ISIN codes are comprised of alphanumeric symbols. They are the world’s only universally accepted securities identification number code that crosses all borders. Often times companies will seek to put their securities like stocks and bonds on a public exchange where investors will have greater access to invest, which gives companies greater exposure for their products, which grants them needed access to capital. Because companies may chose to place their stock or shares, for example, on more than one public exchange, and often in different currencies, this can pose a problem for purchasers, clearing and settlement institutions and others. This is mainly because of the ticker symbol, which is most likely different for a company who trades on multiple exchanges. A good example of this is Microsoft stock, which trades in various stock exchange worldwide and in multiple currencies and in different languages.
Thus the ability to distinctly identify such securities poses a challenge.
ISIN Code – Unique Identifier
Enter the ISIN code. The international securities identification code or ISIN is a 12 digit code which acts to counterbalance the difficulty in securities identification worldwide. While the public trading stock above example is a good example for public companies, the majority of ISIN codes are issued to private corporations worldwide, such as hedge funds and others. Even for publicly trading equity shares or stock or debt notes and bonds, the ISIN code is therefore the only universally accepted identifier across all institutions. Thus, even if a ticket symbol is different on various exchanges, the ISIN code is not, and therefore one can easily identify the securities and issuers.
To apply for an ISIN code can vary from entity to entity. For example, a company in China may be required to submit documentation that a company in Brazil may not need to. Often an offering memorandum or information memorandum is sufficient to supply (a PPM or private placement memorandum is basically the same thing). These are private companies. For public companies normally a prospectus or its statement or announcement will suffice.
If you are seeing to apply for an ISIN for your fund, or equity shares or debt offering for notes and bonds, contact Isin.com. Our team of specialists can assist you with private and public ISIN codes.