Know Everything about Registrar and Transfer Agent and Their Services

In the simplest terms, a registrar or agent is an authorized entity or a financial institution that handles the responsibility of complete record maintenance of investors on behalf of mutual fund houses and other institutions.

Who is a Registrar & Transfer Agent?

An R&T agent maintains a detailed record of investors for the ease of mutual fund companies with the help of their multiple offices or branches located in distinct parts of the country. Therefore, the primary responsibility or role of the registrar and transfer agent includes maintaining investor records and account balances. Karvy, CAMS, and SAG RTA provide some of the top Registrar & Transfer Agent Services in the country to investors, mutual fund companies, and other financial institutions.

RTA and its Services

Registrar and Share Transfer Agents (RTAs) help mutual fund companies manage all kinds of transactions for their investors. This includes handling both money-related tasks and other important paperwork. Additionally, RTAs take care of moving shares from a central storage system to the individual investor's account and make sure to inform the investors once the transfer is complete after they finish a transaction.

A part from these, the other key services offered by RTA Agent include managing changes in investors' personal data, providing information or details to investors about new fund offers, dividend paid, consolidation of folios, etc., buying/selling records, and managing all the meetings, mailing & reporting activities along with regulatory reporting on behalf of investors.

For example, SAG RTA Rajasthan's First SEBI-approved RTA Service Provider, which delivers Registrar & Transfer Agent Services across India:

1. Dematerialization of Securities through NSDL or CDSL depositories

1. 2. Regulatory reporting services

2. 3. Provide Information to investors about new fund offers

3. 4. Investor record keeping and transfer of securities

4. 5. Share certificate transfer

Why Mutual Fund Houses Appoint RTAs?

Registered Transfer Agents (RTAs) serve as middlemen for mutual fund companies. Every day, these companies handle a large number of transactions, such as buying or selling shares and updating personal information for their investors. It is crucial for these mutual fund companies to accurately keep track of each of these transactions to ensure everything runs smoothly.

However, such recordkeeping & maintenance activities consume a lot of time and resources of mutual fund houses, increasing their overall operating expenses.

Similarly, the lack of expertise and dedicated workforce also forces mutual fund houses and other companies to outsource the investor recordkeeping and maintenance work to R & T Agent like SAG RTA, who handle such a huge amount of transactions on a professional basis.

Benefits Offered by R & T Agent to Mutual Fund Houses and Companies?

Outsourcing investor record maintenance and accounting work to R&T agents provides greater countrywide access and cost savings to mutual fund houses and companies.

As RTAs hold a countrywide network, they serve as branches for the mutual funds and also assist with sales processes.

• Usually, investors look to invest in multiple schemes of different fund houses. Therefore, for making multiple investments, investors are generally required to run around various fund houses. So, to avoid such a hassle, investors can use an R&T agent's services to conduct all their transactions. The mutual fund houses pay R&T agents money for offering services to investors on their behalf.

I advise to all the companies client & professional in related to finance, accounting, mutual funds and stocks & shares.