Author Topic: Fairfax India Trading Block  (Read 2439 times)

FairFacts

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Fairfax India Trading Block
« on: January 14, 2019, 11:57:12 AM »
I tried to add some FFXDF in my IRA account at Fidelity today (I have been accumulating small purchases regularly without any issue).
Today however, Fidelity gave an error message
"Error (146834) Securities flagged as Rule 144A cannot be traded through this electronic channel".

I called Fidelity who told me that I can only issue sell order and only through their desk (not electronically). They said it is because Fairfax India has not complied with all SEC filings therefore they will not allow any further purchases.

Anyone else seeing this??



WideMoat

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Re: Fairfax India Trading Block
« Reply #1 on: January 14, 2019, 12:03:22 PM »
Yes, same.

FairFacts

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Re: Fairfax India Trading Block
« Reply #2 on: February 07, 2019, 12:53:46 PM »
I emailed investor relations about this and here is their reply

"Thank you for your email.
Fairfax India Holdings Corporation has been listed on the Toronto Stock Exchange in US dollars under the symbol FIH.U since it's inception year end 2014. The company files all required news releases, financial reports and other disclosures only under the SEDAR system in Canada as required by the Ontario Securities Commission.
The Company does not market or disseminate information in the United States or through the SEC.
The Company has not created or supported any other listings beside the FIH.U symbol on the TSX."


Not sure where this leaves us.
« Last Edit: February 08, 2019, 10:58:02 AM by FairFacts »

eclecticvalue

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Re: Fairfax India Trading Block
« Reply #3 on: February 08, 2019, 10:00:18 AM »
Parsad, is there a possibility you can talk with Fairfax for getting current with the SEC so U.S. shareholders can buy ffxdf again? or if anyone is going to the annual meeting, Can someone bring it up?
« Last Edit: February 08, 2019, 11:12:21 AM by eclecticvalue »

rohitc99

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Re: Fairfax India Trading Block
« Reply #4 on: February 08, 2019, 11:22:47 AM »
I emailed investor relations about this and here is their reply

"Thank you for your email.
Fairfax India Holdings Corporation has been listed on the Toronto Stock Exchange in US dollars under the symbol FIH.U since it's inception year end 2014. The company files all required news releases, financial reports and other disclosures only under the SEDAR system in Canada as required by the Ontario Securities Commission.
The Company does not market or disseminate information in the United States or through the SEC.
The Company has not created or supported any other listings beside the FIH.U symbol on the TSX."

Not sure where this leaves us.

i am facing the same issue. how did this work till now if it was listed only on TSX

gfp

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Re: Fairfax India Trading Block
« Reply #5 on: February 08, 2019, 11:47:29 AM »
Fairfax has nothing to do with it guys.  Here is a primer on unsponsored ADRs
https://www.investopedia.com/terms/u/unsponsoredadr.asp

Jurgis

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Re: Fairfax India Trading Block
« Reply #6 on: February 08, 2019, 01:46:10 PM »
Fairfax has nothing to do with it guys.  Here is a primer on unsponsored ADRs
https://www.investopedia.com/terms/u/unsponsoredadr.asp

I don't see how you link explains the change in brokers not allowing to trade Fairfax India anymore.
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DooDiligence

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Re: Fairfax India Trading Block
« Reply #7 on: February 08, 2019, 01:48:36 PM »
Fairfax has nothing to do with it guys.  Here is a primer on unsponsored ADRs
https://www.investopedia.com/terms/u/unsponsoredadr.asp

I don't see how you link explains the change in brokers not allowing to trade Fairfax India anymore.

It doesn't.

It does however explain why Fairfax is not the right organization to contact regarding this matter.

The ADR's are unsponsored.
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

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Jurgis

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Re: Fairfax India Trading Block
« Reply #8 on: February 08, 2019, 01:53:06 PM »
Fairfax has nothing to do with it guys.  Here is a primer on unsponsored ADRs
https://www.investopedia.com/terms/u/unsponsoredadr.asp

I don't see how you link explains the change in brokers not allowing to trade Fairfax India anymore.

It doesn't.

It does however explain why Fairfax is not the right organization to contact regarding this matter.

The ADR's are unsponsored.

Yes, and?

Not all unsponsored ADRs are prohibited from trading by brokers.

I'm pretty sure the line drawn is based on what the company issuing shares does (in this case Fairfax India) rather than what the unsponsored ADR issuer does.

BTW, from the posts in thread it appears that brokers prohibit buying Canadian listed shares of Fairfax India too. These are not ADRs. And again the responsibility for lifting the prohibition lies with the issuer: Fairfax India.
Edit: actually I reread the thread and it's not clear whether buying FIH.U (rather than FFXDF) is blocked or not. So I'm scratching my last paragraph.
« Last Edit: February 08, 2019, 01:58:54 PM by Jurgis »
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eclecticvalue

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Re: Fairfax India Trading Block
« Reply #9 on: February 08, 2019, 02:41:01 PM »
Jurgis- Right now, you can't buy FFXDF if you reside in the United States. However, you can buy FIH.U . You have to open an extra account with Fidelity.