3.7.1 Maintain Pseudo Switch Lag Maintenance

This topic provides information on maintaining pseudo switch lag maintenance details.

You can maintain the lag for the combination of two funds or for two Fund Families. You can derive Pseudo switch date based on fund cut off time, then the system will derive the transaction date of Switch Out fund based on Switch Out fund cut off time and the transaction date of Switch In fund based on Switch In fund cut off time.

The transaction date will be derived based on the application received date and time recorded at the transaction level.

For Non Daily pricing frequency funds, in case when derived transaction date falls on a holiday and trade is received before cut-off time then the system will arrive previous or next working day of current transaction cut-off day cycle depending on holiday rule is prior or after. If trade is received after cut-off time then the system should arrive previous or next working day of next cycle transaction cut-off day depending on holiday rule is prior or after.

If the Pseudo switch lag is maintained for the funds and between the families of those funds then the system will give precedence to the Fund. If there is no pseudo switch lag maintenance for the fund then the system will consider the lag maintained for the fund family.

Based on the maintenance at AMC level, the to fund/fund family can be within the AMC or across AMC.

Settlement of Pseudo Switch In leg Transaction will be automatic when Switch Out leg is settled manually either through Switch Screen or via Confirm Redemption Screen.

If Switch Out leg transaction is settled using Switch screen, then the system will automatically initiate the settlement process for subscription (Switch In Leg) transaction.

If Switch Out leg transaction is settled using Confirm Redemption screen, then the system will automatically initiate the settlement process for subscription (Switch In Leg) transaction.

If you try to manually settle the Switch IN leg transaction, then the system will display an error message as The Switch IN leg Transaction cannot be settled manually since Auto Switch In Settlement is turned ON.

Also the system will allow settlement of Switch OUT only when Switch out leg is allotted. If you try settlement before the allocation, then the system will display an error message as ‘Settlement of Switch OUT cannot be allowed before allocation’.

If Auto Settle Switch Transactions field is checked, then only the system will perform the above validations.

If Auto Settle Switch in Transaction is set to true at the AMC level for the pre-settled trade fund, then the IN leg will get generated as settled transaction.

You can use Pseudo Switch Lag Maintenance screen to maintain the lag maintenance at Fund or Fund Family level. As per the maintenance, the transaction date of switch in transaction will be derived in the respective calendar maintained. The system derives Price date and settlement date based on the fund level lag maintenances. If in Pseudo switch lag maintenance, switch lag option is selected as Settlement Date and Switch Lag as 2, then the system will derive pseudo switch in leg transaction date as (out leg Settlement Date) + 2.

Example for Pseudo switch-in transaction date derivation

Example 1

The system will use Pseudo Switch Lag Maintenance screen for the following setup for switch in transaction date derivation logic (Assumption is No fund holiday for the month November):

Table 3-7 Pseudo Switch Lag Maintenance

Fund Preference Switch-in Generation Level	Switch Out Fund	Switch In Fund	Switch Lag Option	Switch Lag	Calendar Basis
Settlement	FundA	FundB	Settlement Date	2	Actual
	FundB	FundC	Price Date	2	Actual
	FundD	FundA	Transaction Date	3	System

With the above maintenance, pseudo switch in transaction date will be as follows:

Table 3-8 Pseudo Switch Lag Maintenance

Switch Out Fund ID	Switch In Fund ID	Switch Out Txn Date	Switch Out Price Date	Switch Out Settlement Date	Switch In Txn Date	Switch in Generation on
FundA	FundB	7-Nov-16	8-Nov-16	9-Nov-16	11-Nov -16	9-Nov-16
FundB	FundC	7-Nov-16	8-Nov-16	9-Nov-16	10-Nov -16	9-Nov-16
FundD	FundA	7-Nov-16	8-Nov-16	9-Nov-16	10-Nov -16	8-Nov-16

Example 2

The following examples cover the following cases:

Switch-out transaction with payment lag and price lag

Switch-in transaction date derived based on switch-out price date/Settlement date

Fund Level setup

Table 3-9 Fund Level setup

Fund ID	Transaction Date	Price Lag	Payment Lag
Fund A	T	T+1	T+5
Fund B1	T	T+1	T+5
Fund B2	T	T+1	T+5
Fund C	T	T+1	T+5

In Fund Preference Level, Switch-in Generation Level = Allotment

Pseudo Switch Lag Maintenance

Table 3-10 Pseudo Switch Lag Maintenance

Switch Out Fund	Switch In Fund	Switch Lag Option	Switch Lag	Calendar Basis
FundA	Fund B1	Price Date	0	Fund Calendar
FundA	Fund B2	Price Date	0	Fund Calendar
FundA	Fund C	Settlement Date	0	Fund Calendar

Pseudo Switch in Transaction attributes as follows:

Table 3-11 Pseudo Switch Lag Maintenance

From Fund	To Fund	Transaction	Transaction Date	Price Date	Settlement Date	Fund Holida
Fund A	Fund B1	PS-Out	30-Oct	31-Oct	4-Nov	-
-	-	PS-In	31-Oct	1-Nov	5-Nov	-
Fund A	Fund B2	PS-Out	30-Oct	31-Oct	4-Nov	-
-	-	PS-In	31-Oct	2-Nov	6-Nov	1-Nov
Fund A	Fund C	PS-Out	30-Oct	31-Oct	4-Nov	-
-	-	PS-In	4-Nov	5-Nov	9-Nov	-