4. Share shunting: conversion of underlying securities into depositary receipts
The DRs and the Home Securities are fully transferrable via a process known as share shunting or transmutation of shares.
When shunting shares from the ASX to the Overseas Exchange, the shareholder must provide the ASX register with a written direction, which will remove the shares from their holding, and place those shares into the control of the foreign register under the same name of the shareholder which reflects the beneficial ownership. This will require the ASX shares to be held by a Home Custodian for the benefit of the Overseas DR Issuer administering the foreign register. Only shares that have been registered on the foreign register are tradeable on the Overseas Exchange as DRs. Once transferred, DRs will not be tradeable on the ASX unless shunted back for shares.
MTM Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
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