As part of settlement process for transactions placed by the clients through the Members on StAR MF platform, it is necessary that the correct bank account details of the clients must be mapped to the client’s UCC as maintained on the StAR MF platform. These details are used for the purpose of remitting the redemption proceeds by the Indian Clearing Corporation Limited (“ICCL”).
However, it is observed that in some of the cases remittance of redemption proceeds is being hindered and/ or delayed due to improper / lack of valid bank account details.
ICCL has been bringing such cases to the notice of the Members on a regular basis and is seeking updated bank details to regularize the process and make the payments. This is causing substantial delay in the redemption settlement process.
Considering the above, the Members are directed to proactively ensure that the bank accounts and other details are valid and up-to date in the client UCC which will enable ICCL in timely settlement of redemption payments.
Members are requested to note that
- ICCL will be returning the funds to the Asset Management Companies (AMC) for the instances wherein ICCL is not able to do process the same due to lack of valid information. Such amount will be returned back to respective AMCs by R+3 working days (R is receipt of redemption money in to ICCL account along with the valid MIS from the AMC).
- All such clients will then be required to approach the respective AMCs for getting the redemption proceeds, The clients will then need to follow the process prescribed by respective AMCs.
The Members are advised to bring the contents of this Notice to the attention of their clients at the earliest.
In case of any clarifications required by the Members, please feel free to contact Mr. Vishal Naik on 022 22725168 .
Regards,
Mehul Parikh
Additional General Manager
MF Settlement |