4.37.1 Reinvestment Processing for Expired Cheques

This topic provides the information about reinvestment processing for expired cheques.

The following Unit holder - Fund dividend payment records will be considered for processing reinvestments:

• The option Auto Reinvestment for Unclaimed cheque is checked
• Partial or complete Unit holder dividend payment has been done by dividend Cheques.
• Dividend Payment Status is A – ACTIVE
• Cheque Date and the Cheque Expiry Period is less than or equal to application date.
• The option Auto Reinvestment for Unclaimed cheque with Zero Balance is checked Or the option Auto Reinvestment for Unclaimed cheque with Zero Balance is unchecked and Unit holder has a balance in the underlying fund.

If all the above mentioned conditions are satisfied, system initiates a reinvestment transaction for the unit holder – Fund combination.

• If Cheque expiry date is a holiday then system picks up this record on the next business day for reinvestment processing.
• Transaction date for this reinvestment transaction will be defaulted with the application date.
• The transaction will be identified with the sub type U – Unclaimed Dividend Reinvestment.
• System will update the check status in Consolidated Cheque Tbl as R – Reinvestment for Unclaimed Cheque once the reinvestment is processed.
• System will not process reinvestments for unclaimed unit holder – dividend payments, where Fund has been closed on or before the check expiry date.