when a security is listed in any recognized stock exchange, a scrip code is allotted . Apart from this what is the significance in assigning ISIN for that security?
International Security Identification Number (ISIN) is a unique code generated for scrip. There are two main purpose for this:
Typically fund managers use ISIN to identify securities. For example think about the Tata Group…the group has so many companies listed…it is easy for locals to understand the difference between Tata Consultancy and Tata Communications…but it is not for outsiders.
All financial data bases (Bloomberg, Reuters etc) segregate corporate data based on ISIN.
Its like the ISBN number for the books.
No two books will have same number. Easier to find out the edition you want.
Can I add some more similarities ;-) like
- IMEI for mobile handsets
- IP address for routers
- Mac address for digital products
ISIN no. plays same role in demat like Folio no./ Certificate no/ Distinctive no etc.?