Registrar and Transfer Agent and Their Services
People who have been dealing in shares or trading securities must be very well aware of a registrar and transfer agent (RTAs).
In this article, we will talk in detail about RTAs and the various services offered by them.
Who are Registrar and Transfer Agents?
A registrar and transfer agent (RTA) is a mediator or agent who is hired by mutual fund houses or other financial institutions for managing and maintaining proper records of their investors.
The primary role of an R&T Agent is to maintain proper records of investors’ data, account balances, and transactions in order to ease the job of mutual fund companies.
SAG RTA, CAMS, and Karvy are some of the popular RTA companies in India that offer RTA services to mutual fund companies, individual investors and financial institutions.
Services of a Registrar & Share Transfer Agent
Registrar and Transfer agents are primarily responsible for assisting mutual fund companies with various financial and non-financial transactions of their investors, including the proper recording and maintenance of investors’ data.
Registrar & Transfer Agents also do the job of transferring the purchased shares from the depository to the accounts of specific investors as well as updating investors about the status of a purchase/sale transaction.
Some of the common services provided by an RTA include performing changes in customers’ personal data, offering recommendations about new funds and investment offers, updating investors about consolidation of folios, dividends paid, etc., managing meeting records and buying/selling transaction records, mailing & regulatory reporting on behalf of investors.
For more details about the services and roles of an R&T agent, you can visit SAG RTA Registrar and Share Transfer Agent, which is Rajasthan’s first SEBI-approved RTA service provider company. The services offered by SAG RTA include:
- Dematerialization of Securities through NSDL or CDSL depositories
- Regulatory reporting
- Investor record keeping and transfer of securities
- Providing Information about new fund offers to investors
- Share certificate transfer
Why do Mutual Funds need the services of R&T Agents?
RTAs are hired by mutual fund houses as a mediator or third-party service party, mainly with the aim to ease the overall processing of fund transactions as well as to facilitate better relationships with the investors.
Big mutual fund houses have to process thousands of transactions, including buying/selling of shares, share transfer, modification in investor data, etc. each day. All these transactions are also supposed to be properly recorded and maintained for future reference. This is a very time-consuming, expensive and hectic job, which not every mutual fund company has the time, resources or patience to do. That’s why they hire the services of an R&T agent to ease the job and ensure proper maintenance of investors’ records.
Registrar and Transfer Agent Services are known to reduce the overall operating expenses for mutual fund companies by doing all the hectic work.
Another major reason why mutual fund companies need RTAs is because of the lack of expertise and workforce to do the job. Outsourcing investor maintenance and recordkeeping work to professional R&T agents seems like the best and most profitable option in such situations.
Read Also:- Transfer Of Shares Upon Death of Shareholder
Some of the other benefits offered by RTAs to mutual fund companies include:
- Huge savings of cost, time and resources for mutual fund houses and financial companies.
- The country-wide existence, through multiple branches, of Registrar Transfer Agent can enable mutual fund houses to connect with investors and make sales more effectively.
- Moreover, hiring the services of an RTA enables investors to invest in multiple schemes of different mutual fund houses without having to create accounts or deal with each fund house separately.
Convinced yet? Hire the prominent services of RTA Agencies to grow your investment like never before!!!
