Definition
ISIN
ISIN (International Securities Identification Number) is a unique 12-character code that identifies a specific security, like a stock or bond, globally.
Every listed share, bond, or mutual fund unit in India has a unique ISIN, allotted by NSDL and CDSL. For Indian securities it starts with 'IN', followed by digits identifying the issuer and security type, ending with a check digit (for example, Reliance Industries equity is INE002A01018).
The ISIN ensures that when a stock trades on both the NSE and BSE, it is recognised as the same underlying security for settlement and demat purposes, avoiding any ambiguity.
Related terms
- Face ValueFace value (par value) is the nominal value of a share as stated by the company, often ₹1, ₹2 or ₹10.
- DepositoryA depository is an institution that holds your shares and securities in electronic (demat) form, much like a bank holds your money.
- Demat AccountA demat account holds your shares and securities in electronic form, eliminating physical certificates and enabling seamless trading and settlement on stock exchanges.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.