4.1 Process Product Load Maintenance Detail

This topic provides the systematic instructions to designate different fees or incentives that are levied during the processing of transactions, as applicable for transactions in specific products.

Fees or incentives, called loads in the system, may be mapped as applicable to the appropriate transaction types for the appropriate products. The load details maintained will be attached to the products using this maintenance screen.

  1. On Home screen, type LEDPRLD in the text box, and click Next.
    The Product Load Maintenance Detail screen is displayed.

    Figure 4-1 Product Load Maintenance Detail



  2. On Product Load Maintenance Detail screen, click New to enter the details.
    For more information on fields, refer to the field description table.

    Table 4-1 Product Load Maintenance Detail - Field Description

    Field Description
    Product ID

    Alphanumeric; 10 Characters; Mandatory

    Select the product for which the Product Load mapping is being set up. The option list displays all the authorized products maintained in the system.

    Product Name

    Display

    Upon selection of the product ID, the system displays the name of the selected product.

    Rule Effective Date

    Date Format; Mandatory

    Specify the date from when the Product Load mapping that is currently being set up should become effective.

    The Rule Effective Date should be later than (or same as) the Fund Start Date and it should also be later than (or same as) the current application date of the system.

    Latest Rule

    Display

    The system displays the latest rule to be applied.

    Product Load Details Section

    This section displays the following fields.

    Seq No

    Alphanumeric; 5 Characters; Mandatory

    Enter the sequence number.

    Transaction Type

    Alphanumeric; 2 Characters; Mandatory

    This is to indicate the transaction type for which the loads are being defined. Select the Transaction Type from the list given in the drop-down menu.

    Transaction Name

    Display

    Upon selection of the transaction type, the name of the selected transaction gets populated automatically.

    Load ID

    Numeric; 5 Characters; Optional

    Select the ID of the load that must be applied for the selected product.

    Load Description

    Display

    Upon selection of the load ID, the description of the selected load gets populated automatically.

    From Entity Type

    Alphanumeric; 1 Character; Mandatory

    Specify the entity that bears this load. Select the Entity Type from the option list.

    The following list are provided in the option list:
    • AMC
    • Agent
    • Broker
    • Distributor
    • Fund
    • Registrar
    • Trustee
    • Unit Holder
    Description

    Display

    Upon selection of the From Entity Type, the description of the selected From Entity Type gets populated automatically.

    To Entity Type

    Alphanumeric; 1 Character; Optional

    Specify the entity that will be recipients of the load. Select the Entity Type from the option

    The following list are provided in the option list:
    • AMC
    • Agent
    • Broker
    • Distributor
    • Fund
    • Registrar
    • Trustee
    • Unit Holder
    • Cash Management Account
    Description

    Display

    Upon selection of the To Entity Type, the description of the selected To Entity Type gets populated automatically.

    Refer to the topic Policy of this LEP User Manual for more information on how the Cash Management Account is used in the recovery of fees and annuity.

    Load To Price

    Optional

    Indicate whether this load is to be loaded to the base price or not from the drop-down list. The list displays the following values:
    • Yes
    • No
    Processing Frequency

    Mandatory

    Select the frequency at which this load is to be applied from the drop-down list. The list displays the following values:
    • Allocation: This will mean that you will be charging the investor a fee or giving an incentive at the time of allocation of units. Allocation time loads cannot be designated for any transaction types other than IPO, subscription, redemption, and switch.
    • Post Allocation: This frequency is applicable typically to the Capital Gains Tax, which may be applied after allocation, on the gross amount. If indexation is applicable to capital gains tax computation based on this load, then you must select this frequency.
    Apply To Product

    Mandatory

    You can apply the load at the product level by selecting Yes. If load is applied at the product level, then the load is computed based on the policy transaction amount.

    If you select No, the load will be computed based on the fund transaction amount.

    Note: Apply to Product is applicable only for NLTP loads. This optional is not applicable for Switch – In transactions and LEP interest transactions.

    Use Other Details section in the Product Load Maintenance Detail screen to set up the other load maintenance details for a product.

    You can process this screen by clicking the Show Details button from the Product Load Maintenance Detail screen.

    No of Decimals

    Numeric; 1 Character; Optional

    Indicate the maximum number of decimals that would be reckoned for rounding precision, for the load amount.

    Round Off/Truncate

    Optional

    Indicate the rounding options for the load amount for the selected transaction type, for the product.
    • Choose Round Up to indicate rounding the value at the precision decimal place to the next higher numeral.
    • Choose Round Off to indicate normal rounding at the precision decimal.
    • Choose Round Down to indicate truncation of the value at the precision decimal place.
    VAT Applicable

    Mandatory

    Select Yes from drop-down list to indicate that the Load to Price is applicable. Therefore VAT Load to Price is dependent on Load to Price.

    Slab Basis

    Alphanumeric; 1 Character; Optional

    Indicate the basis on which the slabs will be reckoned for an amount-based load that you are designating as applicable for the product. You can indicate that the slabs must be reckoned on either a gross amount or a net amount.

    Price Add In

    Mandatory

    Select this option to indicate that the add-in factor is to be applicable for computing the return value for the load, for the selected transaction type.

    The add-in factor is used to arrive at the return value for a load, at the time of allocation.

    Level ID

    Numeric; 22 Characters; Optional

    Indicate the order in which the load is to be applied. Load is computed based on the policy transaction amount and applied in the order of level id specified.

    Note: Level ID is not applicable for LTP loads.

    Dependent Level

    Numeric; 22 Characters; Optional

    Indicate the dependent level for the selected load, if any.

    In case the load has a dependent level, then load will be applied on the difference between the transaction amount and the sum of all dependent level load amounts, without considering all recursive levels.

    Note: The dependent level Id must be less than the Level Id. The dependent level ID is not applicable for LTP loads.

    Other Details

    This section displays the following fields.

    Ref Type

    Alphanumeric; 4 Characters; Mandatory

    To designate a load as being applicable for a reference transaction type for the selected product, select the reference type from the option list.

    Note: It must be remembered that, while mapping a load to a reference transaction type, the system does not support the mapping of Switch–In and LEP Interest transaction types.

    Description

    Display

    Upon selection of Ref Type, the description of the selected reference type gets populated automatically.

    Fund Details Section

    This section displays the following fields.

    Fund ID

    Alphanumeric; 6 Characters; Mandatory

    Specify the fund ID. The adjoining option list displays all valid fund ids maintained in the system, You can chose the appropriate one.

    Fund Name

    Display

    Upon selection of Fund ID, the description of the selected fund id gets populated automatically.