InvestorQ : What is the major role that the Registrar and Transfer agent to a company plays?
Sam Eswaran made post

What is the major role that the Registrar and Transfer agent to a company plays?

swati Bakhda answered.
2 years ago

A registrar is an intermediary plays a notable role when it comes to certain businesses, and has made their presence count. Intermediaries could be anyone who facilitates the supply of a service between two or more persons. SEBI guidelines make it mandatory to appoint RTI and STA, in relation to the management of public offer introduced by the body corporate in general public, and to service the shareholders.

Registrar to an Issue

The role of a ‘Registrar to an issue’ would be the following:

· Collecting applications from investors with respect of an issue

· Proper maintenance of applications, and any monies received from investors or paid to the seller of securities, and

· Assisting the body corporate in terms of; determining the basis of allotment of securities in consultation with the stock exchange, finalizing the list of persons entitled to allotment of securities and; processing and dispatching allotment letters, refund orders or certificates and other related documents in respect of the issue.

· The merchant banker co-ordinates with the Registrar to ensure the proper execution of the process.

Share Transfer Agent

‘Share transfer agent’ is an agent who, on behalf of the body corporate, maintains recorders of holders of securities issued by such body corporate and deals with the processes of transfer and redemption of securities.

Certain roles, as per SEBI guidelines, must only be performed by a ‘Share transfer agent’. These activities are:

· Endorsement of certificates/for allotment/call monies

· Transmission, consolidation, sub-division of securities

· Dispatch of transferred securities and securities received for transmission / consolidation / sub-division etc, directly to the investors

· Cancel the name and certificate of the shareholder who had sold the shares of securities, and replace it with the new shareholder.