IPO Subscription Refund Cheques

22 Jul 2004



Cheques for returning application monies to unsuccessful individual applicants of IPO shares will be printed with part of the applicants’ identity card numbers under a new measure to improve security.

The Hong Kong Association of Banks, the Hong Kong Monetary Authority, the Federation of Share Registrars and the SFC have agreed that this will apply to all IPOs opening on or after 9 August 2004. (Note 1)

Under the new measure, a return cheque to an individual applicant will be printed with part of the applicant’s Hong Kong identity card number (or passport number). For joint applicants, the identity information of the first-named applicant will be printed.

When a refund cheque is presented to a bank, the bank will cross-check both the name and the printed part of the Hong Kong identity card or passport number of the payee shown on the cheque against the bank’s own record on the information of the account holder. If there is a discrepancy, the bank might request other proof of identity or take other steps for verification.  If the bank is unable to be satisfied with the identity of the payee, the bank might reject the deposit of the refund cheque concerned.

Information about the new measure will be added to IPO application forms and prospectuses to ensure all IPO applicants are informed.  Applicants are advised to ensure that their identification numbers are accurately filled in on the IPO application form to avoid delay in cashing their refund cheques. A cheque deposit might be rejected if an IPO applicant fails to fill in correct identity information. When in doubt, IPO applicants should enquire with the relevant share registrar.

The SFC and the other parties will continue to work towards a fully electronic refund process in the long term.

Ends

Note:

1. Please see press release issued by the SFC on 2 March 2004 for background.




Page last updated : 1 Aug 2012