5.7.1 Process Redemption Transactions against Unblocked Amounts

This topic provides information on processing Redemption Transactions against Unblocked Amounts.

FCIS provides the facility of redeeming the resulting units for a unit holder when an unblock amount transaction is put through against a Block ID.

When you enter an unblock transaction for a unit holder against a Block ID, you can also specify the fund from which the units may be redeemed when the unblock transaction is authorized and allocated.

Note:

In an amount unblock transaction, the amount unblocked could be unblocked against a Block ID, across all the funds in which the amount was blocked. The redemption against this unblock amount can only be initiated in a single specified fund.

To enable the redemption of units in this way,

When you enter the unblock transaction in the Adjustment Unblock Amount Transaction screen against a Block ID, specify the fund in which the redemption must occur for the unit holder.

Specify the details of payment for the redemption transaction, in the Payment Details section.

When the amount unblock transaction is authorized on the date of entry, a redemption transaction for the unblocked amount is initiated in the system for the specified unit holder, in the specified fund. The date of this redemption transaction is the date of authorization of the amount unblock transaction.

Note:

If the amount unblock transaction is a future-dated transaction, the redemption transaction would be initiated by a Beginning of Day (BOD) process on the transaction date. The date for the redemption transaction would then be the transaction date of the amount unblock transaction.

The redemption transaction is allocated by the End of Day (EOD) process on the redemption transaction date. The NAV considered for the allocation is the prevalent NAV on the redemption transaction date.

When an unblock escalation occurs, a redemption transaction is inserted for the unblocked amount by the BOD process on the date of escalation, and allocated by the EOD process on the date of escalation. The NAV considered for the allocation is the prevalent NAV on the date of escalation.