Registration as Registrar to an Issue and Share transfer Agent
1. Application to be made in Form A
2. Application to be accompanies by Non refundable Fee of Rs. 20,000/- . – Refer Note Number 1
3. Types of Application:
a) Category I: to carry on the activities as a registrar to an issue and share transfer agent;
b) Category II: to carry on the activity either as a registrar to an issue or as a share transfer agent;
4. Board may require to furnish further clarification and may require personal representation.
5. Consideration of application.─The Board shall take into account for considering the grant of a certificate all matters which are relevant to the activities and in particular the following, namely, whether the applicant─
a) has the necessary infrastructure like adequate office space, equipments and man- power to effectively discharge his activities;
b) has any past experience in the activities;
c) or any person directly or indirectly connected with him has not been granted registration by the Board under the Act;
d) fulfills the capital adequacy requirement specified in regulation 7;
e) is subjected to any disciplinary proceedings under the Act;
f) or any of its director, partner or principal officer is or has at any time been convicted for any offence involving moral turpitude or has been found guilty of any economic offence.
g) is a fit and proper person.
Capital Adequacy Requirement- Net worth of applicant as follows- Net worth- Refer Note No. 02
a) Category I- 50,00,000/-
b) Category II- 25,00,000/-
6. Grant of Certificate of reg in Form B, it shall be valid until until suspended or cancelled by the board.
7. Conditions of Registrations- Grant of conditions is subject to following conditions;
a) where a registrar to an issue or a share transfer agent proposes change in control, it shall obtain prior approval of the Board for continuing to act as such after the change;
b) it shall enter into a legally binding agreement with the body corporate or the person or group of persons for or on whose behalf it is acting as a registrar to an issue or a share transfer agent stating therein the allocation of duties and responsibilities between itself and such body corporate or person or group of persons, as the case may be;
c) it shall pay the fees for registration, in the manner provided in these regulations;
d) maintain capital adequacy requirements
e) take adequate steps for redressal of grievances of the investors with in one month of the date of the receipt of the complaint and keep the Board informed about the number, nature and other particulars of the complaints received and the manner in which such complaints have been redressed
f) it shall abide by the regulations made under the Act in respect of the activities carried on by it as a registrar to an issue or a share transfer agent.
g) it shall immediately intimate the Board, details of changes that have taken place in the information that was submitted, while seeking registration.
8. Board may refuse to grant registration if conditions above are not satisfied after giving opportunity of being heard.
9. Registrar to an Issue not to act as such for an associate.─No registrar to an issue shall act as such registrar for any issue of securities in case he or it is an associate of the body corporate issuing the securities. (Associate meaning- refer note no. 03)
10. Maintain proper books of Accounts,Appointment of Compliance Officer and Auditor.
Note No. 01- Registration Fees
- A registrar to an issue and share transfer agent (category I)- Rs. Six lacs
- A registrar to an issue and share transfer agent (category II)- Rs. Two lacs
- A registrar to an issue and share transfer agent who has been granted a certificate of registration, to keep its registration in force, shall pay registration fees, every three years from the sixth year, from the date of grant of certificate of registration or from the date of grant of certificate of initial registration granted
- prior to the commencement of the SEBI
- The registration fee shall be paid by the registrar to an issue and share transfer agent within fifteen days from the date of receipt of information from the Board.
Note no. 02
- Proprietary concern or a firm or an association of persons or any body of individuals- Value of capital contributed to such business by the applicant and the free reserve of any kind belonging to the business of the applicant, and
- Body corporate- value of paid up capital and free reserve or as disclosed in the books of accounts of the applicant at the time of making the application under sub-regulation (1) of regulation
Note no. 03- Associate meaning
(a) he or it controls directly or indirectly not less than 10 percent of the voting power of the body corporate or of the registrar to an issue, as the case may be; or,
(b) he or any of his relative is a director or promoter of the body corporate or of the registrar to an issue, as the case may be
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