Deferred settlement

[Tyler Durden]

Hey all,

So Echo shares (from the demerger of Tabcorp) listed on the ASX today for the first time, and there is currently "Def Set" following its name. I've discovered this means deferred settlement, and from another thread here and a bit of googling, I have learnt that it means that the T+3 period does not apply.

But what I want to know is, where do I find out the period of time that is applicable? Ie. the time that elapses between purchase of shares and taking funds out of my bank account? Do I find that in the Tabcorp documents provided to shareholders (have had a brief look and found nothing) or is there a definition from the asx website?

 

[bellenuit]

Hey all,

So Echo shares (from the demerger of Tabcorp) listed on the ASX today for the first time, and there is currently "Def Set" following its name. I've discovered this means deferred settlement, and from another thread here and a bit of googling, I have learnt that it means that the T+3 period does not apply.

But what I want to know is, where do I find out the period of time that is applicable? Ie. the time that elapses between purchase of shares and taking funds out of my bank account? Do I find that in the Tabcorp documents provided to shareholders (have had a brief look and found nothing) or is there a definition from the asx website?

It should be company specific, so check the Tabcorp document.

 

[Tyler Durden]

It should be company specific, so check the Tabcorp document.

Thanks, I still couldn't find it, but saw in my comsec trading history that although I bought them today, settlement is on 24 June.

Does anyone know why a company would do that? I can understand if it's less than T+3, but why would a company want to wait longer than that for their money?