The fundamental difference between a HIN (Holder Identification Number) and an SRN (Securityholder Reference Number) lies in how your shares are held and managed within the Australian share market. Both are unique identifiers for shareholdings, but they denote different sponsorship models.
Understanding HIN (Holder Identification Number)
A HIN (Holder Identification Number) is used to identify the owner of shares that are held or managed by a broker. When you open a trading account with a stockbroker, such as CommSec, any shares you purchase through that broker will typically be held under your HIN. This means your shares are "broker-sponsored." With a HIN, all your holdings with that specific broker are consolidated under one identification number, simplifying management through your brokerage account.
Understanding SRN (Securityholder Reference Number)
An SRN (Securityholder Reference Number), which stands for Securityholder Reference Number, is used to identify the owner of shares that are held directly by a share registry. These shares are often referred to as "issuer-sponsored." This arrangement means that the company whose shares you own, or its appointed share registry, directly manages your shareholding. SRNs are common for shares acquired outside of a traditional brokerage account, such as through an Initial Public Offering (IPO) without a broker, or via an employee share scheme. Each individual shareholding you have directly with a share registry will have its own unique SRN.
Key Distinctions Between HIN and SRN
The table below outlines the primary differences between these two crucial identifiers:
| Feature | HIN (Holder Identification Number) | SRN (Securityholder Reference Number) |
|---|---|---|
| Primary Role | Identifies the owner of shares held by a broker. | Identifies the owner of shares held by a share registry. |
| Sponsorship | Used for broker-sponsored shares. | Used for issuer-sponsored shares. |
| Management | Shares are managed through your specific brokerage account (e.g., CommSec). | Shares are managed directly by the company's share registry. |
| Consolidation | Multiple company shares held with the same broker are under one HIN. | Each direct holding with a share registry typically has its own SRN. |
Practical Implications
It's common for an investor to have both a HIN and one or more SRNs, depending on how they have acquired and chosen to hold their shares. For example:
- If you regularly buy shares through an online trading platform, these shares will likely be held under your HIN.
- If you received shares as part of an employee share plan or subscribed directly to a new company listing without involving your broker, those shares would typically be issued under an SRN.
Understanding which identifier applies to your holdings is essential for managing your investments, receiving company communications, and processing transactions.
