Registrar and Share Transfer Agent

Registrar and Share Transfer Agent

Register & Share Transfer Agent plays an important role in this modern investment environment and today here we are going to explore their need and some other important information. So

Why Need a Registrar and Share Transfer Agent?

After the introduction of RTAs and settling them with unique responsibilities, they become an essential part of the complete investment environment. At present time mutual fund investors, financial institutions, and publicly-traded companies all have multiple investors and they perform various transactions in a day. These transactions are related to buying, selling, switch or transferring shares, and along with it they also need accurate and up-to-date records/ information of the transactions and opportunities.

The share and stock exchange are essential in the economic world and this shows us the way toward institutions or authorities who have the responsibility to keep and maintain the record of all the transactions performed by the investors. These maintained reports help the banks, Corporate houses, and financial institutions to keep track of the investments and making policies that not only maximise the investment but also keep the possible risk to the minimum.

As an authorised body, it is Registrar and Share Transfer Agent like SAG RTA, Karvy and cams responsibility to keep and maintaining the financial equilibrium by maintaining accurate records of each and every transaction made by the investor.

Share Transfer Agent

Agents who on behalf of the corporate houses keep and maintain records of share or stockholders of securities issued by the body corporate and also take care of the procedures of transfer and redemption of securities are known as 'Share transfer agents'.

Such agents are specially appointed by the companies to maintain the records of all the security owners. The transfer agents are also responsible to issue and cancel certificates to represent the changes in ownership of the securities of an entity and also provide services as an intermediary for the company.

Responsibilities of the Share transfer agent

  • Transfer of securities and maintain records for investors
  • Find and Inform investors about new opportunities
  • Endorsement of certificates/for allotment/ call monies.
  • Transmission, sub-division, consolidation of securities.
  • Dispatch of transferred securities and securities received for transmission /consolidation /sub-division etc, directly to the investors.

Remove the name and cancel the certificate of the shareholder who had sold the shares of securities, and update the information with the new shareholder.

Simplified Provisions of Registrar & Share Transfer Agent mentioned in regulation 7 of SEBI Regulations, 2015

Simplified Provisions of Share Transfer Agent mentioned in regulation 7 of SEBI Regulations, 2015, which is concerned with listing obligations and disclosure requirements is Updated on January 10, 2020. And the Provision states the following:

1. Appoint a share transfer agent or manage the share transfer facility in-house.

  • If the listed entity has less than or equal to one Lacs shareholders, then the listed entity should appoint a share transfer agent or manage an in-house Share transfer facility.
  • If the listed entity has over one Lacs shareholders then the listed entity has to either register with the SEBI Board as a Category II share transfer agent or hire a share transfer agent.

2. Compliance certificate to Board

The listed entity has to submit a compliance certificate to the exchange. This needs to be duly signed by the compliance officer of the listed entity as well as the authorised representative of the share transfer agent, if applicable, before one month of the end of each half of the fiscal year.

3. Change or appointment of a new Registrar and Transfer Agent

  • If there is any need for any change or appointment of a new Registrar & Transfer Agent then the listed entity will have to go through a tripartite agreement, which will take place in between the existing share transfer agent, the listed entity, and the new share transfer agent.
  • In the case of an in-house existing share transfer facility then the same agreement will be introduced in between the new share transfer agent and the listed entity.
  • The listed entity will also have to inform the stock exchange(s) about such an appointment in between seven days of entering into the agreement.
  • The same agreement will be put in front of the board of directors in the subsequent meeting.

It needs to be noted that The requirements of this regulation will not be applicable to the units issued by mutual funds that are enlisted on the recognized stock exchange(s).