What is a CUSIP number

When investing in international markets, it’s crucial to ensure you’re tracking the exact security you wish to invest in. Many companies share similar names, and a single issuer can have multiple types of instruments in circulation. Without a way to distinguish them, investors risk tracking or trading the wrong security. That’s where a CUSIP number steps in, offering a clear, standardized way to identify securities.

Let's understand what CUSIP is, and how it can help you simplify your international investing journey.

Understanding CUSIP Number?

The full form of CUSIP is Committee on Uniform Securities Identification Procedures.

A CUSIP number is a unique 9-character alphanumeric code assigned to securities such as stocks, bonds, mutual funds, and municipal bonds in the United States and Canada. Managed by the American Bankers Association (ABA) and Standard & Poor’s, CUSIP numbers streamline trading, reporting, and record-keeping in the financial markets.

The CUSIP number simplifies trading and portfolio management. It works like a stock symbol but with global precision for North American markets. Brokers, mutual fund companies, and custodians rely on it to track securities, settle trades, and maintain accurate records. For Indian investors, knowing this number can be useful when buying US or Canadian stocks, ETFs, or bonds through international platforms.

Structure of a CUSIP Number

A CUSIP number consists of three parts:

• First 6 characters - identify the issuer of the instrument, called CUSIP-6
• 7th and 8th characters - indicate the type of security
• 9th character - a check digit that validates the number

For example, Apple Inc.’s common stock carries the CUSIP number 037833100. Just as a unique ID can distinguish people with similar names, a CUSIP helps investors and institutions follow the correct security.

How to Find a CUSIP Number?

You can find a CUSIP number from the official source, the EMMA website (Electronic Municipal Market Access) maintained by the Municipal Securities Rulemaking Board. You can search by the issuer’s or the financial instrument’s name. The details page will list the CUSIP number, which should be verified against official documents or sources to ensure accuracy.

CUSIP vs ISIN

While CUSIP is mainly used in North America, Indian investors are more likely familiar with the International Securities Identification Number (ISIN). Though both serve the purpose of uniquely identifying instruments, they differ in structure, scope, and usage. The following table explains the key differences:

Conclusion

If you are looking to diversify beyond domestic markets, CUSIP numbers, alongside ISIN, are essential tools to monitor and manage securities.

In India, Tata Capital Moneyfy makes tracking your investments easy and transparent. By using Moneyfy, you can review your mutual funds with ISINs, check fund performance, and keep your portfolio all in one platform designed for clarity and control.