In today's investment landscape, mutual fund investors, publicly traded companies, and financial institutions face numerous challenges. Investors who engage in multiple daily transactions, such as buying and selling or transferring shares, require accurate records or data.
The significance of shares and stock exchanges extends to the global economy. Institutions or councils responsible for maintaining transaction records play a crucial role in supporting banks, corporations, and financial institutions. Their role is to monitor investments and devise strategies to optimize returns while minimizing risks.
SEBI-approved Registrar and Share Transfer Agent (SAG RTA) are authorized entities responsible for managing the financial records of transactions submitted by investors.
Registrar and Share Transfer Agent Requirement for the Company?
The Registrar and Transfer Agent serve as the representative tasked with maintaining records of security holders within the framework of the body corporate. They handle the processes related to the transfer and redemption of securities.
This agent is engaged by the firm to oversee the records of security owners. The core responsibility of the transfer agent is to issue or deny certificates, indicating changes in the ownership of the entity's securities, and act as an intermediary for communication with organizations.
Roles of the Registrar & Transfer Agent
Securities transfer and maintenance of investor records
Communication with investors regarding new fund offerings
Endorsement of certificates for allotment and call monies
Handling transmission, consolidation, and sub-division of securities
Dispatch of transferred securities and those kept for transmission, consolidation, sub-division, etc., directly to investors
Rejecting the name and certificate of a shareholder who has sold securities and replacing it with the new shareholder's information.
Clear Provisions of Share Transfer Agent mentioned in regulation 7 of SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) Regulations, 2015 (Updated 10 January 2020)
Change or Appointment of a New Share Transfer Agent
SAG RTA's commitment to excellence goes beyond mere dedication; it is a pledge to redefine the standards of Registrar and Transfer Agent services across the nation. In embracing its role as a leading RTA Services Provide, the company not only shoulders the critical responsibilities of managing meetings, handling mailing tasks, and ensuring regulatory reporting but also does so with an unwavering commitment to delivering unparalleled quality.
With its skilled RTA Agent, dedicated RTA Services customer support team, and top-notch infrastructure, SAG RTA is tirelessly striving to function as a comprehensive solution for investors, addressing all their Registrar and Transfer Agent-related requirements, inquiries, and services.
Engage a Share Transfer Agent or Manage the Share Transfer Process Internally
If a registered entity has fewer than or equal to one lakh shareholders: The listed entity will either hire a share transfer agent or manage the share transfer process internally.
If the listed entity has more than one lakh shareholders: The listed entity will either register with the board as a category II share transfer agent or hire a share transfer agent.
Compliance Certificate to Board
The listed entity is required to provide the compliance certificate, duly signed by the compliance officer of the listed entity and the authorized representative of the share transfer agent, to the exchange within one month of the conclusion of each half of the fiscal year.
Modification or Appointment of the New Share Transfer Agent
The listed entity concerning the revising or appointing a new share transfer agent will perform a tripartite agreement engaging the existing share transfer agent, the new share transfer agent, and the listed entity.
It is specified that if the existing share transfer facility is managed in-house, the aforementioned agreement will be established between the listed entity and the new share transfer agent.
Furthermore, the listed entity is obligated to notify the stock exchanges within 7 days of entering into the agreement. SAG RTA offers cost-effective and dependable RTA services for our clients and investors.
Furthermore, the agreement has been presented at the upcoming board of directors meeting.
Note:- This legal requirement does not apply to units issued through mutual funds listed on major stock exchanges.
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