RE: Just wanted to..6 May 2025 21:26
Not sure if this helps sandgrounded
CREST holds the underlying GGP shares (or an intermediary like SIS holds them on behalf of CREST).
• For each GGP share, CREST issues a CDI, which represents the economic rights to that share (e.g., dividends, voting rights, capital gains).
• Investors hold CDIs in their brokerage accounts, and trades settle through CREST like regular UK shares.
• Investor Impact:
• Economic Rights: CDI holders have the same economic rights as direct GGP shareholders, including dividends and participation in corporate actions (e.g., rights issues, stock splits).
• Tax Treatment: CDIs are generally taxed the same as underlying shares. For GGP, dividends are subject to UK tax rules, and CDIs can be held in tax-advantaged accounts like ISAs if the shares trade on a recognized exchange (e.g., LSE).
• Trading: CDIs are typically traded off-exchange through market makers, not directly on the LSE, which may affect liquidity or pricing.
• Risks: CDIs involve nominee holdings, so there’s a theoretical custody risk, though CREST’s role as a central securities depository minimizes this.