Learn about Share Transfer Agents (STAs) under SEBI regulations. Explore their role in maintaining investor records for Mutual Funds and listed entities, and their registration process.
Registrars or transfer agents secure the trust or are said to be the institutions that register and maintain the translation record of investors for the advantages or convenience of the Mutual Funds houses and listed entities.
For the transactions of the investors referred to as buying, revisions in personal data, exchanges, processing of emails, and corresponding information that emerges repeatedly required to be maintained.
The registrar or transfer agents contribute to cost savings, particularly the time duration engaged in record maintaining of the transactions of the investors as they poses an experience in the maintenance of this information on professional grounds.
It arranges the details of the new offers and a maturity date in one place for the investors. SAG RTA management services, etc. are known to be acknowledged RTAs.
Board controls the provisions of the RTAs on the grounds of the directions provided through them i.e Securities and Exchange Board of India (Registrars to an Issue and share transfer agent) Regulations,1993. Hence it is an important requirement for the applicant to get a SEBI registration.
There are two categories which have been specified below where the applicant is required to get registered as a registrar to an issue or transfer agent.
Category 1:- Withheld the operations as both registrars to an issue and share transfer agent.
Category 2:- Continue the activity as registrar to an issue or share transfer agent.
Share Transfer Agents Who are Registered with SEBI Should Follow the Following Procedure
An applicant asking to obtain registration as a registrar to an issue or share transfer agent would create an application to the board in Form A including the non-refundable fees of INR 6 lacs for category 1 and INR Two lacs for category 2.
The board might tell the applicant to furnish these details needed post obtaining the application, and ask them to appear in person also.
When the board arrives at the closure the application would not be done and indeed the same does not affirm the guidelines under the mentioned forms, therefore there might be a chance of rejection of the application that the board could perform. A chance to eliminate the flaws at a particular time will be provided prior to rejection.
The board considers the case prior to authorizing the registration certificate that is concerned with the procedure and in particular the following as specified below-
- Effective infrastructure is being owned by the applicant such as office space, equipment, and particularly the manpower to release the activities.
- If they secure any former experience in the concerned operations.
- Any individual associated with the applicant directly or indirectly to whom the board has refused the registration.
- A net worth of Rs 50 lacs is the min capital adequacy in the case of category 1 while in category 2 the same must not be lower than Rs 25 lacs.
- According to schedule 11 of the regulation criteria the applicant will secure a fit and a proper person.
An intimation shall get sent to the applicant by the board when satisfied indeed specifying the category where they would reveal to be qualified for the registration and authorise the registration certificate in Form B including the fee payments as specified in schedule II.
Unless rejection or suspension shall take place the certificate of Registration remains valid.
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