A Brief Guide to Registrar & Transfer Agent Services in India

In this post, various companies that provide their agent’s contact information on their website Amazon is one of them

There are various companies that provide their agent’s contact information on their website amazon is one of them. The Agent of the RTA needs to get themselves enrolled with the SEBI and bank regulatory agency in the case of banks. 

There are various transfer agents in the market poses some of the top names are SAG RTA, CARVY, 3i INFOTECH LTD, etc.

The roles and responsibilities of the transfer agents are mentioned as:

1. Maintaining Records

The majority of the companies hired these agents to provide the new shares to the firm’s shareholders. They are liable to record and update the shareholders’ names, addresses, contact details, dividend information, and others. 

They indeed maintain and update the individual investors’ transaction balances. If any person has lost the share certificate, the agents see into the case and provide the new share certificates.

2. Payment of Dividends and interests

One of the important responsibilities of transfer agents is doing a timely payment of the dividend to the shareholders. They are indeed liable to pay the interest on the last date. 

The agents report the dividend and payments of interest to the Internal Revenue Service for the purpose of tax.

3. Providing the Certificates to Show the Revision in Ownership

When a person purchases a stock or bond then a certificate is provisioned to draw the ownership amendment. When a company does a stock split or dividend, the agent has been liable to record and provide the new shares. 

It is maintained via electronically recorded ownership certificates.

4. Support Services

The agents fill the gap between the shareholders and the firm via timely delivery of the dividends. They are liable to mail the annual reports and audited financial statements to the shareholders. 

Indeed the agents assist the shareholders with the materials assisting on their voting rights, roles, and the method to practice the same when the circumstances get occurred.

Some lawful entities or individuals want to hold the physical stock certificates instead of having the book-entry form. The physical stock may get stolen or ruined, therefore in that case the transfer agents will assist the investor to obtain that.

Normally, the transfer agents furnish a medallion signature guarantee or right for selling and transferring security.

5. Legal Compliance

Transfer agents actively execute the actions on the grounds of clients.

6. Corporate Action

They indeed support the corporate actions like mergers, stock splits, rebranding, and others for instance the corporate action like a merger or acquisition, the agents would obtain the acquired company’s stock. 

They indeed provide the new shares certificates post to the merger. The other example is when the firm is switching from private to public, ensuring an easy IPO.

Difference Between Registrars and Transfer Agent

An enrolled and a transfer agent are both authorized to support the firms and investors in recording the shares and the shareholder concerned information. 

Their roles take over and the firms sometimes hire any one of the two to execute all the roles. Some of the differences between the two are mentioned as:

  • Transfer agents maintain shareholders’ records, and cancel and provide the share certificates in which a registrar registers the information when the shares are issued under an authorized register on the grounds of the firm.
  • The registrar would record keepers. While the transfer agents function as shareholders’ record-keepers and corporate services providers.
  • The work of the transfer agent is to see how many outstanding shares are available. Moreover, they see how many shares are being traded on the daily basis and their corresponding owners. While the registrar’s work is to find out who has invested in the bond and who must obtain the payments. When it gets matured then the registrar’s documents revealed what amount is to be paid.

Mutual Fund Transfer Agent

They are required to be an enrolled transfer agent. They execute the mentioned below responsibilities.

  • They furnish assistance service facilities to the company along with the shareholders.
  • Record and maintain the information of shareholders’ accounts
  • Income calculations through the mutual funds and transfer to the accounts of shareholders.
  • Give dividend-related tax details to the tax department.
  • Furnish yearly and quarterly reports.

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