Allocation User Manual
Contents
1. 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 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 used 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 ay ORACLE 2 2 4 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 deno2. The computation of the Capital Gains Tax would be as follows si ORACLE 2 3 2 Selling price 29682 92 currency units Buying price 22950 00 currency units Capital gain 6732 92 currency units Capital Gains Tax at10 673 29 currency units This value i e 673 29 currency units is deducted from the net proceeds from the redemption transaction i e in this case 29682 92 currency units the total selling price mentioned above and the rest is paid out to the unit holder Therefore Total Selling Price 29682 92 currency units Capital Gains Tax 673 29 currency units Total amount payable to unit holder 29009 63 currency units In the case of a switch transaction which involves a redemption transaction from one fund in order to subscribe into another let us consider the same scenario as depicted above The switch transaction is allocated on 1 September and the total amount payable to the investor is the value shown above after deduction of capital gains tax i e 29009 63 currency units This value would be used to subscribe into the new fund 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 of 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
3. e Only reversal is allowed for certificate based redemption transaction dl ORACLE 2 2 5 e 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 The 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 sy
4. gt RP LX LTP 0 eo gt RP LX loads factor gt LLA LLA SS UP RP LTP UP RP LTP Units allotted UA GT RP UA GT RP UA GT RP Total Loads on NLTP LTP TL NLTP LTP UA TL NLTP LTP UA man MT NT GT TL NT GT TL Amount payable to Net Amount Net Amount Net Amount Investor REDEMPTION BY AMOUNT Net Transaction with Net Price affected by load Transaction Amount Amount factor Allocation as affected by load factor existing in FC IS now Allocation as existing in FC IS now Net Amount NT Amount requested NT Amount requested NT Amount by the Investor by the Investor requested by the Investor era ORACLE Both loads Load with LTP Y Load with LTP N Not loaded to price NLTP 0 NLTP gt NT NX gt NLTP gt NT loads NLA NX gt NLA Loaded to price LTP gt RP LX LTP 0 LTP gt RP LX loads factor PLLA LLA LTP UA Untprice f UP RP LTP UP RP LTP UP RP LTP Units allotted UA NT NLTP UP UA NT NLTP UP UA NT NLTP UP Total Loads TL NLTP LTP TL NLTP LTP UA TL NLTP UA Gross amount GT NT TL GT NT TL GT NT TL Amount payable to Net Amount Net Amount Net Amount Investor REDEMPTION BY UNITS Gross Transaction Price not affected by The final transaction accepted with Gross the load factor Load amount not affected by Amount amount to be deducted
5. load factor Load from the Redemption amount to be deducted amount prior to from the redemption payment for amount prior to payment Redemption Units allotted UA Units applied by UA Units applied by UA Units the Investor the Investor applied by the Investor Not loaded to price NLTP 0 NLTP gt GT NX gt NLTP gt GT loads NLA NX gt NLA Loaded to price LTP gt RP LX LTP 0 LTP gt RP LX loads factor gt LLA LLA jUnitprice f UP RP LTP UP RP LTP UP RP LTP Total Loads TL NLTP LTP TL NLTP LTP TL NLTP LTP pr ORACLE 2 5 ee Load with LTP Y Load with LTP N Both loads Net Amount NT GT TL NT GT TL NT GT TL Amount payable to Net Amount Net Amount Net Amount Investor Price Basis Loads 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 other 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 allocation 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 con
6. 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 one ORACLE To understand the allocation lag consider the following example The 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 wer
7. Limit Pricing MJ Memes Policy None yv Online Allocation Yes Acknowledgement Note No Allocation Percentage Required Versus Registered Capital Allocation Lag Confirmation Note No w PF Required v Check On Par With Cash Yes v Cross Branching Allowed No v Retain Ageing To No Subscription Credit Card On Par With Yes w Cash Limit Mode Percent o Carry Forward Carry ransfer On Par With Cash Yes mM E Allocation Lag Calendar Actual Calendar Y Apply Entry Time Load No vw Basis Pseudo Switch Lag Pseudo Switch Calendar Actual Calendar Basis Notice Period Date Basis v Link To Unsettled Trades No w Max Maturity Period Days Notice Period Confirmation Lag Full Outflow Min Maturity Perind Nave Refer to the chapter Setting Up Fund Rules II in Volume 2 of the Fund Manager User Manual for further information on the Transaction Processing screen 2 2 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 ha ORACLE e Payment Clearing needs to be carried out The payment can be accepted or rejected Case 1 If payment is reject
8. 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 gt Plus gt Minus gt LLA Plus X Minus Subscription BY AMOUNT Gross Transaction Price affected by the accepted with Gross load factor Amount Load with LTP N Both loads Gross amount GT Amount applied GT Amount applied by GT Amount by the Investor the Investor applied by the 2 27 Final transaction amount to be allocated is affected Load with LTP N Both loads Pf nestor Not loaded to price NLTP 0 NLTP gt GT NX gt NLTP gt GT loads NLA NX sr LTP gt SP LX ELLA Loaded to price loads factor LTP 0 LTP gt SP LX gt LLA e e a UP SP LTP UP SP LTP Units allotted GT NLTP UP GT NLTP UP GT NLTP nts Total Loads bar NLTP LTP TL NLTP LTP UA TL NLTP LTP UA Amount collected from Investor Investor and thus no additional amount needs to be collected Subscription BY AMOUNT Net Transaction accepted with Net Price not affected by load factor Load Amount investor separately Amount applied by the amount calculated and to be collected from the Amount applied by the Investor and thus no
9. 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 ae ORACLE GT Gross Transaction Amount NT Net Transaction Amount UA Units Applied Units Allotted SP Subscription Base Price RP Redemption Base Price TL Total 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
10. 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 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 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 Confirmation of the redemption transaction is made after the allocation is successfully completed Note the following
11. redemption transactions e Aan 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 transaction enue ORACLE 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 co
12. the name of the unit holder to whom it is being 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 holder s balance in the fund e The unit holder counter updating for transfer transactions for the fund e The fund transaction 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 of the 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 Only reversal is allowed for certificate based transfer transaction Block Allocation To trigger the allocation of unallotted block tr
13. Allocation Oracle FLEXCUBE Investor Servicing Release 12 0 April 2012 Oracle Part Number E51528 01 ORACLE FINANCIAL SERVICES Allocation Table of Contents ABOUT THIS MANUAL Sai a 1 1 1 1 INTRODUCTION atari a t n 1 1 dz RAT ODOCUMENT rai da a n 1 1 1 3 AUTU NCE dd aia as t n 1 1 1 4 CORGAN ATION Ad n 1 1 1 5 CONVENTIONS USEDIN THIS MANUAL roca lead 1 1 1 5 1 General CONVENTIONS A A E l 1 13 2 Keyboard NVIVO ES AA AS 1 2 1 6 GLOSSARY OP ICONS dut ecc 1 2 1 7 ABBREVIATIONS AND ACRONYMS sir laa 1 3 1 8 REV DING PAP ii cala 1 4 ALE OCATION PROCES Sucios 2 1 Ze INTRODUCHON Ss a e 2 1 Did TRANSACTIONS FOR AUTOMATIC ALLOCATION ccccssecccsecccesccceseccenecceeceeenceeeneceeuecseecseeceeeneceeeceeeeceees 2 2 2 21 Manual Allocation through End of Day MeNU ooooonnnnnnnnninnnnnnnnnnnnnnnnannnnnonnnnnnnnnnnncnnnnnnnnnnncnnnnnnnnnnnnanss 2 3 22 2 IPO Transaciions Alo tdi 2 4 2 2 3 SUBS CH PNONANO CANON A E 2 5 2 2 4 IEA CINDUON AMO CU dci 2 6 DoD SWIC AOC U ON A A A obio 2 8 2 2 6 TETAS CAL CON A A A A dd 2 10 Lad BOCK ALOCO ON SE dite A dais 2 10 2 2 8 UnblocieA TO COM rua 2 1 2 2 9 CONSONAATONANOCAIO Ni Bek ae secs ws ae ena eee 2 12 BLO E LOCOMON AAA nn A Pvt Dev aden cee A 2 13 AS O Re Te TE eles gta A aot II IN ida ean ast Sas 2 13 22 42 Backdated Trans chons AN OCOUON wicci cece ei EEA E A sel iee ved sedstlv sea DesedvuaddeesGndetesien 2 14 2 3 ALLOCATION OF REDEMPTION SWITCH TRANSACTIONS WIT
14. 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 The following example illustrates the procedure Let us suppose that a unit holder applies for a subscription transaction in fund A that is allocated on qa January 1998 as follows Number of units allocated l 9996 Subscription Base Price 2 25 currency units Subscription amount without loads 22491 00 currency units Total value of all loads including commissions 459 00 currency units Total buying price 22950 00 currency units Let us now suppose that the unit holder redeems his holdings as a result of this transaction completely in a single redemption transaction that is allocated on 1 September 1998 as follows Number of units allocated E 9996 Redemption Base Price 3 05 currency units Gross redemption amount without loads 30487 80 currency units Total value of all exit loads 304 88 currency units Total value of all commissions 500 00 currency units Total selling price 29682 92 currency units
15. H CAPITAL GAINS TAX cocconccccnocnnnnccnonccnananos 2 14 Brd Capital Gains Tax as a post allocation load in the SySteM ooooooononononnnnnnnnnnnnnnnnnnnnnnnonnnnnnnnnnnnnnnnnns 2 14 Looe Indexation TOF Capta l GAINS LIE AA AAA A oisenitachecatastts 2 16 2 4 PROCESS OF ALLOCATION 20 cid 2 19 2 4 1 Identify e APpli CAU Of TiO GES lt A AAA AAA a ARA 2 19 2 4 2 Computing Basis OV ADPIVine LOGS lt A AA AA AAA E 2 19 2 4 3 Arriving at Load Return Value and Load Amounts oooocccocconooonananannnnnnnnnnnnnnnnnnnnnnonnnnnnnnnnnnnnnnnnnnnnnnos 2 21 2 4 4 Computatton OF Allotted TINTS AA AAA AA NAS E 2 26 2 5 OVERRIDING ALLOCATED UNITS FOR IPO TRANSACTIONS 0ccccsecccescccesecceseceeecceesccceseceueceeecseenceeenes 2 32 2 6 UNITIZING TRANSACTIONS DURING BOOK CLOSING PERIOD ccc0sccceseccescccescccesecceeceeuecseeeceeeneceaneees 2 33 2 7 UNSETTEEDTRADES AAE EEE EE E E E SE EE E E E EIE AE E E EAE EE T 2 34 LAA Maimtenance ACNES dae adi do det orilla e cdo a te lan 2 34 Dl VEAS AN NS SN NS TE NO 2 34 1 1 1 2 1 3 1 4 1 5 1 5 1 1 About This Manual Introduction Welcome to Oracle FLEXCUBE Investor Services 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 desc
16. additional amount needs to be collected Transaction amount not affected by load factor Load amount calculated and to be collected from the investors separately Amount applied by the Investor and thus no additional amount needs to be collected Net Amount NT Amount applied the Investor Not loaded to price NLTP 0 loads LTP gt SP LX SLLA Loaded to price loads factor by NT Amount applied by the Investor NLTP Y NT NX YNLA LTP 0 NT Amount applied by the Investor NLTP gt NT NX NLA LTP gt SP LX gt LLA Unitprice UP SP LTP UP SP LTP UP SP LTP Units allotted UA NT SP UA NT SP UA NT SP 2 28 ee Load with LTP Y Load with LTP N Both loads Total Loads irs NLTP LTP TL NLTP LTP UA TL NLTP LTP UA Amount collected Total load amount to be Total load amount to be Total load amount from Investor collected over and collected over and above to be collected above the amount the amount applied by over and above applied by the Investor the Investor the amount applied by the Investor Subscription BY UNITS Transaction Price not affected by Transaction amount not accepted with units load factor Load affected by load factor but load is on gross amount should be Load amount should be transaction amount collected separately collected separately from from the investor over the invest
17. ansactions 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 a ORACLE 2 2 8 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 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 block transactions for the fund e The fund transaction counter updating for block 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 block transaction Confi
18. ated Units Contingent Deferred Sales Charge is computed based on the Inheritance Fee Structure as follows e Ifthe Fund ID and Rule Effective Date associated with first subscription 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 If Fund ID 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 lf 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 ee ORACLE Example CDSC Fee Structure for Schroder Guaranteed Return Fund VIII Class B 006 120802 479 is as follows 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 Truncate and number of decimals will be equal to the number of decimals s
19. d 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 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 sla ORACLE 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 cert
20. d 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 2 33 ORACLE 2 7 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 transactions as well as settled inflow transactions 2 7 1 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 Basic Info Transaction Rules Unit Holder Rules Transaction
21. d 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 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 sucha 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 eran ORACLE Normal loads If all t
22. e 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 IPO 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 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 cleare
23. e 3 for GROWTH fund all transactions on or before 12th of December 2002 would be allotted 2 2 1 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 Multiple AMC DIST Installn AMC AgentCode iL a AMC Name Fundo Back Dated No Y Transaction Type LE Submit For Transaction Name Display Fund Fund ID Fund Name Fund identification Number Select No Cancel As stated earlier 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 clicking the appropriate menu item from the End of Day menu category In the Allocation screen you can trigger the allocation process e For all 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 2 3 ORACLE 2 2 2 e For backdated 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 th
24. ected 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 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 process Confirmation of the switch transaction is made after the allocation is successfully completed STOP re i Only reversal is allowed for certificate based switch transaction am ORACLE 2 2 6 2 2 7 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
25. ed 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 New unallotted 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 transactions will be confirmed For a pseudo switch Redemption the unsettled subscription leg of transaction will have to be manually cleared or rejected 2 35 ORACLE ORACLE Allocation April 2012 Version 12 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_ services Copyright 2012 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible Howeve
26. ertificate 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 STOP Amendment of a consolidation transaction is not allowed a ORACLE 2 2 10 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 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 u
27. eyboard are represented in capital letters For example lt CTRL gt All short cut keys are contained in brackets For example lt ALT SHIFT gt keys 1 6 Glossary of Icons This User Manual may refer to all or some of the following icons CE a ee s p Co e fee ee ORACLE 1 7 se pe CN Refer the Procedures User Manual for further details about the icons Abbreviations and Acronyms The following acronyms and abbreviations are adhered to in this User Manual CC COC Abbreviation Acronym Meaning CC etree mav Netassetvave O o eyecare eon o menimenmen 1 8 Getting Help Online help is available for all tasks You can get help for any function by clicking the help icon provided or by pressing F1 i ORACLE 2 1 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 execu
28. g 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 unblock transaction Confirmation of the unblock transaction is made after the allocation is successfully completed STOP Amendment of an unblock transaction is not allowed 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 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 c
29. he 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 Price 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 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 val
30. ia 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 defined 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 2 4 2 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 ue 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 an
31. ificate 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 subscription transaction Confirmation of the IPO Subscription is made after the allocation is successfully completed Only reversal is allowed for certificate based IPO Subscription transaction 2 2 3 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 within 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 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
32. mination 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 for 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 of the 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 STOP f ape Only reversal is allowed for certificate based subscription transaction Redem
33. mount 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 amourt 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 anne ORACLE For reinvestment units the load applied is always zero L
34. mputed using the empirical expressions For capital gains loads on gross amount as specified in the Fund Load Setup CG ual PL UAC x a Al For capital gains loads on net amount as specified in the Fund Load Setup CG va rrap ATBP x a 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 o 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 were redeemed Example Mr Wessel Johannan a unit holder in your AMC subscribes into the Global Financial Solutions Fund through the following transactions Transaction Date Transaction Type Units Allotted Transaction Base Price 01 Jan 1999 Subscription T1 1000 On March 1 2000 Mr Johannan chooses to redeem his entire investment made through subscription transactions T1 and T2 through a redemption transaction R1 The transaction price for redemption on March 1 is 15 and therefo
35. n of Redemption Switch Transactions with Capital Gains Tax 2 3 1 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 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 a ORACLE 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
36. nit 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 split transaction Confirmation of the split transaction is made after the allocation is successfully completed Amendment of a split transaction is not allowed 2 2 11 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 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 ae ORACLE 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 l
37. oads 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 Charge 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 Appreci
38. ogged 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 reissue transaction Confirmation of the reissue transaction is made after the allocation is successfully completed STOP Amendment of a reissue transaction is not allowed 2 2 12 Backdated Transactions Allocation 2 3 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 transaction 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 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 Allocatio
39. ons e The second section contains a workflow which outlines the sequence followed by the allocation process in the system eA ORACLE 2 2 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 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 been 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
40. or over and and above the above the transaction transaction amount amount Units allotted UA Units applied by UA Units applied by UA Units the Investor the Investor applied by the Investor NT UA SP NT UA SP NT UA SP Not loaded to price NLTP 0 NLTP gt NT NX elie gt NT loads NLA NLA Loaded to price LTP SP LX LTP 0 gt SP LX loads factor gt LLA LLA UP SP LTP UP SP LTP UP UP SP LTP UP SP LTP LTP Total Loads T NLTP LTP TL NLTP LTP UA TL NLTP LTP UA The Gross transaction Amount collected The Gross transaction The gross transaction from Investor amount to be collected amount to be collected amount to be collected from the ene ORACLE from the Investor from the Investor pf nestor REDEMPTION BY AMOUNT Gross Transaction Price not affected by The final transaction accepted with Gross the load factor Load amount not affected by Amount amount to be deducted load factor Load a Load with LTP Y Load with LTP N Both loads from the Redemption amount to be deducted amount prior to from the redemption payment for amount prior to payment Redemption for redemption GT Amount Gross amount GT Amount requested GI Amount requested by the Investor by the Investor requested by the Investor Not loaded to price NLTP 0 NLTP gt GT NX gt a gt GT loads NLA gt NLA Loaded to price LTP
41. pecified 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 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 lake ORACLE 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 values that are current at the time of the exit transaction You can howe
42. ption 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 en ORACLE 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 this 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
43. r Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated eA ORACLE
44. re Mr Johannan s income from the two transactions attracts capital gains tax You have defined capital gains tax as a post allocation load in FLEXCUBE The details of the load are erie ORACLE Load ID for CGT Slab From Amount Slab To Amount Return Value L1 1000 10000 1 You have also defined the capital gains load to be based on capital gains indexation in the load setup in the fund rules for the Global Financial Solutions fund The details are Load ID for CGT Slab Basis Indexation On CGT L1 Applicable Y Mr Johannan has also opted for indexation for the computation of capital gains tax as specified in his account profile The indexation values maintained in the system are as follows From Date Indexation Value 01 Jan 1999 01 Jan 2000 100 02 Jan 2000 01 Jan 2001 120 02 Jan 2001 01 Jan 2002 140 In such a case the computation of CGT is done as follows using the empirical expressions shown above during the redemption allocation process For the first aged subscription transaction T1 Income 1000 15 10 140 100 1000 currency units CGT 1 on 1000 10 currency units For the second aged subscription transaction T2 Income 750 15 11 140 120 1627 5 currency units CGT 1 on 1627 5 16 27 currency units Total CGT amount for the redemption 10 16 27 26 27 currency units 2 3 2 1 Applying Indexation To configure the system to apply indexation for the compu
45. riptions of various features and processes in 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 Chapter 1 About This Manual explains the structure audience organization and related documents of this manual Chapter 2 Allocation An Overview enables you to learn about the Allocation process Chapter 3 Allocation defines Allocation process Transactions for Automatic Allocation 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 General Conventions Type of Information Italic type Functional foreign terms Names of fields on a screen Validations for fields on a screen References to related Headings Users Manuals 1 ORACLE Type of Information P For For emphasis Numbered by step procedures Bullet Stop This symbol when placed before text indicates a warning or an important note that you should read 1 5 2 Keyboard Conventions Type of Information Keys All keys of the k
46. rmation of the block transaction is made after the allocation is successfully completed STOP 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 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 unblock transaction is successfully allocated through this menu item the changes are reflected in the following data stores in the database ew ORACLE 2 2 9 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 updatin
47. saction Number Reference Number Tranzaction Date Fund ID Unit Holder ID CIF Humber Transaction Mode Amount Input by DateTime Mod No Authorized by DateTime 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 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 fiel
48. scription allocation by gross amount 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 Certificate 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 refl
49. sidered 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 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 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 ene ORACLE 2 6 4 FCIS IPO Units Override fans A SN No IPO Max zue Size Fi Force Recalculation Tran
50. stem 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 transactions 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 First a 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 pr ORACLE 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 sub
51. tation 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 capital gains tax in the unit holder s account profile e Maintain the indexation values applicable for specific time periods in the Indexation Maintenance e Set up a load for the application of capital gains tax in the Load Maintenance anne ORACLE 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 gt The applicability of indexation for the load gt The slab basis gross or net amount gt The basis of application as capital gains indexation gt The frequency of application as post allocation 2 4 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 2 4 1 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 criter
52. tes 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 the 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 transacti
53. tion S1 and 800 units from subscription S2 would be validated for exit fee computation Taking the rule effective from 1 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 1 January 2002 to 1 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 01 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 1 January 2002 and 1 March 2002 If she does not opt for entry time loads 1 5 exit load will be applied on 1700 units of S2 and 2 5 exit load will be applied on 300 units of S3 in accordance with the rule effective from 1 March 2002 If entry time loads are being applied as specified in the transaction 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 This
54. ue 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 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 ae ORACLE 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 a
55. ver 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 Il in Volume Two of the Fund Manager User Manual The example given below illustrates how entry time loads are applied Example Your AMC floats the Citadel Growth Fund effective from 1 January 2002 the Rule Effective Date with the following exit charges Days Slab Return Value Percentage Holdings in the fund are aged on a FIFO first in first out basis With effect from 1 March 2002 you change the exit charges for the fund as follows Days Slab Return Value Percentage 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 10 January 2002 1000 units eres ORACLE 2 4 4 e Through subscription S2 on 25h February 2002 2500 units e Through subscription S3 on 5 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 subscrip
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