40-17G: The India Fund Secures $1.25 Million Fidelity Bond for 2024-2025

The India Fund, Inc. has obtained a financial institutions bond with a $1.25 million limit of liability, effective from November 30, 2024, to November 30, 2025, to protect against various forms of loss.

Summary

• The India Fund, Inc. has filed documentation with the Securities and Exchange Commission regarding its financial institutions bond.
• The bond, policy number B080121822P24, is issued by Axis Specialty Europe SE.
• The policy provides coverage from November 30, 2024, to November 30, 2025.
• The bond has a limit of liability of $1,250,000.
• The bond covers various risks, including fidelity loss, on-premises loss, in-transit loss, forgery, securities loss, counterfeit currency loss, computer fraud, stop payment order liability, uncollectable items of deposit, audit expenses, unauthorized signatures, larceny and embezzlement, fraudulent retention of funds, extortion, and fraudulently induced instructions.
• The fund's total assets are valued at $777,900,000.

Sentiment

Score: 7

Explanation: The document is a routine filing related to insurance coverage, which is a positive for risk management. The sentiment is neutral to slightly positive as it indicates the fund is taking necessary steps to protect its assets.

Positives

• The fund has secured a comprehensive financial institutions bond, which provides protection against a wide range of potential losses.
• The bond's coverage includes various types of fraud, theft, and other risks, which helps to safeguard the fund's assets.
• The policy includes extensions for additional offices, mergers, and acquisitions, ensuring continued coverage in the event of corporate changes.
• The bond is consistent with the requirements of Rule 17g-1 under the Investment Company Act of 1940.

Negatives

• The policy has various exclusions, which limit the coverage in certain situations.
• The policy includes deductibles for various types of losses, which means the fund will bear some initial costs in the event of a claim.
• The policy has specific sub-limits for certain types of losses, which may not fully cover all potential losses.

Risks

• The policy has exclusions for losses resulting from military actions, nuclear events, and certain actions by directors or trustees.
• There are exclusions for losses related to non-payment of loans, violations of securities laws, and failures of financial institutions.
• The policy does not cover losses from transactions in customer accounts, except in specific cases of employee fraud or computer fraud.
• The policy has exclusions for losses due to racketeering activity, unless caused by an employee under specific circumstances.
• The policy does not cover losses from erroneous credits to customer accounts, except in specific cases.
• The policy has exclusions for losses involving items of deposit that are not finally paid, except in specific cases.
• The policy has exclusions for losses of potential income, indirect or consequential losses, and costs of establishing a loss, except in specific cases.
• The policy has exclusions for losses due to the disclosure of non-public material information, except in specific cases.
• The policy has exclusions for losses caused by identifiable employees, except in specific cases.
• The policy has exclusions for losses resulting from the accessing of confidential information, except in specific cases.
• The policy has exclusions for losses resulting from mechanical failure, faulty construction, or errors in programming, except in specific cases.
• The policy has exclusions for losses resulting from the input of electronic data by a third party with authorized access, except in specific cases.
• The policy has exclusions for losses resulting from corrupted computer programs acquired from a vendor, except in specific cases.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• The Board of Directors determined that a fidelity bond in the amount of $1,250,000 is reasonable in form and amount.
• The officers of the Fund are authorized to make all filings with the Securities and Exchange Commission.

Industry Context

This filing is a standard requirement for investment companies under the Investment Company Act of 1940, ensuring that funds have adequate protection against potential losses. It is common practice for investment funds to secure fidelity bonds to protect their assets and investors.

Comparison to Industry Standards

• The $1.25 million bond is a typical amount for a fund of this size, with assets of $777.9 million.
• Similar funds, such as the Templeton Emerging Markets Fund and the Aberdeen Emerging Markets Fund, also maintain fidelity bonds to comply with regulatory requirements.
• The coverage terms and conditions are generally consistent with industry standards for financial institutions bonds.
• The specific sub-limits and deductibles are also in line with what is typically seen in similar policies.
• The policy's coverage for various risks, including computer fraud and social engineering, reflects the evolving nature of financial crime and the need for comprehensive protection.

Stakeholder Impact

• Shareholders are protected by the fund's insurance coverage against potential losses.
• Employees are covered by the fidelity bond, which protects the fund from losses due to employee dishonesty.
• The fund's customers are indirectly protected by the insurance coverage, which helps to ensure the stability of the fund.

Next Steps

• The fund will continue to operate under the terms of the insurance policy.
• The fund will make all necessary filings with the Securities and Exchange Commission.

Key Dates

Keywords

fidelity bond, financial institutions bond, insurance, investment company, fraud, theft, securities, computer fraud, loss, liability