Entitlement Elections Overview

Entitlement Election functionality is not a part of Day 1 CHESS Replacement Scope. Refer to ASX’s October 2020 response to consultation feedback for further details. All Functional Specification and Messaging content is subject to change in subsequent releases.

Entitlements Elections Overview

An Issuer may choose to raise capital by offering existing eligible shareholders the ability to apply for additional shares. A Rights Issue (renounceable or non-renounceable) or a Share Purchase Plan are examples of how capital may be raised. 

The CSP will facilitate Entitlement Elections by Participants on behalf of their Account Holders. Entitlement Elections will be supported for:

  • Rights Issue (Renounceable, Non-Renounceable & the retail component of an Accelerated Rights Issue); and
  • Rights Issue Over-Subscriptions; and
  • Share Purchase Plans

Participants may use the CSP Entitlements Election Process to:

Entitlement Elections will not be sent to the Issuer (Registry) until payment has been effected. Entitlement Elections may be cancelled prior to payment being effected.

Entitlement Elections that remain in a Pending state after the close date for the relevant corporate action will be housekept.

The successful submission of an Entitlement Election and Payment by a Participant to an Issuer (Registry) results in an Application being recorded by the Issuer (Registry). The Application may be the subject of a rejection or scale-back at the discretion of the Issuer.

Issuer (Registries) may use the CSP Entitlements Election Process to:

Notifications will not be sent to a Participant until payment has been effected.

Notifications that remain in a Pending state will be housekept when the Corporate Action is archived.

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