2.1.14.4 How Cut-off Frequency is Considered

This topic provides information on how cut-off frequency is considered details.

The system determines the specific pricing cycle (either current or subsequent) to be used based on the cut-off frequency and cut-off days defined for the transaction type.

If the transaction date exceeds the cut-off date, the price date is moved to the next specific pricing cycle.

The cut-off date is arrived at as given in the example below for various combinations:

Table 2-63 Cut-off Frequency

Cut-off Frequency	Cut-off Month	Cut-off Week	Cut-off Day	Remarks
Weekly	-	-	3	Third day (Tuesday) of every week
Fortnightly (Price week specified)	-	1	4	Fourth day of the first week of the fortnight.
Fortnightly (Price week not specified)	-	-	4	Fourth day of the fortnight
Monthly (Price week specified)	-	4	2	Monday of fourth week of every month.
Monthly (Price week not specified)	-	-	2	Second day of the month
Quarterly	1	1	1	Sunday of first week of first month of every quarter.
Half-Yearly	5	2	4	Fourth day of second week of fifth month of every half.
Yearly	9	3	5	Last day of third week of every September

The examples given below illustrate how the cut-off frequency is considered.

Example 1

Table 2-64 Example 1

Pricing Frequency	Price Day	Cut-off Frequency	Cut-off Day
Weekly	4 (Thursday)	Weekly	1 (Monday)

Let us suppose the current date is a Wednesday. Since it is beyond the cut-off day for the week, the specific price date is moved to the next cycle, that is, the specific price of the Thursday of the week is considered.

Example 2

Table 2-65 Example 2

Pricing Frequency	Price Day	Cut-off Frequency	Cut-off Day	Cut-off Week
Weekly	4 (Thursday)	Weekly	1	4

The cut-off day is the Monday of the fourth week of the month. If the current date is 10th September 2003 (say a Wednesday), it falls in the second week of the month. Since it is before the cut-off day for the present cycle, the specific price date falls on the current cycle, that is, the pricing on 4th September (the Thursday of the current pricing cycle) is considered.

If, in this same example, the cut-off week is 2, then the cut-off day is the Monday of the second week of the month. Since the current date, 10th September 2003, a Wednesday, is beyond the cut-off day, the specific price date is moved to the subsequent cycle, that is, the pricing on 11th September (the Thursday of the subsequent pricing cycle) is considered.

Note:

• The number of business working days is considered while determining the cut off days. The number of cut off days does not include the Fund holiday and the AMC Holiday.
• System will derive the days based on locale settings.
• For pre-settled trade funds, if Trade Cut-Off Applicable is set as Yes at fund level, then the transaction date will be derived as cut-off day in the respective specific fund price cycle.