3.6.3 Processing Dilution Levy

This topic provides information about processing dilution levy details.

The Inflow breach factor for IN transactions and Outflow breach factor for OUT transactions are considered for arriving at the fund inflow/outflow dilution levy breach limit (Fund Corpus * Inflow / Outflow Breach Factor < Net Amount in FBC) for the day. For validating the dilution limit breach, a project allocation is done with the available price for the transaction and thereby the net amount of that transaction is calculated.

Dilution levy is validated against the gross transaction amount. If gross transaction amount is is greater than the dilution levy breach limit, then a warning message is displayed by the system as follows:

The transaction exceeds the dilution levy breach limit .

Dilution levy value can be overridden. The overridden value is considered only if the transaction is breaching the dilution levy limit amount. If a transaction is saved and if there are overrides while saving such a transaction, then the following warning message is displayed by the system.

Transactions are saved with overrides.