3.3 Transaction Processing Procedures

This topic provides information about transaction processing procedures details.

Requesting Transaction

Before you enter a transaction request from an investor into the system, ensure that the following details have been taken care of:

• All required static data maintenance for the branch in which you are accepting the transaction must be in place, including the user profiles.
• The investor that is requesting the transaction must be set up as a valid unit holder in the system, with a Unit Holder ID and a unit holder account.

You can accept and process an IPO or subscription transaction request for an unauthorized unit holder.

Note:

You can accept redemption, transfer and unblock transaction requests from unit holders whose account is pending closure in the system.

• The funds in which the transaction is requested must be authorized funds that are effective in the system as on the date of the transaction.
• The date and time on which you enter the transaction request into the system must be within the Start and End Dates (and Start and End Times) specified for the requested transaction type, in the Transaction Processing Rules.

Maintenance for cheque writing facility

For investors using cheque writing facility, you must ensure that the following have been maintained, before you enter cheque redemption transactions:

• For each unit holder who requests use of the cheque writing facility, it must be specified as allowed, in the account profile, either while creating the account or through an information change.
• The cheque vendors who will print the cheque books for investors using the cheque writing facility, as entities in the system, through the Entity Maintenance. The vendors must also be associated with the funds for which they would print the chequebooks.
• In the System Parameters, you must maintain MMF Check as one of the communication modes through which a transaction request can be entered.
• The rules that will govern the processing of the cheque redemption transactions, for each fund. You maintain these rules in the General Operating Rules for a fund.

For a detailed description of these rules, refer the topic Setting up Fund Rules, in the Fund Setup user guide.

• The details of cheque books requested by unit holders for each fund must be maintained, through the Cheque Book Request screen.
• Interface definitions that will be used to upload details of used cheques from the clearing house, as a bulk file. The upload file contains the number of each cheque that has been issued, as well as the amount on each cheque.
• Interface definitions that would be used to export details of cheque book requests from unit holders to the designated cheque vendors, and to import details of cheque books printed against requests, from the cheque vendors.

You define these interfaces using the Interface Definition facility in the system. You can use the Online Execution of Interfaces menu option to execute these interfaces.

This option would execute each of the following interfaces that you have defined:

• To export details of cheque books requested by unit holders to the designated cheque vendors.
• To import details of cheque books printed by cheque vendors against requests received.
• To trigger automatic generation of cheque redemption transactions based on the information in the upload file sent by the clearing house or bank. You can also manually enter the redemption transactions in the system, in the Transaction Detail screen for Redemption.

Specify Details for Limit Order Transactions

You can enter limit order transactions in the same manner as you would a normal subscription transaction (for a buy order) or a normal redemption transaction (for a sell order), in the corresponding transaction input detail screens. In other words, you can enter a buy order in the Subscription Detail screen, and a sell order in the Redemption Detail screen in the same manner as you would normal subscription and redemption transactions. You must, however, specify the options for the limit orders, in each case.

After you have initiated the transactions in the corresponding transaction input screens, the orders would be executed according to the options you have specified, either automatically by the end of day processes (if allowed for the fund) or after manual confirmation is received (if automatic processing is not allowed for the fund).

Limit orders can be executed whenever the desired price is prevalent within a specified period (price-based) or on a specified future date (date based).

Specify Delivery Options

This feature is only available if your installation has requested for it. To learn how to specify delivery options for a transaction, refer the Annexure.

Specify KYC Documents Details

You can maintain KYC lists for the combination of country type and the investor category. You can check the documents received from the investor while processing a transaction.

System allows you to save with the transaction even if the unitholder has not submitted all the required KYC documents. However, you will not be allowed to perform the completion operation on that transaction unless all the required documents have been received from the investor.

For information on setting up KYC lists, refer the topic Maintaining Reference Information in Reference Information User guide.

This feature is only available if your installation has requested for it.