1.1.3 IPO Transactions Allocation

This topic provides information on IPO transactions allocation.

Select the option IPO Subscription in the Transaction Type of Allocation Detail screen to trigger the allocation of unallotted IPO transactions on a business day.

• Select this option to 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, you can select this option to 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, select 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.

Refer to the topic Workflow of Allocation Process for executing the allocation process.

For more information on IPO transactions allocation, refer to the field description table.

Table 1-2 IPO Transactions Allocation

IPO Transactions Allocation	Description
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: The unit holder’s balance in the fund The unit holder counter updating for IPO transactions for the fund The fund transaction counter updating for IPO transactions The outstanding units for the fund Loads (fee/incentive) between the various entities (fund manager - broker, unit holder, agent, etc.) are logged. 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 IPO Subscription is made after the allocation is successfully completed.

Note:

Only reversal is allowed for certificate based IPO Subscription transaction.