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These Terms and Conditions of Empanelment as a Distributor of LIC Mutual Fund ('LICMF') are a binding contract between yourself and LIC Mutual Fund Asset Management Limited (“LICAML”) (as asset management company of LICMF) for your appointment as a distributor of LICMF to distribute units of the schemes of the LICMF. Please read these Terms and Conditions carefully. By accepting these Terms and Conditions you acknowledge that you have read, understood and agree to be legally bound by them at all times.

TERMS AND CONDITIONS

  1. A distributor and its employees who will be involved in distribution of units of the schemes of LICMF must carry out such directions and instructions as may, from time to time, be issued by LICAML in this regard and comply with all the extant applicable laws, rules, regulations, guidelines, directions, etc.
  2. A distributor /or its employee or its representatives who are involved in distribution of mutual fund products must have cleared the AMFI and/or NISM certification test and obtained Employee Unique Identification Number (EUIN) from AMFI apart from AMFI Registration Number (ARN). The Distributor shall ensure that the employees quote the EUIN in the Application Form for investments. A self-attested copy of ARN card / AMFI certificate & PAN card must be submitted by the distributor to LIC Mutual Fund Asset Management Ltd., for its records and verification, as and when requested for.
  3. The Distributor shall ensure that its employees or representatives have and at all times shall continue to hold all valid and subsisting approvals /registrations / certifications as may be required by law to perform its obligations hereunder during the term of appointment and that they have not and shall not violate / breach any of the terms and conditions subject to which such approvals / registrations / certifications have been granted & complies with all rules/regulations/acts as prescribed by SEBI/AMFI from time to time.
  4. The Distributor agrees to comply with the provisions of Securities and Exchange Board of India ('SEBI') /AMFI Circulars including but not limited to SEBI Circular No. Cir / IMD / DF / 5 / 2010 dated June 24, 2010 with regard to holding of valid certificate issued by AMFI/National Institute of Securities Markets (NISM), SEBI Circular No. SEB/IMD/CIR No. 4/168230/09 dated June 30, 2009 with regard to disclosure of all types of commission payment to them for different competing schemes from various mutual funds, SEBI/IMD/CIR No. 174648/2009 dated August 27, 2009 regarding Code of Conduct, SEBI circular Cir/IMD/DF/13/2011 dated August 22, 2011 and AMFI circular 79/ARN/03/11-12 dated 13.09.2011 etc. and any amendments made thereof vide any notifications/circulars/guidelines issued in this respect from time to time.
  5. The Distributor agrees to comply with the relevant provisions of the Prevention of Money-Laundering Act, 2002 and Know Your Client norms laid down by SEBI and AMFI as applicable and amended from time to time. The onus of conducting/adhering to the KYC norms is on the Distributor and the Distributor will ensure proper verification of identity of Clients/investors.
  6. The Distributor shall ensure that the terms and conditions mentioned herein or as amended from time to time are also complied with by the Distributors' employees, Distributor (including sub-Distributor) and representatives.
  7. All subscriptions procured by the Distributor shall only be accepted by means of Account Payee cheques, pay orders or demand drafts drawn in favour of LIC Mutual fund or the scheme name as mentioned in the SID. The Distributor cannot, on behalf of LICAML, issue receipt of any application form(s), cheque(s), demand draft(s), etc. received towards subscription or any transaction in the units of any scheme of LICMF. A distributor is not authorised to issue any receipt for cheques and demand drafts received along with the application forms on behalf of the AMC. The distributor shall at no point of time receive cash on behalf of the AMC.
  8. The Distributor shall be responsible for providing the foreign inward remittance certificate or the certificate evidencing the subscription by way of debit to the NRE/ FCNR account of any non-resident Indian investor, within five days from the receipt of subscription by LICMF from such investor.
  9. The Distributor agrees not to distribute the products of LICAML to such investors who are banned from investing in India.
  10. The Distributor shall not in any way pledge or have any lien or charge on the properties of the LICAML, LICMF, the trustee company of LICMF being LIC Mutual Fund Trustee Private Ltd ('Trustee') or any investor, that are in its possession, towards the fees payable to the Distributor for the services rendered herein.
  11. The Distributor shall neither use nor display the name, logo, mark or any intellectual property of LICAML/LICMF (or any things identical thereto) in any manner whatsoever, except as permitted by LICAML for representing himself as the empanelled distributor of the LICAML.
  12. The Distributor shall do all acts, deeds and things necessary on behalf of the LICMF/ LICAML to enhance the investors' confidence and interest in the LICMF and ensure that the interests and reputation of the LICMF/ LICAML are fully protected at all times and shall not undertake any obligation or incur any liability on behalf of the LICMF/ LICAML nor in any way pledge the LICMF/ LICAML’s credit.
  13. The Distributor shall be solely responsible for resolution of all the investor grievances/complaints arising due to any acts or omission or gross negligence, misrepresentation, fraud or mistake not directly attributable to the LICAML and shall provide complete assistance to LICAML for redressal of complaints.
  14. LICAML shall from time to time publish notices, addendums and may make available to the distributor any other documents as may be related to the schemes of LICMF. The Distributor undertakes to: inform the investor & provide hard copy if asked by the investor.
  15. A Distributor is eligible for brokerage on the amounts mobilized by him at the rate(s) prescribed by LICAML. The rate(s) are subject to revision, from time to time, at the discretion of the LICAML and the distributor shall be bound by such changes. The brokerage payable shall be inclusive of any tax, service tax, cost, charges and expenses incurred by the Distributor in connection with the agency.
  16. LICAML reserves the right to withhold the commission or any other amount payable to the distributor, pending submission of the declarations/documents/forms or any other information as required by the LICAML
  17. The Distributor shall not have any right or claim against the LICMF/LICAML, for any loss incurred by it due to any revision made by the LICAML in commission or any change of terms and conditions of distribution.
  18. In case the Distributor receives any commission or any other amount which is not due or payable to the Distributor, the LICAML/LICMF shall be entitled to recover the same or adjust all such amounts as are paid wrongly or by mistake to the Distributor.
  19. The Distributor declares and covenants with the AMC to defend, indemnify and hold the AMC and its affiliates, promoters, successors in interest and permitted assigns harmless from and against all claims, damages or assertions of liability of any kind or nature resulting from:
    1. Any breach of terms, covenants and conditions or other provisions hereof, or SID, KIM and/or SAI or any actions or omissions there under;
    2. Any failure to comply with all applicable legislation, statutes, ordinances, regulations, administrative rulings or requirements of law;
    3. The misfeasance, malfeasance or fraudulent acts of the representatives of the Distributors; and
    4. Any and all actions, suits, proceedings, assessments, settlement, arbitration judgments, cost and expenses, including attorneys’ fees, resulting from any of the matters set forth above.
    5. Fraudulent, improper, incorrect, wrongful or negligent performance, work, service, act or omission by the Distributor including any of its employees, and representatives;
    6. Wilful misconduct of the Distributor or any of its employees, Distributor (including sub-Distributor) and representatives.
    7. Breach of any term or condition mentioned herein by the Distributor or any of its employees, Distributor (including sub-Distributor) and representatives;
  20. The appointment of the Distributor shall continue to remain in full force and effect unless terminated by LICAML or the Distributor, in accordance with the provisions contained herein. The appointment of a distributor shall be liable to be terminated by the AMC forthwith:
    1. If he/she is found to be a minor or adjudicated as an insolvent or found to be of unsound mind by a court of competent jurisdiction;
    2. If in course of any judicial proceeding it is found that he/she has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against the LICAML or any Unit holder of LICMF
    3. If any statement made in the Distributor Registration Form was false or misleading or calculated to mislead;
    4. If Distributor acts in any other manner prejudicial to the interest of the LICAML/LIC, ; and
    5. If Distributor does not comply with all applicable legislation, statutes, ordinances, regulations, administrative rulings or requirements of law.
    6. If Distributor fails to comply with the terms and conditions mentioned in this empanelment form.
    7. The Distributor remains inactive in business with LICAML for a considerable period of time, as decided by LICAML from time to time. LICMF also reserves the right to suspend brokerage under such cases.
  21. In addition to what is stated in the preceding paragraphs the LICAML shall have the right to terminate the appointment of Distributor at any time by giving the Distributor 30 days’ notice and assigning any reasons thereof. A distributor may also terminate the agency at any time by giving 30 days’ notice to the LICAML.
  22. Upon any termination, the distributor shall forthwith return to LICAML all documents, papers and material pertaining to and / or belonging to LICAML / LICMF.
  23. A distributor shall not have any claim against the LICAML/LIC MF for any loss incurred by him/her as not anticipated and arising out of any revision in the rate(s) of commission for business canvassed.
  24. A distributor must read and understand the Scheme Information Document ('SID'), the Key Information Memorandum ('KIM') of the scheme(s) of LICMF and Statement of Additional Information ('SAI’) of the respective scheme(s) carefully and explain the risks, investment objectives and the special features of the schemes to the investors. The Distributor must not make any representation concerning Units or the Mutual Fund except those contained in the SID, KIM, SAI and/or marketing material issued by LICAML.
    1. Confidential Information shall mean all information disclosed to the Parties under this Agreement including but not limited to the details of the investors. The Party receiving the information shall be the “Recipient Party” and the party disclosing the information shall be the “Disclosing Party”. However, the Parties agree that following shall not be considered Confidential Information: Becomes generally available to the public other than as a result of disclosure by the disclosing party or by the disclosing party’s agents (in the case of distributors, including the sub-distributors), employees or representatives; or Information which was previously known to the recipient Party prior to receipt from the disclosing Party; or Information that is developed independently by the recipient Party or any of its employees, agents or representatives who had no access to the Confidential Information provided by the disclosing Party; or Information which is disclosed to regulatory authority; or. Information which is disclosed pursuant to the requirement or request of a government agency or court of competent jurisdiction.
    2. Each Party further acknowledges and agrees: To protect Confidential Information, the standard of care required by the Party in protecting the confidentiality of Confidential Information shall be the same standard of care that the disclosing Party uses in protecting its own Confidential Information. Parties here to shall disclose Confidential Information or permit disclosure of Confidential Information to its employees or agents or Service Provider only on NEED TO KNOW basis.
    3. Information Technology Act and rules thereunder: Definition: ‘Personal information and Sensitive Personal Data or Information’ shall have the meaning assigned to them by the Information Technology Act, 2000 read with Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 as amended from time to time (hereinafter “the said Act & Rules”). Sharing, Collecting & Preserving of sensitive personal data and information: The Distributors and the AMC mutually agree as follows: That they shall keep the Personal Information and/or Sensitive Personal information that are collected from the investors and/or unit holders as strictly confidential and would make use of the same only for the purpose for which it has been authorised to collect the information. The Parties further agree that the recipient party shall ensure the same level of data protection as has been provided for in the said Act & Rules. That the Parties hereby confirm that they have the authority to collect and transfer the above referred Personal Information and/ or Sensitive Personal Data or Information, as per the Privacy Policy.
    4. The covenants of confidentiality set forth herein shall survive and continue and be maintained from the date hereof even after the termination of this Agreement.
  25. The Distributor shall always conduct himself with propriety and decorum and in a manner, which is not prejudicial to the interest of LICAML/LICMF.
  26. The Distributor must not use any malpractice and/or unethical means to sell, market, solicit or induce any investor to undertake any transaction pertaining to the units of any scheme of LICMF.
  27. The Distributor hereby specifically authorises LICAML to obtain KYD documents /records of the Distributor from KYD/CDMS/AMFI. If the LICAML is not able to obtain /Download such details from KYD/CDMS/AMFI or the Distributor is not KYD Compliant or if the records are not in verified status, then LICAML reserves the right to reject the empanelment or call for such records/ documents as may be required, and the Distributor agrees to provide all such documents to LICMF/ LICAML, in order to comply with the provisions of Know Your Distributor norms laid down by AMFI/SEBI as amended from time to time.
  28. LICAML reserves the sole right and discretion to change the status category of the Distributor.
  29. The empanelment of the Distributor as a distributor of LICMF shall be on a non-exclusive basis. The relationship between LICAML and the Distributor is that of principal to principal and does not create any agency relationship or employee-employer relationship between LICAML and the Distributor.
  30. In respect of all disputes arising under this engagement, the courts at Mumbai alone shall have jurisdiction, in accordance with the laws of India.
  31. The statements and declarations made by the Distributor herein are the basis of his empanelment as a Distributor.
  32. The empanelment of the Distributor as a distributor of LICMF is subject to written confirmation from LICAML. The Distributor shall promptly provide on periodic written declaration / confirmations along with supporting documents as required by the LICAML to ensure compliance with all applicable laws/rules/regulations/guidelines/SEBI/ AMFI circulars.
  33. The Distributor shall not restrict the right of investor for changing the distributor, if the investor wishes to do so.
  34. The Distributor understand that if they submit any Offline/physical transaction application to AMC which require physical signature, such transaction will be processed by LICAML/ Registrar & transfer agent only if his signature on the application matches with the signature as available with KYD/ CDMS/AMFI records. The Distributor agree that any mismatch in signature would result in rejection of his request.
  35. In case of application by non-individuals, a certified true copy of the relevant Board resolution or authority to make the application as the case may be, along with a certified true copy of the MOA/Partnership deed/ Certification of registration / Authorised Signatories list should be submitted. A declaration on company letter head for the employees engaged in sales activity should be submitted.
  36. The Distributor shall use only such SIDs, Key Information Memorandum containing Application Forms and advertising material provided by AMC and the Distributor shall not design its own advertisement of the scheme(s) of LICMF unless it has obtained prior approval in writing from the LICAML.
  37. The agency shall stand automatically terminated without any notice from the AMC / Mutual Fund upon disqualification or withdrawal of Regulatory or Government Approval to act in the capacity contemplated herein. Upon any termination, the Distributor shall forthwith return all documents, papers and material pertaining to AMC / Mutual Fund and / or belonging to AMC / Mutual Fund to the AMC.
  38. Appointment as a distributor is subject to written/Mail confirmation by LICAML.
  39. The Distributor understand that if they submit any Offline/physical transaction application to LICAML which require physical signature, such transaction will be processed by LICAML / Registrar & transfer agent only if his signature on the application matches with the signature as available with KYD/ CDMS/AMFI records. The Distributor agree that any mismatch in signature would result in rejection of his request.
  40. The Distributor shall not restrict the right of investor for changing the distributor, if the investor wishes to do so.

I/we have fully read, understood and accepted the above-mentioned terms and conditions and to agree to abide by the same at all times. I/We agree to submit such declarations/documents/forms as required by LICAML from time to time.

I/we further agree to abide by the code of conduct and rules/regulations laid down by SEBI and AMFI. I/We shall neither pass on or rebate brokerage back to investors nor tempt them with rebate/gifts. I/We further have no objections in the LICAML taking any disciplinary action against me/us or any of my/our employee or representative who is found violating this regulations/code of conduct.