How to Register as a Registrar and Share Transfer Agent (RTA)

TOPICS :   Business
Suresh Jacob
Suresh Jacob
Jun 9 , 2020 13 min read 47 Views Likes 0 Comments
How to Register as a Registrar and Share Transfer Agent (RTA)

A Registrar & Share Transfer Agent (RTA) is an authorised trust or institution that maintains records of the transaction of all the investors for their convenience. RTAs also suggest and inform the investors about the new, popular or other securities in the market according to the needs of the investor. They perform many other functions like payment of dividend, share transfer etc. as demanded by the investors. They generally have branches all over the country in different cities and union territories. To become an RTS, the institution has to get itself registered. The article will detail the procedure and the requirements for the registration.

Procedure to Register as a Registrar and Transfer Agent

1. First, you have to apply in Form A.

2. A non-refundable fee of Rs. 20,000 will accompany the application.

3. Types of Application:

  • Category I: If you want to provide the services as a registrar and a share transfer agent both.
  • Category II: If you want to provide the services either as a registrar or a share transfer agent.
4. The board may be needed for further clarification and personal representation.

5. Consideration of the Application

  • The board is required to consider all the things and matters relevant to the activities including:
  • The applicant has sufficient infrastructure, office, equipment, human resource etc. to provide proper services
  • The applicant has some experience in the activities
  • Any person related to the applicant has not been granted the registration to by the Board of Directors
  • The applicant has a proper capital as detailed in Regulation 7
  • The applicant is subjected to any disciplinary proceedings according to the act
  • The applicant or any of its director, partner or principal officer has not been found guilty in any economic offence or any other offence that includes moral turpitude
  • The applicant is a fit and proper person

6. A grant of Certificate for Registration in Form II. (Valid till suspended or cancelled by the board)

7. Conditions of Registration

  • A prior approval of the Board is required, if there is a change in control of the Registrar & Transfer Agent, to act according to the change.
  • The RTA will only enter into any legal contract with a body corporate, group of persons, or person to act on the behalf of the body corporate, group of persons, or person as a registrar and/or share transfer agent with a complete statement of duties and responsibilities between both the parties as the case may be.
  • The fees should be paid and charged according to the regulations
  • Should maintain proper capital as per the requirements
  • Should be attending to and listening to the grievances and/or complaints of the investors and take the necessary steps to solve the problems within one month of the complaint date. Should also be informing the Board about the number and nature of such complaints received and how these complaints have been addressed
  • Should abide by the laws and regulations of the Act related to the activities conducted by it as an RTA
  • Should inform the Board about the changes or any other matter while seeking registration
8. The board can refuse the registration if any one or more of the above-stated conditions are unfulfilled or ignored by the applicant.

9. No RTA can issue or perform other activities of an RTA to a body corporate related to it in any way.

10 RTA is required to maintain proper books of accounts and appointment of the compliance officer and auditor.

Note I- Registration Fees

  • RTA Category I- Rs. 6,00,000
  • RTA Category II- Rs. 2,00,000
  • An RTA who has been issued a Certificate of Registration is required to pay the fees every three years from the sixth year to keep the registration in force, from the date of receipt of the registration
  • Approval of SEBI before the commencement of the activities
  • The RTA is required to submit the registration fee within 15 days from the date of receipt of information by the Board
Note II- Proprietary Concern

  • The value contributed by the applicant in the firm or association of persons, or body of individuals have free reserve over such belongings
  • The value contributed by the applicant in the body corporate have free reserve over such belongings as per sub-regulation 1 of the regulation
Note III- Associate Meetings

  • Registrar and Share Transfer Agent controls directly or indirectly not less than 10% of the voting power of the body corporate or the RTA as the case may be
  • He or any of his relatives is a director or promoter of the body corporate or the RTA as the case may be.
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