Let Us Know More About Share Transfer Agents and Registrar in India

In today's fast-paced world, where the investment environment is constantly evolving, it is crucial for mutual fund investors, financial institutions, and publicly traded companies to manage their transactions efficiently. These transactions involve buying, selling, and transferring share units, necessitating accurate record-keeping by mutual fund houses and companies.

Maintaining precise records for every transaction is a challenging task, which is why dedicated institutes or authorities are required to handle and manage transaction records in the investment sector. SAG Infotech (Registrar and Transfer Agent) is one such service provider, which provides record-keeping, maintenance, and information update services for investors, banks, corporate entities, financial institutions, and companies.

Share Transfer Agent

Registrar and Share Transfer Agents, commonly known as transfer agents, are needed to maintain records of security holders and facilitate the transfer and redemption processes on behalf of corporate bodies.

Therefore, in layman's language, we can define Registrar and Transfer Agent as agents who a firm employs to maintain records of security holders. However, their responsibilities may go beyond record-keeping.

Transfer agents are primarily responsible for issuing or canceling securities certificates based on changes in ownership and act as intermediaries for companies.

Key Responsibilities of Registrar and Share Transfer Agent

Their key duties include -

Facilitating security transfers and maintaining records for investors

Keeping investors informed about new fund offers

Endorsing certificates for allotment or call monies.

Handling transmission, consolidation, and sub-division of securities

Directly delivering transferred securities received for transmission, consolidation, sub-division, etc., to the investors.

Transfer agents are responsible for updating ownership information and changing certificates when securities are sold.

1. An Entity May Either Appoint a Share Transfer Agent or Manage an In-House Share Transfer Facility Depending on Factors:

Entities with less than 1 lacs shareholders appoint a share transfer agent or manage the process through an in-house transfer facility.

Entities with more than 1 lacs shareholders can register as a category II share transfer agent or appoint an RTA Services provider like SAG RTA.

2. Compliance Certificate to Board

Furthermore, compliance with regulations is essential. The entity must submit a compliance certificate, signed by the compliance officer of the listed entity and the authorized representative of the agent, to the exchange every half of the fiscal year within one month.

3. Changing or Appointing Process of Share Transfer Agents

When changing or appointing a new Registrar Transfer Agent, a tripartite agreement must be entered into between the current share transfer agent, the entity, and the new share transfer agent.

If the entity previously had an in-house share transfer facility, the agreement will be made between the entity and the new share transfer agents.

In the case of changing or appointing a new RTA, the entity must inform the relevant stock exchange(s) within seven days of signing the agreement.

The agreement will subsequently be presented at a board of directors' meeting.

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