2.1.14 Specific Fund Price Date

This topic provides information on specific fund price date button.

The price (Real NAV) applicable for a fund is declared on a daily basis by the Fund Manager. On any business day, the transactions that are entered are picked up and allocated by the End of Day process using the Real NAV declared for that business day.

You can also set up a specific date on which all transactions entered during a period can be allocated, using the price as on that date. This specific date can be maintained for each transaction type mapped to a fund. A specific pricing frequency can also be set up for the application of the specific pricing date.

Example

For the Carey Bugle Memorial Fund, a specific price date has been maintained for IPO and subscription transactions, which is the 15th January 2002. The specific pricing is to be applied on a monthly frequency basis, the first specific price date being 15th January 2002. The declared price on this date is 12.45 for IPO, and 12.34 for subscription.

All IPO and subscription transactions that have been entered into the Carey Bugle Fund from the 1st January 2002 till the 15th January 2002 will be allocated on 15th January 2002, using the prices 12.45 and 12.34 respectively.

Any IPO or subscription transactions entered between 1st January and 15th can be redeemed by the concerned unit holders only after 15th January.

The next specific pricing date for IPO and subscription transactions will be 15th February 2002, (the pricing frequency being monthly), and all IPO and subscription transactions entered between 16th January 2002 and 15th February 2002 will be allocated on this date.

Note:

If specific pricing has been defined for a fund, the specific pricing parameters would take precedence over the pricing method and frequency defined in the General Operating Rules for the fund.

To set up specific price dates for any transaction types mapped to a fund, use the Specific Fund Price Date Setup screen.

  1. Click Specific Fund Price Date button from the Fund Rules Detail screen
    The Specific Fund Price Date screen is displayed.

    Figure 2-32 Specific Fund Price Date


    Description of Figure 2-32 follows
    Description of "Figure 2-32 Specific Fund Price Date"

    Setting up the specific price date is an optional fund rule, and may be edited, authorized or amended just as the other fund rules.

    For a fund, you can specify whether specific prices are to be applicable:

    • With the first specific price date being the rule effective date (application date). In such a case, specific pricing date parameters can be defined for individual transaction types, in the main Specific Fund Price Date screen.
    • With the first specific price date being a date in the future (forward pricing). This option can be set only for post-priced funds, and the specific pricing date parameters so specified will be applicable for all transaction types. In such a case, specific pricing date parameters cannot be defined for individual transaction types.
  2. On Specific Fund Price Date screen, specify the fields.
    For more information on fields in the screen, refer the below table.

    Table 2-56 Specific Fund Price Date

    Field Description
    Fund ID Display

    This field indicates the ID fund for which you are setting up the Specific Price Date rule. This information is defaulted from the Fund Demographics screen.
    Rule Effective Date Display

    The Rule Effective Date for the fund, which you specified in the Fund Rules Detail screen, is displayed here.
    Price Frequency Mandatory

    Select the frequency at which the pricing dates will occur, from the options in the drop-down list.

    • Daily
    • Weekly
    • Fortnightly
    • Monthly
    • Quarterly
    • Half-Yearly
    • Yearly

    If you choose an option other than daily, you must define the frequency of pricing for the fund in Pricing Frequency Definition screen. The frequency of fund-price input and allocations will happen on dates based on the definitions in Pricing Frequency Definition screen
    Forward Pricing Applicable Mandatory

    You can use this field to indicate whether forward specific pricing is applicable for the fund. To select this option, choose Yes from drop-down list.

    When you opt for forward pricing, you should choose the User Defined option for Price Frequency and define the price dates in the Details section in the Pricing Frequency Definition screen. You may, if you choose, also maintain a Cut-off frequency.

    If forward pricing is applicable, then you must also indicate the parameters given below in addition to the pricing frequency and the holiday rule:

    • Whether the pricing frequency is applied based on the system calendar, fund calendar or actual calendar
    • The specific day on which the price would be made available

    Note: Forward specific pricing can be indicated only for post-priced funds.

    Calendar Basis Optional

    In this field you can indicate whether the pricing frequency takes into consideration the fund calendar, system calendar or the actual calendar. Select the desired option from the drop down list.
    Forward Pricing Applicable

    Select Yes from drop-down list if forward pricing is applicable. Else select No. If you indicate forward pricing is not allowed, you will be able to view the fields in the screen given above. You must specify the following information in the Details section to set up a specific pricing date.

    Price Day Optional

    Select the specific date on which the price used for allocation is declared from the drop-down list. Consequent to this first price date, the system will arrive at the next price date by taking into consideration the price frequency.

    The date specified here must be the Rule Effective Date. Future dates cannot be specified.
    Price Month Optional

    Select the month when the price is to be user input from the drop-down list.
    Price Week Optional

    Select the month when the price is to be user input from the drop-down list.

    Price Frequency Definition Alphanumeric; 1 Character; Optional

    Specify the frequency at which the pricing dates will occur. The adjoining option list displays the valid price frequency definition codes maintained in the system. You can choose the appropriate one. In the option list you will find information on price frequency and the price frequency definition.

    The system displays the description the adjacent field.
    Auto Generation Of Fund Prices Optional

    Choose one of the following options for automatic fund price generation from the drop-down list:

    • Auto Generate Fund Prices using the last available price and authorize the same.
    • Auto Generate Fund Prices using the last available price, but do not authorize the same.
    • Do not Auto Generate Fund Prices.

    The unauthorized auto generated fund prices which are generated by Auto Generate Fund Prices using the last available price but do not authorize the same option will be allowed to modify the price details in Fund Price maintenance screen. The maker id for this fund price record will be the user id who is modifying the record. User can be allowed to modify the same maintenance more than once even after authorization.

    Note: As mentioned earlier, if specific pricing has been defined for a fund, the specific pricing parameters would take precedence over the pricing method and frequency defined in the General Operating Rules for the fund. Also, the prices for funds with specific pricing are only picked up on the specific pricing date (the Price Day).

    For such funds, you may require fund price information on all working days of the selected calendar (fund or system), even though the price is picked up for transactions only on the specific pricing date. You can indicate automatic generation of fund prices, for such funds. When you indicate automatic generation of fund prices, the system uses the last available price for the fund, and automatically generates the fund price for each working day.

    You can specify the required option for automatic generation of prices, in the Auto Generation of Fund Prices field.

    Note:
    • Automatic generation of fund prices is available only for funds with specific pricing
    • Automatic generation of fund prices takes place only for those funds with specific pricing, for which the specific pricing frequency is any frequency other than Daily.

    Table 2-57 Specific Fund Price Date - Details

    Field Description
    Transaction Type Alphanumeric; 2 Characters; Mandatory

    Select the type of transaction for which the specific pricing date is applicable, for the fund.
    First Price Date Date Format; Mandatory

    Indicate the specific date on which the price used for allocation is declared. Consequent to this first price date, the system will arrive at the next price date by taking into consideration the price frequency.

    The date you specify here should be the same as the Rule Effective Date.

    If you wish to specify the first price date as a future date, then you must indicate forward pricing.
    Holiday Rule Mandatory

    In the event of the price date being a holiday in the system, indicate whether the next or previous working day is to be considered as the price date.

    If the next working day is to be considered, select Next Day from the drop-down list. If the previous working day is to be considered, select Previous Day from the drop-down list.

    Dealing Lag (In Days) Numeric; 22 Characters; Optional

    Indicate the lag period (in days) for the dealing date. The lag value is interpreted in fund calendar days, and is used to arrive at the dealing date for the fund price.

    Dealing date is the number of business days (based on the fund calendar) prior to/after the price date of the fund.
    Dealing Rule Optional

    Select the dealing rule from the drop-down list to be applied while deriving the dealing date. Dealing date for a transaction is derived based on the forward or backward lag with regard to the fund price date.

    If the dealing rule is After, then the dealing lag will be added to the price date. If the dealing rule is Prior, then the dealing lag will be deducted from the price date.

    Cut-Off Day Numeric; 22 Characters; Optional

    You may choose to maintain cut-off dates for funds to facilitate ease of operation.
    Cut-Off Week Numeric; 22 Characters; Optional

    Specify the cut-off week for funds

    Cut-Off Month Numeric; 22 Characters; Optional

    Specify the cut-off month for funds
    Cut-Off Frequency Optional

    Select the transaction cut-off date options for different frequencies, from the options in the drop down list.

    • Daily- Based on Price Date
    • Weekly
    • Fortnightly
    • Monthly
    • Quarterly
    • Half-Yearly
    • Yearly
    Cut-Off Frequency Definition Optional

    Specify the frequency at which the cut-off should take place by choosing one of the following from the drop-down list:

    • Based on Week and Weekend
    • Based on Month Day
    Trading at cut off applicable Optional

    Select if trading at cut off is applicable or not from the drop-down list. The list displays the following values:

    • Yes
    • No

    If you select Yes, the system will derive the transaction date as single date in the specified pricing frequency. You will not be able to change transaction date/Order received date and time post authorization.

    If you select No, the system will derive the transaction date entered in the system. The Price Date will be derived using the transaction date and based on fund pricing rules that will remain unchanged.

    Trade cut off holiday rule Optional

    Select the trade cut off holiday rule from the drop-down list. The list displays the following values:

    • Previous Day
    Trade cut off calender basis Optional

    Select the trade cut off calendar basis from the drop-down list. The list displays the following values:

    • Actual Calendar
    • System Calendar
    • Fund Calendar

    Table 2-58 Specific Fund Price Date - User Defined Price Date

    Field Description
    Price Date Date Format; Mandatory

    If you choose the option User Defined, you should specify the price dates.

    You can specify the Price Dates in the Details section by clicking on the option list. This is enabled only when the Pricing Frequency Definition option is User Defined.

    In all cases, if the next price date falls on a holiday, the holiday rule set for the specific date setup is applied to arrive at the next price date.

    You can also specify the last day of the cycle (month, quarter, half-year or year) as the price date. To do this, check the option Based on last specified day of the cycle. Prices are made available on the last day of the cycle that you specify. You can specify any weekday from Sunday to Saturday as the last day. For instance, if you have specified a monthly frequency, enabled the Based on last specified day of the cycle option, and specified Sunday as the last day, prices are made available on the last Sunday of each month.

    Note: The prices that are generated will be used for reporting only. You will however, be allowed to Edit/Amend the Unauthorized/Authorized fund price that is generated if any Adhoc Price Dates are maintained that day.

Parent topic: Fund Rule