Each of the securities dematerialised in the depository bears a distinctive ISIN - an identification number. International Securities Identification Number (ISIN) is a unique identification number for each security issued in any of the International Standards Organisation (ISO) member countries in accordance with the ISIN Standard (ISO 6166). ISO 6166 was developed for use in an international (cross-border) as well as domestic trades. ISIN is a 12-character long identification mark. It has three components - a pre-fix, a basic number and a check digit. The pre-fix is a two-letter country code as stated under ISO 3166 (IN for India).
The basic number comprises of nine alphanumeric characters (letter and/or digits). The check digit at the end of the ISIN is computed according to the modulus 10 "Double-Add-Double". It establishes that the ISIN is valid.
Securities issued by the same company, issued at different times or carrying different rights, terms and conditions are considered different securities for the purpose of allocating ISIN and are allotted distinct ISINs. In India, SEBI has delegated the assigning of ISIN of various securities to NSDL. Allotment of ISIN for G-sec is done by Reserve Bank of India. Different ISINs are allocated to the physical and dematerialised securities of the same issue.
To illustrate, ISIN INE 475C 01 012 has the following break up:
The basic number comprises of nine alphanumeric characters (letter and/or digits). The check digit at the end of the ISIN is computed according to the modulus 10 "Double-Add-Double". It establishes that the ISIN is valid.
Securities issued by the same company, issued at different times or carrying different rights, terms and conditions are considered different securities for the purpose of allocating ISIN and are allotted distinct ISINs. In India, SEBI has delegated the assigning of ISIN of various securities to NSDL. Allotment of ISIN for G-sec is done by Reserve Bank of India. Different ISINs are allocated to the physical and dematerialised securities of the same issue.
To illustrate, ISIN INE 475C 01 012 has the following break up:
IN - India
E - Company
Last digit - check digit
First four digits 475C - Company serial number;
01 - equity (it can be mutual fund units, debt or Government securities);
01 - issue number;
2 - check digit.
The third digit (E in the above example) may be E, F, A, B or 9. Each one carries the following meaning:
E - Company
F - Mutual fund unit
A - Central Government Security
B - State Government Security 9 - equity shares with rights which are different from equity shares bearing INE number.
E - Company
Last digit - check digit
First four digits 475C - Company serial number;
01 - equity (it can be mutual fund units, debt or Government securities);
01 - issue number;
2 - check digit.
The third digit (E in the above example) may be E, F, A, B or 9. Each one carries the following meaning:
E - Company
F - Mutual fund unit
A - Central Government Security
B - State Government Security 9 - equity shares with rights which are different from equity shares bearing INE number.
Whenever dealing with ISIN number, it is important to pay special attention to the third digit.
Source: Handbook for NSDL Depository Operations Module
Friends pls prepare this note as detail given over here. Last year same question was asked in short note, so prepare it well in detail.
ReplyDeleteMany corporates have regional or international operations; they use cross currency swaps as net investment hedges for foreign currency exchange risk of international operations.
ReplyDelete