Who are considered as Share transfer Agent under Securities Exchange Board of India (SEBI)?
Registrars or transfer agents can be identified as trusts or associations who register and keep a complete record of investor transactions for the profit or convenience of Mutual Funds houses and listed entities.
In terms of investment purchases, we say purchasing, personal data updates, transfers, email delivery, and related information that often happens that need to be preserved. Registrars or transition agents with professional expertise in managing these data therefore lead to cost savings and, in particular, we also provide customers with details on new offers, one-place maturity date. Some of the established RTAs are Karvy, management services for computer age, etc. The terms of RTAs are governed by the board on the basis of guidance provided by them, i.e. Securities and Exchange Board of India Regulations (Registrars to a Question and Stock Transfer Agent) 1993.. Hence, the applicant's primary requirement is to be licensed with SEBI.
There are essentially two types where applicants are expected to be enrolled as a registrar to a problem or are listed below:
Category 1 – Perform the activities and/or operation of both the registrar and the share transfer agent.
Category 2 – Performing the activities as registrar to issue or Share transfer agent.
What steps are defined to obtain the registration as Share Transfer Agents with SEBI?
- An individual requesting registration as a registrar to an issue or share transfer agent shall apply to the board in Form A followed by the non-refundable fees of Category 1 INR 6,00,000 and Category 2 INR 2,00,000.
- On receipt of the appeal, the board can order the claimant to provide such additional information as may be required to appear in person.
- If the Board decides that the request is not full in all respects and that the directions are not validated in the specified formats, the Board can refuse the request. There shall be an opportunity to remove the defects within a specified time before dismissing them.
- Before issuing the registration certificate, the Board shall take into account all matters relating to the operations and in particular the following as listed below:
- The claimant requires sufficient facilities to discharge the operations, such as office space, machinery, and most notably the manpower.
- Whether in the related activities they have any past experience.
- Every individual directly or indirectly linked to the claimant to whom the application has been rejected by the Council.
- Capital adequacy in category 1 should not be less than the net value of INR Fifty lakes, whereas in category 2 it should not be less than INR Twenty-Five lakes.
- The claimant shall be an appropriate person in compliance with the criteria set out in Schedule 11 of the Rules of Procedure.
When satisfied, the board shall also give intimation to the claimant stating the group in which they are considered eligible for registration and registration certificate in Form B along with payment of fees as specified in Schedule II.
The registration of certificate shall remain valid until it is revoked or withdrawn.