What is a Transfer Agent & Best in Industry RTA Agent

We are sure that you heard about transfer agents at least once but you don’t know who we are and what we do. But today we are going to engrave each and every single detail of the Transfer Agent.

A Registrar & Transfer Agent (RTA) is a trusted company, bank, or a similar institution assigned by a corporation to maintain the financial records of investors and track their account balance. Basically a transfer agent manages, keeps, and updates details of registered shareholders for companies that issue stock.

Rules & Regulations

A transfer agent needs to be well up-to-date with the guidelines and complexities of SEC rulings and state regulation applicable to trading and tracking securities. Normally Transfer agents helps companies to follow all these rules and regulations and continue their activities without any problem.

A transfer agent keeps corporations and investors updated with the regulation and changes, they also help corporate bodies and investors to do changes accordingly. Transfer agents also provide their suggestions and details of opportunities to both.

Registered vs. Beneficial Shareholders

To understand our working properly you also have to understand the difference between Registered shareholders and Beneficial shareholders.

Registered shareholders

Individuals or entities who purchased stocks or were issued stocks directly from the companies are known as Registered Shareholders. Each of them gets enlisted as “shareholders of record” on the company’s record. And these records are maintained and managed by the transfer agent. Transfer agents maintain records, contact details, purchase or issuance, dividend payments, and sale or transfer of shares.

Beneficial shareholders

These actually own the financial value and benefits of their shares but these shares are actually registered under a “street name” instead of the holder's name and held by middlemen such as brokers or dealers. Most of the investors come into this category. By default, they are non-objecting beneficial owners (NOBO), and their name, share position, and address are shared with those companies in which they’ve invested in. Beneficial shareholders have

to opt-out becoming an objecting beneficial owner (OBO) to have their information withheld.

Responsibilities of Transfer Agents

Transfer agents provide a number of solutions under various services for companies as well as investors. A Registrar and transfer agent normally takes care of Investor’s personal data updation, record-keeping, payout dividends, etc. tasks.

Maintaining Records

Maintaining and managing records for their clients is one of the core responsibilities of a transfer agent. Basically, they have to maintain the records of all registered shares as well as shareholders.

We are also responsible for ensuring that dividends and distributions get the right person in the right place. They also have to keep all the information current and well organized.

Payments & Reporting

As we stated above Transfer agents also make a dividend payment to registered shareholders and report the income to the IRS in the due period in every tax session. Transfer agents also help corporations with some specific actions such as mergers, acquisition & spin-offs, and to act as Inspectors of Election at annual meetings.

IPO Services

When a Private company plans to go public then they hire a transfer agent to issue share during their IPO. Here IPO stands for Initial Public Offering. They hire them on a priority basis before taking any other decision that leads to the IPO. It ensures the long life of their company. Transfer agents actually make all arrangements so that the IPO can run smoothly.

What to Look for in a Transfer Agent

The basic need of any company is that the Registrar and Transfer Agent should respond as quickly as possible and treat shareholders with respect.

Normally Corporations and other houses hire transfer agents that have the following qualities.

• Securities and Exchange Board of India Authorized
• Client and shareholder satisfaction ratings
  
• Data security
• Experience
• Innovative technology functionality
• Reliability
• Responsiveness

Choosing an Registrar & Transfer Agent Services provider is necessary as well as a complicated task but before diving into complexity make sure that the Registrar & Share Transfer Agent is availed from SEBI. Securities and Exchange Board of India (SEBI) is the regulator of the Capital (securities and commodity) market in India and it is owned by the Government of India.

RTA service providers need to be availed from SEBI to provide all their services. If you are looking for one reputed RTA Service provider then We, SAG RTA is here for you. SAG RTA (Registrar and Transfer Agent) is a leading RTA Services provider and we are accredited by SEBI. SAG RTA is committed to providing all the services or facilities with accuracy and adherence to prevailing laws. So contact us today and get more information and use our services.