RE: Difficult conundrum25 Jun 2025 07:53
@cheekychops1 - In essence they are the same shares. However, if bought in the UK on AIM they are Depository Interests (DI's) of the ASX listed shares.
However, if these are bought in London on AIM there is a process to enable them to be moved back to real shares on the ASX
To move a depositary interest (DI) to the primary exchange, an investor would typically go through a conversion process that replaces the DI with the underlying shares listed on the primary exchange. Here's a step-by-step breakdown of how this works:
✅ How an Investor Moves Their Depositary Interest to the Primary Exchange:
Contact the Broker or Custodian
The investor begins by contacting their broker or custodian to initiate the transfer.
The broker will advise whether the DI can be converted and outline any forms or fees.
Submit a Conversion Request
A formal instruction is submitted to cancel the depositary interest.
The depositary (or custodian) holding the underlying shares will need to release those shares upon cancellation of the DI.
Transfer of Underlying Shares
Once the DI is cancelled, the underlying shares are transferred to a local custodian or broker account in the country of the primary listing.
The shares are then registered in the investor’s name or in the name of a nominee on the local exchange.
Settlement and Trading Enablement
After the shares are transferred and settled, the investor can trade them directly on the primary exchange.
This may involve converting shares to the correct form and denomination required by that market (e.g., paper vs. electronic form, or matching the local share class).
🧾 Key Considerations:
Fees and Taxes: There are usually custodial, transfer agent, or broker fees involved. In some jurisdictions, taxes (like stamp duty) may apply.
Timing: The process can take several days or even weeks, depending on the market and intermediaries involved.
Exchange Restrictions: Some countries may have capital controls or foreign ownership restrictions that limit or complicate the conversion.
Shareholder Rights: After conversion, the investor may gain or lose certain rights depending on the market (e.g., voting rights may differ).
Example:
If an investor holds UK depositary interests in an Australian company listed on the ASX (Australia’s main exchange), they would:
Request their broker to cancel the UK DI.
Have the underlying ASX-listed shares transferred to a CHESS account (Australia’s clearing system).
Trade the shares directly on the ASX once settlement is complete.
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