InvestorQ : What is the ISIN number in SIP (mutual funds) & its importance?
nishi Shah made post

What is the ISIN number in SIP (mutual funds) & its importance?

Anushri Vasa answered.
4 months ago
ISIN is an abbreviation for International Securities Identification Number (ISIN). It is a 12-digit alphanumeric number. The first two letters of the ISIN code refer to the country in which the issuing company is based. The next nine digits identify specific security and act as a unique identifier.

The final character also referred to as the ‘check digit’ checks forgery. It is an international numbering system set up by the International Organization for Standardization (ISO) to number specific securities, such as stocks (equity and preference shares), bonds, options, and futures. ISIN number becomes helpful when you are trading, buying, or selling securities worldwide. Obtaining an ISIN code for stocks, bonds, and other securities is a necessity for companies seeking to raise capital, whether debt or equity.

The ISIN number code distinctly identifies the securities of the company or fund. The task of issuing ISIN for various securities has been assigned by the Securities and Exchange Board of India (SEBI) to the National Securities Depository Limited (NSDL). For the government securities, the allotment of the ISIN code is regulated by the Reserve Bank of India (RBI).