4.9.1 Maintaining Global Order

This topic provides information about the maintaining global order details.

Global Order (GO) is a process where a distributor bulks their investor’s transactions including Subscriptions, Redemptions and send to the Asset Management Companies or to the Fund

Houses as a single Transaction for processing before the funds cut-off time on daily basis. The distributors generally will have an identification number with the fund houses or AMC’s which is called as Nominee Account Number. On receipt of a bulk order or GO from the distributor, the fund house will confirm the units allotted to this distributor or to the Nominee Account. On receipt of confirmation from fund house, distributor will then confirm the global order at his end. If there is any discrepancy in global order, then global order will go through a reconciliation mechanism to address the difference. Once the discrepancy, if any, is resolved, distributor will allocate units to underlying unit holders.

The GO will be grouped according to Fund, transaction type (subscription and redemption), transaction mode (units/amount), Transaction Category (Advised, Execution and Legacy), Account type, Indicator (gross/Net) and transaction date. This is applicable for daily price funds. For non daily price funds, the system will generate separate GO which will not include Transaction date in grouping.