2.1.6.2 Automatic Redemption Preferences

This topic provides information on automatic redemption preferences tab of general operating rules screen.

If the fund is to have automatic redemption of units of the unit holder based on the threshold balance, the preferences and guidelines may be laid down in this section.

  1. Click on Automatic Redemption Preferences tab in General Operating Rules screen to specify the details.
    The Automatic Redemption Preferences details are displayed in General Operating Rules screen.

    Figure 2-7 Automatic Redemption Preferences


    Description of Figure 2-7 follows
    Description of "Figure 2-7 Automatic Redemption Preferences"

    For more information on fields in the screen, refer the below table.

    Table 2-11 Automatic Redemption Preferences

    Field Description
    Automatic Redemption Allowed? Mandatory

    Select Yes from drop-down list to indicate that Automatic Redemption is to be allowed for the fund. This is applicable only for Open Ended funds. When the balance the unit holder falls below a defined minimum level, then the investor will be intimated about it and will be provided with some lead-time to either increase the balance above the minimum level or redeem all his units. After the elapsed lead- time, if the unit holder balance still lies below the defined minimum level, then the automatic redemption of those units will be done.

    If automatic redemption is allowed for the fund, and this box is checked, the following fields are enabled:
    Elapsed Days Numeric; 22 Characters; Optional

    Enter the number of days from the date of intimation after which Automatic Redemption will be initiated. This is the lead-time provided to the investor.
    Minimum Balance Numeric; 30 Characters; Optional

    Enter the minimum balance (in amounts / units based on what balance type has been specified above) to be maintained for Automatic Redemption.
    Minimum Balance Type Optional

    Select the type of Minimum balance to be maintained for Automatic Redemption from the drop-down list. The list displays the following values:

    • Amount
    • Units

Parent topic: General Operating Rules