Let us Know More About Registrar and Share Transfer Agent

In this world everyone is running at supersonic speed, even the investment environment. Nowadays mutual fund investors, financial institutions, and publicly-traded companies are having multiple investors and they do a lot of transactions every day. Their transactions also include buy, sell or transfer of share units and the mutual fund houses or companies have to maintain the accurate records of all their transactions.

Maintaining an accurate record of each and every transaction is not an easy task, and that’s why institutes or authorities who can handle and maintain the transaction record are required in this investment environment like SAG RTA (Registrar and Transfer Agent) can help this sector and they can do record keeping, maintenance and information updates work for investors for Banks, corporate and financial institutions and companies.

Share transfer Agent

Share transfer Agents are responsible for maintaining records of holders or investors holding securities issued by such corporate bodies and agents also take care of all the process of transfer and redemption of securities on behalf of corporate bodies.

So basically, agents who are hired by a company to maintain records of security owners are known as Registrar and Share Transfer Agent. But maintaining records is not the only activity they perform.

The main work of transfer agents is to issue or cancel certificates of the securities as per the changes taken place in the ownership of the securities and to act as a middleman for the company.

Responsibilities of a Registrar & Share Transfer Agent

• Security transfer and maintaining record for Investors.
• Keep the investor up-to-date with the new fund offers.
• Certificate’s endorsement for allotment or call monies.
• Transmission, consolidation, sub-division of securities.
• Dispatch of transferred securities and securities received for transmission /consolidation /sub-division etc, directly to the investors.
• Update the owner name or change the certificate when the holders had sold the securities.

1. Appoint a Share transfer Agent or Manage the in-house share transfer facility.

• If the entity has a number of shareholders less than 1Lacs then the entity will appoint a share transfer agent or Manage the in-house share transfer facility.
• If the entity has a number of shareholders over 1Lacs then the entity will register with the board as a category II share transfer agent or appoint a share transfer agent like SAG RTA.

2. Compliance certificate to Board

The entity will submit a compliance certificate duly signed by the compliance officer of the listed entity as well as the authorized representative of the agent to the exchange within one month of each half of the fiscal year.

3. Process of Changing or appointing Share Transfer Agents

To change or select a new Registrar Transfer Agent, the listed entity has to enter into a tripartite agreement between the current share transfer agent, entity and new share transfer agent.

If the entity was having an in-house share transfer facility then the agreement will be made in between the entity and new share transfer agents.

If the entity is changing RTAs or appointing a new one then they have to inform stock exchange (s) within seven days after entering into the agreement about the same.
The above mentioned agreement will be placed in the subsequent meeting of the board of directors.

Note:- The requirements of this regulation will be not applicable to the units issued by mutual funds that are listed on recognized stock exchange(s).