diff --git a/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/AbstractResource.java b/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/AbstractResource.java
index 4ccb108..f0ef532 100644
--- a/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/AbstractResource.java
+++ b/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/AbstractResource.java
@@ -1,7 +1,9 @@
 package org.wso2.carbon.sts.resources;
 
 import java.io.ByteArrayInputStream;
+import java.io.UnsupportedEncodingException;
 
+import javax.ws.rs.core.Context;
 import javax.xml.stream.XMLStreamReader;
 
 import org.apache.cxf.binding.soap.SoapMessage;
@@ -9,15 +11,20 @@
 import org.apache.cxf.message.ExchangeImpl;
 import org.apache.cxf.message.MessageImpl;
 import org.apache.cxf.staxutils.StaxUtils;
+import org.wso2.msf4j.Request;
 
 public abstract class AbstractResource {
-	
-	private SoapMessage setUpMessage(byte[] msg) throws Exception {
-        SoapMessage message = new SoapMessage(new MessageImpl());
-        Exchange ex = new ExchangeImpl();
-        ex.setInMessage(message);
-        message.setContent(XMLStreamReader.class, StaxUtils.createXMLStreamReader(new ByteArrayInputStream(msg)));
-        return message;
-    }
+
+	protected SoapMessage setUpMessage(byte[] msg) throws Exception {
+		SoapMessage message = new SoapMessage(new MessageImpl());
+		Exchange ex = new ExchangeImpl();
+		ex.setInMessage(message);
+		message.setContent(XMLStreamReader.class,
+				StaxUtils.createXMLStreamReader(new ByteArrayInputStream(msg)));
+		return message;
+	}
+
+	public abstract void processRequest(@Context Request request)
+			throws UnsupportedEncodingException;
 
 }
diff --git a/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/STSResource.java b/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/STSResource.java
index 143bc70..8395429 100644
--- a/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/STSResource.java
+++ b/org.wso2.carbon.component/src/main/java/org/wso2/carbon/sts/resources/STSResource.java
@@ -1,6 +1,13 @@
 package org.wso2.carbon.sts.resources;
 
+import io.swagger.annotations.Api;
+import io.swagger.annotations.Info;
+import io.swagger.annotations.License;
+import io.swagger.annotations.SwaggerDefinition;
+
 import java.io.UnsupportedEncodingException;
+import java.nio.ByteBuffer;
+import java.util.List;
 
 import javax.ws.rs.Consumes;
 import javax.ws.rs.POST;
@@ -8,15 +15,24 @@
 import javax.ws.rs.core.Context;
 import javax.ws.rs.core.MediaType;
 
+import org.apache.cxf.binding.soap.SoapMessage;
 import org.osgi.service.component.annotations.Component;
 import org.wso2.msf4j.Microservice;
 import org.wso2.msf4j.Request;
+import org.wso2.msf4j.util.BufferUtil;
 
 @Component(
         name = "org.wso2.carbon.sts.resources.STSResource",
         service = Microservice.class,
         immediate = true
 )
+@Api(value = "scim/v2/ServiceProviderConfig")
+@SwaggerDefinition(
+        info = @Info(
+                title = "/SecurityTokenService Endpoint Swagger Definition", version = "1.0",
+                description = "STS /SecurityTokenService endpoint",
+                license = @License(name = "Apache 2.0", url = "http://www.apache.org/licenses/LICENSE-2.0"))
+)
 @Path("/services")
 public class STSResource extends AbstractResource {
 	
@@ -24,7 +40,15 @@ public class STSResource extends AbstractResource {
 	@POST
 	@Consumes(MediaType.TEXT_XML)
 	public void processRequest(@Context Request request) throws UnsupportedEncodingException{
+		List<ByteBuffer> fullMessageBody = request.getFullMessageBody();
+        ByteBuffer buffer = BufferUtil.merge(fullMessageBody);
 
+        SoapMessage soap = null;
+        try {
+            soap = setUpMessage(buffer.array());
+        } catch (Exception e) {
+            e.printStackTrace();
+        }
 	}
 
 }
diff --git a/org.wso2.carbon.sts.policy.mgt/.classpath b/org.wso2.carbon.sts.policy.mgt/.classpath
new file mode 100644
index 0000000..f619a53
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/.classpath
@@ -0,0 +1,26 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<classpath>
+	<classpathentry kind="src" output="target/classes" path="src/main/java">
+		<attributes>
+			<attribute name="optional" value="true"/>
+			<attribute name="maven.pomderived" value="true"/>
+		</attributes>
+	</classpathentry>
+	<classpathentry kind="src" output="target/test-classes" path="src/test/java">
+		<attributes>
+			<attribute name="optional" value="true"/>
+			<attribute name="maven.pomderived" value="true"/>
+		</attributes>
+	</classpathentry>
+	<classpathentry kind="con" path="org.eclipse.jdt.launching.JRE_CONTAINER/org.eclipse.jdt.internal.debug.ui.launcher.StandardVMType/JavaSE-1.7">
+		<attributes>
+			<attribute name="maven.pomderived" value="true"/>
+		</attributes>
+	</classpathentry>
+	<classpathentry kind="con" path="org.eclipse.m2e.MAVEN2_CLASSPATH_CONTAINER">
+		<attributes>
+			<attribute name="maven.pomderived" value="true"/>
+		</attributes>
+	</classpathentry>
+	<classpathentry kind="output" path="target/classes"/>
+</classpath>
diff --git a/org.wso2.carbon.sts.policy.mgt/pom.xml b/org.wso2.carbon.sts.policy.mgt/pom.xml
new file mode 100644
index 0000000..f887fa2
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/pom.xml
@@ -0,0 +1,51 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!-- Copyright (c) 2015, WSO2 Inc. (http://www.wso2.org) All Rights Reserved. 
+	Licensed under the Apache License, Version 2.0 (the "License"); you may not 
+	use this file except in compliance with the License. You may obtain a copy 
+	of the License at http://www.apache.org/licenses/LICENSE-2.0 Unless required 
+	by applicable law or agreed to in writing, software distributed under the 
+	License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS 
+	OF ANY KIND, either express or implied. See the License for the specific 
+	language governing permissions and limitations under the License. -->
+<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+
+	<parent>
+		<groupId>org.wso2.carbon.sts</groupId>
+		<artifactId>identity-inbound-auth-sts</artifactId>
+		<version>1.0.0</version>
+	</parent>
+	<modelVersion>4.0.0</modelVersion>
+	<artifactId>org.wso2.carbon.sts.policy.mgt</artifactId>
+	<packaging>bundle</packaging>
+	<name>WSO2 Carbon - Sample Carbon Component</name>
+
+	<dependencies>
+		<!-- https://mvnrepository.com/artifact/org.apache.cxf/cxf-rt-ws-policy -->
+		<dependency>
+			<groupId>org.apache.cxf</groupId>
+			<artifactId>cxf-rt-ws-policy</artifactId>
+			<version>3.1.11</version>
+		</dependency>
+		<dependency>
+            <groupId>org.wso2.msf4j</groupId>
+            <artifactId>msf4j-core</artifactId>
+            <version>2.1.0</version>
+        </dependency>
+
+		<dependency>
+			<groupId>org.apache.cxf</groupId>
+			<artifactId>cxf-core</artifactId>
+			<version>3.1.11</version>
+		</dependency>
+	</dependencies>
+
+	<properties>
+		<private.package>org.wso2.carbon.sts.policy.mgt.internal</private.package>
+		<export.package>!org.wso2.carbon.sts.policy.mgt.internal,
+			org.wso2.carbon.sts.policy.mgt.*;version="5.1.1"</export.package>
+		<import.package>org.osgi.framework.*;version="[1.8.0, 2.0.0)",
+			org.wso2.carbon.kernel;version="[5.0.0, 6.0.0)"</import.package>
+	</properties>
+
+</project>
diff --git a/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyManager.java b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyManager.java
new file mode 100644
index 0000000..9250205
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyManager.java
@@ -0,0 +1,48 @@
+package org.wso2.carbon.sts.policy.mgt;
+
+import java.io.FileNotFoundException;
+import java.io.FileReader;
+
+import javax.xml.stream.XMLInputFactory;
+import javax.xml.stream.XMLStreamException;
+import javax.xml.stream.XMLStreamReader;
+
+import org.apache.neethi.PolicyBuilder;
+import org.apache.neethi.Policy;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+import org.wso2.carbon.sts.policy.mgt.internal.DataHolder;
+import org.wso2.carbon.sts.policy.util.PolicyConstants;
+
+public class SecurityPolicyManager implements SecurityPolicyProvider {
+	
+	private static final Logger logger = LoggerFactory
+			.getLogger(DataHolder.class);
+
+	private Policy effectivePolicy;
+
+	@Override
+	public void updateEffectivePolicy(int scenario) {
+
+		XMLInputFactory factory = XMLInputFactory.newInstance();
+		XMLStreamReader streamReader = null;
+		try {
+			streamReader = factory.createXMLStreamReader(new FileReader(
+					PolicyConstants.POLICY_REPOSITORY_PATH + Integer.toString(scenario)
+							+ ".xml"));
+		} catch (FileNotFoundException | XMLStreamException e) {
+			logger.error("Policy File Not Found");
+		}
+		PolicyBuilder builder = new PolicyBuilder();
+		setEffectivePolicy(builder.getPolicy(streamReader));
+	}
+
+	public Policy getEffectivePolicy() {
+		return effectivePolicy;
+	}
+
+	public void setEffectivePolicy(Policy effectivePolicy) {
+		this.effectivePolicy = effectivePolicy;
+	}
+
+}
diff --git a/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyProvider.java b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyProvider.java
new file mode 100644
index 0000000..4a05442
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/SecurityPolicyProvider.java
@@ -0,0 +1,6 @@
+package org.wso2.carbon.sts.policy.mgt;
+
+public interface SecurityPolicyProvider {
+	
+	public void updateEffectivePolicy(int scenario);
+}
diff --git a/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/DataHolder.java b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/DataHolder.java
new file mode 100644
index 0000000..a96b8c7
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/DataHolder.java
@@ -0,0 +1,23 @@
+package org.wso2.carbon.sts.policy.mgt.internal;
+
+public class DataHolder {
+	private int policyScenario;
+
+    private static DataHolder instance = new DataHolder();
+
+    private DataHolder() {
+
+    }
+
+    public static DataHolder getInstance() {
+        return instance;
+    }
+    
+    public int getPolicyScenario() {
+    	return policyScenario;
+    }
+    
+    public void setPolicyScenario(int i) {
+    	policyScenario = i;
+    }
+}
diff --git a/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/ServiceComponent.java b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/ServiceComponent.java
new file mode 100644
index 0000000..ea29277
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/mgt/internal/ServiceComponent.java
@@ -0,0 +1,37 @@
+package org.wso2.carbon.sts.policy.mgt.internal;
+
+import java.util.logging.Logger;
+
+import org.osgi.framework.BundleContext;
+import org.osgi.framework.ServiceRegistration;
+import org.osgi.service.component.annotations.Activate;
+import org.osgi.service.component.annotations.Component;
+import org.osgi.service.component.annotations.Deactivate;
+import org.wso2.carbon.sts.policy.mgt.SecurityPolicyManager;
+import org.wso2.carbon.sts.policy.mgt.SecurityPolicyProvider;
+
+@Component(name = "org.wso2.carbon.sts.policy.mgt.internal.ServiceComponent", immediate = true)
+public class ServiceComponent {
+
+	Logger logger = Logger.getLogger(ServiceComponent.class.getName());
+	private ServiceRegistration<?> serviceRegistration;
+
+	@Activate
+	protected void start(BundleContext bundleContext) throws Exception {
+		logger.info("Policy Management Component is activated");
+		
+		//Replace this with appropriate policy retrieval method
+		DataHolder.getInstance().setPolicyScenario(1);
+
+		serviceRegistration = bundleContext.registerService(
+				SecurityPolicyProvider.class.getName(),
+				new SecurityPolicyManager(), null);
+	}
+
+	@Deactivate
+	protected void stop() throws Exception {
+		logger.info("Service Component is deactivated");
+
+		serviceRegistration.unregister();
+	}
+}
diff --git a/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/util/PolicyConstants.java b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/util/PolicyConstants.java
new file mode 100644
index 0000000..66cd42e
--- /dev/null
+++ b/org.wso2.carbon.sts.policy.mgt/src/main/java/org/wso2/carbon/sts/policy/util/PolicyConstants.java
@@ -0,0 +1,7 @@
+package org.wso2.carbon.sts.policy.util;
+
+public class PolicyConstants {
+	
+	//Need to replace with policy repository path
+	public static String POLICY_REPOSITORY_PATH ;
+}
diff --git a/pom.xml b/pom.xml
index ed28440..b5c6112 100644
--- a/pom.xml
+++ b/pom.xml
@@ -23,6 +23,7 @@
     <module>org.wso2.carbon.sts.claim.mgt</module>
     <module>org.wso2.carbon.sts.token.provider</module>
     <module>org.wso2.carbon.sts2</module>
+    <module>org.wso2.carbon.sts.policy.mgt</module>
   </modules>
 
 	<dependencies>