Step by Step Guide for Registration of Registrar and Share Transfer Agent

Registrar and Transfer Agent or the registrar and share transfer agents imply towards authorized institutions (paneled with either NSDL or CDSL, Depositories in India) they are built for the intention of maintaining the records and for the transfer of shares giving full details posing out as a liaison amid the issuer and the Security holder (by way of Dematerialization of securities). If you are looking at one reputed RTA Service provider then here is SAG RTA (Registrar and Share Transfer Agent) for you, which provides one of the best RTA services and we are accredited by SEBI.

The agents of Registrar & Share Transfer Agent are similar to any other institution who works beneath the supervision/norms of the Regulatory Authority being SEBI, i.e., the Securities and Exchange Board of India and so regulated through the enactments in the Securities and Exchange Board of India (Registrars to an Issue and share transfer agent) Regulations, 1993.

All these data maintenance of data and record-keeping prove to be advantageous for the corporates to carry on the focus on their mainstream work and saving the cost and time.

In the current time, the acceptance of the dematerialization of the securities through the corporates has covered the method for the investors to participate in the development of the entities and accepts the method of dematerialization.

Get to Know Category Based Registration:

The application for Registrations of Registrar and Transfer Agent has might be the intention to build for any of the subsequent classes:

1st category: To serve as a registrar to an issue and share transfer agent

Or

2nd category: to serve as a registrar to an issue or as a share transfer agent;

As per the corporate body can select either or both the above categories following towards the structural services to be given.

Let’s View Steps of Registration

An application via registrar to an issue and/or share transfer agent for granting the certificate is needed to be furnished to SEBI Board in Form A with a non-refundable fee of INR 6 Lakh for Category I & INR 2 Lakh for Category II.

1. After receiving the receipt of the application the board might think upon sorting the details so needed for considering the application for the grant of the certificate.
2. The board shall recognize the mentioned in between providing the registration certificate.
3. Owns the required infrastructure such as enough office space, equipment, and manpower to release entrusted activities.
4. Experienced with 3 years in the past towards the activities.
5. An individual directly or indirectly (might be relative or business partner as the case can be) associate through him must not be given registration through the Board under the Act.
6. Fulfills the capital adequacy needs to be specified: the capital adequacy needs will not be lower with respect to the net worth (paid-up share capital/ Value of capital furnished and free reserves):

For Category I – at least INR 50 Lakh

For Category II– at least INR 25 Lakh

Provided, the capital adequacy requirement shall not be applicable for a department or division of a body corporate performing activities (in house facility developed by corporate having securities holders > 1lakh)

• Prescribed towards any disciplinary proceedings beneath the act made
  any of its director, partner, or principal officer can be sentenced to any offense anytime engaging the moral evil or revealed guilty of any economic sentence beneath any act which is imposed.
• Does a fit and proper individual (the intention of finding that if the petitioner is a fit and suitable person the board might take into consideration according to schedule II to the laws).

The Board, after being satisfied that the applicant is eligible, will send an intimation to the applicant mentioning the specific category for which the applicant has been found eligible for the grant of certificate of registration and grant a certificate in Form B.

For Admission as Depository Participants With NSDL or/and CDSL The Threshold Guidelines:

Registrar & Transfer Agent acting as Depositary Participants have followed the (Depositories and Participants) Regulations, 2018 and urged to come under either with NSDL (National Securities Depository Limited) or CDSL (Central Depository Services India Limited).

For Registration With CDSL:

Regulation according to SEBI (Depositories and Participants) Regulations, 1993, and according to CDSL Bye-Laws meeting the eligibility standards.

The minimum net worth needed for the stockbroker to achieve CDSL’s DP is INR 2 Crore.
The application which gets fulfilled towards every aspect will be acknowledged on its advantages by the Membership Committee of CDSL on its merits.

For Registration With NDSL:

The stockbroker who poses the minimum net worth of Rs 10 cr. For the concern towards non-banking finance company (NBFC) and a registrar towards issue or share transfer agent, minimum net worth as per SEBI Regulations will suffice.

In any case, the petitioner must not be convicted in any of the 5 years immediately preceding the application year and is not engaged in any evasion of funds prior to the furnishing of the application.

SEBI or any self statutory company or any other stock exchange (whether Nationalized or not) not been expelled, barred or suspended by the petitioner. But if the duration of 3 years or exceeds has elapsed after punishment then he will be liable.

The petitioner is needed to file the history of his business along with the background and Directors and promoter’s experience.

The Tendency Towards Dematerialization of Securities by Corporate(s)

The Ministry of Corporate Affairs (MCA) has taken the decision to raise the standards of the corporate governance system by posing out clarity and stopping the mischievous things like back-dated issuance of shares and non-payment of Share Stamping duty that varies from state to state.

The Ministry has been notified that “exemption from payment of stamp duty on transfer and to make a move towards digitalization,” and the simplicity in shifting and promising of securities is in between the other advantages.

In the future, also the ministry has urged to impose the same guidelines for private limited firms.

Miscellaneous to Consider towards Registrar and Transfer Agent

• The license can be canceled by SEBI which has been granted besides acknowledging the guidelines so formed to be compliance to post permitting the concerned entity.
• The capital adequacy needs so provided above is to be maintained at all the time in the duration of initial enrollment.
• Registrar to an issue and share transfer agent that has been yielded a registration certificate so as to keep the imposition of registration is needed to furnish the fees for the same every 3rd year from 6th-year expiry from the provided date of the registration certificate.
• According to Schedule III code of Conduct has to be abided by all-time according to the given regulations.
• Indeed for enrollment, the business plan for the subsequent three years needs to be simpler with the physical targets, resultant income, projected profitability, etc.
• A compliance officer must be appointed by Every Registrar & Transfer Agent Services who is responsible for controlling the compliance of the Act.
• According to the said rules the submission period reports through the board.
• Will take mandatory steps for the rectification of injustice of the investors of corporate of the complaints and updated the board about the so redressed and the other credentials of the complaints in the way that these issues have been rectified.
• No Registrar Transfer Agent has to address this problem in which any linked party or companion of the body corporate is an issuer of securities.