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Know Everything about ISIN

IndianMoney.com Research Team | Updated On Tuesday, May 28,2019, 04:12 PM

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Know Everything about ISIN

 

 

What is the International Securities Identification Number (ISIN)?

The ISIN stands for international securities identification number. It is a method of numbering the securities of particular companies and institutions who offer their securities on the share market. It is a unique machine-generated number used to denote particular securities.

History of ISIN:

This system was introduced in the year 1981. The ISIN number was accepted when the G30 nations choose to adopt it.  The ISIN is a number assigned to the shares of a particular company or entity and is mainly designed to make the trading process simple. The ISIN number helps traders and the brokers identify the shares of a particular company.

This facilitates easy trading in the share market. The ISIN is a number used to locate the securities of a particular company, worldwide. The mechanism for the global access of ISIN was introduced in the year 1994. This system enabled the electronic transfer of ISIN information across the world. Currently, this system is adopted by most of the countries and is preferred for ease of operations.

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Know Everything about ISIN

ISIN in India:

India has also adopted the ISIN system. In India, the task of generating the ISIN number for various securities falls to the securities and exchange board of India. In case of government securities, the reserve bank of India or RBI is authorized with the task of assigning the ISIN. The ISIN Code helps investors and traders locate the securities of a particular company.

ISIN is regulated by international authorities i.e. ISO and is a machine-generated number attributed to specific securities like stocks, bonds, futures and so on. ISIN brings transparency to the system and helps in the clearing or settlement in the electronic format. 

ISIN Code Number Format:

The ISIN code is unique data which consists of 12 alphanumeric numbers.  The 12 digits can be categorized into three separate sections. Each section denotes some specific information:

  • The first two letters denote the country code.
  • The next 9 alphanumeric series denote security specific codes.
  • The last number of the code denotes the checking number.

How to Apply for ISIN?

The ISIN code helps in the identification of securities like stocks, equities, mutual funds, debt funds and so on. There are two ways by which one can apply for the ISIN. The first method is email application and the second method is the form application.

Applying via Email:

  • ISIN can be applied by corporate and business houses through the exchange of emails.
  • The company must also specify the number of ISIN required.
  • An email application must be written raising the request for the ISIN number.
  • Certain important documents must be attached like the company prospectus, preliminary private placement and so on, along with the email application.
  • Submit the email application.
  • The applicant will be notified on the time frame and the fees through the email.
  • Emailing and raising a request mean the company agrees to the terms and conditions of the ISIN.

Form application:

Online forms are available on the ISIN website. There are different online application forms available for different types of securities:

  • Funds (hedge funds, investment funds and so on)
  • Equity offerings (stocks, shares)
  • Debt offerings (bonds)
  • Other offerings: Other than equities and debts funds.

The applicant can select the given option as per his requirements and submit the application form.

Features of the ISIN:

Some of the important features of ISIN are as follows:

  • In India, the ISIN consists of a 12-digit code that can be attached to the securities of various institutions. For example, the ISIN of State Bank of India (SBI) is INE062A01012. This number can be used to identify the securities of SBI only. Therefore, it eases the operational and trading processes of securities.
  • The ISIN number is used while transferring shares through DEMAT accounts.
  • The ISIN is a machine generated code. This code helps in the prevention of counterfeiting and fraud.
  • The ISIN is regulated by the international organisation for standardization (ISO 6166). Presently the ISIN code can be given to various forms of securities like stocks, bonds, treasury bills, derivatives, commodities and currencies.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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