Objective behind proximity indication, handover from macroEnodeB to HeNB. Once eNodeB sends proximity related configuration to UE via rrc connection reconfiguration. UE applies this information at its own end and start searching CSG cell(s) which are in the UE's CSG whitelist. When ue detects a particular CSG cell, It sends proximity indication to eNodeB that it has detected an E-UTRA frequency, in which CSG cell is working. Then eNodeB may ask the UE to sends measurement report and UE sends necessary information to eNodeB in measurement report.
Upon receiving measurement report, eNodeB initiate basic handover procedure.
Please correct me if I am wrong.