3.8.3.1 Dilution Levy Processing

This topic provides information on Dilution Levy processing.

To arrive at the dilution levy breach limit the outflow breach factor is considered. (Fund Corpus * Outflow Breach Factor < Net Amount in FBC). Dilution Levy limit breach is validated against the gross transaction amount. If the gross transaction amount exceeds the dilution levy breach limit, then a warning message is displayed by the system. The dilution levy breach limit amount can be overridden at the transaction level. The overridden value is considered only if the transaction attracts dilution levy.

An EOD batch computes the aggregated net transaction amount at unit holder, fund and transaction type level. This batch is schedules before the allocation process. If the gross aggregated amount for Unit Holder, Fund and Transaction type combination is identified breaching, then a dilution levy fee is applied on all transactions of that fund, Unit Holder, and transaction type combination.