Deal
There are two types of deals
that can be entered into the system. They pertain to Money Market : These would
include deals for all the instruments traded in the money markets like the
Treasury Bills, Govt. Securities, Floating Rate Notes, CP's, CB's, CD's etc. and
the type of deals that can be entered are Outright purchase and sale and Repo
purchase and sale deals. The Deals in the Call/Notice and Term money can also be
entered and the deals supported by the system are fresh borrowing/lending,
extension of borrowing / lending and the reversal of borrowing and lending
deals. Stock Exchange deals: These would be for different types of instruments
like Shares, Debentures, Warrants etc. For Stock Exchange deals, Deals and
Contract Note are entered. These are then reconciled. Reconciled deals are then
ready for settlement. If the client has multiple schemes, there is a possibility
that the holdings of one scheme, is transferred to another scheme. The system
tracks these inter scheme transfers and generate appropriate reports for SEBI
guidelines
Inter-Group
Transactions
When the Fund transacts in
the securities of companies belonging to its AMC, the transactions are treated
as Inter-group transactions. The system identifies these securities and warns
the user in case these transactions lead to combined investment to the tune of
25% of collective NAV of the schemes maintained by the same
AMC.
Settlement
Once the deals are entered,
approved and reconciled, they are ready for settlement. In the settlement
option, user can print deal slips, receipts, cheques, SGL forms and also enter
the details of the cheques or SGL received from the parties. On-line settlement
of all the deals done can be done by the system as and when the deals are
authorised.
Corporate
Action
User can either enter or
upload various types of Corporate Action Announcements. These can
be
| Mergers |
| Acquisitions |
| Consolidations |
| Bonus |
| Rights |
| Dividend |
| Public Issues |
There are other implicit
announcements which the system supports like
| Coupon Payments |
| Redemption of Bonds and Debentures |
Unit Transactions
The system maintains number
of units vis-a-vis daily transactions in Units. Further the system supports the
Purchase and Sale reversal in Unit transactions. These unit transactions in turn
update the Unit holdings. These units are used to arrive at the NAV.
Expenses and Charges
The two broad types of
expenses which system supports are Fixed Expenses and Transaction related
expenses. The system supports definition and ammortisation of different
expenses. Ammortisation could be Daily, Weekly, Monthly, Quarterly, Half Yearly
Yearly Or any other user defined period The system also supports accrual of
transaction charges that can be defined in the system. Once the actual charges
are settled, the accrued expenses can be reversed and the actual expenses be
accounted for.
Accounting
As each fund could have its
own Accounting policies, the method of passing accounting entries would have to
be different for each Fund. This requirement is met by the system by providing
rule definitions in the system. User can define Accounting rules in the system
which are then interpreted and used by the by the system while passing the
accounting entries. This method provides the user the flexibility to cater to
various customers’ requirements.
Every accounting
transaction that is generated in the system has data pertaining to the
transaction. This data can contain upto 5 different data elements based on
user choice. They could be security type, security code, broker code
etc.
Balance Sheet, Income & Expenditure
Account
The fund manager
according to the practices adopted by him can define the Balance Sheet,
Income and Expenditure Account and NAV formats. This leaves a large room for
flexibility to the Fund Manager as he can change the format without actually
changing the code reducing considerably the maintenance requirement.
To provide flexibility,
the NAV can be rerun any number of times. Thereby insuring no entries are
missed out and providing tentative information to the Fund Manager. The
system allows the User to recalculate NAV, to add incremental entries passed
or to return a particular item of NAV or to make a total recalculation of
NAV with deletion of stored values. However, the above process is not
available after the NAV of the day is
authorised.
The system can show the
differences between two days as a Variance Report in terms of Upward and
Downward swings with percent change.
Investment Model is a
Fund Managers privilege wherein he can define the Portfolio of the Fund in
terms of Percentage (from - to), Number of Securities (Range). The Portfolio
can be maintained under the following heads
Industry wise: Within an industry, the portfolio can be maintained
Instrument-wise (Shares, Bonds,etc.) and within each instrument-wise
security-wise.
Instrument-wise: The portfolio
can be maintained instrument-wise and within each instrument-wise,
security-wise.
Security-wise: This information
gives the user a warning in case he is trying to buy or sell a security
in which the holdings have reached the level specified in the investment
model.
The portfolio Analysis
is a powerful tool for a Fund Manager where in he can actually look at the
Funds invested in different segment vis-a-vis his Investment Model. The
portfolio Analysis is very flexible allowing the Fund Manager to actually
compare the Portfolios of any given dates. Further, the portfolio is based
on the Market value ( in case not available, Intrinsic Value of the
instrument is considered) shown against the NAV of a given day or against
the Face value of the Unit.
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