6. Islamic Portfolio Fund Subscription & Redemption

6.1 Introduction

You can specify details of a subscription transaction for a Portfolio Fund through the ‘Islamic Portfolio Fund Subscription’ screen. You will be allowed to enter details of a transaction only if the branch is a Fund Branch.

This chapter contains the following sections:

6.2 Islamic Portfolio Fund Subscription

This section contains the following topics:

6.2.1 Maintaining Islamic Portfolio Fund Subscription

You can invoke the ‘Islamic Portfolio Fund Subscription’ screen by typing ‘IADSLONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

Specify the following details.

Reference Number

Oracle FLEXCUBE assigns a unique reference number to each subscription transaction that you process. You will not be allowed to modify this.

Fund Identification

The id of the fund you have subscribed to is displayed.

Settlement Details

You can specify the following:

Customer Number

Select the customer involved in the subscription transaction.

Value Date

Enter the Value Date of the subscription transaction. You can enter a future date.

Note

Booking Date

The date on which the transaction was booked is displayed.

Currency

Select the currency in which the transaction is carried out.

Fund Amount

When you specify the subscription amount as the transaction value, the system computes the equivalent of the same in the base currency of the selected fund and displays it here. The exchange rate that you have specified will be used for calculations.

Amount

Specify the subscription transaction amount.

Exchange Rate

If the fund base currency is different from the settlement currency, the exchange rate applicable will be displayed. You can modify the same. The new exchange rate that you specify will be used.

The Exchange Rate Variance you have specified for the product in the Fund Product Definition screen will be used for calculations.

Settlement Account

Specify the settlement account used for the transaction.

If, in the Branch Parameters – Detail View screen you have selected the option ‘Allow Corporate Action’, the option list for the field Settlement A/C will include all valid corporate accounts.

If you have not selected the option ‘Allow Corporate Action’, only those accounts maintained at the fund level will be included in the option list.

Investment Details

You can specify the following:

Tenor

Specify the tenor of the investment. The option list includes the different tenors linked to the fund.

The account class of the deposit account will be derived from the tenor of the investment.

Investment Branch

Specify the deposit account into which the subscription amount will be credited.

The option list includes those accounts that belong to the account class that has been based on the tenor of the investment. If you do not specify an account, the system will create an account when you authorize the subscription transaction.

Note

If you specify the deposit account, note the following:

Parent Branch

The parent account linked with the investment account will be displayed. If there are multiple parent accounts, you will have to choose the appropriate one from the option list.

Maturity Date

As mentioned above, the deposit account is not mandatory. If you specify the deposit account, the Maturity Date of the account will be defaulted. If you do enter a deposit account number, the system will take into consideration the fund and the tenor you have specified (in the Account Class screen) and will default the Maturity Date (or the Fund End Date) applicable to the fund-tenor combination.

6.2.2 Viewing the Event Details of a Subscription Transaction

Click the ‘Events’ button from the ‘Portfolio Subscription’ screen, to view the accounting entries that are passed for each event.

6.2.3 Reversing a Subscription Transaction

After you have saved and authorized a subscription you can reverse it. You can reverse an action from the detailed view of the Portfolio Fund Subscription screen. To reverse an action:

Note

You can reverse a subscription transaction only before the first profit distribution cycle after the transaction. If a deposit account has been created by the system, it will be closed when you reverse the subscription transaction.

6.2.4 Saving the Details of a Subscription Transaction Record

After you have entered the applicable details of the corporate action, save the fund by either clicking the ‘Save’ icon in the toolbar or choosing Save from the Actions menu.

On saving the record, your User Id will be displayed in the Input By field at the bottom of the screen. The date and time at which you saved the fund will be displayed in the Date/Time field.

A user bearing a different login ID should authorize a corporate action record that you have entered, before the EOD is run. Once the record is authorized, the ID of the user who authorized it will be displayed in the Auth By field together with the date and time at which it was authorized. The status of the fund is also displayed.

Click the ‘Exit’ button to exit the ‘Islamic Portfolio Fund Subscription’ screen. You will be returned to the Application Browser.

6.3 Entering a Portfolio Fund Redemption Transaction

You can redeem the investment made in a fund through the fund branch. The same can be done through the ‘Portfolio Fund Redemption’ screen. You can invoke the ‘Islamic Portfolio Fund Redemption’ screen by typing ‘IADRDONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You will need to specify certain details to view all the accounts involved in various subscription transactions.

Fund Identifier

Select the fund involved in the redemption transaction. The option list includes all valid funds maintained in the branch.

Customer

Select the customer involved in the transaction. The option list includes all valid funds maintained in the branch.

Parent Account

Select the Parent Account involved in the transaction. The option list includes all the accounts that are linked to the Fund-Customer combination that you have specified.

Note

You will have to enter relevant information in either the field Customer or Parent Account. Entering information in one of them is mandatory. The system will display all the accounts that satisfy the Fund Id-Customer combination or Fund Id-Parent Account combination.

Child Account

You can view all the relevant accounts with the following details:

When you select an account that is displayed, the Muradabah Accounts Redemption/Renewal screen is displayed:

You can enter the redemption details in this screen. The renewal details will be disabled for the deposit accounts linked to fund id

For more information on this screen, refer to the chapter Maintaining Tax Allowance Limit for Customer Accounts in this User Manual.

6.4 Child Account Query

You can view the details of a child contract in the ‘Islamic Child Account Query’ screen. You can invoke the ‘Islamic Child Account Query’ screen by typing ‘IADQACC’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

In this screen, you will have to specify the following details:

Fund Id

Specify the fund id that the contract under which the contract has been booked.

Customer

Specify the customer id.

Parent Account

Specify the parent account of the child contract.

The search carried out will be based on one of the following combinations:

Hence, it will be mandatory for you to enter one of the three search criteria.

Once you enter the search criteria, click Query. All the records meeting the search criteria you have specified will be displayed.

The Parent Account, Fund Id or Customer (depending on the search criteria you specify), and other details, will be defaulted along with the Child Accounts

When you select a particular record and double-click on the same, all the transaction details for that child account between the From Date and To Date will be displayed in Accounting Entry Retrieval screen.