APPLICANT'S UNDERTAKING HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED

“IN THE NATURE OF FORM 2A - MEMORANDUM CONTAINING SALIENT FEATURES OF THE PROSPECTUS”ment, the Registrar will dispatch Bond Certificates to the successfulApplicants to their addresses as provided in the ApplicationForm. Please note that, in the event that KYC documents of anApplicant are not in order, the Registrar will withhold the dispatchof Bond Certificates pending receipt of complete KYC documentsfrom such Applicant. In such circumstances, successfulApplicants should provide complete KYC documents to the Registrarat the earliest.Please note that in such an event, any delay by the Applicant toprovide complete KYC documents to the Registrar will be at theApplicant’s sole risk and neither our Company, the Registrar,the Escrow Collection Banks, or the Members of the Syndicate,will be liable to compensate the Applicants for any losses causedto them due to any such delay, or liable to pay any interest on theApplication Amounts for such period during which the BondCertificates are withheld by the Registrar. Further, our Companywill not be liable for any delays in payment of interest on theBonds allotted to such Applicants, and will not be liable to compensatesuch Applicants for any losses caused to them due to anysuch delay, or liable to pay any interest for such delay in paymentof interest on the Bonds.Further, please note that Eligible QFIs cannot apply for Allotmentof the Bonds in physical form. For further information, see thesection titled “Issue Procedure – Applications by various ApplicantCategories – Applications by Eligible QFIs” on page 65 ofthe Prospectus Tranche -1.Members of the Syndicate or Trading Members are also requiredto ensure that the Applicants are competent to contract under theIndian Contract Act, 1872 including minors applying throughguardians, at the time of acceptance of the Application Forms.To supplement the foregoing, the mode and manner of Applicationand submission of Application Forms is illustrated in thefollowing chart.Mode of Application * To whom the Application Form has to be submittedASBA Applications (i) to the Members of the Syndicate only at theSyndicate ASBA Application Locations; or(ii) to the Designated Branches of the SCSBswhere the ASBA Account is maintained; or(iii) to Trading Members only at the SyndicateASBA Application Locations.Non- ASBA (i) to the Members of the Syndicate; orApplications (ii) to Trading Members.• Please note that Eligible QFIs cannot make Applications forAllotment of the Bonds in physical form.8. Application SizeApplications are required to be for a minimum of five Bonds andmultiples of one Bond thereafter.APPLICATIONS BY VARIOUS APPLICANT CATEGORIESlimits. In particular, the SEBI circular bearing reference No. CIR/IMD/FIIC/6/2013, dated April 1, 2013 provides that the followingcategories of debt limits shall be merged into a single categorynamed ‘Corporate Debt’:1. Corporate debt – Old for FIIs (US$ 20 billion).2. Corporate debt – Old for QFIs (US$ 1 billion).3. Corporate debt – Long Term (US$ 5 billion).4. Corporate debt in relation to the long term infrastructure sector(US$ 12 billion).5. Investment by QFIs in debt mutual fund schemes which investin the infrastructure sector (US$ 3 billion).6. Investment in Infrastructure Debt Funds (US$ 10 billion).The combined limit for FIIs in the Corporate Debt category is US$51 billion, as provided in the table below.Type of Investment cap Eligible R emarksInstrument (US$ billion) InvestorsGovernment Debt 25 FIIs and QFIs Eligible investors may invest inTreasury Bills only up to US$ 5.5 billionwithin the limit of US$ 25 billionCorporate Debt 51 FIIs and QFIs Eligible investors may invest inCommercial Papers only up to US$ 3.5billion within the limit of US$ 51 billionThe RBI has, through its circular (bearing RBI/2012-13/391) datedJanuary 24, 2013 enhanced the limit for investment by FIIs in thegovernment debt (long term) category by US$ 5 billion to US$ 15billion and the corporate non-infrastructure debt category by US$5 billion. In terms of the aforesaid RBI circular, the changes aresummarized below:a) In the government debt (long term), the provision regarding 3years residual maturity at the time of first purchase shall nolonger be applicable. However, within this category, FIIs shallnot be allowed to invest in short term paper like treasury bills.b) In terms of the aforesaid circular, the limit of US$ 5 billion inthe corporate non-infrastructure debt shall not be availablefor investment in certificate of deposits and commercial paper.Investments in certificate of deposits are not permitted withinthe limit of US$ 20 billion.c) The US $ 1 billion limit for QFIs shall continue to be over andabove the revised limit of US$ 25 billion available for FII investmentin corporate non-infrastructure debt.d) For the US$ 12 billion sub-category for investment in corporatelong term infrastructure bonds, the following changeshave been made :(i) The restriction of 1 year lock-in period has been removed.(ii) The 5 year initial maturity restriction has been removed.At the time of first purchase by FIIs, the residual maturityshall be 15 months.e) For the sub-category of US$ 10 billion reserved for FII investmentsin Infrastructure Debt Funds, the restriction of 1 yearlock-in has been removed. The requirement of residual maturityof 15 months at the time of first purchase remains unchanged.f) Through its circular (bearing CIR/IMD/FII&C/18/2012) datedJuly 20, 2012, SEBI had permitted QFIs to invest in those debtmutual fund schemes that hold at least 25% of their assets(either in debt or equity or both) in the infrastructure sectorunder the US$ 3 billion investment limit for debt mutual fundschemes. These schemes were required to invest in infrastructuredebt having a minimum residual maturity of 5 years. Thisrestriction of 5 years residual maturity has been removed whilethe restriction of 3 years initial maturity has been introduced.g) All the above changes in lock-in, initial maturity and residual9. Applications by FIIs^An FII who purchases the Bonds under this Issue shall make thepayment for purchase of such securities either by inward remittancethrough normal banking channels or out of funds held inForeign Currency Account or Non-resident Rupee Account maintainedby such FII with a designated branch of an authorizeddealer in terms of the applicable regulations governing the same.Applications by FIIs for Allotment of the Bonds in physical formmust be accompanied by certified true copies of (i) its SEBI registrationcertificate; (ii) an inward remittance certificate; (iii) a resolutionauthorising investment in the Bonds; and (iv) specimensignatures of authorised persons.Investments by FIIsInvestments by FIIs in the Issue will be restricted by variouscirculars issued by SEBI and RBI providing for corporate debtHOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED11