During the offer period, a client can use a portion or all of his current available cleared funds to reserve for IPO, FOO and SRO shares. Once the client has agreed to the amount and corresponding number of shares, this amount is then 'earmarked' or held by the system for a certain period and cannot be used for any other online transactions (buy orders, withdrawals, etc). Note that the number of shares reserved is not final and subject to change (depending on the final allocation.)
Once allocations are finalized, the Earmarked funds will be returned depending on the final amount of the approved shares allocated to client.
Release of Earmarked Funds
- When the total subscribed shares is granted
The total amount of earmarked funds used in corporate action availment equals the Debit Memo created in the client’s account. No funds will be released back to the client.
- When only a portion of the subscribed shares is granted
The unused or remaining funds earmarked for the corporate action is released on scheduled date and added back to the client's total buying power as 'cleared/withdrawable funds', making this amount available for use by the client for trades and other transactions. A debit memo is created which corresponds to the amount of the allocated shares.
- When there is no approved subscription/allocation
The total earmarked amount for the corporate action is released and added back to the client's total buying power as 'cleared/withdrawable funds', making this amount available for use by the client for trades and other transactions.