Main Accountabilities of New Agents like SAG-RTA India

In the investment environment, fund investors, publicly traded companies, and financial institutions in the current times secure various investors who implement multiple transactions for the day like buying and selling or transferring the shares, and wish to precise the records or data for that.

It’s crucial that shares and stock exchanges maintain their significance within the global economy. These entities, responsible for recording transactions, play a pivotal role in aiding banks, corporations, and financial institutions. Their role involves monitoring investments and devising strategies to optimize them while minimizing risks.

SEBI-Registered Registrar and Transfer Agent (SAG-RTA) are authorized entities responsible for maintaining the financial records of transactions furnished by investors.

Why do Organizations Need Registrars and Share Transfer Agents?

The Registrar and Transfer Agent, acting on behalf of a corporate entity, maintains records of security holders provided by these bodies. They oversee the transfer and redemption processes of securities.

These agents, hired by firms, handle the records of security owners. Their primary role involves issuing or declining certificates to indicate changes in ownership of an entity’s securities, serving as a vital intermediary for organizations.

Functionality of Registrar & Transfer Agent

• Securities transfer and investor record-keeping
• Alerting investors about new fund offers
• Endorsing certificates for allotment or call monies
• Managing transmission, consolidation, and subdivision of securities
• Directly sending transferred securities and those held for transmission, consolidation, or subdivision to investors
• Updating shareholder names and certificates after share sales, replacing them with details of new shareholders

Clear Provisions of Share Transfer Agent mentioned in regulation 7 of SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) Regulations, 2015 (Updated 10 January 2020).

Modification or Appointment of a New Share Transfer Agent

Appointment New RTA Agent:-

Appoint a share transfer agent or manage the share transfer utility in-house. When a registered entity has no shareholders less than or identical to one lacs- The listed entity shall appoint the share transfer agent or manage the share transfer facility in-house. If the listed entity secures shareholders exceeding 1 lacs- The listed entity shall either register via the board as a category II share transfer agent or appoint the share transfer agent.

Compliance Certificate to Board:-

The compliance certificate shall be provided by the listed entity to exchange the duly signed via the compliance officer of the listed entity and the authorized representative of the share transfer agent in which it is been applied for 1 month of the completion of each half of the financial year.

Revision or Appointment of the New Share Transfer Agent:-

For the amendment or hiring of the new share transfer agent the listed entity shall insert the tripartite agreement among the current share transfer agent, the new share transfer agent, and the listed entity. It mentions that in the case of the current share transfer utility being managed the house of the agreement related to the above shall get entered among the listed entity and the new share transfer agent.

Also, the listed entity shall communicate the appointment to the stock exchanges within seven days of entering into the agreement. SAG RTA furnishes low-cost and robust RTA services for our customers as well as for the investors.

Also in the subsequent meeting of the board of directors, the agreement was placed.