted abroad but have to
be used only for local payments in rupees. Consequently, funds remitted
from abroad or local funds which can otherwise be remitted abroad
to the accountholder can only be credited to NRE accounts.
Can an NRI, and FIIs invest in mutual funds in
India?
Yes.
The following summary outlines the various provisions related to investments
by Non-Resident Indians ('NRIs'), Persons of Indian Origin ('PIOs')
and Foreign Institutional Investors ('FIIs') in the Schemes of the
Mutual Fund and is based on the relevant provisions of the Income-tax
Act, 1961 ('the Act'), regulations issued under the Foreign Exchange
Management Act, 1999 and the Wealth-tax Act, 1957 (collectively called
'the relevant provisions').
The following information is provided for general information only.
However, in view of the individual nature of the implications, each
investor is advised to consult with his or her own tax advisors /
authorised dealers with respect to the specific tax and other implications
arising out of his or her participation in the funds.
Purchase Applications. NRIs and other overseas investors can
invest in Franklin Templeton funds on a Repatriable/Non-Repatriable
basis as per the provisions of Schedule 5 of the Foreign Exchange
Management (Transfer or issue of Security by a Person Resident Outside
India) Regulations, 2000 ('the Regulations') as explained below.
A Common Application Form duly completed together with cheques or
bank drafts should be remitted through Investor Service Centres. All
cheques/demand drafts accompanying the application form must be made
in favour of the scheme names. For e.g to invest in Franklin India
Bluechip Fund the cheque should be drawn in favour of the scheme i.e.
"Franklin India Bluechip Fund" and crossed "A/c payee" only and should
be made payable at a city where the application is accepted by any
Franklin Templeton Investor Service Centres.
Repatriable Basis - NRIs, PIOs. When NRIs and PIOs apply to
purchase units on a repatriable basis, payments may be made inward
remittances, or by cheques drawn on the NRE/FCNR account of the investor
[Clause 3(2) of the Regulations] payable at the city where the application
form is accepted by any Franklin Templeton Investor Service Centres.
Non-Repatriable Basis - NRIs, PIOs. When NRIs/PIOs apply for
units on a non-repatriable basis, payments may be made by inward remittances,
or by cheques/demand drafts drawn on the NRE/FCNR/NRO/NRSR account
of the investor [Clause 3(3) of the Regulations], payable at the city
where the application form is accepted by any Franklin Templeton Investor
Service Centres.
FII Investors. FIIs may pay for their purchases with funds
held in a Foreign Currency account or Non-resident Rupee account maintained
in a designated branch of an authorised dealer [Clause 3(1) of the
Regulations]. Payments may be made by cheques payable at a city where
the application is accepted by any Franklin Templeton Investor Service
Centres..
Applications from FIIs should be accompanied by appropriate documentation
supporting the status of the investor and should be sent to the AMC/ISC
chennai, so as to reach them not later than 7 days after the date
of the subscription.
Similarly, in case of an application under a Power of Attorney or
by an FII, the original Power of Attorney or the relevant resolution/authority
to make the application (or a duly notarised certified true copy thereof),
along with a certified copy of the Memorandum and Articles of Association
and/or bye laws and Certificate of Registration should be submitted
to the Mumbai ISC within 7 days from the date of the application.
The officials should sign the application under their official designation.
The NRIs/PIOs/FIIs may also be required to furnish other documents
needed to process their investments.
Does an NRI, FII require any approval from the
RBI to invest in mutual funds?
No special approval is required.
NRIs/PIOs/FIIs have been granted a general permission by RBI [Schedule
5 of the Foreign Exchange Management (Transfer or Issue of Security
by a Person Resident Outside India) Regulations, 2000] for investing
in /redeeming units of the funds subject to conditions set out in
the aforesaid regulations.
Can an NRI invest in foreign currency? An
NRI cannot make the investment in foreign currency. He needs to give
us a Rupee cheque from his NRE, NRO, NRSR bank account in India. He
may also send a Rupee cheque from abroad payable in a bank in India.
However, for an NRI to invest, it is mandatory that he maintains a
bank account in India.
How does an NRI invest in Franklin Templeton
funds?
Application
Form and cheque or bank draft
to any of our Investor Service Centres. Investors can also lodge their
completed application forms with brokers appointed by the mutual fund
for submission to any of Investor Service Centres. All cheques and
bank drafts must be payable to the respective fund names (for e.g
Franklin India Bluechip Fund) and crossed "A/c payee" only.
Once an account is opened the investor may purchase additional units
by completing a Common
Transaction Form or by filling
in the account number in the application form and mailing the same
to a Franklin Templeton Investor Service Centre, along with a cheque
or bank draft. The investor may alternatively apply for units if he
has an H-Pin at our website www.franklintempletonindia.com.
The website offers a direct debit facility with select banks for allotting
units in different funds.
What is the mode of payment for Repatriation
and Non-Repatriation Basis?
Repatriable Basis. Payments for the purchase of the units may
be made by Indian Rupee drafts purchased abroad, or by cheques drawn
on the NRE/FCNR Account of the investor, payable at the city where
the application form is accepted by any Franklin Templeton Investor
Service Centres.
Non-Repatriable Basis. Payments for the purchase of the units
may be made by Indian Rupee drafts purchased abroad, or by cheques/demand
drafts drawn on the NRE/FCNR/NRO/NRSR/NRNR account of the investor,
payable at the city where the application form is accepted by any
Franklin Templeton Investor Service Centres.
FII Investors. FIIs may pay for their subscription amounts
by Indian Rupee drafts purchased abroad, or from funds held in a Foreign
Currency account or Non-resident Rupee account maintained in a designated
branch of an authorised dealer. The Indian Rupee drafts/cheques should
be made payable at a city where the application is accepted by any
Franklin Templeton Investor Service Centres.
Will the fund accept an NRI application with
an overseas bank account detail?
No.
When will my NRI purchase take effect?
If an application is received before the 3 p.m. on any business day,
the allocation of units will be based on the NAV of that business
day. All applications received after the prescribed time will be treated
as having been received on the next business day and the units allotted
accordingly.
How does an NRI redeem funds?
In the open-end schemes of Templeton Mutual fund units can be purchased
or redeemed at any point in time. To redeem funds, submit the your
Common
Transaction Form (PDF 172k) to
the nearest Investor Service Centre. Your form must contain the investor's
folio number and the amount / units he would like to redeem. Redemption
requests by telephone, telegram, fax or email that lack valid signatures
will not be accepted.
If you have an H-Pin, you may redeem through our website, www.franklintempletonindia.com.
The cheque for the redemption proceeds will be despatched to the investor's
registered address.
How will the redemption proceeds be paid?
Redemption proceeds will be paid by cheque. The cheque will be payable
to the first unitholder and will include the bank account number.
Redemption proceeds/repurchase price and/or dividend or income earned
(if any) will be payable in Indian Rupees only. The fund will not
be liable for any loss due to exchange fluctuations, while converting
the Rupee amount into US Dollar or any other currency.
How can the redemption proceeds be repatriated?
The investments shall carry the right of repatriation of capital invested
and capital appreciation so long as the investor continues to be a
resident outside India.
In the case of an FII, the designated branch of the authorised dealer
may allow remittance of net sale/maturity proceeds (after payment
of taxes) or credit the amount to the Foreign Currency account or
Non-Resident Rupee account of the FII, maintained in accordance with
the approval granted to it by the RBI [Clause 5(i) of the Regulations].
In any other case, where the investment is made out of inward remittance
or from funds held in the NRE/FCNR account of the investor, the maturity
proceeds/repurchase price of units (after payment of taxes) may be
credited to the NRE/FCNR/NRO/NRSR account of the non-resident investor
maintained with an authorised dealer in India [Clause 5(ii) of the
Regulations].
What about redemption proceeds where investments
were made on a non-repatriable basis?
Where the purchase of units is made on a non-repatriable basis, the
maturity proceeds/repurchase price of units (after payment of taxes)
will not qualify for repatriation and may be credited to the NRO/NRSR
account of the non-resident investor [Clause 5(ii) of the Regulations].
Where the investment is made out of funds held in a NRSR account,
the maturity proceeds/ repurchase price of units (after payment of
taxes) may be credited to the NRSR account maintained by the investor
with an authorised dealer in India [Clause 5(ii) of the Regulations].
Similarly, investments in units purchased in Rupees, where the investor
was a resident of India and subsequently becomes a non-resident, will
not qualify for repatriation of repurchase proceeds of units.
The entire income distribution on the investment will, however, qualify
for full repatriation. Investors are advised to contact their banks/tax
consultants if they desire remittance of the income distribution on
units abroad.
Is the income/dividend on mutual fund units repatriable?
The investments shall carry the right of repatriation of capital invested
and capital appreciation so long as the investor continues to be a
resident outside India. In the case of an FII, the designated branch
of the authorised dealer may allow remittance of net sale/maturity
proceeds (after payment of taxes) or credit the amount to the Foreign
Currency account or Non-resident Rupee account of the FII maintained
in accordance with the approval granted to it by the RBI [Clause 5(i)
of the Regulations]. In any other case, where the investment is made
out of inward remittance or from funds held in NRE/FCNR account of
the investor, the maturity proceeds/repurchase price of units (after
payment of taxes) may be credited to NRE/FCNR/NRO/NRSR account of
the non-resident investor maintained with an authorised dealer in
India [Clause 5(ii) of the Regulations].
Will you transfer money to an investor's overseas
account?
No. Investors need to contact their authorised dealers for this service.
What is the tax liability on redemptions?
Under Section 2(42A) of the Income Tax Act, units of the fund held
as a capital asset for a period of more than 12 months immediately
preceding the date of transfer, will be treated as a long-term capital
asset for the computation of capital gains, thus qualifying for the
long-term capital gains tax rate. In all other cases, it would be
treated as a short-term capital asset and would be taxed at the short-term
capital gains tax rate.
What is the tax liability for income received
from your mutual funds?
As per Section 10(35) of the Income Tax Act, 1961, income received
from mutual fund units specified under Section 10(23D) is exempt from
income tax in India and the mutual funds are subject to pay distribution
tax in debt oriented schemes. Hence all dividends are tax-free in
the hands of non-resident investors and no TDS is applicable on the
same.
What is the tax-rate on capital gains for NRIs
/ rate of Tax Deduction at Source / FIIs?
(As per laws currently in force)
A) Tax Implications
To Unitholders
The following summary outlines the key tax implications applicable to unit holders based on the relevant provisions under the Income-tax Act, 1961 ('Act'), the Wealth-tax Act, 1957 and the Finance Act, 2006 (collectively called 'the relevant provisions').
The following information
is provided for general information only. However, in
view of the individual nature of the implications, each
investor is advised to consult with his or her own tax
Advisors/Authorised dealers with respect to the specific
tax and other implications arising out of his or her
participation in the schemes.
Under The Income-Tax
Act, 1961
The following summary outlines the key tax implications applicable to unit holders based on the relevant provisions under the Act, taking into account the amendments made by the Finance Act, 2006.
The tax implications of the following income received by the investors are discussed below:
- Income on units (other than sale/redemption);
- Income on sale/redemption of the units
Taxability of income on units (other than sale).
The income received by an investor (other than income on sale/redemption) in respect of units of a mutual fund specified under Section 10(23D) of the Act, is exempt under the Act.
As the income is exempt from tax, no tax is withheld by the Mutual Fund upon distribution of such income.
Taxability of income on sale/redemption
of units. The taxability of the income on sale/redemption of units and the rates at which such income is taxed is discussed below:
If the units are held as stock-in-trade.
If the units are held by an investor as stock-in-trade of a business, the said income will be taxed at the rates at which the normal income of that investor is taxed. The rates applicable to different investors are discussed at length in Note 1.
On sale of the units of an equity oriented fund (as defined below) on a recognised stock exchange or to the Mutual Fund, the investor will also be charged with securities transaction tax ('STT') as per the rates specified in para 15.5, provided the transaction is also considered as a taxable securities transaction. In other cases, STT is not levied.
Further, the investor is not allowed any deduction of STT paid for the purposes of computing his business income. However, a rebate under section 88E of the Act is available in respect of STT paid. The rebate is available in form of a deduction of the STT paid from the tax payable on the income from the taxable securities transaction. The tax payable on the income from taxable securities transaction is computed by applying the average rate of income-tax on the total income. The rebate in respect of STT paid cannot, however, exceed the tax payable. Also, this rebate can be claimed by an investor only if appropriate evidences are furnished in Form No. 10DB along with the Return of Income.
If the units are held as investments:
If the units are held as investments, the tax rates applicable will depend on whether the gain on sale of units is classified as a short term capital gain or a long term capital gain. As per section 2(42A) of the Act, units of the scheme held as a capital asset, for a period of more than 12 months immediately preceding the date of transfer, will be treated as long-term capital assets for the computation of capital gains; in all other cases, they would be treated as short-term capital assets.
The tax rates applicable on short term or long term capital gains arising on transfer of units of a scheme, being an equity oriented fund are stated in the following table:
 |
|
|
Nature of income |
|
|
Tax
rate$ |
|
|
|
|
|
|
Short-term
capital gains on sale either to the Mutual Fund
or on a recognised stock exchange |
|
|
Capital
gains tax payable at 10 percent* [applicable to
all investors including Foreign Institutional
Investors (FII)]
|
|
|
Long-
term capital gains on sale either to the Mutual
Fund or on a recognised stock exchange |
|
|
No capital gains tax payable by any investor.
|
|
|
|
|
|
|
|
* plus surcharge and education cess as may be applicable (refer Note 2). In case of non-resident investors, the above rates would be subject to applicable treaty relief. $ Additionally,
STT would be payable at the rates specified in para
Securities Transaction Tax.
"Equity oriented fund" is defined to mean a fund -
- Where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty five percent of the total proceeds of such fund; and
- Which has been set up under a scheme of a Mutual Fund specified in section 10 (23D) of the Act.
The tax rates applicable on short term or long term capital gain arising on transfer of units of a scheme, not being an equity oriented fund as discussed above are stated in the following table:
|
|
|
Nature of income |
|
|
Tax
rate |
|
|
|
|
|
|
Short-term
capital gains |
|
|
In
case of FIIs, 30 percent* For others,
taxed at normal tax rates (as explained
in Note 1).
|
|
|
Long-term
capital gains |
|
|
In case of FII's, 10 percent* (without
indexation) In case of others, 20 percent*
(with indexation) or, 10 percent* (without
indexation), whichever less.
|
|
|
|
|
|
|
|
* plus surcharge
and education cess as may be applicable (refer Note
2). In case of non-resident investors, the above rates
would be subject to applicable treaty relief.
# no indexation benefit for non-resident investors if investment made is in foreign currency.
The withholding tax implication (i.e.
TDS) in respect of the capital gains explained above
is discussed below
- Resident Investors: No tax is required to be deducted at source from capital gains arising to resident investors at the time of repurchase or redemption of the units.
- Non-Resident Investors: As per the provisions
of Act [Section 195], tax is required to be deducted
at source from the sale proceeds or redemption proceeds
paid to non-resident investors. This withholding is
in addition to the STT payable, if any, by the investor.
The rates are:
1. Foreign Institutional Investors: No tax has to be deducted on redemption/sale proceeds [Section 196D(2)].
2. Non-Resident Indian ('NRI') / Person of Indian origin ('PIO'): Tax on short term capital gains arising out of redemption of units is deducted at the rate of 10% (plus surcharge) for an equity oriented fund and at 30% (plus surcharge) for a non equity oriented fund. Tax, on long term capital gains is deducted at the rate of 20% (plus surcharge). However, in case of long term capital gains on redemption of units of an equity oriented fund, no tax would be deducted. For administrative purpose the Fund will deduct 10% surcharge.
3. Non-Resident Corporates: Tax is deducted at the rate of 40 percent on short term capital gains and 20 percent on long-term capital gains. The said rates at which capital gains are charged to tax would be further increased by the applicable surcharge and education cess stated in Note 2 below. No tax would, however, be deducted in case of long term capital gains on redemption of units of an equity oriented fund.
All the above non-resident investors may also claim the tax treaty benefits available, if any. For details of applicability and eligibility of such benefits, the investors are requested to consult their tax advisors.
Provisions regarding Dividend income and Bonus.
According to the provisions of Section 94(7) of the Act, losses arising from the sale/redemption of units purchased within 3 months prior to the record date (for entitlement of dividends) and sold within 9 months after such date, is disallowed to the extent of income on such units (other than on sale/redemption) claimed as tax exempt.
According to the provisions of Section 94(8) of the Act, if an investor purchases units within 3 months before the record date (for entitlement of bonus) and sells/redeems the units within 9 months after that date, and by virtue of holding the original units, he becomes entitled to bonus units, then the loss arising on transfer of original units shall be ignored for the purpose of computing his income chargeable to tax. In fact, the loss so ignored will be treated as cost of acquisition of such bonus units.
Note 1. The
individuals (including NRIs/PIOs) and HUFs, are proposed
to be taxed in respect of their total income at the
following rates:
|
|
|
Slab |
|
|
Tax
rate * |
|
|
|
|
|
|
Total
income upto Rs.1,00,000# |
|
|
Nil
|
|
|
More
than Rs.100,000# but upto Rs.150,000
|
|
|
10 percent of excess over Rs.100,000
|
|
|
More
than Rs.150,000 but upto Rs.250,000
|
|
|
20 percent of excess over Rs. 150,000
+ Rs.5,000$
|
|
|
Exceeding
Rs.250,000 |
|
|
30
percent of excess over Rs 250,000 +
Rs.25,000$. |
|
|
|
|
|
|
|
* plus surcharge
and education cess as may be applicable (refer Note
2). # for females below sixty-five years of age, Rs. 100,000 has to be read as Rs. 135,000 and for senior citizens above sixty-five years of age, Rs. 100,000 has to be read as Rs. 185,000.
$for females below sixty-five years of age, Rs. 5,000 has to be read as Rs. 1,500 and Rs 25,000 has to be read as Rs 21,500. Similarly for senior citizens above sixty-five years of age, Rs. 5,000 has to be read as nil and Rs 25,000 has to be read as Rs. 13,000.
The corporate tax rate for domestic companies is 30 per cent [plus applicable surcharge (as per note 2) and education cess]. However, the tax rate applicable to foreign companies is 40 per cent [plus applicable surcharge and education cess (as per note 2)]. Note 2
Under The Wealth-Tax
Act, 1957
Units are not to be treated as assets as defined under Section 2(ea) of the Wealth-Tax Act, 1957 and hence will not be liable to wealth-tax.
B) Tax Implications
On Mutual Fund
Income Earned Or
Received By The Mutual Fund. Franklin Templeton Mutual Fund is registered with SEBI and as such, the entire income of the Fund is exempt from income tax under Section 10(23D) of the Act. In view of the provisions of Section 196(iv) of the Act, no income tax is deductible at source on the income earned by the mutual fund.
Income Distributed
By The Mutual Fund. As per provisions of the Act (Section 115R), Franklin Templeton Mutual Fund will be required to pay dividend distribution tax ('DDT') as follows:
- No DDT to be paid on equity oriented funds
- DDT to be paid on other funds at the following rates:
1. at 14.025 percent (including a surcharge of 10 percent and an additional surcharge by way of education cess of 2 percent on the amount of tax plus surcharge) on dividend distributed to individuals and HUFs; and
2. at 22.44 percent (including a surcharge
of 10 percent and an additional surcharge by way of
education cess of 2 percent on the amount of tax plus
surcharge) on dividend distributed to persons other
than individuals and HUFs, for instance, corporates.
Securities Transaction Tax.
Franklin Templeton Mutual Fund, is liable to pay a securities transaction tax as follows:
The value of a taxable securities transaction will be as follows:
- in the case of a taxable securities transaction relating to "option in securities", the aggregate of the strike price and the option premium of such "option in securities"
- in the case of taxable securities transaction relating to "futures", the price at which such "futures" are traded; and
- in the case of any other taxable securities transaction,
the price at which such securities are purchased or
sold
"Taxable securities transaction" means a transaction of -
- purchase or sale of an equity share in a company
or a derivative or a unit of an equity oriented fund,
entered into in a recognised stock exchange; or
- sale or an equity oriented fund to the Mutual Fund
What is the proof of the Tax Deduction at Source?
A TDS certificate is issued in the name of the investor mentioning
the details of the transaction and the tax deducted. The TDS certificate
is commonly known as Form16 A.
When will the TDS certificate be issued?
A TDS certificate (Form 16A) will be despatched to the investor at
his or her registered address along with the redemption warrant. To
obtain a duplicate TDS certificate, send an email to service@templeton.com,
including your account number.
Can an NRI have a joint account in Franklin Templeton
Funds with a resident Indian?
Yes. An NRI investor can jointly own a fund account with a resident
Indian or a Non-resident Indian.
Is the indexation benefit available to NRIs?
Yes, if units are held for more than 12 months i.e. on long-term capital
gains.
Are fund units liable to the wealth tax?
No. Units issued to overseas investors will not be treated as assets
as defined under section 2(ea) of the Wealth-Tax Act, 1957 and hence
will not be liable to wealth tax.
Can a fund dividend in an NRO account be repatriated?
Yes. Income generated from investments (dividend, in this case) done
on a non-repatriable basis qualify for full repatriation.
Can an NRI fax a request followed by the original
documents?
No. Units cannot be redeemed or allotted on the basis of fax applications.
A request that lacks a valid signature cannot be processed due to
legal restrictions.
Can a Power of Attorney (POA) invest on behalf
of the NRI investor?
Yes. Unlike banks where a POA holder cannot open an account on behalf
of the NRI, in a mutual fund the POA has the authority to invest on
behalf of the investor and sign documents for initial and additional
purchases as well as redemptions.
While applying for purchase of units the POA holder needs to submit
the original POA or a copy duly notarised should be submitted. The
Power of attorney should contain the signature of both the first holder
and the POA holder. Only when the POA is registered does the POA holder
have the right to transact on behalf of the NRI investor. His signature
will be verified for processing any transaction/request.
Is nomination by NRIs allowed in Franklin Templeton
Funds?
Yes. It is allowed only for Individuals/HUFs.
Can a resident Indian have an NRI as nominee?
Yes. The same rules apply for nominees to resident Indian accounts.
An NRI can be a nominee to an account which is in the name of a resident
Indian.
How does an NRI get fund performance updates?
As any other investor, the NRI can log into our website www.franklintempletonindia.com
and receive information on performance, portfolio, and returns of
all funds. NRIs may also receive daily NAVs by subscribing to email
notifications on our website.
Where can I get the Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident Outside India)
Regulations, 2000 and Schedule 5 thereof?
Investments by U.S Person
The Scheme is not registered in the United States of America under
the Investment Company Act of 1940. The Units of the Scheme have not
been registered in the United States of America under the Securities
Act of 1933. The units made available under this offer may not be
directly or indirectly offered or sold in the United States of America
or any of its territories or possessions or areas subject to its jurisdiction
or to or for the benefit of nationals or residents thereof, unless
pursuant to an exemption from registration requirements available
under the U.S. law, any applicable statute, rule or interpretation.
Applicants for Units may be required to declare that they are not
a U.S. Person and are not applying for Units on behalf of any U.S.
Person.
The term "U.S. Person" shall mean any person that is
a United States Person within the meaning of Regulation S under
the United States Securities Act of 1933, as the definition of such
term may be changed from time to time by legislation, rules, regulations
or judicial or administrative agency interpretations.
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