SEBI Mandates RTA Services Registration

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Bhaskar Goyal
Aug 19 , 2019 11 min read 97 Views Likes 0 Comments
SEBI Mandates RTA Services Registration

Mutual Funds are standing in the market only with the concept of “Investment today is an earning tomorrow”. Each day, a large stream invests in mutual funds with the intention to earn favorable profits in the future. This calls for all-rounder management services. Registrar and Transfer Agent (RTA) is the support-system to foster Mutual Fund Houses. They are in between investors and mutual fund houses to facilitate both with a disciplined functionality.

RTA and Mutual Fund House

Registrar and Share Transfer Agent is responsible for maintaining up-to-date records of investor’s transactions like buying, selling and switching the securities, email handling and maintaining the records of the investor’s personal information on behalf of the mutual fund house.

RTA and Investor

On investor’s part, they are dedicated to facilitating with various application forms, investment schemes and maturity date. Registrar & Transfer Agent is known for its professionalism and cost-effective services.

Authenticated and authorized by the Securities and Exchange Board of India (SEBI), RTA’s code of conduct is based on the guidelines issued by SEBI Regulations 1993. For RTA applicants, registration with SEBI is the must.

The applicant is required to be registered under the following categories:

First - To conduct activities as registrars to an issue as well as the share transfer agent.

Second - Conduct activities as registrar to an issue and share transfer agent.

The prime requirement to become an Registrar & Transfer Agent Services provider is registration with SEBI. Mentioned below is the procedure to follow for registration with SEBI:

Foremost is the application one must furnish to the board in Form A along with the fees of Rs 6 Lacs (category 1) and Rs. 2 Lacs (category 2) to get registered as registrar and share transfer agents (RTA).

Post submitting the application, the board may ask the applicant to present further relevant details required for the registration and may ask the person to appear in the office as well. If the board finds any irrelevant or incomplete information in the application then they may reject the application. The applicant is briefed about the situation and gets the chance to clear all the faults within a certain time limit.

Mentioned below are the criteria board keeps in mind before certifying the applicant with the eligibility to perform as a registrar to an issue and share transfer agent:

  • The board checks the availability of proper office space, knowledgeable workforce and adequate equipment to handle the process.

  • Any prior experience related to the role of RTA.

  • Any links (direct or indirect) of the applicant with the person for whom the board has rejected the registration.

  • The financial capabilities of the applicant should not go less than worth Rs. 50 Lacs for category 1 and Rs. 25 Lacs for category 2.

  • Mentioned in schedule 11, the applicant has to be fit and a proper person.

On approval, the applicant shall receive an intimation note from the board also mentioning the category (1 or 2) under which he is found capable of conducting the RTA services. The board will allow certificate of registration to the applicant in Form B along with the payment of the fees as mentioned in schedule II.

To be noted: The registration certificate remains valid until it gets rejected or suspended.

Those who are linked to Mutual Funds, whether its the company or investor, will at some point require reliable RTA services to solve their share related issues. SAG RTA Registrar and Share Transfer Agent is that reliable service which will magnificently assist its clients to easily weave through all the formalities of a mutual fund.

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