1.6.2 Process

This topic provides the instructions to process the redemption transaction.

Workflow

You enter into a subscription transaction. The units are provisionally allotted to you. You would like to carry out a redemption transaction.

The following is the workflow:

• The redemption transaction is linked to the provisionally allotted subscription transaction.
• Payment Clearing needs to be carried out. The payment can be accepted or rejected.

Case 1 – If payment is rejected:

If payment is rejected, the following will happen:

• The parent subscription transaction will be reversed. All outflow transactions (that can be reversed) linked to the parent subscription will be reversed automatically.
• New unallotted redemption transactions will be generated. These will be allocated and linked to other subscription transactions based on the Ageing Rule defined in the General Operating Rules screen.

Case 2 – If payment is accepted:

If payment is accepted, all linked redemption transactions will be confirmed.

Note:

For a pseudo switch Redemption, the unsettled subscription leg of transaction will have to be manually cleared or rejected.