4.41.3 Process Transactions Logic

This topic provides the information about Processing Transactions Logic.

In case of expiry of the risk profile of unit holder, the system will execute standing instruction for switch into target fund (To fund) whose risk rating is low. In case of High or Medium risk rated fund the standing instruction into such funds will fail.

If the risk profile of unit holder is expired, then the system will execute standing instruction for switch-from target (to fund) to source fund (from fund) whose risk rating is low. In case of High or Medium risk rated source funds the auto-switch will fail.

Pseudo switch transactions generated as part of SI will have a new ref type in system as 44

If SI from source to target fund fails consecutively for defined count in SI Auto-Termination Consecutive Counter, the system will automatically terminate the switch SI mandates. The auto switch back will remain valid and system will continue to check the yield until the transaction is disabled for yield check from Disable Auto Switch (UTDAUSWB) screen.

You can maintain SI Auto-Termination Consecutive Counter at fund/transaction type level or SI level only.

The system displays the total number of consecutive failures till date in ‘Number of Consecutive Failure’ field in ‘SI Maintenance’ (UTDSIN) screen. The system will also log any failures in auto switch back transaction with reason for failure.

In case of a partial redemption on any switch transactions of Target fund, the residual units remain to be covered in the scheme for comparison and will be switched back to Source fund when the yield is reached.

You can reverse switch from ‘Source to target’ and vice-versa based on the availability of units. For instance, if the units in the target fund are either blocked or redeemed and there are no free units available, then the system will not allow the reversal from source to target/ target to source.

For Pseudo switch, you can reverse from transaction screen for Switch (UTDTXN04).

The reversal will be carried out separately for in leg and out leg. You can reverse switch from source to target.The system will not validate the availability of units in target fund Switch in reversal provided the switch in is not linked to any outflow.

The switch in date of the target yield switch (F2) can be different from switch out date.

In case of fund merge/ liquidation/ split/ reverse split/ transfer in the Source fund and / or Target fund, the system can terminate the affected funds in the scheme

Fees are NLTP.

In case of cross currency transactions, the system will use the latest FX rate maintained in UTDEXCRM (Exchange Rate Maintenance) for arriving at the amount.

In case of non daily priced funds, the switch out and switch in funds will follow respective calendars and maintenances setup and transactions will be generated accordingly

Changing any parameter (manually or by system defaulting) related to SI can result in an SI generation or auto switch back failure. For instance, Investor risk level or fund risk level will be validated as part of SI maintenance. Assume that you reduce the investor risk level to low after SI maintenance, In this case, during SI generation when system again validates the investor risk level and fund risk level, it will not fall in the eligible criteria and transaction generation will fail.