Transactions Not In Good Order

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”. Original/Copy of the applications & transaction slips will be returned without processing at the receiving counter itself, or subsequently at the time of a “good order review” either at the Service Centers 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 such applications/transactions will not be processed unless there is instruction to the contrary from the Asset Management Company [AMC].

This list is only indicative and may differ from Fund to Fund. Investors are advised to contact any offices of CAMS or AMC branches for the most current business rules or for specific clarifications. This list may undergo changes without any notice as per the regulatory requirements / AMC requirements.

Applications and Transactions shall be treated as NIGO where

· The critical fields like Investor Name, Scheme, Units/Amount, Option, PAN, KYC requirements, Bank Mandate are not provided in the application / transaction [any one or multiple fields].

· PAN details with attested PAN card copy are not provided for all the holders regardless of mode of holding.

· KYC acknowledgement copy is not provided [for all the holders regardless of mode of holding] for all categories of investors irrespective of investment amount.

· Application form of one scheme is used for another scheme; processing and allotment will be subject to the approval of the AMC.

· Photocopy of 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 and the same is not counter signed by the applicant.

· Accompanied with post dated cheques [except for SIP subsequent installments].

· Application(s) with third party cheques.

· The signature of the investor(s) is/are not in original.

· Applications/Transaction slips are sent via fax.

· Applications/Transaction slips are not signed by the investor, or all holders in case of joint accounts.

· Applications/Transaction slips are not accompanied by a signed and valid cheque, instrument or payment advice.

· The minimum amount required or multiples as specified in the Scheme Information Document [SID] / KIM (Key Information Memorandum) / Common Application form are not met.

· Applications/Transaction slips submitted by Investors which is not eligible as per SID / 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.

- Guardian other than parents/court appointed Legal Guardian.

- Proof of Guardian relationship.

- Proof of Date of Birth.

· In case of MINOR application, joint holder(s) details are available.

· For Non Resident investors, where the status of whether investments are Repatriable or Non-Repatriable is missing, and the same cannot be determined from the cheque/bank details on the application.

· Complete address of the investor is not available in the application form.

· Investments made by Corporate Investors / Trusts or Companies, without necessary supporting documents like Memorandum & Articles of Association [MOA] / Authorized Signatories List / Board Resolution / Trust Deed / Partnership Deed, etc. (as applicable).

· Investments are made through PoA holder and the PoA is not submitted or the POA is deficient.

· 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 Investor signature does not match with Investor records wherever applicable.

· Units are under lien and the lien release documents do not accompany with the redemption request.

· Investor does not hold an account in the scheme mentioned by him/her in the transaction slip wherever applicable.

· The Source and Target Fund/Scheme/Plan details are not provided in the switch transaction request.

· Minor investor is now a major and attested PAN card copy along with bank mandate required for changing the tax status.

· Switch is between folio to folio, as the same is not allowed.

· Overseas address is not provided for NRI investors.

· Name of investor differs between application form and PAN card copy.

· Name of investor differs between application form and KYC acknowledgement.

· Type of transaction like Redemption/Switch/COB is not mentioned in the request.

· Application/Transaction slip submitted pertains to units which are under lock-in period.

· Scheme is currently not re-opened for ongoing purchase/sale.

· Scheme opted has been merged into some other existing scheme.

· The scheme opted is applicable only for minor investors and the applicant is a major.

· Redemption request from a close ended scheme as the redemption can be processed only on Maturity.

· Applicant’s tax status is Resident Individual whereas Bank mandate/cheque is of NRE account.

· KYC is not valid as per CVL.

· NRI investors residing in USA/Canada are not allowed to invest as per provision in the Scheme Information Document.

· Mismatch of details between application and the instrument.

· Cheque amount in words and in figures differ.

· Mandatory document for the change in bank mandate viz. cancelled cheque or letter from the mandate bank or bank passbook, evidencing the printed/stamped core banking account number, is not enclosed along with the application/transaction slips.

Systematic Investments in specified schemes are NIGO where

· The minimum & multiples investment criterion is not complied with.

· All the cheques/debit mandate instructions are not for the same amount.

· SIP application / Standing Instructions form / ECS mandate / post dated cheques are not signed by the investors.

· SIP application not meeting the prescribed minimum number of installments.

· 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.

· SIP ECS Mandate form is not complete.

· Additional Purchase option not available for SuperSIP.

· Auto debit form / post dated cheques for SIP not submitted.

· Scheme Name differs in application with that of the SIP auto debit mandate form.

· Existing folio number not mentioned on auto debit form.

· In case of Special products like SIP+Insurance products, compliance with relevant criteria not met.

Scheme Default Options

· 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 SID / KIM would be applied.

· 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.

· Where the mode of holding is not mentioned, it will be treated as either SINGLE or JOINT or based on the number of applicants/number of signatures on the 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 as per the amount specified in 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 on the date of transaction processing will be considered. Where the number of units and an amount are simultaneously mentioned, the number of clear units on the date of transaction processing will be considered.

· If neither units nor amount are mentioned in the transaction slip, all clear units will be considered for redemption or switch.

· Where payout option not selected, default payout options such as Direct Credit will be applicable as per SID/KIM.

· 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 SID / 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 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.