Understanding the difference between SRN (Security Reference Number) and HIN (Holder Identification Number) is crucial for shareholders, especially when considering selling shares. Here’s an expanded and informative take on the topic:
SRN (Security Reference Number):
Definition: An SRN is a unique identifier for shares that are issuer-sponsored, meaning they are managed by the company’s share registry. Each company you own shares in will provide a different SRN.
Identification: It typically starts with an ‘I’ and consists of about ten or eleven digits.
Locating Your SRN: You can find your SRN on holding statements or other communications from the share registry.
Significance: If you don’t have a stockbroking account, or your shares aren’t in one, they are most likely tracked under an SRN.
HIN (Holder Identification Number):
Definition: HINs are associated with shares that are CHESS sponsored, meaning they are held by a stockbroker. CHESS stands for Clearing House Electronic Subregister System, the system used by the ASX to record share holdings.
Identification: A HIN is a unique ten-digit number starting with ‘X’. If you have multiple stockbroking accounts, you’ll have a HIN for each.
Advantage: Holding shares in a stockbroking account allows you to buy and sell them easily.
Selling Shares with SRN or HIN:
Whether your shares are issuer-sponsored (SRN) or CHESS-sponsored (HIN), One Off Trades can facilitate a one-off share sale without the need to open a share trading account. This is particularly useful for those who find opening an account cumbersome or only need to sell shares occasionally.
Additional Considerations for Shareholders:
Share Registries: Share registries, such as Link Market Services, manage the day-to-day shareholder administration for companies. They are responsible for maintaining accurate shareholder records, managing dividend payments, and issuing holding statements.
Share Registry Services: Shareholders often contact registries to confirm holdings, replace lost paperwork, update personal details, or change dividend payment instructions.
This comprehensive understanding of SRN and HIN helps simplify the logistics of share ownership and the process of converting shares into cash. It’s particularly useful for those who may have inherited shares or received them through events like demutualization and need clarity on how to manage or sell these assets.