Terms & Conditions
 
1. The statements made by the distributor in the Distributor Empanelment Form and the declaration made therein shall be the basis of the contract.
 
2. The distributor shall carry out such directions and instructions as may from time to time, be issued by Principal Pnb Asset Management Company Private Limited (AMC) in this regard and the same shall form an integral part of the terms & conditions.
 
3. The distributor and / or its employees who are involved in distribution of Mutual Fund products must have cleared the applicable AMFI / NISM Certification and a Copy of ARN (AMFI Registration Number)letter/card must be submitted by the distributor to AMC, for its records and verification.
 
4. The Distributor undertakes to abide by the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012, AMFI best practice guidelines circular No. 31/2012-13, AMFI circular 35P/MEM-COR/14/12-13 dated October 30, 2012 and all other relevant circulars/amendments thereof w.r.t. Implementation of Employee Unique Identification Number (EUIN).
 
5. The 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.
 
6. The distributor is eligible for brokerage on the amounts mobilized by him at the rate(s) prescribed by AMC. The rate(s) are subject to revision, from time to time, at the discretion of the AMC and the distributor shall be bound by such changes. The brokerage payable, shall be net of statutory levies /taxes / duties / cesses, if any.
 
7. 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:
a) any breach or non-compliance, by the distributor of terms, covenants and conditions or other provisions hereof, and/or provisions contained in the Scheme Information Document (SID) & Statement of Additional Information (SAI) or any actions or omissions thereunder
b) any failure on the part of the distributor to comply with any applicable legislation, statutes, ordinances, regulations, administrative rulings or requirements of law;
c) the misfeasance, malfeasance or fraudulent acts of the representatives of the distributors; and
d) 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.
 
8. The Distributor shall do all such acts, deeds and things as may be necessary to conduct due diligence on the customer profile and report any suspicious profile to the AMC.
 
9. The appointment of the distributor shall be liable to be terminated by the AMC forthwith:
a) If the Distributor is found to be a minor or adjudicated as an insolvent or found to be of unsound mind by a court of competent jurisdiction;
b) 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 AMC or any Unit holder of Principal Mutual Fund (Mutual Fund)
c) If the AMC is satisfied that any statement made in the Distributor Registration Form was false or misleading or calculated to mislead;
d) If the Distributor acts in any other manner prejudicial to the interest of the AMC / Mutual Fund; and
e) If the Distributor does not comply with all applicable legislation, statutes, ordinances, regulations,
 
10. Either party shall have the right to terminate this arrangement by serving upon the other a 10 days prior written notice.
 
11. The distributor shall not have any claim against the AMC/Mutual Fund for any loss incurred by the Distributor as not anticipated and arising out of any revision in the rate(s) of commission for business canvassed.
 
12. The distributor must read and understand the SID & 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 of the respective scheme(s), the Key Information Memorandum containing Application Forms and printed information issued by the AMC as information supplemental to such documents.
 
13. Distributor shall not in any way indulge in any activity which tantamounts to rebating of commission to investors or induces them to invest in units of Principal Mutual Fund (Mutual Fund) by assuring rebating, gifts or pass back of commission.
 
14. The distributor shall comply with the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and guidelines issued by SEBI/AMFI from time to time pertaining to mutual funds with specific focus on regulations/guidelines on advertisements / sales literature and code of conduct for distributors and shall adhere to it at all times.
 
15. In case of application by non-individuals, a certified true copy of the relevant resolution or authority to make the application as the case may be, along with a certified true copy of the Memorandum and Articles of Association/ Bye-laws / Partnership Deed, certified true copy of the latest Audited Annual Accounts and Certificate of Registration should be submitted.
 
16. The distributor shall use only such SID, 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 Mutual Fund unless it has obtained prior approval in writing from the AMC. The Distributor shall neither use nor display the name, logo or mark of the AMC (or any logo or make similar thereto) in any manner whatsoever except as agreed by the AMC in writing.
 
17. The distributor arrangement 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 for any reason whatsoever, the distributor shall forthwith return all documents, papers and material, payment instructions, etc. pertaining to AMC / Mutual Fund and / or belonging to AMC / Mutual Fund to the AMC.
 
18. Neither Party shall (except in exercise of or in the course of its duties hereunder or where required to comply with legal obligations or executive, judicial, quasi judicial or regulatory or statutory requirements) disclose to any third party any information relating the Business or to the affairs of any other Party unless authorised in writing by such other Party, as the case may be, and shall use all reasonable endeavours to prevent any such prohibited disclosures as aforesaid whether by any of its officers, employees or agents or by anyone else. However this shall not preclude either party from disclosure in accordance with law to any court, tribunal, government, statutory authorities or to Regulatory Authorities, provided that the Party disclosing the details shall first inform the other Party at the earliest opportunity of the intended disclosure unless so prohibited by law.
 
19. Appointment as the distributor is subject to written confirmation by AMC.
 
20. In respect of all disputes arising under this empanelment, the same is subject to arbitration at Mumbai and the courts in Mumbai alone shall have jurisdiction over such arbitration proceedings.