VIGIL gives total business coverage and comprehensive support for front office, middle office and back office operations of treasury departments, and covers the following instruments:

	Call / term / notice money
	Government securities – central and state
	Treasury bills
	Bonds and debentures (fixed, floating and zero coupon)
	Equity and preference shares
	Commercial paper
	Certificates of deposit

Apart from these, any new instrument can be eventually taken care of by the system.

Front office operation
The front office is primarily responsible for the trading and dealing activities of the treasury. The system operates on a portfolio concept where each dealer is allocated a portfolio by the institution and only the concerned / authorised dealers can view the securities under an individual portfolio. The senior management can, of course, view the total portfolio of the institution, and can track the performance of individual dealers.

Dealers' trading and lending / borrowing operations are controlled in the system by the various limits set by the institution and by the middle office through the profitability of their trading and its impact on the institution's overall portfolio. The system provides decision-making tools for dealers, such as YTM to price, price to YTM, duration, modified duration, VaR, convexity, etc.

Middle office operation
The prime operations here include portfolio valuation, generation of internal control reports, generation of external regulatory reports, monitoring the risk on the portfolio and trading operations of the front office, and ensuring that both the risk and the trading operations are in line with the institution's strategy regarding treasury operations.

Back office operation
The back office is primarily responsible for settlement of transactions, for accounting operations and for counterchecks for the dealing activities performed by the front office. Every deal, once recorded by the dealer, comes to the back office for confirmation with the counter-party and its subsequent execution. The deal is authorised by the back-office after confirming with the counter-party, and then the payments / receipts — based on the type of the deal — are handled by the back-office. Other back office functions include generation of confirmations to be sent to the counter-party, printing / recording of deal slips, etc, generation of statutory reports, valuation and shifting of securities from one category to the other.

Primary market functions
Auction and bid details for instruments issued by the central bank as well as application and allotment details for issues by other issuers, are recorded for future reference and processing.

The system supports following modules and functions:

	Interface to NDS (negotiated dealing system)
	Call / IBST / notice money borrowing and lending
	Sale / purchase
	Government securities (central and state)
	Treasury bills
	Other approved securities
	Shares
	Bonds and debentures
	Mutual fund units
	Inter-bank repo (repurchase option)
	LAF (liquidity adjustment factor)

	Deal authorisation
	Deal settlement
	Receipt (dividend / commission / incentive)
	Payments (brokerage / CCIL / stamp duty)
	TDS certificates
	NPA marking
	Valuation

	Cash and bank balances
	NDTL recording
	CRR and SLR requirements
	Daily funds position
	Central bank returns
	CRR interest

	Access privileges
	User
	Workstation
	Module
	Event
	Audit trail

	Recording of application / issue
	Recording of bid details for a given application / issue
	Conversion of bids into deals

	Registers
	Balances
	Yield, duration / modified duration and convexity
	NSLR reports
	Trading operations
	Reminders
	VaR

	Deals pending for authorisation
	Deals pending for settlement
	Deals pending for posting / advice
	Business date change
	Deal maturity
	Interest calculation
	Security redemption
	Brokerage

	NDS interface
	Backdated valuation of securities
	Interest and maturity in SOD
	User privileges and access rights
	Parameterised accounting system
	Balance reports in various categories
	Returns for central bank

	The United Western Bank Ltd (integrated with VIGIL-Forex)
	The State Bank of Patiala

Case study
United Western Bank