1.1.4 Subscription Allocation

This topic provides the information about subscription allocation.

Select the option Subscription in the Transaction Type of Allocation Detail screen to trigger the allocation of unallotted subscription transactions on a business day.

Select this option to start the following allocations:

• To start the allocation of unallotted subscription transactions on a business day.
• To allocate units in respect of unallotted subscription transactions, which fall within the allocation lag period defined for the fund in which the transaction was put through, in the Transaction Processing Rules.
• To start the allocation process to allocate units in respect of subscription check payment transactions, in funds wherein the allocation of check payment transactions is not treated on par with cash payment transactions.
• To allocate such transactions for which the check has been cleared on the application date, and the clearing status has been updated and authorized as cleared, on the application date.
• To start the allocation of investment (both initial and additional investment) IRA transactions into the fund.

While allocating subscription transactions, the system will pick the exchange rate defined by you in the Exchange Rate Maintenance Detail screen for the FX Deal Date and FX Value Date combination. If this combination is unavailable, the allocation will fall through. However, for allocation projection, the system will use the FX Spot Rate.

For example, assume that on January 19, 2010, a user has input both spot and forward rates for January 20, January 21 and January 22, 2010. If the FX Deal date for the transaction is January 19, 2010 and the FX Value Date is January 21, 2010, then for both allocation and projection the exchange rate with deal date as 19 January and value date as 21 January will be used.

If a transaction has FX Deal date as January 19, 2010 and FX Value Date as January 23, 2010, the allocation will not happen since the exchange rate for the combination is not available in the system. However, the allocation projection will use the spot rate (FX Deal and FX Value dates as on January 19, 2010).

Refer Workflow of Allocation Process for executing the allocation process.

For more information on Subscription allocation, refer to the field description table.

Table 1-3 Subscription Allocation

Subscription Allocation	Description
Certificate details	If the fund is scrip-based or if the unit holder requests for certificates in case of certificate optional funds, then the Certificate Numbers are also allotted for the subscription transaction. The certificates are issued based on the certificate denomination details defined in the Shares Characteristics, or as required by the unit holder. DNR numbers are also allotted for the generated certificates in case of non-fractional funds.
Amended subscription transactions	If the fund is scrip-based or if the unit holder requests for certificates in case of certificate optional funds, then the Certificate Numbers are also allotted for the subscription transaction. The certificates are issued based on the certificate denomination details defined in the Shares Characteristics, or as required by the unit holder. DNR numbers are also allotted for the generated certificates in case of non-fractional funds.
Reflection of allocated units in the system database	If the subscription transaction is successfully allocated through this option, the changes are reflected in the following data stores in the database: The unit holder’s balance in the fund The unit holder counter updating for subscription transactions for the fund The fund transaction counter updating for subscription transactions The outstanding units for the fund Loads (fee/incentive) between the various entities (fund manager - broker, unit holder, agent, and so forth) are logged Fund certificate details updating, if the transaction is script based If any of these counter limits is exceeded or if any of the fund rules set up at the Fund Manager are violated then an error is logged against the subscription transaction. Confirmation of the subscription transaction is made after the allocation is successfully completed.

Note:

Only reversal is allowed for certificate based subscription transaction.