The settlement of the 3 different categories of purchase orders placed on the StAR MF platform is carried out on the basis of the settlement calendar issued by ICCL.
Settlement of Purchase transactions placed by MFI:
- Settlement of L0 purchase transactions – Transactions that are received after 1:30 p.m. on the previous working day till 1:30 p.m. today, on the StAR MF platform under 'L0' type of settlement are settled under the settlement number corresponding with today's date. This is carried out by breaking the process into two each being carried out at two different times, i.e. the first settlement process takes place at 1:00 p.m., which contains the orders that are received from 1:30 p.m. on the previous working day till 1:00 p.m. today and the second settlement process takes place at 1:30 p.m. which contains the orders that are received after 1:00 p.m. today till 1:30 p.m. today. The obligation files for all such valid transactions are made available to the MFI member at 1:00 p.m. and 1:30 p.m. respectively, and the funds are also collected from the MFI's settlement bank account separately at 1:15 p.m. and 1:45 p.m. on T day.
The RTA unit of the AMC settles the units for all valid processed purchase demat transactions in ICCL's account by 6:00 p.m. on T day under the Market type "MF Liquid Subscription" with T days settlement number. ICCL thereafter arranges to settle these demat units in the demat account of the Investor or the pool account of the MFI, as per the instructions received in the Order Status.
The physical or soft copy of the Statement of Account (SOA) for the successfully processed Non-Demat transactions is sent directly to the Investors registered mail address/email Id as per the mandate provided by the Investor at the time of creating the UCC, for the transactions that are successfully processed by them.
- Settlement of L1 purchase transactions – Transactions that are received after 2:30 p.m. on the previous working day, till 2:30 p.m. today, on the StAR MF platform, under L1 type of settlement are settled under today's settlement number, which are carried out separately in two batches. The first process is run at 2:00 p.m. containing the transactions received on the StAR MF platform from 2:30 p.m. on the previous day till 2:00 p.m. today and the second process is carried out at 2:30 p.m. containing transactions received after 2:00 p.m. today till 2:30 p.m. The obligation file for all such valid transactions are made available to the MFI members at 2:00 p.m. and 2:30 p.m. respectively, and the funds for the same are collected from the MFI's settlement bank account at 2:15 p.m. and 2:45 p.m. on T day.
The RTA unit of the AMC settles the units for all valid processed purchase demat transactions in ICCL's account by 6:00 p.m. on T + 1 day under the Market type "MF Subscription" with T days settlement number. ICCL thereafter arranges to settle these demat units in the demat account of the Investor or the pool account of the MFI, as per the instructions received in the Order Status.
The physical or soft copy of the Statement of Account (SOA) for the successfully processed Non-Demat transactions is sent directly to the Investors registered mail address/email Id as per the mandate provided by the Investor at the time of creating the UCC, for the transactions that are successfully processed by them.
Settlement of Normal purchase transactions – Transactions that are received after 3:00 p.m. on the previous working day till 3:00 p.m. today, on the StAR MF platform are settled under today's settlement number. The obligation file for all such valid transactions are made available to the member by 6:00 p.m., and the funds for the same are collected from the MFI's settlement bank account at 9:30 a.m. on T + 1 day.
The RTA unit of the AMC settles the units for all valid processed purchase demat transactions in ICCL's account by 6:00 p.m. on T + 1 day under the Market type "MF Subscription" with T days settlement number. ICCL thereafter arranges to settle these demat units in the demat account of the Investor or the pool account of the MFI, as per the instructions received in the Order Status.
The physical or soft copy of the Statement of Account (SOA) for the successfully processed Non-Demat transactions is sent directly to the Investors registered mail address/email Id as per the mandate provided by the Investor at the time of creating the UCC, for the transactions that are successfully processed by them.
Settlement of Purchase transactions placed by MFD:
- Settlement of Normal purchase transactions – Non-demat transactions that are received after 3:00 p.m. on the previous working day till 3:00 p.m. today, on the StAR MF platform are reported to the RTA under today's settlement number, so as to provide the client today's NAV. The client of the MFD is mandatorily required to transfer the funds from any one of the client's bank account entered in the UCC directly in ICCL's bank account.
- The client while transferring the funds in ICCL's account can use any one of the following modes to do so;
After receipt of the funds in ICCL's account, the settlement is completed by making payment to the respective bank account of AMC on the next day.
The transactions placed to purchase demat units under Normal type of transactions are reported to the RTA only after receipt of the funds thus making the NAV eligibility of such date. The demat units for such valid purchase transactions are settled by 6:00 p.m. on T + 1 day in the demat account of the client under the Market type "MF Subscription" with the reporting days (T day) settlement number along with the demat unit settlement for MFI clients.
The SOA for non-demat units are directly sent to the Investor's registered mail/email address by the RTA unit of the AMC vide a similar process that is followed by RTA unit of AMC for non demat transactions of MFI client.
- Settlement of L0 purchase transactions – The L0 transactions placed by the MFD for its clients are reported to the RTA only after receipt of the funds from the client. So all such funds received and mapped to the L0 Orders after 1:30 p.m. on the previous working day, till 1:30 p.m. today, are settled in the AMC bank account today before 2:00 p.m. which enables the client to get the historic days NAV as applicable to the Liquid transactions.
The demat units for such valid purchase transactions are settled by 6:00 p.m. on T day in the demat account of the client under the Market type "MF Liquid Subscription" with T days settlement number along with the demat unit settlement for MFI clients.
The SOA for non-demat units are directly sent to the Investor's registered mail/email address by the RTA unit of the AMC vide a similar process that is followed by RTA unit of AMC for non demat transactions of MFI client.
- Settlement of L1 purchase transactions – Similar to the process followed for L0 type of transactions, the L1 transactions placed by the MFD for its clients are reported to the RTA only after receipt of the funds from the client. Thus all such funds received and mapped to the L1 Orders after 2:30 p.m. on the previous working day, till 2:30 p.m. today, are settled in the AMC bank account today before 3:00 p.m. which enables the client to get today's NAV as per guidelines of SEBI, to provide the NAV applicability for High value transactions of Rs. 2 Lakhs and above.
The demat units for such valid purchase transactions are settled by 6:00 p.m. on T + 1 day in the demat account of the client along with the units of Normal purchase transactions of the previous day (If any), under the Market type "MF Subscription" with T days settlement number along with the demat unit settlement for MFI clients.
The SOA for non-demat units are directly sent to the Investor's registered mail/email address by the RTA unit of the AMC vide a similar process that is followed by RTA unit of AMC for non demat transactions of MFI client.