Metal Tiger Plc – ISIN AU0000129736
The ASX says that “A CDI is a financial product quoted on the Australian Stock Exchange that confers a beneficial interest in the foreign financial product to which it relates”. For example, if a foreign company issues CDIs in respect of its shares, the holders of the CDIs obtain “beneficial ownership” of those foreign financial products. The main difference between holding CDIs and holding foreign financial products directly is that you have beneficial ownership of the equivalent number of foreign financial products instead of legal title. Legal title to the foreign financial products is held by a nominee company on behalf of CDI holders.
There are two types of CDIs:
· CHESS Units of Foreign Securities (“CUFS”), which are issued in respect of foreign equity securities; and
· Depository Interests (“DIs”), which are issued in respect of bearer securities (such as debt) or where the securities are held in another settlement and depository system.
The term “CHESS Depositary Interests” (or “CDIs”) is a collective term that may be used to refer to CUFS or DIs or both. Whether you hold CUFS or DIs, you derive your beneficial interest in the relevant foreign equity, debt or other securities through one or more nominee companies, known as depositary nominees.”
You must look through the CDI to the product to which it relates.
In this case, if you can’t find any evidence that the underlying shares are individually listed or traded on a recognised stock exchange the DI’s/CDI’s will not be eligible for ISA inclusion (after the delisting on AIM).