INDUS: PRODUCT DISCLOSURE

Last Updated: 30 September 2024

Welcome!

At Indus, we are committed to offering a clear and accessible pathway to investment opportunities in India. This document provides a concise explanation of how we facilitate investments in Indian mutual funds, ensuring you have a comprehensive understanding of our operations.

All about Indus

Indus provides access to Indian investment products by partnering with global companies that offer them. We don't directly provide these products and, therefore, cannot take responsibility for them. It's important that you carefully assess the risks of each product to determine if it's suitable for you before choosing to invest.

Indus offers you access to 100s of Indian mutual funds, providing a range of investment opportunities for you to choose from. Our role is to present these options, not to offer advice. We do not provide investment, financial, tax, valuation, or other guidance on these products. You are solely responsible for making your own decisions when selecting and using the products on Indus.

It's all digital (online etc)

To sign up for Indus, you must complete the online registration process and ensure that all the information you provide is accurate and complete. We will request information to verify your identity in compliance with legal obligations, and we use electronic identity verification services to confirm your identity and perform customer due diligence checks (such as PEP checks).

If you don't provide all the information we need to verify your identity and that we and our partners need to comply with our legal obligations, we won't be able to open an account for you on Indus.

Your Indus account

Your Indus account displays the value of the funds and investments you hold through Indus and is where you place orders for your trading account.

The money you deposit into your Indus account is held in a New Zealand custodian bank account under Indus' name, specifically designated for holding your assets. You can only deposit funds into your Indus Wallet through your NZ bank account and may be restricted to withdrawing to the same nominated NZ bank account or another bank account reflecting your name.

Indus holds your deposited funds in New Zealand dollars on your behalf, pooled with the funds of other Indus customers, and automatically arranges for it to be converted into Indian Rupees, which are then held in Indus's custodian account with DBS India Bank Limited (DBS India) under the name of Indus Limited. Any mutual funds you invest in through Indus will also be held in the name of Indus Limited on your behalf. We do not offer interest on the funds held in any of the custodian bank accounts.

Currency Exchange Providers

We work with currency exchange providers to convert the NZD you deposit into Indian Rupees, and vice versa, enabling you to invest in the Indian mutual funds and withdraw funds in NZD. We will provide an estimated exchange rate before each conversion and confirm the actual rate once the transaction is complete. While the rate you receive should be close to the estimate, we have no control over the currency markets and are not responsible for any difference between the estimated and actual rate you receive.

Fees

There are no fees associated with opening an Indus account. Additionally, we do not charge you for buying or selling mutual funds through Indus. However, a 1% foreign exchange fee will apply to all funds converted between NZD and INR. Additional fees may also be charged by mutual fund providers when buying or selling mutual funds.

Availability

Our team is available Monday to Friday from 9:00 AM to 5:30 PM to provide support for Indus, address any concerns, and resolve any issues. You can contact us be email: [email protected] or through the app.

We cannot guarantee that Indus will always be available without delays or errors. Access may need to be suspended for emergencies, technical or regulatory reasons, or for maintenance and improvements.

Indus connects to DBS Bank India Limited

DBS Bank is a premier financial services group in Asia, headquartered in Singapore, with an AA- credit rating from S&P, making it one of the most secure banks in the region. For further details on DBS Bank, visit About DBS Bank.

DBS Bank India Limited, a wholly owned subsidiary of DBS Bank Limited, operates with over 530 branches across India, offering a range of services such as Digital Banking, Trade Finance, Supply Chain Finance, and Securities. As Indus's custodian bank, DBS India will handle daily fund transfers and hold these funds in INR within dedicated Indus custodian accounts. DBS India will also facilitate the purchase and sale of mutual funds.

DBS India is regulated by the Securities and Exchange Board of India (SEBI) and complies with strict regulatory standards, ensuring the safety and security of investor assets.

Indus will provide details of the customer's country of residence, citizenship, PAN card (tax ID for Non-Resident Indians), and transaction reporting every quarter to SEBI and DBS as part of the monitoring requirements.

Handling of Funds and Securities

India's market operates under a segregated account structure, meaning all investor assets (securities and cash) remain in Indus's FPI account with DBS India. In accordance with SEBI's Custodian of Securities Regulations 1996, client assets are kept separate from the custodian bank's own assets. This structure protects investor funds in the unlikely event of the custodian's insolvency.

Credit Rating

For DBS Bank's credit rating, refer to DBS Bank Credit Rating. Although DBS Bank India Limited operates as an Indian entity, it retains the parental credit rating of DBS Bank Limited, as per Reserve Bank of India (RBI) approval.

Insurance

DBS India maintains robust insurance coverage for client assets, including an Industrial All Risks Insurance policy underwritten by global insurers such as Chubb Insurance Singapore, Zurich Insurance, and MS First Capital Insurance. Additionally, the bank holds policies covering Bankers Blanket Bond, Electronic and Computer Crime, and Professional Indemnity, underwritten by leading global insurers such as QBE, AIG, and Allianz. At the local level, DBS India is insured by New India Assurance Co. Ltd for coverage through India's central depositories (CDSL and NSDL) with a protection of up to INR 1 billion (USD 13.51 million).

Asset Protection and Compliance

• Accounts: Investor funds are held in separate custodian accounts to ensure they are distinct from Indus's operational funds, minimising risk and providing a transparent audit trail.
• Regulatory Compliance: Indus adheres to all relevant SEBI and RBI regulations, including regular audits and reporting to maintain transparency and accountability.
• Insurance and Indemnity: Appropriate insurance is maintained to protect against risks such as fraud, theft, and other unforeseen events, ensuring the security of investor assets.

We respect your privacy

We need to collect and store your personal information to provide Indus services. If you choose not to provide the requested information, you may be unable to access or use Indus.

Who can you give my information to?

Rest assured, we only request the information necessary for us and our third-party suppliers, and we do not sell your details to marketing companies.

Information for Indus

Some of the information we ask you for is for us, and this information is held and protected by New Zealand Privacy Law as set out in our privacy policy.

Information for accessing the Indian market

Some of the information we request is for DBS India Bank. It's important to understand that DBS India Bank operates under Indian law, not New Zealand law, and may not be required to protect your information with the same safeguards as those mandated by New Zealand privacy regulations. Your information will be handled and protected according to their privacy policy, which you should review and understand. You can access it through the following link: DBS Privacy Policy.