Mutual Fund Applications and transaction documents that are
incomplete or deficient are termed as Not In Good Order (NIGO). While
carrying out transaction processing for various Mutual Funds, CAMS follows general
regulatory guidelines or the specific instructions of the Asset Management
Company responsible for managing the assets of the Mutual Fund in identifying
and handling transactions that are NIGO. All applications and
transaction slips received at CAMS offices are accepted “Subject to
Verification”. Applications & transaction slips may be returned with out
processing at the receiving counter itself, or subsequently at the time of a “good
order review” either at the Investor Service Center / Transaction Point or at
the back office. Scheme default options
will be applicable wherever the applications are incomplete. Transactions that
meet one or more of the following conditions will be Not In Good Order and will not be processed unless there is instruction to
the contrary from the Asset Management Company.
Applications and Transactions are NIGO where
·
The critical fields like Investor Name, Scheme, Units/
Amount, Option, Bank Mandate are not completed.
·
Where Application form of one scheme is used for
another scheme, processing and allotment will be subject to the approval of the
AMC.
·
Photocopy applications will be processed subject to the
approval of the AMC, so long as they contain the original signatures of
Investors.
·
Corrections or overwriting present on the application
in critical fields like Scheme, Plan, Amount, Mode of holding etc.
·
Where the cheque is overwritten but not countersigned
by the investor.
·
Accompanied with
postdated cheques
·
Where the signature of the investor(s) is/are not in
original.
·
Applications / transaction slips are sent via fax.
·
Are not signed by the investor, or all holders in case
of joint accounts.
·
Are not accompanied by a signed and valid cheque,
instrument or payment advice.
·
Not meeting the minimum amount required or multiples as
specified in the KIM (Key Information Memorandum) and the Common Application
form.
·
Submitted by Investors ineligible as per KIM.
·
Multiple applications with single cheque
·
In case of MINOR applicants if any of the following
information is missing:
-
Date of Birth
-
Name of Guardian
-
Signature of Guardian
·
For Non Resident investors, where the status of whether
investments are Repatriable or NonRepatriable is missing, and the same cannot
be determined from the cheque/bank details on the application.
·
The complete address of the investor is not available
in the application form.
·
Investments are made by Corporate Investors / Trusts or
Companies, if the necessary supporting documents like MoA / Authorized
Signatories List / Board Resolution / Trust Deed etc (as applicable) do not
accompany the applications & transaction slips.
·
The Investments are made by PoA holder and the PoA is
not submitted or the POA is deficient.
·
The MIN and PAN details along with MIN and PAN validation documents /
Form 60 / Form 61 are not provided for all the holders regardless of mode of
holding for transaction values of Rs.50000/- and above.
·
UIN number is not provided for specified Investors.
·
The investor has not provided complete bank
details consisting of bank name, branch
name and account number.
·
Submitted with outstation cheques at a location where
the fund does not have a banking arrangement for collection of funds.
·
The existing unit holder information is incomplete i.e.
full account number (all digits) as allotted to the unit holder is not provided
in the application form.
·
Where the appropriate transaction field is not
completely filled out by the investor i.e. Units or Amount.
·
Where the Investor signature does not match with
Investor records
·
Units are under lien and the lien release documents do
not accompany the redemption request.
·
The investor does not hold an account in the scheme
mentioned by him/her in the transaction slip.
·
The bank details of the investor are not provided
(bank, branch and account number)
·
The Source and Target Fund/Scheme/Plan details are not
provided in the switch transaction request.
Systematic Investments
in specified schemes are NIGO where
·
The minimum investment criteria is not complied with.
·
All the cheques are not for the same amount.
·
The application or cheques are not signed by the
investors.
·
The application is not accompanied by the prescribed
minimum number of cheques (6 cheques or 12 cheques as the case may be).
·
The dates of the post dated cheques are not as per the
prescribed dates.
·
Where the option of Fixed Amount or Capital
Appreciation is not mentioned in the case of a systematic withdrawal or
transfer.
·
In case of Fixed Amount systematic withdrawal or
transfer. where the amount is not mentioned in the request.
· Source & Target schemes are not mentioned for a systematic transfer.
In respect of applications &
transaction slips, where in the options (Dividend, Growth, Dividend
Reinvestment, Dividend Payout) are not chosen by the Investors, default options
as mentioned in the KIM would be applied, as follows -
·
Where payout option not selected, default payout
options such as Direct Credit will be applicable as per KIM and application
form.
·
Where the mode of holding is not mentioned, an
application be treated as either SINGLE or JOINT based on the number of
applicants/ number of signatures on the form.
·
In case the status of the investor is not mentioned,
the default status would be Individual, HUF or Company based on the information
available in the application form.
·
In case more than one investor’s name appears in the
application form, but the form has been signed by the first holder only, the
same will be processed with the mode of holding as Single in favor of the first holder. However, for Joint holders, both the unit holders
must have signed the form else the application will be rejected.
·
In case the amount of the cheque, instrument or payment
advice differs from the amount of the application, the same would be processed
for the amount of the cheque, instrument or payment advice.
·
In case the cheque is made in favor of another scheme
as compared to the application form, the scheme mentioned on the cheque will be
treated as default unless specified by the AMC otherwise.
·
If a certain number of units and ‘All Units’ are
simultaneously mentioned in the transaction slip for redemption or switch, all the
clear units will be considered. Where the number of units and an amount are
simultaneously mentioned, the number of clear units will be considered.
·
If neither units nor amount are mentioned in the
transaction slip, all clear units will be considered for redemption or switch.
·
In case the end date for an SIP is not mentioned, the
SIP would end once the cheques currently in hand are deposited.
·
In case the end date for SWP / STP is not mentioned,
the same would be assumed as per the terms specified in KIM.
·
In case the starting date of an STP / SWP is not
mentioned in the application, the transaction would be processed with the
immediate next STP / SWP date depending on the option selected by the investor.
·
Broker codes will be processed under UNKNOWN or DIRECT
in the following situations:
a)
Broker code is corrected but not countersigned by the investor
in the application
b) If there are multiple broker codes mentioned in the application
c) If the broker code is not clear in the application
This document is current to the best of our knowledge as of May 2005. For the most current business rules or for specific clarifications, please contact any office of CAMS.