2.53 SIP/ SWP/ STP Rules

This topic provides the information on SIP/ SWP/ STP Rules.

Maintaining Systematic Plans

FCIS allows you to meet the following requirements related to rules for systematic plans:
  • Multiple frequencies for SIP/ SWP/ STP
  • Min / Max SI amount per frequency and automatic cancellation after n failures
  • Minimum number of SIP/ SWP/ STP to be committed per frequency
  • Validation of holdings for SWP/ STP setup
  • Automatic cancellation after last installment in SWP/ STP
The multiple frequencies provided for SI at Fund level are as mentioned below:
Frequency Available values for each frequency Explanation
Weekly (A)

1,8,15,22

2,10,20,28

3,6,16,27

4,7,18,29

5,10,15,20

 You need to select any 4 dates from 1 to 31. There would be 5 such sets of dates at fund level.

While capturing SI, you can select any of the sets available at the fund level and map it to the unitholder.
Weekly (B) Sun/Mon/Tue/ Wed/Thu/Fri/Sat

At the fund rules level, there are a set of values from Sunday to Saturday. Fund would map any day(s) as applicable.

While capturing SI, you would be able to select any day from the set available at Fund level.
Fortnightly

1,22

2,28

3,27

4,29

5,20

You can select any 2 dates from 1 to 31. There would be 5 such sets of dates at fund level.

While capturing SI, you can select any of the sets available at Fund level.
Monthly Any date of month

User would choose any date(s) from 1 to 31.

While capturing SI, user would select any of the date from the allowed dates at fund level.
Quarterly Any date of month

You can choose any date(s) from 1 to 31.

While capturing SI, you can select any of the date from the allowed dates at fund level. If the first SI is to generate on 18th Jan, the next generation would happen on 18th April.

Note:

Only one of the weekly frequencies is applicable to a fund i.e. either date based or week based.

You are allowed to capture minimum amount, maximum amount and minimum balance of SI for each frequency and transaction type. Example, for SIP of weekly frequency, the minimum amount is Rs. 500 and maximum amount is Rs. 1000.The SI setup validates the SI for the amount captured at the frequency level.

The System should automatically cancels SIP/ SWP/ STP after 3 ( parameterized value) continuous failures. Also, minimum balance in amount is captured for every frequency. At the time of setting up SWP and STP, the system validates this amount against the amount by multiplying the balance and the latest NAV. The STP validation is applicable in the fund from which STP is done.

Oracle® FLEXCUBE Investor Servicing also allows you to capture the minimum number of SI at frequency level. SI setup is allowed until the criteria for minimum number of SI is met. The start date and end date of the SI is generated depending on the SI rules.

For example,

UH can invest in monthly frequency – SI dates are 2nd or 10th of a month

UH can invest in quarterly frequency – SI dates are 3rd or 15th of a month

Minimum number of installments for monthly frequency is 6 and for quarterly frequency is 2.

Assuming that a unit holder decides to invest in monthly SIP and selects 10th as the SIP date. The application is submitted on 9th Jan and UH gives 6 instructions. The SI setup is allowed because criteria for 6 SI’s are met. Also the start date and end date is defaulted to 10th Jan and 10th Jun respectively.

In case SWP/ STP results in lesser amount being confirmed back by RTA (a case where no further balance is available), the SWP/ STP is automatically canceled.