9.1 Product Code - XB01

XB01 - Fixed Rate Bonds - (Treasury Bonds)

Business Scenario

The Fixed Rate Bonds issued by corporate, Banks, Municipal or Government authorities in order to raise the funds are handled by this product.

Introduction

The fixed income bonds are dealt by using the above product. The interest income (coupons) periodicity can be determined during the security definition (instrument) under this product.

Synopsis (ex. High level features etc.)

• The regular coupon payments till the bond mature.
• The bonds can be issued at premium, discount or at par.
• On maturity the principal amount will be repaid to the holder.
• Individual Investors, Corporate customers and financial institutions can use this product for buying and selling of securities.

Detailed Coverage

Branch Currency

The product XB01 can be used by all branches and offered in all the currencies. The restrictions are not imposed from Head office.

Customer

The restrictions are not put by the Head office to make use of this product.

All the customers are allowed to avail this product/ service.

Preferences

The product XB01 is having the following important features/properties.

• Call or Put options
• Redemption type
• Redemption quotation
• Confirmation of corporate actions
• Issue and outstanding sizes
• Minimum lot and trading sizes
• Price quotation
• Interest quotation
• Allowing or disallowing the fractional quantity
• Equated redemption
• Security and payment currency
• Issue, face value and the redemption prices
• Issue date, interest start date, trading start date and the redemption dates
• Interest (coupon) frequency
• Interest (coupon) accrual and liquidation details
• Revaluation Price code
• Redemption details
• Interest rate details
• Tax details
• MIS details
• User defined fields(UDF)

Interest

The interest component is created for the product. The component is created with the name INT_GS.

MIS

The MIS details are not captured in this product.

Fields

There are no UDF details available for this product

Interest / Charges / Commission & Fees

User can define Interest and Charges.

Special/Other Features

• Fixed rate bonds
• Extendible Bonds
• Retractable Bonds
• Convertible Bonds
• Reverse Convertible Bonds
• Asset Backed Securities
• Foreign Currency Bonds
• Euro Bonds
• Perpetual bond
• Convertible Bonds
• Foreign Currency Bonds
• Bearer Bonds.

User can define tax and brokerage components for the deals.

Advices Supported

Payment/Confirmation Messages

Additional information (ex. UDF & other Special Maintenance)

In case, Bank wants to capture some other details about the deal or the parties involved, the same could be customized by way of using UDF option available at various screens.

• Branch Parameter
• Messaging Parameter
• Local Holidays
• Security Batch Maintenance
• Market code and price maintenance
• Security instruments
• SK Location Maintenance
• Security, Deal, Portfolio and Combination Products
• Security Product, Deal product and Portfolio product preference classes
• Portfolio definitions
• Tax scheme class
• Combination products