1.4 Process FCIS IPO Units Override

This topic provides the systematic instruction to override allocated units for IPO transactions.

In the Transaction Processing Rules for a fund, the maximum issue size applicable for IPO transactions in a fund is defined. This limit is a restriction on the total order value for IPO transactions. The IPO allocation process validates whether the maximum issue size limit is exceeded by the total order value.

When the total order value is below the maximum issue size, the number of units allocated for a transaction is the same as the number of units applied, that is, all orders will be fully allocated. When the total order value exceeds the maximum issue size, the orders are allocated based on the ratio of maximum issue size to total order value.

In expression,

Quantity allotted = Quantity applied * (Maximum issue size / Total order value)

For such situations, the system provides an override, where you can specify the allocable units as against the applied units. You can specify this override in the FCIS IPO Units Override screen.

  1. On Home screen, type UTDIPOUO in the text box, and click Next.
    The FCIS IPO Units Override screen is displayed.

    Figure 1-2 FCIS IPO Units Override


    Description of Figure 1-2 follows
    Description of "Figure 1-2 FCIS IPO Units Override"

  2. On FCIS IPO Units Override screen, click New to enter the details.

    The maximum issue size and the default allocable units, for each IPO transaction that is pending allocation in the fund, are displayed.

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

    Table 1-30 FCIS IPO Units Override - Field Description

    Field Description
    Fund ID

    Alphanumeric; 6 Characters; Mandatory

    Specify the fund ID. Alternatively, you can select fund ID from the option list. The list displays all valid fund ID maintained in the system.
    ISIN No

    Display

    The system displays the ISIN number.

    IPO Max. Issue Size

    Display

    The system displays the IPO maximum issue size based on the Fund ID selected.
    Force Recalculation

    Optional

    Check this box to recalculate the IPO units.

    Click OK.

    The system displays the following values:
    • Transaction Number
    • Reference Number
    • Transaction Date
    • Fund ID
    • Unit Holder ID
    • CIF Number
    • Transaction Mode
    • Amount
    • Units
    • Allocable Units
    Overridden Units

    Numeric; 22 Characters; Optional

    Specify the overridden units.
    Override Or Not?

    Optional

    Select this checkbox, and specify the overridden units in the Overridden Units field.

  3. You can only override allocable units in respect of a transaction, when the maximum issue size limit is exceeded subject to the following considerations.
    • The overridden units must be equal to or less than the units applied
    • The sum of overridden IPO units must be less than the maximum issue size specified for IPO transactions for the fund
  4. Select Authorize option in the operation field, to authorize the overridden units.
    The override that you specify in this screen must be authorized.
  5. Select the Force Recalculation box for re-computation of the allocable units, when the original IPO transaction in respect of which units have been overridden is amended and a different transaction value has been specified.

Parent topic: Allocation Process