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Corporate action related attributes
Security & Static Data
Learning Outcome
5
Ensure timely and accurate payouts.
4
Recognize SSI errors and risks.
3
Understand payment routing.
2
Identify key SSI components.
1
Explain the purpose of SSI.
What are Standard Settlement Instructions (SSI)?
Standard Settlement Instructions (SSI) are simply saved bank details for each counterparty or investor. Once these details—like bank name, account number, and routing info—are stored, they are automatically used whenever money or securities need to be sent. This means you don’t have to give new instructions every time, making transactions quicker and more reliable.
Example: IndusInd Bank Limited.
For U.S. dollar transactions, IndusInd Bank’s SSI states that payments should be routed through Citibank N.A., New York, to account number 36360219, using SWIFT code CITIUS33XXX.
These details are saved and automatically used for every USD settlement, ensuring funds go to the right place without needing new instructions each time.
Beneficiary Bank
The beneficiary bank is the bank that holds the account of the final recipient of a payment — the bank named to receive an incoming payment on behalf of the investor or counterparty.
Example
An investor's dividend from a listed company is paid out with HDFC Bank recorded as the beneficiary bank, since that is where the investor's registered account is held
Account Number
The account number is the specific account at the beneficiary bank into which the funds must be credited. It is the unique identifier for the ultimate destination of the money, distinct from the bank itself.
Example
The Registrar and Transfer Agent's (RTA) records hold the investor's exact bank account number, used to credit the dividend directly via NEFT or ECS on the payment date.
SWIFT / BIC
SWIFT (Society for Worldwide Interbank Financial Telecommunication) issues the Bank Identifier Code (BIC) — an internationally standardized code that uniquely identifies a specific bank and branch for cross-border wire transfers.
Example
A custodian remitting dividend proceeds on a US-listed depositary receipt uses the SWIFT code CITIUS33 to route the payment precisely to Citibank N.A., New York, rather than any other Citibank branch worldwide.
Correspondent Bank
A correspondent bank is an intermediary bank that facilitates a cross-border payment when the sending bank has no direct relationship with the beneficiary bank. It acts as a bridge, holding accounts that connect both parties so the payment can still reach its destination.
Example
An Indian bank with no direct USD account relationship with a small overseas bank routes a dollar payment through a large US correspondent bank that maintains accounts with both institutions.
How the four SSI components fit together
How the four SSI components fit together
Importance of Accurate settlement instructions:
1. Ensure corporate action payouts (like dividends) reach the correct account on time.
3. Prevent payment rejections or returns caused by incorrect or outdated details.
2. Eliminate the need for manual intervention, making the process smooth and efficient.
Importance of Accurate settlement instructions:
4. Avoid delays in investor payouts that can arise from investigations and repair processes.
5. Help meet strict regulatory timelines for time‑bound actions such as dividend payments.
Summary
5
Good SSI enables timely, compliant payouts.
4
Incorrect SSI causes delays and failures.
3
Accurate SSI ensures correct payments.
2
SSI has four key components.
1
SSI stores settlement details.
Quiz
Which SSI component uniquely identifies a bank for cross-border payments?
A. Account Number
B. Beneficiary Bank
C. SWIFT/BIC Code
D. Correspondent Bank
Quiz-Answer
Which SSI component uniquely identifies a bank for cross-border payments?
A. Account Number
B. Beneficiary Bank
C. SWIFT/BIC Code
D. Correspondent Bank
Fund Portfolio Reconciliation &NAV Validation - Corporate action related attributes
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