3.5 Process Fund Switch Restrict Detail

This topic provides the instructions to invoke fund switch restrict detail screen details.

Switch transactions are governed by the switching policy indicated for the AMC. Accordingly, switch transactions could either be allowed between funds within the AMC, or between funds within the same fund family.

In the case of Distributors, no switching logic might be indicated.

For a fund, you might require to disallow switch transactions into a few selected funds (a restrictive list); or, you might require maintaining a list of funds into which switch transactions are allowed (a positive list).

Typically, a restrictive list could be required if the switching logic indicated for the AMC entails no restrictions on switch transactions.

You can maintain such restrictive or positive lists for a fund in the Fund Switch Restrict Detail screen.

  1. On Home screen, type UTDFNSWR in the text box and click Next.
  2. Select New from the Actions menu in the Application tool bar or click New icon to enter the details of the lists on switch transactions.
    The Fund Switch Restrict Detail screen is displayed.

    Figure 3-5 Fund Switch Restrict Detail


    Description of Figure 3-5 follows
    Description of "Figure 3-5 Fund Switch Restrict Detail"

    Before you maintain switch restrictions in the Fund Switch Restrictions screen, you must ensure that,

    • The switching logic for the AMC has been maintained, in the Single Entity Maintenance.
    • Authorized fund rules have been maintained for the requisite funds.

    Maintenance of switch restrictions is not a fund rule, and can be done after the fund rules have been maintained.

    Note:

    For a fund, you cannot maintain both a positive as well as a restrictive list.

    For more information on fields in the screen, refer the below table.

    Table 3-3 Fund Switch Restrict Detail - Switch Restriction

    Field Description
    Restriction Level Optional

    Select the Restriction Level from the drop-down list. The list displays the following values:

    • Fund
    • Fund Family
    • Legal Entity
    • Fund Type
    Entity ID Alphanumeric; 12 Characters; Mandatory

    Specify the Entity ID. Alternatively, you can select the Entity ID form the option list. The list displays all valid entity ID maintained in the system.

    Entity Name Display

    The system displays the entity name for the selected Entity ID.

    Restrictive List Mandatory

    For a fund, you might require to disallow switch transactions into a few selected funds (a restrictive list); or, you might require maintaining a list of funds into which switch transactions are allowed (a positive list)

    You can indicate that you are maintaining a restrictive list, by choosing Yes from the drop down list. To indicate that the list is a positive list, choose No from the drop-down list.

    If you indicate a restrictive list, switch transactions into any of the selected funds in the list will not be allowed. If you indicate a positive list, switch transactions are allowed only into any of the selected funds in the list. For a fund, only a restrictive list OR a positive list can be maintained, not both.

    Limit Restrictive List To Mandatory

    If you have indicated a restrictive list, you can indicate the range of funds for which the restrictive list applies from the drop-down list. The list displays the following values:

    • No Restriction
    • Fund Family
    • AMC
    • Legal Entity
    • Units Classification

    Indicating the range of funds in this field is dependant on the switching logic applicable for the AMC (also in the case of Distributors), as given below:

    • If the restrictions are being maintained for a Distributor, and no restrictions have been indicated for switch transactions, you can indicate whether the restricted list would be applicable for switch transactions involving:
      • All funds (select No Restrictions in this field)
      • Funds within the same AMC
      • Funds within the same fund family
      • Legal Entity
      • Units Classification
    • If the switching logic for the AMC is Switch Within Funds of AMC, the Within AMC option is selected in this field and cannot be changed. The restrictive list will only be applicable for funds within the AMC.
    • If the switching logic for the AMC is Switch Within Funds of Fund Family, the Within Fund Family option is selected in this field and cannot be changed. The restrictive list will only be applicable for funds within the same fund family.

    This field is not applicable for positive lists; the switching logic of the AMC is defaulted here and cannot be changed.

    Units Classification Alphanumeric; 1 Character; Optional

    Specify the Units Classification details. Alternatively, you can select Units Classification code from the option list. The list displays all valid unit classification code maintained in the system.

    Units Classification Description Alphanumeric; 60 Characters; Optional

    Specify the Units Classification Description.

    To Entity Alphanumeric; 12 Characters; Mandatory

    Select the To Entity ID into which switch transactions from the selected From Fund are disallowed (if you are maintaining a restrictive list) or allowed (if you are maintaining a positive list). When the restrictive / positive list is applied, the fund you select here is considered the To Fund.

    To select the Fund, you can either indicate the Fund ID or the ISIN Code of the fund. When you select the Fund, the short name of the fund is also displayed.

    The funds available for selection in this field depend on the option selected in the Limit Restricted Funds To field:

    • If the No Restriction option has been chosen, all valid funds in the system are available for selection in this field.
    • If Within AMC has been chosen, all funds belonging to the AMC of the from fund are available for selection
    • If Within Fund Family has been chosen, all funds belonging to the fund family of the ‘from fund’ are available for selection
    To Entity Name Display

    The system displays the To Entity Name for the selected To Entity ID.

    To Fund Units Classification Alphanumeric; 1 Character; Optional

    Specify the To Funds Units Classification details. Alternatively, you can select To Funds Units Classification from the option list. The list displays all valid To fund units classification code maintained in the system.

    Units Classification Description Alphanumeric; 60 Characters; Optional

    Specify the Units Classification Description.

    How Restricted/Positive Lists Work

    The following example illustrates how restricted lists for switch transactions would be applied.

    Example

    For the Royal Trust AMC, no restrictions for switch transactions have been indicated in the switching logic (the Switching Logic in the Entity Maintenance is No Restrictions). The following funds are maintained:

    Table 3-4 Fund Family details

    Fund AMC Fund Family
    Fund 1 Royal Trust AMC Growth Funds
    Fund 2 Carling Finance AMC Equity Funds
    Fund 3 Elton Trueblood AMC Equity Funds
    Fund 4 Carling Finance AMC Growth Funds
    Fund 5 Carling Finance AMC Equity Funds

    The switch restriction lists are maintained as follows:

    Table 3-5 Switch Restriction Lists

    Fund Restrictive / Positive List Fund Family Restricted / Allowed Funds
    Fund 1 Restrictive No Restrictions Fund 2 (Restricted)
    Fund 2 Restrictive Within AMC Fund 4 (Restricted)
    Fund 3 Restrictive Within Fund Family Fund 5 (Restricted)
    Fund 4 Positive No Restrictions Fund 1 (Allowed)

    Table 3-6 Switch Restriction Lists

    From Fund To Funds Allowed To Funds Disallowed
    Fund 1 All funds except Fund 2 Fund 2
    Fund 2 Fund 5 Fund 4
    Fund 3 Fund 2 Fund 5
    Fund 4 Fund 1 All funds except Fund 1

Parent topic: Other Fund Activities