19.2.8.1 Process for Security Redemptions

Only those events that have not yet been initiated will be selected. However, this is done only for events with initiation date less than or equal to today. The Events table is updated to indicate that initiation is complete. Specification of redemption collection to be automatic or manual is done at the time of defining the security. Only those securities for which the auto collect option is checked will be picked up for redemption collection. Other events would have to be triggered manually.

Those events with the collection date less than or equal to today and for which collection has not yet been done, are selected for processing. The Redemption Collection for short position (RDSC) or the Redemption Collection for a long position (RDLC), is triggered depending on whether the position is short or long respectively. The collection event collects the redemption amount from the safekeeping location and updates the Events table, to indicate that collection is complete for the event.

After the updation of the Events table, the events for which liquidation is due and the liquidation date is less than or equal to today, are picked up for liquidation. The Redemption Disbursement or liquidation for short position (RDSL) and Redemption Disbursement or liquidation for a long position is triggered depending on whether the position is short or long respectively. The Events table gets updated after liquidation is complete. In the case of accruals is due, then the accrual of interest, premium, discount and redemption premium are consolidated by running the ACIN and ACPD events. The liquidation events (RDSL and RDLL) are run only after that. Once you run the accrual event the tax and ICCF details will also get updated.

Note:

The initiation collection and disbursement events are synonymous.