What are CDIs?A CDI is a financial product which is a unit of beneficialownership in an underlying financial product which is quotedon the ASX market. A CDI confers a beneficial interest inthe underlying financial product to which it relates.CDIs can be settled electronically through CHESS and areused when the underlying financial products are not able tobe settled through CHESS.For example, if a foreign company issues CDIs in respectof its shares (financial products), the holders of the CDIsobtain “beneficial ownership” of those foreign financialproducts. The main difference between holding CDIs andholding foreign financial products directly is that you havebeneficial ownership of the equivalent number of foreignfinancial products instead of legal title. Legal title to theforeign financial products is held by a nominee company onbehalf of CDI holders.There are three types of CDIs:• CHESS Units of Foreign Securities (“CUFS”), which areissued in respect of foreign equity securities;• Depositary Interests (“DIs”), which are issued in respectof bearer securities (such as debt) or where thesecurities are held in another settlement and depositarysystem; and• Government Bond Depositary Interests.The term “CHESS Depositary Interest” (or “CDI”) is acollective term that may be used to refer to any or all ofthese. Whether you hold CUFS, DIs or Government BondDepositary Interests, you derive your beneficial interest inthe relevant foreign equity, debt or other security throughone or more nominee companies, known as depositarynominees. (CHESS DEPOSITARY NOMINEES PTY LTD (AFSL 254514)FINANCIAL SERVICES GUIDE)
Funding or some arrangement? DYOR
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