Allocation User Manual
Contents
1. Cash Transfer On Par With Yes Carry Forward Carn Cash d Apply Entry Time Load No Allocation Lag bird Actual Calendar I Pseudo Switch Lag Pseudo Switch Calendar Actual Calendar Notice Period Basis Confirmation Lag Notice Period Date Basis Full Outflow No Link To Unsettled Min Maturity Period Trades Days Max Maturity Period Transaction Threshold Days Amount Refer to the chapter Setting Up Fund Rules Il in Fund Setup User Manual for further information on the Transaction Processing screen Process You enter into a subscription transaction The units are provisionally allotted to you You would like to carry out a redemption transaction The following is the workflow e The redemption transaction is linked to the provisionally allotted subscription transaction e Payment Clearing needs to be carried out The payment can be accepted or rejected Case 1 If payment is rejected i ORACLE If payment is rejected the following will happen e The parent subscription transaction will be reversed All outflow transactions that can be reversed linked to the parent subscription will be reversed automatically e Newunallotted redemption transactions will be generated These will be allocated and linked to other subscription transactions based on the Ageing Rule defined in the General Operating Rules screen Case 2 If payment is accepted If payment is accepted all linked redemption transacti2. This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affi
3. When the total order value is below the maximum issue size the number of units allocated for a transaction is the same as the number of units applied that is all orders will be fully allocated When the total order value exceeds the maximum issue size the orders are allocated based on the ratio of maximum issue size to total order value In expression Quantity allotted Quantity applied Maximum issue size Total order value For such situations the system provides an override where you can specify the allocable units as against the applied units You can specify this override in the FCIS IPO Units Aab ORACLE 2 6 Override screen You can invoke this screen by typing UTDIPOUO in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button FCIS IPO Units Override New 453 Enter Query Fund ID ISIN No IPO Max Issue Size Force Recalculation 1of1 Transaction Number Reference Number Transaction Date FundID UnitHolderID CIF Number Transaction Amount Input by DateTime Authorized by DateTime Mod No Open Authorized In this screen when you select the ID and ISIN of the fund in respect of which you wish to provide an allocation override the maximum issue size and the default allocable units for each IPO transaction that is pending allocation in the fund are displayed In this screen you can
4. Certificate details The certificate numbers and DNR numbers are also affected by the reissue transaction The certificates are reissued based on the certificate denomination details as defined in the fund rules or as requested by the unit holder or as per the earlier issue Reflection of allocated units in the system database If the reissue transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holder counter updating for reissue transactions for the fund e The fund transaction counter updating for reissue transactions e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any ofthe fund rules set up at the Fund Manager are violated then an error is logged against the reissue transaction Confirmation of the reissue transaction is made after the allocation is successfully completed Note Amendment of a reissue transaction is not allowed Backdated Transactions Allocation To allocate transactions that have backdating allowed as defined in the fund rules for the fund in which the transaction is being put through select the Back Dated box in the Allocations screen All the transactions that have been entered into on the current application date with transac
5. be collected over and above the amount applied by the Inves tor be collected over and above the amount applied by the Investor amount to be collected over and above the amount applied by the Investor Subscription BY UN ITS Transaction accepted with units but load is on gross transac tion amount Price not affected by load factor Load amount should be collected separately from the investor over and above the trans action amount Transaction amount not affected by load factor Load amount should be collected separately from the investor over and above the transaction amount Computation logic 2 23 ORACLE Units allotted UA Units applied by UA Units applied by UA Units the Investor the Investor applied by the Investor Net Amount NT UA SP NT UA SP NT UA SP Not loaded to NLTP 0 NLTP gt NT NX NLTP gt NT price loads ENLA NX SNLA Loaded to price LTP gt SP LX LTP 0 LTP gt SP loads factor XELLA LX XLLA Unit price UP SP LTP UP SP LTP UP SP LTP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP UA UA LTP UA Gross amount GT 2 NT TL GT 2 NT TL GT NT TL Unit Cost UC GT UA UC GT UA UC GT UA Amount collected The Gross transac The gross transaction The Gross from Investor tion amount to be col amount to be collected transaction lected f
6. in FC IS now Computation logic Net Amount NT Amount NT Amount NT Amount requested by the requested by the requested by Investor Investor the Investor Not loaded to NLTP 0 NLTP gt NT NX NLTP gt NT price loads gt NLA NX gt NLA Loaded to price LTPZX RP LX LTP 0 LTP gt RP loads factor YLLA LX XLLA Unit price UP RP LTP UP RP LTP UP RP LTP Units allotted UA NT NLTP UA NT NLTP UA NT UP UP NLTP UP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP UA UA LTP UA Gross amount GT NT TL GT NT TL GT NT TL Unit Cost UC NT UA UC NT UA UC NT UA Amount payable Net Amount Net Amount Net Amount to Investor REDEMPTION BY UNITS Gross Transaction Price not affected by The final transaction accepted with the load factor Load amount not affected by Gross Amount amount to be load factor Load deducted from the amount to be Redemption amount deducted from the prior to payment for redemption amount Redemption prior to payment Computation logic Units allotted UA Units applied by UA Units applied by UA Units the Investor the Investor applied by the Investor Gross amount GT UA RP GT UA RP Not loaded to NLTP 0 NLTP GT NX NLTP GT price loads X NLA NX gt NLA 2 25 ORACLE 2 5 Loaded to price LTP gt RP LX LTP 0 LTP gt RP loads factor XLLA LX XLLA Unit price UP R
7. a redeemed or switched transaction is computed in the system as the difference between the buying price of the subscription transaction that is redeemed and the selling price of the redemption or switched transaction The buy price is computed as the sum of actual subscription amount and the loads typically commissions entry fees initial charges and so on as applicable The sell price is computed as the actual redemption amount and if the investor chooses to redeem by units the product of number of units applied for and the base price for the transaction from which all the loads exit fees and so on as applicable have been deducted The following empirical expressions could be considered Capital Gains Selling Price Buying Price where Selling Price Actual Redemption Amount All applicable exit charges And Buying Price Subscription Amount All applicable initial charges and commissions A database backend procedure in the system computes the Capital Gains applicable for each redemption or switch transaction after it is allocated The capital gains tax applicable on the computed capital gains is calculated and the same is reduced from the net amount that proceeds from the redemption or switch transaction to the unit holder In the following transaction cycles that involve more than a single subscription redemption transaction scenario capital gains tax is calculated for each individual leg and then the sum o
8. e Loaded to price loads The return value amount is deemed as the load amount This amount will be added to subtracted from the transaction base price when the computation of units allotted is done e Not loaded to price The return value amount is deemed as the load amount This amount will be added to subtracted from the transaction amount when the computation of units allotted is done Capital Gains Tax as an allocation time load If the Capital Gains Tax is defined as an allocation time load and is applicable for the transaction it is applied on the price as follows The average cost of units held by the unit holder in the fund is calculated If this is lower than the base price of the transaction net of all other loads the CGT is applied on the difference Load amounts for CDSC loads In the case of Contingent Deferred Sales Charge loads the loading is based on the order of computation defined for the fund in the General Operating Rules of the following e Units resulting from dividend reinvestments e Units in respect of which the unit holder has received a market appreciation e Units subject to FIFO first in first out allocation policy according to the setup for the fund For reinvestment units the load applied is always zero Loads are applied on units in the other two categories based on the order of processing defined for the fund CDSC Computation FCIS allows you to compute the Contingent Deferred Sales Char
9. of the ROA investor The total holdings of the investor in the fund or load group are considered to arrive at the basis amount If the ROA load is designated as applied at a CIF level then the total holdings of all investors of the CIF in the fund or load group are considered Basis Units Basis Amount Transaction Base Price for the transaction type on transaction date Basis Definition Loads If the load is a basis load as defined in the Basis Definition screen then the basis values i e the basis units or basis days are taken from the definition made in that screen for the load In such a case Basis Amount Basis Units Transaction Base Price for the transaction type on the transaction date Ageing Loads If the load is period based i e ageing load Basis Amount Transaction Amount Basis Units Basis Amount Transaction Base Price for the transaction type on transaction date This validation is made only for redemption and switch out transactions which are out transactions Gross based transactions for which the load slab definition is on a net basis For gross transactions where the load slabs applicable are defined on a net basis the process recalculates the basis amount to reflect the same Normal loads If all the above conditions are not present then the load is a normal load and the basis is computed as follows Basis Amount Transaction Amount Basis Units Basis Amount Transaction Base Pri
10. only override allocable units in respect of a transaction when the maximum issue size limit is exceeded subject to the following considerations e The overridden units must be equal to or less than the units applied e The sum of overridden IPO units must be less than the maximum issue size specified for IPO transactions for the fund Select the Override check box and specify the overridden units in the Overridden Units field The override that you specify in this screen must be authorized The authorize option must be selected in the Operation field to authorize the overridden units When the original IPO transaction in respect of which units have been overridden is amended and a different transaction value has been specified you can opt for re computation of the allocable units by checking the Force Recalculation box Unitizing Transactions during Book Closing Period You can specify whether a transaction can be unitized for a book closing date The BlkClsOptional field present in the Client Country field allows you to disable enable the validation initiated during the allocation process to verify whether the transaction occurs during the book closing period eer ORACLE 2 7 2 7 1 Unsettled Trades When you enter into a subscription transaction FCIS allows you the option of redeeming the units that have been provisionally allocated to you by the system Redemption transactions can be linked to unsettled inflow
11. the applicable VAT percentage if any The return value that results from the above expression is used as the final return value Price add in for NLTP not loaded to price loads If the installation has a price add in definition the return value for loads independent of price is interpreted further using the expression Return Value b 1 b bc where b return value without the add in factor and c the applicable VAT percentage if any The return value that results from the above expression is used as the final return value Price Add on for loads If the installation has a price add on definition the return values arrived at after applying the load calculation method either Slab Basis Weighted Average or Linear Interpolation need not be interpreted further and are considered the final return values Arriving at the load amounts After the final return values are computed as explained earlier the load amounts are arrived at by applying the return values as follows For loads with the return value as a percentage e Loaded to price LTP loads The return value is applied on the base price for the transaction type on the transaction date to arrive at the load factor that when multiplied with the units allotted gives the load amount e Not loaded to price NLTP The return value is applied on the transaction amount to arrive at the load amount For loads with the return value as an amount aut ORACLE
12. through this menu item the changes are reflected in the following data stores in the database e The unit holders balance in the fund e The unit holder counter updating for block transactions for the fund e The fund transaction counter updating for block transactions e The outstanding units for the fund 29 ORACLE 2 2 8 e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the block transaction Confirmation of the block transaction is made after the allocation is successfully completed Note Amendment of a block transaction is not allowed Unblock Allocation To trigger the allocation of unallotted unblock transactions on a business day select the Unblock option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details If the fund is scrip based or if the unit holder unblocks units out of issued balance in certificate optional funds then the certificates are marked as unblocked and can be used for further transaction For certificate option funds where certificates are designated as required for block transact
13. transactions as well as settled inflow transactions Maintenance Activities The maintenance you have to carry out is explained below Specify for a fund whether or not a redemption transaction can be linked to unsettled inflow transactions This can be done in the Policies section of the Transaction Processing Rules Screen where you may e Select the transaction type as Redemption e Select the option YES against the field Link to Unsettled Inflows to indicate redemption transactions can be linked to unsettled inflow transactions Select the option NO to indicate redemption transactions can be linked to settled inflow transactions only WARNING Though during amendment you are allowed to change the status of the field Link to Unsettled Inflows from Yes to No this is NOT recommended You may however change the status from No to Yes Transaction Processing Rules Fund ID Rule Effective Date Basic Info Transaction Rules Unit Holder Rules Transaction Limit Pricing Policies SI Specific Info SI Rules For Frequency Policy None Online Allocation Yes Acknowledgement Note No Required Allocation Lag Check On Par With Yes Cash Retain Ageing To No Allocation Percentage Versus Registered Capital Confirmation Note Required Cross Branching Allowed No No 2 7 2 Subscription LimitMode Percent Credit Card On Par With Yes
14. Allocation User Guide Oracle FLEXCUBE Investor Servicing Release 12 0 4 0 0 Part Number E57474 01 September 2014 ORACLE Table of Contents About This Marla ess rase EHo E adn Paci in a 2E YR RAREAREPeEtE CENE EAE 1 1 UP _IntoduCtion e m 1 1 1 2 Related Documents 1 1 1 3 Audience ood tte bine eme 1 1 1 4 Organizations sas seras ne tee de nen Mae et e 1 1 1 5 Conventions Used in this Manual 1 1 1 6 General Conventions 1 2 1 7 Keyboard Conventions 1 2 1 82 Glossary ot COS ire cree nt ete Mint ne tan 1 2 1 9 Abbreviations and Acronyms errem nnns 1 2 1510 Getting Help 2 55 eed e tn ta ea e Po n enda bee 1 3 Allocation Process ceris atia Fa aRE acc CEPR een Ax n s ententes 2 1 2 4 Introduction ore cena dee aee dag Pe dax rante deve queo acu v e een ea 2 1 2 2 Transactions for Automatic Allocation ssssssssssssssseeeeee 2 1 2 2 1 Manual Allocation through End of Day Menu 2 3 2 2 2 IPO Transactions Allocation 2 3 2 2 8 Subscription Allocation e a a a nennen 2 4 2 24 Redemption Allocation 2 6 2 2 5 Switch Allocation ced it e o es oie ete e a eh a 2 7 2 2 6 Transfer Allocation e etaed iva ERR pe dared e ieee 2 8 2 2 Block Allocation ice ahh mp diee ee ies 2 9 2 2 0 Unblock Allocation ho ERR 2 10 2 2 9 Consolidation Allocation 2 11 2 210 Split Allocation it e e e b EE ertet i peat 2 11 2 2 11
15. GROWTH fund has an allocation lag of 2 for IPO transactions This means that the system should allot IPO transactions that are entered or which have been entered with the transaction date 2 days before the current system date The allocation lag days are considered as of the Fund Calendar or the actual calendar depending upon the allocation lag calendar basis defined in the Transaction Processing Rules for IPO transactions for the fund If the current system date is 15th of December 2002 and the allocation lag calendar basis is actual calendar then all IPO transactions of GROWTH fund that were entered on or before 13th of December 2002 will be allotted If the allocation lag for IPO Subscription transactions were 3 for GROWTH fund all transactions on or before 12th of December 2002 would be allotted 2 ORACLE 2 2 1 2 2 2 Manual Allocation through End of Day Menu You can use the Allocation Detail screen to trigger manual allocation of units You can invoke this screen by typing UTDALLOC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Allocation Detail Mi New 753 Enter Query Multiple AMC DIST Instalin AMC Agent Code AMC Name Fund ID BackDated No Transaction Type Submit For Transaction Name Execute Disolav Fund 1of1 E FundID Fund Name Fund Identification Number Select 1 No As stated earlier depending upon the necessity the ope
16. P LTP UP RP LTP UP RP LTP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP LTP Net Amount NT GT TL NT GT TL NT GT TL Amount payable Net Amount Net Amount Net Amount to Investor Price Basis Loads Note Any loads that have been defined as price basis loads are only used as the indicator for computing load values and are not picked up during evaluation of criteria That is the oth er load details specified for such loads such as the return value slabs and so on are not taken into consideration The difference between the Transaction Base Price and the Price Basis defined for the transaction is considered as an inherent fee or incentive during allo cation For instance if the Price Basis for a transaction is Offer Price and Transaction Base Price is 1 009 and the Offer Price is 1 060 the difference 1 06 1 009 0 051 without currency rounding is considered as the inherent fee since the TBP is less than the offer price If the offer price were less than the TBP the difference between the two is considered an inherent incentive Overriding Allocated Units for IPO Transactions In the Transaction Processing Rules for a fund the maximum issue size applicable for IPO transactions in a fund is defined This limit is a restriction on the total order value for IPO transactions The IPO allocation process validates whether the maximum issue size limit is exceeded by the total order value
17. PO option in the Allocation screen Choosing this option will also trigger the allocation process to allocate units in respect of unallotted IPO transactions which fall within the allocation lag period defined for the fund in which the transaction was put through in the Transaction Processing Rules cis ORACLE 2 2 3 Also choosing this option will trigger the allocation process to allocate units in respect of IPO check payment transactions in funds wherein the allocation of check payment transactions is not treated on par with cash payment transactions Further you choose this option to allocate such transactions for which the check has been cleared on the application date and the clearing status has been updated and authorized as cleared on the application date The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details If the fund is scrip based or if the unit holder requests for certificates in case of certificate optional funds then the Certificate Numbers are also allotted for the IPO Subscription transaction The certificates are issued based on the certificate denomination details defined in the Shares Characteristics or as required by the unit holder DNR numbers are also allotted for the generated certificates in case of non fractional funds Amended IPO transactions If an amended IPO Subscription is allocated then
18. Reissue Allocation 2 12 2 2 12 Backdated Transactions Allocation sss 2 12 2 3 Allocation of Redemption Switch Transactions with Capital Gains Tax 2 13 2 3 1 Capital Gains Tax as a post allocation load in the system 2 13 2 3 2 Indexation for Capital Gains Tax 2 14 2 4 Process of Allocation 2 15 2 4 1 Identifying Applicability of Loads sene 2 15 2 4 2 Computing Basis for Applying Loads sen 2 15 2 43 Arriving at Load Return Value and Load Amounts usus 2 17 2 44 Computation of Allotted Units sss 2 21 2 5 Overriding Allocated Units for IPO Transactions 2 26 2 6 Unitizing Transactions during Book Closing Period 2 27 2 1 Unsettled Trades e edite Ae ere ee o ne Roe deena 2 28 2 7 1 Maintenance Activities sss 2 28 2 1 2 JPLOCOSS HN n AA Ee DL t UU tec oa 2 28 Function ID Glossary tee te eee UE MEE E 3 1 1 1 1 2 1 3 1 4 1 5 1 About This Manual Introduction Welcome to Oracle FLEXCUBE Investor Services M a comprehensive mutual funds automation software from Oracle Financial Services Software Ltd This Oracle FLEXCUBE Investor Services User Manual helps you use the system to achieve optimum automation of all your mutual fund investor services processes It contains guidelines for specific tasks descriptions of various features and processes i
19. and DNR numbers are also affected by the split transaction The certificates are issued based on the certificate denomination details as defined in the fund rules or as requested by the unit holder Now the single certificate will be split into multiple ones based on the denomination Reflection of allocated units in the system database If the split transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holder counter updating for split transactions for the fund e The fund transaction counter updating for split transactions e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based al ORACLE 2 2 11 2 2 12 If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the split transaction Confirmation of the split transaction is made after the allocation is successfully completed Note Amendment of a split transaction is not allowed Reissue Allocation To trigger the allocation of unallotted reissue transactions on a business day select the Reissue option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter
20. ce for the transaction type on transaction date After the Basis Amount and Basis Units are known the process then proceeds to identify the loading slab and compute the actual applicable return value 2 16 ORACLE 2 4 3 Arriving at Load Return Value and Load Amounts Arriving at the return value Using the Basis Amount and the Basis Units the actual applicable return values and load amounts are calculated by the allocation process The return value is calculated using the load calculation method defined for the load This could be Slab Basis Weighted Average or Linear Interpolation For ageing loads the return value is arrived at by considering the link transaction that is being aged While arriving at the return value the allocation process also validates for the following e Any allocation loads that were overridden at the time of transaction entry e Any deals maintained for the unit holder that has entered into the transaction or for the CIF customer account for the fund or load group e Any return value details maintained for the load in the Load Details record The actual return value could be either a percentage figure or an amount Price add In for LTP loaded to price loads If the installation has a price add in definition the return value for loaded to price loads is interpreted further using the expression Return Value b 1 b bc where b return value without the add in factor and c
21. consolidation transaction The certificates are consolidated based on the certificate denomination details defined in the fund rules or as requested by the unit holder and a single certificate is issued for the units consolidated Reflection of allocated units in the system database If the consolidation transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holder counter updating for consolidation transactions for the fund e The fund transaction counter updating for consolidation transactions e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the consolidation transaction Confirmation of the consolidation transaction is made after the allocation is successfully completed Note Amendment of a consolidation transaction is not allowed Split Allocation To trigger the allocation of unallotted split transactions on a business day select the Split option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details The certificate numbers
22. ction counter updating for transfer transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any ofthe fund rules set up at the Fund Manager are violated then an error is logged against the transfer transaction Confirmation of the transfer transaction is made after the allocation is successfully completed Note Only reversal is allowed for certificate based transfer transaction Block Allocation To trigger the allocation of unallotted block transactions on a business day select the Block option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details If the fund is scrip based or if the unit holder blocks units out of issued balance in certificate optional funds then the certificates are marked as blocked and cannot be used for further transaction until they are unblocked For certificate option funds where certificates are designated as required for block transactions in the fund rules the allocation of the block transaction will result in certificate generation Reflection of allocated units in the system database If the block transaction is successfully allocated
23. ctions on a business day select the Switch option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter In the case of switch allocation the following steps are followed 1 Firsta Switch From allocation is done for the fund from where the units are being switched for the given unit holder This allocation considers the switch from as a normal redemption transaction by net amount units 2 Then a Switch To allocation is made for the fund into which the units are being switched for the given unit holder This allocation is done on the basis of a normal subscription allocation by gross amount 2t ORACLE 2 2 6 3 Both the above transactions are system generated based on the switch transaction that has been entered into by the user If the switch transaction being allocated is a pseudo switch the system will pick the exchange rate defined by you in the Exchange Rate Maintenance Detail screen for the FX Deal Date and FX Value Date combination If this combination is unavailable the allocation will fall through However for allocation projection the system will use the FX Spot Rate For more details refer the Subscription Allocation section specified earlier in this manual Certificate details If the fund is scrip based or if the unit holder switches out of issued balance in certificate optional funds then Certif
24. e and number of decimals will be equal to the number of decimals specified for NAV in the General Operating Rules screen This Price will also be stored as Allocation Price e CDSC Fees will be calculated using the following Formula CDSC Fees ROUND NAV Dealing Price No Of Units Redeemed No Of Decimals from Fund Load The RoundOfTruncate for this Fund Load will be R and No Of Decimals will be 2 Rounding off the load amounts For LTP load amounts the rounding rules defined in the Fund Load Setup for the fund are applied to arrive at the rounded off load amount For NLTP load amounts the currency rounding rules are applied to arrive at the rounded off load amount The VAT amounts are also computed and rounded off as follows alg ORACLE For LTP loads VAT amount Vat percentage rounded off load amount The rounding rules defined in the Fund Load Setup for the fund are applied to arrive at the rounded off VAT amount For NTLP loads VAT amount Vat percentage rounded off load amount The currency rounding rules are applied to arrive at the rounded off VAT amount The final load amount The final load amount is arrived at by summing the rounded off load amounts and the rounded off VAT amounts Applying entry time loads for outflow transactions Typically during allocation of outflow transactions such as redemption switch out and transfer when the loads are being computed the system applies load valu
25. e period for which the original purchase which is being redeemed through the check has been held If the holding period is less than the holding period defined in the fund rules for check redemptions then the check is not processed and the allocation fails If the allocation fails due to failure of either validation mentioned above or due to any other error the check is marked with the status Allocation Failed The details of the failure of the allocation are recorded in the system database You can set up a report through the Interface Definition to view or print the details In the event of failure of allocation of any check redemption transactions during the course of a business day the system displays a message indicating the same and prompting you to obtain a report during the pre end of day checks Allocation of amended check writing transactions If a check redemption transaction is amended before allocation the validations made during allocation of such transactions which are mentioned in the previous section are performed by the system as usual If amended after allocation the status of the check is marked as Processed and the validations during allocation are performed as usual If the amount of the transaction is amended to a zero or null value the status of the check is marked as Invalid Amt during allocation Switch Allocation To trigger the allocation of unallotted or partially allotted switch transa
26. e process of allocation as well as how transactions are picked up for allocation by the allocation process on any business day This chapter is intended for the following persons e The Operator user or any user from the Operator user group e The Fund Administrator user or any user from the Fund Administrator user group Typically these are the only users or user groups that are authorized to perform these activities No other user or group will be able to access the End of Day processes menu category in the Fund Manager component This chapter is divided into the following sections e The first section contains information on how transactions are picked up for allocation with specific reference to the different types of transactions e The second section contains a workflow which outlines the sequence followed by the allocation process in the system This chapter must be used in conjunction with the chapters Setting up Funds and Setting up Loads in this User Manual Transactions for Automatic Allocation The transactions that are automatically picked up by the End of Day processes for allocation on any business day include e Transactions entered and authorized the same day e Backdated authorized transactions 24 ORACLE Further the transactions could be e Transactions with mode of payment as cash Transactions with mode of payment as check credit card demand draft transfer where the payment instrument has b
27. ed If a transaction has FX Deal date as January 19 2010 and FX Value Date as January 23 2010 the allocation will not happen since the exchange rate for the combination is not available in the system However the allocation projection will use the spot rate FX Deal and FX Value dates as on January 19 2010 The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details If the fund is scrip based or if the unit holder requests for certificates in case of certificate optional funds then the Certificate Numbers are also allotted for the subscription transaction The certificates are issued based on the certificate denomination details defined in the Shares Characteristics or as required by the unit holder DNR numbers are also allotted for the generated certificates in case of non fractional funds Amended subscription transactions If an amended subscription is allocated then the following changes are reflected after the allocation first the changes affected by the original subscription are reversed and then the currently amended subscription is reallocated Reflection of allocated units in the system database If the subscription transaction is successfully allocated through this option the changes are reflected in the following data stores in the database e The unit holder s balance in the fund e The unit holder counter updating fo
28. een cleared and the clearing has been authorized on the given day e All other transaction types In a fund if allocation of check credit card transfer payment transactions is designated to be treated on par with cash payment transactions then the units in respect of transactions with these payment modes are allocated on a provisional basis on the same business day even if the instrument is not cleared on that day The provisionally allocated units are then moved to the unit holder s confirmed unit balance on the day the instrument is cleared and the clearing authorized Further if so designated the price reckoned for allocation of check payment transactions is the prevalent price on the date of clearing Price Lag For both cash based and non cash based transactions if a price lag has been defined for the transaction type in the Transaction Processing Rules the price lag days are considered based on either the fund calendar or the actual calendar depending upon the Price Lag Basis specification in the Transaction Processing Rules Allocation Lag For all transactions if an allocation lag has been defined for the transaction type in the Transaction Processing Rules the allocation lag days are considered based on either the fund calendar or the actual calendar depending upon the Allocation Lag Basis specification in the Transaction Processing Rules To understand the allocation lag consider the following example The
29. er updating for redemption transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the redemption transaction If the redeemable units for the transaction is greater than the unit holder balance in the fund then the transaction is rejected by the allocation process 25 ORACLE 2 2 5 Confirmation of the redemption transaction is made after the allocation is successfully completed Note Only reversal is allowed for certificate based redemption transaction While validating the amount involved in a redemption transaction the system checks to ensure that the amount of the redemption does not exceed the free amount of holdings held by the investor across funds The free amount holdings is that portion of the holdings that is not blocked across funds by way of amount block or multiple amount block transactions Allocation of check writing transactions When a check redemption transaction is allocated the system validates the following e Availability of sufficient balance in the investor s holdings in the fund If the balance is insufficient the check is not processed and the allocation fails e Th
30. es that are current at the time of the exit transaction You can however configure the system to apply those load values that were prevalent at the time of initiation of the inflow transaction that is being aged These are known as entry time loads If you have opted for entry time loads you would have indicated this in the Transaction Processing Rules for the fund For details refer the chapter Setting Up Fund Rules II chapter of Fund Setup User Manual The example given below illustrates how entry time loads are applied For example your AMC floats the Citadel Growth Fund effective from 15t January 2002 the Rule Effective Date with the following exit charges Return Value Days slab Percentage 1 30 days 396 30 60 days 2 60 90 days 1 gt 90 days 0 Holdings in the fund are aged on a FIFO first in first out basis With effect from 15 March 2002 you change the exit charges for the fund as follows Return Value Days alab Percentage 1 30 days 2 5 30 60 days 1 596 60 90 days 0 5 gt 90 days 0 Holdings in the fund continue to be aged on a FIFO first in first out basis Mrs Catherine Crenshaw a unit holder in your AMC subscribes into the Citadel Growth Fund through the following subscription transactions e Through subscription S1 on 10t January 2002 1000 units ORACLE 2 4 4 e Through subscript
31. et Amount NT GT TL NT GT TL NT GT TL Unit cost UC GT UA UC GT UA UC GT UA 2 22 ORACLE Amount collected from Investor Amount applied by the Investor and thus no additional amount needs to be collected Amount applied by the Investor and thus no additional amount needs to be collected Amount applied by the Investor and thus no additional amount needs to be collected Subscription BY AM OUNT Net Transaction accepted with Net Amount Price not affected by load factor Load amount calculated and to be collected from the investor sep arately Transaction amount not affected by load factor Load amount calculated and to be collected from the investors separately Computation logic Net Amount NT Amount applied NT Amount applied NT Amount by the Investor by the Investor applied by the Investor Not loaded to NLTP 0 NLTP NT NX NLTP gt NT price loads NLA NX XNLA Loaded to price LTP gt SP LX LTP 0 LTP gt SP loads factor XLLA LX XLLA Unit price UP SP LTP UP SP LTP UP SP LTP Units allotted UA NT SP UA NT SP UA NT SP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP UA UA LTP UA Gross amount GT NT TL GT NT TL GT NT TL Unit Cost UC GT UA UC GT UA UC GT UA Amount collected Total load amount to Total load amount to Total load from Investor
32. f all the computed tax values is reduced from the net proceeds from each redemption transaction e Multiple subscription transactions redeemed together e A single subscription redeemed through multiple redemption transactions anig ORACLE 2 3 2 e An initial subscription transferred to a different Unit holder who then redeems the same e An initial subscription switched to a different fund from which it is subsequently redeemed e An initial subscription is switched to a different fund For switch transactions as shown in the example the Capital Gains Tax is deducted in a manner similar to that in redemption transactions The switch is considered as a redemption transaction from one fund and subscription into another Therefore the relevant acquisition cost of the subscription is from the switched out amount to arrive at the Capital Gains The associated Capital Gains Tax is reduced from the switched out proceeds to arrive at the switched in amount This is reckoned as the subscription amount in the switched in fund Indexation for Capital Gains Tax The unit holder may opt for indexation to be applicable to capital gains computations If so you can indicate it in the unit holder account profile The capital gains from a redeemed or switched transaction is computed in the system as the difference between the buying price of the subscription transaction that is redeemed and the selling price of the redemption or switched transactio
33. ge CDSC in one of three ways LOCOM Lower of Cost or Market Value Market Price Market appreciation method and Class B CDSC Class B method You can define the CDSC computation method while designating the rules that will govern the operation of the fund in the General Operating Rules screen In addition you can also specify whether the holding period should be considered while calculating the age of investments during computation of Contingent Deferred Sales Charge If CDSC calculation method at Fund level is selected as LOCOM Contingent Deferred Sales Charge is computed as follows e The price associated with the transaction subscription Reinvestment or Switch In transaction is obtained and the transaction is aged to the redemption transaction under consideration e The least of the subscription Reinvestment or Switch In transaction and the Redemption Base Price to calculate CDSC chargeable to the Unit holder L Least of subscription Reinvestment or Switch In transaction Price and the Redemption Base Price e Market Appreciated Units is calculated using following formula Redemption Base Price L Redemption Base Price Redemption Units e Normal Units would be calculated using following formula Redemption Units Market Appreciated Units Contingent Deferred Sales Charge is computed based on the Inheritance Fee Structure as follows 2 18 ORACLE e Ifthe Fund ID and Rule Effective Date associated with first s
34. hin the allocation lag period defined for the fund in which the transaction was put through in the Transaction Processing Rules Also choosing this option will trigger the allocation process to allocate units in respect of subscription check payment transactions in funds wherein the allocation of check payment transactions is not treated on par with cash payment transactions ES ORACLE Further you choose this option to allocate such transactions for which the check has been cleared on the application date and the clearing status has been updated and authorized as cleared on the application date Choosing this option will also trigger the allocation of investment both initial and additional investment IRA transactions into the fund While allocating subscription transactions the system will pick the exchange rate defined by you in the Exchange Rate Maintenance Detail screen for the FX Deal Date and FX Value Date combination If this combination is unavailable the allocation will fall through However for allocation projection the system will use the FX Spot Rate For example assume that on January 19 2010 a user has input both spot and forward rates for January 20 January 21 and January 22 2010 If the FX Deal date for the transaction is January 19 2010 and the FX Value Date is January 21 2010 then for both allocation and projection the exchange rate with deal date as 19 January and value date as 21 January will be us
35. his User Manual may refer to all or some of the following icons Icons Function Es Exit ra Add Row Delete Row Option List Refer the Procedures User Manual for further details about the icons 1 9 Abbreviations and Acronyms The following acronyms and abbreviations are adhered to in this User Manual Abbreviation Meaning Acronym ADMIN User Administrator AGY The Agency Branch component of the system AMC Asset Management Company BOD Beginning of Day CDSC Contingent Deferred Sales Charge Ve ORACLE Abbreviation Meaning Acronym CGT Capital Gains Tax CIF Customer Information File EOD End of Day EPU Earnings per unit FC IS Oracle FLEXCUBE Investor Services FMG The Fund Manager component of the system FPADMIN Oracle FLEXCUBE Administrator ID Identification IHPP Inflation Hedged Pension Plan IPO Initial Public Offering LEP Life and Endowment Products LOI Letter of Intent NAV Net Asset Value REG The Registrar component of the system ROA Rights of Accumulation ROI Return on Investment SI Standing Instructions SMS Security Management System URL Uniform Resource Locator VAT Value Added Tax WAUC Weighted Average Unit Cost 1 10 Getting Help Online help is available for all tasks You can get help for any function by clicking the help icon
36. icate Numbers and DNR numbers are also affected by the switch transaction The amount of the certificates entered for the switch should be greater or equal to the units that have to be redeemed from the switched out fund In case the units are greater only one of the certificates can be switched partially Amended switch transactions If an amended switch is allocated then the following changes are reflected after the allocation first the changes affected by the original switch are reversed and the current amended Switch is reallocated Reflection of allocated units in the system database If the switch transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holders balance in the fund e The unit holder counter updating for redemption transactions for the fund e The fund transaction counter updating for redemption transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the switch transaction If the switched units for the transaction is greater than the unit holder balance in the fund then the transaction is rejected by the allocation
37. ion S2 on 25th February 2002 2500 units e Through subscription S3 on 5th March 2002 1400 units Mrs Crenshaw redeems her investment in the Citadel fund to the tune of 1800 units on 20 March 2002 Since holdings are aged on FIFO basis for the Citadel fund 1000 units from subscription S1 and 800 units from subscription S2 would be validated for exit fee computation Taking the rule effective from 15 March 2002 into account since it is the current rule 0 5 exit fees will be applied on S1 and 2 5 will be applied on the 800 units However Mrs Crenshaw requests that the exit fees that were prevalent on the date she subscribed into the fund through S1 and S2 be applied This would mean applying the exit fees applicable for the rule effective from 13 January 2002 to 15t March 2002 Therefore 1 exit fees will be applied on S1 and 3 exit fees will be applied on the 800 units of S2 Again on 015t April 2002 Mrs Crenshaw redeems another 2000 units If she opts for entry time loads 1700 units of S2 will be redeemed with 2 exit fees and 2 5 of exit fees will be applied on the 300 units of S3 according to the rule effective between j5 January 2002 and 13 March 2002 If she does not opt for entry time loads 1 596 exit load will be applied on 1700 units of S2 and 2 596 exit load will be applied on 300 units of S3 in accordance with the rule effective from 15 March 2002 If entry time loads are being applied as specified in the transac
38. ions in the fund rules the allocation of the block transaction will result in certificate generation Reflection of allocated units in the system database If the unblock transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holder s balance in the fund e The unit holder counter updating for unblock transactions for the fund e The fund transaction counter updating for unblock transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any ofthe fund rules set up at the Fund Manager are violated then an error is logged against the unblock transaction Confirmation of the unblock transaction is made after the allocation is successfully completed Note Amendment of an unblock transaction is not allowed EE ORACLE 2 2 9 2 2 10 Consolidation Allocation To trigger the allocation of unallotted consolidation transactions on a business day select the Consolidation option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details The certificate numbers are also affected by the
39. is chapter While allocating redemption transactions the system will pick the exchange rate defined by you in the Exchange Rate Maintenance Detail screen for the FX Deal Date and FX Value Date combination If this combination is unavailable the allocation will fall through However for allocation projection the system will use the FX Spot Rate For more details refer the Subscription Allocation section specified earlier in this manual Certificate details If the fund is scrip based or if the unit holder redeems out of issued balance in certificate optional funds then Certificate Numbers and DNR numbers are also affected by the redemption transaction The amount of the certificates entered should be greater or equal to the units that have to be redeemed In case the units are greater only one of the certificates can be redeemed partially Amended redemption transactions If an amended redemption is allocated then the following changes are reflected after the allocation first the changes affected by the original redemption are reversed and the current amended redemption is reallocated Reflection of allocated units in the system database If the redemption transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holder s balance in the fund e The unit holder counter updating for redemption transactions for the fund e The fund transaction count
40. l Load Amount NX Load Factor expressed in percentage and the load being an allocation time load not loaded to price rounded off as defined in the Currency Maintenance LX Load Factor expressed in percentage and the load being an allocation time load loaded to price rounded off as defined in the Fund Load Setup for the fund NLA Flat amount not loaded to price amount LTP loads rounded off as defined in the Currency Maintenance LLA Flat value loaded to price amount NLTP loads rounded off as defined in the Fund Load Setup for the fund UP Unit price UC Unit Cost NLA Plus XMinus YLLA gt Plus XMinus Load with LTP Y Load with LTP N Both loads Subscription BY AMOUNT Gross Transaction Price affected by the Final transaction accepted with load factor amount to be allocated Gross Amount is affected Computation logic Gross amount GT Amount applied GT Amount applied GT Amount by the Investor by the Investor applied by the Investor Not loaded to NLTP 0 NLTP gt GT NX NLTP gt GT price loads gt NLA NX gt NLA Loaded to price LTP Y SP LX LTP 0 LTP gt SP loads factor YLLA LX XLLA Unit price UP SP LTP UP SP LTP UP SP LTP Units allotted UA GT NLTP UA GT NLTP UA GT UP UP NLTP UP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP UA UA LTP UA N
41. liates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services ORACLE
42. n Indexation involves a certain factor being applied on the capital gains so as to arrive at the basis amount on which the capital gains tax is computed The basis upon which the capital gains tax is applied is computed using the empirical expressions For capital gains loads on gross amount as specified in the Fund Load Setup CG UA PL oae T AI For capital gains loads on net amount as specified in the Fund Load Setup CG carre arap x 23 Where e CG represents the income or capital gains after indexation based on which the capital gains tax is computed e UA represents the number of allotted redemption units e PL represents the redemption price inclusive of loads e UAC represents the acquisition cost of each unit that is being redeemed e PI represents the indexation value for the present year e Al represents the indexation value for the year of acquisition e ATBP represents the base price of the transaction through which the redeemed units were first acquired through a subscription or IPO e RTBP represents the base price of the redemption transaction through which the units ae ORACLE 2 3 2 1 2 4 2 4 1 2 4 2 Applying Indexation To configure the system to apply indexation for the computation of capital gains tax for an investor you must ensure that the following steps have been taken e You must indicate the application of indexation for ca
43. n the system and general information Related Documents The User Manual is organized in to various parts each discussing a component of the Oracle FLEXCUBE Investor Services system Audience This Fund Manager User Manual is intended for the Fund Administrator users and system operators in the AMC Organization This volume of the Fund Manager User manual is organized under the following chapter sequence About This Manual explains the structure audience organization and Chapter 1 related documents of this manual Allocation defines Allocation process Transactions for Automatic Alloca Chapter 2 tion Allocation of Redemption Switch Transactions with Capital Gains Tax Conventions Used in this Manual Before you begin using this User Manual it is important to understand the typographical conventions used in it 1 1 ORACLE 1 6 General Conventions Convention Type of Information Italic type Functional foreign terms Validations for fields on a screen References to related Headings Users Manuals For emphasis Numbered Bullet Step by step procedures 1 7 Keyboard Conventions Convention Type of Information Keys All keys of the keyboard are represented in capital letters For example lt CTRL gt Shortcut All short cut keys are contained in brackets For example keys lt ALT SHIFT gt 1 8 Glossary of Icons T
44. ned as to be processed at the time of allocation are identified by the allocation process at this stage for the fund the transaction type and the transaction reference type as of the transaction date Overridden loads If any of the applicable loads has been overridden after the transaction was authorized through the Transaction Load Override facility the overridden values are picked up Computing Basis for Applying Loads After obtaining the loads that must be applied the process then computes the basis upon which the load return value may be arrived at The basis could be an amount number of units or a number of days The actual return value of the loads as applicable will be computed on this basis value In arriving at the basis values the process makes the following validations 2 15 ORACLE Letter of Intent transactions If the transaction is designated as a Letter of Intent transaction for the investor the basis computation is as follows Basis Amount LOI Amount Basis Units Basis Amount Transaction Base Price for the transaction type on transaction date This validation is made only for IPO subscription and switch in transactions where the nature of the investment is in Rights of Accumulation load If the load is cumulative and the investor is an ROA Rights of Accumulation investor the basis amount is computed according to the option chosen by the AMC for interpretation of the history of investment
45. ons will be confirmed Note For a pseudo switch Redemption the unsettled subscription leg of transaction will have to be manually cleared or rejected ee ORACLE 3 Function ID Glossary U UTDALLOC 2 3 UTDIPOUO 2 27 I ORACLE Allocation User Guide September 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government
46. pital gains tax in the unit holder s account profile e Maintain the indexation values applicable for specific time periods in the Indexation Maintenance e Setup a load for the application of capital gains tax in the Load Maintenance e You must associate this load with the appropriate fund in the Fund Load Setup in the fund rules You must set up the following attributes for this association The applicability of indexation for the load The slab basis gross or net amount The basis of application as capital gains indexation The frequency of application as post allocation Process of Allocation When the allocation process in the system is executed it follows a sequence of events as described below for each transaction 1 Identifying the applicability of any loads associated with the fund and transaction type 2 Computing the basis for application of the loads 3 Arriving at the load return values and load amounts 4 Arriving at the number of units allotted for each transaction after applying the loads Identifying Applicability of Loads In the Fund Load Setup for any fund any loads that are deemed to be applicable for a transaction are associated with the fund Some of the associated loads may be criteria based loads which would be applicable only if the criteria are satisfied Any such associated loads for which the criteria of applicability is satisfied and that are defi
47. process Confirmation of the switch transaction is made after the allocation is successfully completed Note Only reversal is allowed for certificate based switch transaction Transfer Allocation To trigger the allocation of unallotted transfer transactions on a business day select the Transfer option in the Allocation screen The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter Certificate details If the fund is scrip based or if the unit holder transfers out of issued balance in certificate optional funds the certificates are reissued in the name of the unit holder to whom it is being is ORACLE 2 2 7 transferred if the transferee opts for certificates The reassigned certificates can be printed using the Certificate Printing option in the Browser menu Amended transfer transactions If an amended transfer is allocated then the following changes are reflected after the allocation first the changes affected by the original transfer are reversed and the current amended transfer is reallocated Reflection of allocated units in the system database If the transfer transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database e The unit holders balance in the fund e The unit holder counter updating for transfer transactions for the fund e The fund transa
48. provided or by pressing F1 ra ORACLE 2 1 2 2 2 Allocation Process Introduction After an investor transaction is authorized in the system the units due to the investor in respect of the transaction must be accrued into the investor s account balance All applicable charges must be applied in the process of this accrual Also the data stores maintained for the fund must be updated with the units accrual The process of accruing the units in this manner is known as allocation The units in respect of an investor transaction request are allocated in this process The allocation process is an integral part of the End of Day processes at the Fund Manager component When the operator user at the Fund Manager executes the End of Day processes any transaction requests that are eligible for allocation on the given business day are picked up for allocation and the allocation process allocates the units in respect of each of them automatically For funds in which on line allocation is available as defined in the Transaction Processing Rules the allocation processes for any transactions into such funds are run upon authorization of the transaction Depending upon the necessity the operator user at the Fund Manager component could also execute the allocation process for any type of transaction manually for a fund or all funds by choosing the appropriate menu item from the End of Day menu category This chapter describes th
49. r subscription transactions for the fund e The fund transaction counter updating for subscription transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent and so forth are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any ofthe fund rules set up at the Fund Manager are violated then an error is logged against the subscription transaction Confirmation of the subscription transaction is made after the allocation is successfully completed is ORACLE 2 2 4 Note Only reversal is allowed for certificate based subscription transaction Redemption Allocation To trigger the allocation of unallotted or partially allotted redemption transactions on a business day select the Redemption option in the Allocation screen For funds in which the check writing facility has been allowed choosing this option will also allocate any redemption transactions in respect of redemption checks issued using the check writing facility availed by a unit holder in the fund If the fund is part of a portfolio of a product choosing this option will also trigger the allocation of withdrawal both partial and complete IRA transactions into the fund The allocation process is exactly the same as that described in the section The process of allocation that is found later in th
50. rator user at the Fund Manager component could also execute the allocation process for any type of transaction manually for a fund or all funds by clicking the appropriate menu item from the End of Day menu category In the Allocation screen you can trigger the allocation process e Forall transactions of all types for a specific fund a selection of funds or all funds e Fora specific type of transaction for all funds a selection of funds or a single fund e For backdated transactions of all types in all funds a selection of funds or a single fund e Forbackdated transactions of a specific type in all funds a selection of funds or a single fund Select the transaction type in the Transaction Code field You can select the ALL option to allocate transactions of all types A list of funds is also displayed You can select a fund in the list by checking the box alongside it To select all funds click the Select All link To indicate allocation of backdated transactions check the Back Dated box When you have chosen the type of transaction to be allocated and the fund click Execute button The job is submitted and the Asynchronous Process screen is opened This screen indicates the current status of the allocation process When complete the system displays a completion message in the Asynchronous Process screen IPO Transactions Allocation To trigger the allocation of unallotted IPO transactions on a business day select the I
51. rom the Investor from the Investor amount to be collected from the Investor REDEMPTION BY AMOUNT Gross Transaction accepted with Gross Amount Price not affected by the load factor Load amount to be deducted from the Redemption amount prior to payment for The final transaction amount not affected by load factor Load amount to be deducted from the redemption amount Redemption prior to payment for redemption Computation logic Gross amount GT Amount GT Amount GT Amount requested by the requested by the requested by Investor Investor the Investor Not loaded to NLTP 0 NLTP gt GT NX NLTP GT price loads gt NLA NX gt NLA Loaded to price LTP gt RP LX LTP 0 LTP gt RP loads factor YLLA LX XLLA Unit price UP RP LTP UP RP LTP UP RP LTP Units allotted UA GT RP UA GT RP UA GT RP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP UA UA LTP UA Net Amount NT GT TL NT GT TL NT GT TL Unit Cost UC NT UA UC NT UA UC NT UA 2 24 ORACLE Amount payable Net Amount Net Amount Net Amount to Investor REDEMPTION BY AMOUNT Net Transaction with Price affected by load Transaction Amount Net Amount factor Allocation as affected by load factor existing in FC IS now Allocation as existing
52. the following changes are reflected after the allocation first the changes affected by the original IPO Subscription are reversed and then the currently amended IPO Subscription is reallocated Reflection of allocated units in the system database If the IPO transaction is successfully allocated through this option the changes are reflected in the following data stores in the database e The unit holder s balance in the fund e The unit holder counter updating for IPO transactions for the fund e The fund transaction counter updating for IPO transactions e The outstanding units for the fund e Loads fee incentive between the various entities fund manager broker unit holder agent etc are logged e Fund certificate details updating if the transaction is scrip based If any of these counter limits is exceeded or if any ofthe fund rules set up at the Fund Manager are violated then an error is logged against the subscription transaction Confirmation of the IPO Subscription is made after the allocation is successfully completed Note Only reversal is allowed for certificate based IPO Subscription transaction Subscription Allocation To trigger the allocation of unallotted subscription transactions on a business day select the Subscription option in the Allocation screen Choosing this option will also trigger the allocation process to allocate units in respect of unallotted subscription transactions which fall wit
53. tion date earlier than the same can be allocated through this function The date of transaction should be within the limit specified for back dating as defined in the Transaction Processing Rules for the fund or as set up for the agency branch transaction type in the backdating table This will take the transaction price of that date as effective for the given transaction EE ORACLE 2 3 2 3 1 The allocation process is exactly the same as that described in the section The process of allocation that is found later in this chapter The allocation procedure is the same as the normal allocation process for the given transaction type All the updating will be effected as of the date of allocation for the given transaction Allocation of Redemption Switch Transactions with Capital Gains Tax Capital Gains Tax as a post allocation load in the system You can define the Capital Gains Tax as a load in the system through the Load Maintenance screen in the Maintenance menu category of the Fund Manager component You must then associate the load with the funds for which capital gains tax must be deemed as applicable through the Fund Load Setup screen in the Data Entry menu category of the Fund Manager component The Capital Gains Tax is computed and deducted at source from the Redemption or Switch out proceeds and the balance paid out as the final redemption or switch out amount payable to the investor The capital gains from
54. tion processing rules for the fund and the loads are overridden at the time of transaction entry the overridden load values are applied Similarly if entry time loads are being applied and a unit holder deal has been specified for the unit holder the deal values are applied Note This feature is only available if your installation has specifically requested for it Computation of Allotted Units After the final rounded off load amounts have been arrived at the allocation process computes the units to be allocated for the transaction It also calculates the final settlement amount for the transaction This is total amount collected from the investor for in transactions such as IPO subscription or switch in and is the total amount payable to the investor for out transactions such as redemption and switch out Unit s computation The process of calculation of the units to be allocated can be understood as shown below The computations for subscription and redemption transactions are shown Switch transactions are treated as redeeming out of one fund and subscribing the redeemed amount into an other so the processes of calculation are performed in two legs the first as a redemption and the second as a subscription Abbreviations used GT Gross Transaction Amount NT Net Transaction Amount 2 ORACLE UA Units Applied Units Allotted SP Subscription Base Price RP Redemption Base Price TL Tota
55. ubscription for a unit holder are available for a transaction which is aged against the redemption system uses CDSC load details available for the Fund ID and Rule Effective Date e fFundID and Rule Effective Date associated with first subscription for a unit holder are not available for a transaction which is aged against redemption system uses the CDSC load details available for Redemption Fund e Load Computation will then be carried out using existing computation methods If CDSC calculation method at Fund level is selected as Class B Contingent Deferred Sales Charge is computed as follows e During computation of allocation CDSC fees is picked up based on the Dealing Date of the Redemption whichever slab it fits into For example CDSC Fee Structure for Schroder Guaranteed Return Fund VIII Class B 006 120802 479 is as follows Dealing Days between the following Period From To CSDC Rate 02 Nov 02 01 Nov 03 2 8596 02 Nov 03 01 Nov 04 2 2596 02 Nov 04 01 Nov 05 1 65 2 Nov 05 01 Nov 06 1 05 02 Nov 06 01 May 07 0 45 Maturity 0 e Based on the CDSC Fees the Dealing Price would be calculated by the following Formula Dealing Price TRUNC Redemption Base Price Price for Investment in IPO Subscription Period CDSC Fee derived from above Table Rounding Precision for NAV from General Operating Rules The Round Of Truncate for this calculation will be always Truncat
Download Pdf Manuals
Related Search