Registrar to an Issue and Share Transfer Agents
Registrar to an Issue and Share Transfer Agents
An intermediary plays a notable role when it comes to certain businesses, and have made their presence count. Intermediaries could be anyone who facilitates the supply of a service between two or more persons. SEBI guidelines makes 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.
Know more about share transfer in company.
Securities
RTI’s and STA’s, as we have witnessed so far, deal a lot with securities. What are Securities, and what does it include? We’ll examine:
- Shares, scripts, stocks, bonds, debentures, debenture stock, or anything relating thereto
- Derivatives
- Issue of units or any such instrument by any collective investment scheme, to the investors of those schemes
- Issue of units or any such instrument to the investors under any mutual fund scheme
- Security receipts under “Securitisation and re-construction of financial assets and enforcement of security interests Act, 2002
- Government securities
- Other instruments as declared by the Central Government to be securities
- Any rights or interests in securities
Note-Goods cannot be securities
TDS
When an RTI/STA agent performs for the government, he/she must deduct tax at source. Hence, considerations here will be subject to TDS. Know the TDS rate for different types of services.
