All about Registrar and share transfer agents (RTA)s’ Role & Registration
In a fleet-footed investment world where multiple transactions like selling and switching of shares are executed every next minute by investors, entities & financial institutions; upkeeping and updating an accurate report of transactions is very essential to allow a smooth flow of work and discarding any issues which may arise later.
So, when the investors and mutual fund companies are busy making the most beneficial investment, who takes care of keeping the records maintained & updated?
RTAs — The third-parties who are responsible to maintain the records for financial institutions. Some of the leading RTAs of India are SAG RTA, CAMS and Karvy.
Read Also:- All You Need to Know About Registrar and Share Transfer Agents (RTAs)
Let us understand the role of RTA in detail and how do they help investors?
The trusts and the institutions that are certified to maintain accurate records of investor’s transactions are known as RTAs. Some of the finance entities play a role of transfer agents for themselves and also avail third-party services from eminent RTA service providers like SAG RTA, CAMS and Karvy.
RTAs upkeep the records of transactions on behalf of investors, mutual fund houses or other financial entities and facilitates them with these records. Not only with the records, but an all-inclusive RTAs like SAG RTA also facilitates the investors with different beneficial investment schemes as well. As the RTAs have their network expanded all over the nation, they grease the wheels for all sorts of transactions for investors. In short, RTAs are one window-solution for all your investment needs.
Let us read the key services which make RTA — A One-Window Solution
Nowadays RTAs have become an indispensable need for investors & mutual fund houses because of the long-range of services that they provide for monetary as well as non-monetary transactions such as making changes in investors’ personal data or updating buying & selling records of investors. We are exploring the services, taking into consideration the Rajasthan’s First SEBI-approved Registrar & Transfer Agent Services Provider SAG RTA. The services are as follows:
- Securities Dematerialization through NSDL or CDSL depositories
- Investor record keeping and transfer
- Securities and Share certificate transfer
- Payout of Dividend/Interest and ECS transfer
- Dividend Revalidation
- Registrar and share transfer agents (RTAs
- Notifications about latest fund offer to Investors
- IEPF claim settlement
- Managing meetings, Mailing & Reporting services
RTA Registration with SEBI
The Securities and Exchange Board of India (SEBI) is the central authority which regulates the two main depositories — NSDL & CDSL in India alongside the DP participants.
In general, registrar and transfer agents are the DP participants which imply that a broker, a financial entity or any SEBI accredited third-party who knows & discerns the process of online share transfer can be a DP.
Read Also:- Role of Registrar and Transfer Agents in Rematerializing Securities
As only SEBI has the authority to certify an RTA, an RTAs must be registered under SEBI along with consent from any of the two leading share depositories of India i.e. National Securities Depository Ltd (NSDL) and Central Depository Services India Ltd (CDSL).
As we are considering SAG RTA to understand the role of RTAs, we are again taking into account SAG RTA. SAG RTA Registrar and Share Transfer Agent, is CDSL registered RTA service provider. SAG RTA has also become one of the top-notch SEBI-approved RTA Service Providers in India.
Coming to the RTA registration procedure, the two categories under which RTA Service provider can get itself registered are: as registrar to an issue or as transfer agent in SEBI.
An applicant needs to apply for the registration with Form A along with non-refundable fees of INR 6 lakhs and INR 2 lakhs for category 1 and category 2, respectively. After receiving the application, SEBI may accept or reject your application. If the SEBI accepts the application after verifying the background, the registration gets finalized with Form B along with the fees stated by the board.
