SEBI Regulations For Registered Transfer Agent Registration

Registrars or transfer agents are those intermediaries or establishments that Register and Transfer Agent maintain an updated and complete record of transactions carried out by the investors, to facilitate the Mutual Fund houses, the investors and the listed entities.

Here, Investor transactions signify the buying, switching & selling of shares/securities, mutations in personal data, email processing and other akin tasks that take place frequently and need to be recorded.

The Registrar or Transfer Agent has proficiency in the maintenance of transaction records and such data and so they have an active and extensive contribution in cost as well as time-saving.

Besides, RTA Shares also notifies the investors about the latest and profitable schemes & offers, alerts them about the maturity dates and facilitates in dividend payouts. SAG RTA, Karvy, Computer age are some of the top-notch names in the RTA area.

Securities and Exchange Board of India regulates the provisions of RTAs and takes care of the guidelines issued wrt RTA i.e. Registrars ( Issue & Share Transfer Agent) Regulations,1993. Therefore, an RTA needs to be certified by SEBI. SAG RTA is a SEBI-accredited RTA service provider that delivers the services, well-considering the latest notifications by government and legal norms.

Read Also: Registrar Transfer Agent Benefits To Mutual Fund House

There are two categories under which an applicant needs to be Registered Transfer Agent as an as registrar to an issue or transfer agent. These two categories are as follows:

• Category 1: Act as both registrar to an issue and share transfer agent
  
• Category 2: Act as either registrar to an issue or share transfer agent
  

Procedure to Become an SEBI Share Transfer Agent

An applicant looking out to become an SEBI Share Transfer Agent needs to apply for the same to the SEBI in an application Form A along with a fee of INR 6 lakhs or INR 2 lakhs for Category 1 or Category 2, respectively.

Note: The application fee is non-refundable.

On receiving an application, SEBI may ask the applicant to submit additional details and if required, the board may ask the applicant to appear in person also.

An application may get rejected by the board if the board finds in incomplete in any way or unadhered with the prescribed rules for the same.

Before the rejection, an applicant gets an opportunity to rectify the mistakes within a specified time allotted to the applicants.

After giving the certificate of registration, the board takes note of all the matters associated with the activities and about the below-mentioned points:

Availability of adequate infrastructure like equipment, office space, etc with the applicant along with the most important resource i.e. enough manpower to carry out the activities.

Applicant’s experience in the same field.

• Any individual, whose registration was rejected by the board, directly or indirectly connected with the applicant.
  
• Capital availability of not less than the net worth of INR 50 lakhs for category 1 and INR 25 lakhs for category 2.
  
• Eligibility of the applicant in consonance with the criteria stated in Schedule 11 of the regulations.
  
• When the applicant is discovered as eligible for the registration from all points that need to be considered while examining, the board sends an intimation to the applicant informing about the category for which he is selected. Certificate of Registration is given to the applicant in Form B alongside the payment of fee as stated in schedule II.
  
• The validity of the certificate of Registration is lifetime, provided it does not get rejected or revoked.
  

Read Also: Comprehensive Solution for Dematerialization of Equity Shares

SAG RTA is Rajasthan’s 1st and category 1st RTA service provider which has achieved tiara in the same sector. With an integrated effort of technical as well as customer care team and innovative technologies, SAG RTA has left nothing to be sought by mutual fund houses and investors.

SAG RTA has greased the wheels for an array of activities which may start from Name deletion, the name change to securities dematerialization through CDSL/NSDL depositories, dividend payout through ECS transfer, etc.