Last updated 2 years ago
What is a HIN/SRN?
Australian shares can be held and managed in three ways: CHESS Sponsored with Broker (HIN), Issuer Sponsored with Share Registry (SRN) and through a Nominee model.
Australian shares can be held and managed in three ways:
CHESS Sponsored with Broker (HIN)
When shares are held with a broker (or online trading account) they are identified by a HIN (Holder Identification Number). A HIN is like a bank account number, it is used to identify your account with a broker where your shares are held.
You can locate your HIN at the top of a CHESS statement (received in email/mail when you buy/sell shares) or by asking your broker.
Shares held on a HIN can be bought and sold by the sponsoring broker.
See below for more information on a CHESS holding statement and where to find your HIN details. Source: ASXonline
Issuer Sponsored with Share Registry (SRN)
When shares are not registered under a broker, they are held with the company’s share registry and identified by an SRN (Securityholder Reference Number).
When participating in a capital raise that is using a Manual/EFT Settlement you may nominate to have your shares sent to an SRN. If you nominate for your shares to be allocated to a HIN, but the details you provided do not exactly match what is in the CHESS system then your shares will in most cases be automatically sent to an SRN.
Unlike a HIN, each securityholding has a unique SRN. Each time you receive new securities with an SRN, a letter will be mailed to the registered address with a holding statement. It is important to collect and retain this letter as you will need the enclosed SRN number in order to manage your holding.
If you would like to transfer holdings under an SRN to a HIN, you will need to contact your broker. This is usually able to be processed within 1-2 business days.
See below for more information on an SRN holding statement and where to find your SRN details. Source: CommSec
The key difference between the nominee model and the HIN & SRN models is around the ownership of the shares. In the HIN & SRN models you are registered at the ASX as the legal owner. Through the nominee model, your broker or fund manager uses a custodian company to hold the shares on your behalf.
How to participate in capital raises with a Nominee account:
You can participate in a placement if the placement is settling via DvP and your broker/custodian is willing to settle DvP.
You can participate in a shareholder offer directly through the company via the share registry. Please refer to the prospectus or offer document for more details.
You cannot participate in a placement if you are trying to qualify as an experienced investor as your holding status cannot be easily verified.
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