STATEMENT OF ADDITIONAL INFORMATION This Statement of Additional Information (SAI) contains details of DSP BlackRock Mutual Fund, its constitution, and certain tax, legal and general information. It is incorporated by reference and is legally a part of the Scheme Information Document (SID)]. This SAI is dated May 18, 2018 INDEX SECTION I – INFORMATION ABOUT SPONSOR, AMC AND TRUSTEE COMPANY .................................................................................................. 2 A. CONSTITUTION OF DSP BLACKROCK MUTUAL FUND (‘MuTUAL FUND’) ...................................................................................... ………..2 B. SPONSOR ........................................................................................................................................................................................................... 2 C. THE TRUSTEE .................................................................................................................................................................................................... 2 D. ASSET MANAGEMENT COmpaNY ................................................................................................................................................................... 5 SECTION II – SERVICE PROVIDERS ........................................................................................................................................................................... 18 SECTION III – CONDENSED FINANCIAL INFORMATION (CFI) ................................................................................................................................. 19 SECTION IV – HOW to APPLY? .................................................................................................................................................................................. 40 A. PURCHasE ....................................................................................................................................................................................................... 40 B. REDEMPTION AND SWITCH ........................................................................................................................................................................... 40 C. SUSPENSION OF PURCHASE AND REDEMPTION OF UNITS ..................................................................................................................... 46 D. SUSPENSION OF SALE/SWITCHES INTO THE SCHEME UNDER SPECIAL CIRCUmstaNCES ............................................................... 46 SECTION V – RIGHTS OF UNITHOLDERS OF THE SCHEME ................................................................................................................................... 47 SECTION VI – INVESTMENT VALUATION NORMS FOR SECURITIES AND OTHER ASSETS ............................................................................... 48 SECTION VII – PROCEDURE AND MANNER OF RECORDING INVESTMENT DECISIONS .................................................................................... 54 SECTION VIII – TAX & LEGAL & GENERAL INFORMATION ................................................................................................................................... 54 A. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND ................................................................................................................................ 54 B. LEGAL INFOrmatiON ..................................................................................................................................................................................... 60 1. NOMINatiON FaciLITY ............................................................................................................................................................................. 60 2. TRANSFER OF UNITS ............................................................................................................................................................................... 61 3. TRANSMISSION ......................................................................................................................................................................................... 61 4. “ON BEHALF OF MINOR” ACCOUNTS ...................................................................................................................................................... 62 5. DUratiON OF THE SCHEME .................................................................................................................................................................... 62 6. PROCEDURE AND MANNER OF WINDING UP ........................................................................................................................................ 63 7. KYC REQUIREMENTS AND REQUIREMENTS OF PREVENTION OF MONEY LAUNDERING ACT ...................................................... 63 8. PLEDGE OF UNITS FOR LOANS .............................................................................................................................................................. 63 9. COMPLIANCE UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) .................................................................................... 63 10. ULtimatE BENEFICIAL OWNERSHIP ...................................................................................................................................................... 65 11. ACTS DONE IN GOOD FAITH .................................................................................................................................................................... 65 12. POWER TO MAKE RULES ......................................................................................................................................................................... 65 13. POWER TO REMOVE DIFFICULTIES ........................................................................................................................................................ 65 C. GENERAL INFOrmatiON ................................................................................................................................................................................ 65 1. INTER-SCHEME TRANSFER OF INVESTMENTS .................................................................................................................................... 65 2. ASSOciatE TRANSACTIONS ................................................................................................................................................................... 65 3. STOCK LENDING BY THE MUTUAL FUND ............................................................................................................................................... 66 4. BORROWING BY THE MUTUAL FUND ..................................................................................................................................................... 66 5. UNCLAIMED REDEMPTION AND DIVIDEND AMOUNT............................................................................................................................ 66 6. DOCUMENTS AvaiLABLE FOR INSPECTION .......................................................................................................................................... 66 7. INVESTOR GRIEvaNCES REDRESSAL MECHANISM ............................................................................................................................ 67 8. WEBSITE .................................................................................................................................................................................................... 67 1 SECTION I – INFORMATION ABOUT (b) BlackRock SPONSOR, AMC AND TRUSTEE BlackRock is a premier provider of global investment management services to institutional and retail clients around the world. COMPANY Headquartered in New York, BlackRock serves clients from A. CONSTITUTION OF DSP BLACKROCK MUTUAL offices in 30 countries, maintaining a major presence in North FUND (‘MUTUAL FUND’/’FUND’) and South America, Europe, Asia, Australia, and the Middle East DSP BlackRock Mutual Fund has been constituted as a trust on and Africa. With approximately 13,000 employees, BlackRock December 16, 1996 in accordance with the provisions of the Indian Trusts offers clients in-depth local knowledge and understanding, while Act, 1882. DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. leveraging the strength of their global presence and infrastructure (collectively) and BlackRock Inc. (BlackRock) are the Sponsors, and to deliver focused investment solutions. It offers investment DSP BlackRock Trustee Company Pvt. Ltd. is the Trustee to the Fund. solutions through a variety of product structures, including The Trust Deed has been registered under the Indian Registration Act, individual and institutional separate accounts, mutual funds, 1908. The Mutual Fund was registered with SEBI on January 30, 1997 the industry-leading iShares® exchange-traded funds and other under the Registration Code MF/036/97/7. pooled investment vehicles. B. SPONSOR Since its founding in 1988, BlackRock has sought to better The Mutual Fund is sponsored by DSP ADIKO Holdings Pvt. Ltd. & serve clients by anticipating and responding to changes and DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock. DSP ADIKO advancements in the investment industry, while continually seeking Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and to broaden and deepen