Details Responsibility and Role of Registrar and Transfer Agent

TOPICS :   Business
Aug 17 , 2021 11 min read 113 Views Likes 0 Comments
Details Responsibility and Role of Registrar and Transfer Agent

What is Registrar & Share Transfer Agent

In the present times the investment environment, mutual fund investors, publicly traded companies, and financial institutions pose several investors who used to execute the number of transactions for the day such as buy and sell or transfer of shares and want precise records or data for that.

It is essential that the shares and the stock exchanges are just important for the economy of the world. It provides the institutions or council who is liable for maintaining the records of these transactions to assist the banks, Corporate and financial institutions so as to monitor the investment and design schemes to rectify or maximize the investment through the minimum risk.

The registrar’s and the Registrar and Share Transfer Agent are the authorized parties who are subjected to maintain the financial records of the furnished transitions through the investors.

Registrar and Transfer Agent Need for Organization?

The Registrar & Transfer Agent is the agent who upon the grounds of the body corporate, maintains the records of the holders of the securities provided through these body corporate and deals through the processes of transfer and redemption of the securities.

It is an agent who is hired through the firm to maintain the records of the security owners. Transfer agent’s principle provides and refuses certificates to mention the revisions in the ownership of the securities of the entity and serve as a medium towards the organizations.

Major Roles of Registrar & Transfer Agent

  • Transfer of the securities and record-keeping for investors
  • Notify investors of new fund offers
  • Endorsement of certificates/for allotment/call monies.
  • Transmission, consolidation, sub-division of securities.
  • Dispatch of transferred securities and securities held for transmission /consolidation /sub-division etc, straight to the investors.
  • Refuse the name and certificate of the shareholder who had sold the shares of securities, and replace it with the new shareholder.
Clear Provisions of Share Transfer Agent mentioned in regulation 7 of SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) Regulations, 2015 (Updated 10 January 2020)

Change or Appointment of a New Share Transfer Agent

1. Hire a share transfer agent or handle the share transfer facility in-house.

If a registered entity has no shareholders less than or equal to one lacs: The listed entity will hire the Registrar Transfer Agent or handle the share transfer facility in-house.

If the listed entity poses the shareholders more than 1 lacs: The listed entity will either enroll through the board as a category II share transfer agent or hire the share transfer agent.

2. Compliance certificate to Board

The listed entity will furnish the compliance certificate to exchange the duly signed through the compliance officer of the listed entity and the authorized representative of the share transfer agent where it is applied for one month of the finish of each half of the fiscal year.

3. Amendment or appointment of the new share transfer agent

Towards the concern for revision or appointment of the new share transfer agent the listed entity will enter the tripartite agreement among the existing share transfer agent, the new share transfer agent, and the listed entity.

It states that for the case the existing share transfer facility is handled the house the agreement referred above will be entered among the listed entity and the new Registrar and Transfer Agent like SAG RTA.

Moreover, the listed entity will intimate the appointment to the stock exchanges in 7 days of entering into the agreement.

Moreover, the agreement has been placed in the next meeting of the board of directors.

Note:- the need of this law will not be applicable to the units provided through the mutual funds which get listed on the considerable stock exchanges

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