Who are transferred Agents under SEBI Regulations?
Registrars or transfer agents can be defined as establishments in the form of trust or institutions that registers and as well as maintains a complete record of transactions of the investors, for the benefit or convenience of Mutual Funds houses and listed entities.
In terms of Investor transactions, we mean buying, changes in personal data, exchanges, processing of emails and related information which occur frequently that needs to be maintained. the registrar or transfer agents having expertise in maintenance of such data on a professional basis thereby contributes to cost saving and especially, the time involved in maintaining the records of investor transactions.
They also provide investors the information about the new offers, maturity date at one place. Some of the known RTAs are Karvy, Computer age management services etc.
The provisions of RTAs are regulated by the board on the basis of guidelines issued by them i.e Securities and Exchange Board of India (Registrars to an Issue and share transfer agent) Regulations,1993. Therefore, it is the foremost requirement for the applicant to get itself registered with SEBI.
There are basically two categories among which applicant is required to be registered as registrar to an issue or transfer agent is described below:
Category 1 – Carry on the activities as both registrars to an issue as well as share transfer agent.
Category 2 - Carry on the activity as registrar to an issue or Share transfer agent.
Procedure for getting registered with SEBI is described as follows
- An applicant seeking to get registered as a registrar to an issue or share transfer agent shall make an application to the board in Form A accompanied along with the non- refundable fees of INR Six lacs for category 1 and INR Two lacs for category 2.
- After receiving an application, the board may intimate the applicant to provide such further information as required ask them to appear in person as well.
- If the Board comes to the conclusion that the application is not complete in all respect and also it does not confirm the instructions as per the prescribed forms, then the Board may reject the application. Before rejecting, an opportunity to remove the shortcomings within a specified time shall be given.
- The Board before granting the certificate of registration, take into the note all the matters which are related to the activities and in particular the following as described below:
- The applicant has adequate infrastructure like office space, equipment’s, and the most importantly the manpower to discharge the activities.
- Whether they have any past experience in the related activities.
- Any person directly or indirectly linked with applicant to whom Board has denied the registration.
- Capital adequacy should not be less than the net worth of INR Fifty lacs in case of category 1 whereas, in case of category 2 it shall not be less than INR Twenty-Five lacs.
- The applicant shall be a fit and proper person as per the criteria prescribed in Schedule 11 of the regulations.
The board, on being satisfied, shall send intimation to the applicant also mentioning the category in which they are found to be eligible for the registration and grant certificate of registration in Form B along with the payment of fees as prescribed in schedule II.
The certificate of Registration remains valid until it gets rejected or suspended.
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