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:
- Submit an Election to advise an Issuer of their request to apply for additional shares through the Participant Initiated Entitlement Elections Process; and
- Cancel an Election before the corresponding RTGS payment has been submitted through the Participant Initiated Cancellation of Entitlement Election (Pre-Payment) Process; and
- Submit a payment to support an election via RITS. Through the Participant Initiated Entitlement Election Payment Instruction Process, payments may be made on:
- a single election, single Account (HIN) basis; or
- multiple elections, single Account (HIN) basis; or
- an aggregated basis i.e. multiple elections/multiple Account (HIN)s per Controlling Participant.
- Send the Election corresponding to the RTGS payment to the Issuer (Registry)
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:
- Notify a Participant that an Application they have submitted has been rejected or is the subject of a scale-back through the Issuer (Registry) Initiated Corporate Action Refund Process; and
- Submit a payment to support a refund of the original Participant Application via RITS. Through the Issuer (Registry) Initiated Payment for Rejected Applications or Over-subscription Scaleback Process, payments may be made on:
- a single election, single Account (HIN) basis; or
- a multiple applications, single Account (HIN) basis; or
- On an aggregated basis i.e. multiple applications/multiple Account (HIN)s per Controlling Participant
- Send the Refund Notification corresponding to the RTGS payment to the Participant
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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