The Capital markets regulator Securities and Exchange Board of India (Sebi) has recently issued a master circular for all registered registrars to an issue and share transfer agents (RTAs).
The circular stipulates numerous details ranging from registration to responsibilities, transfer related matters, investor grievance redressal, investor charter, cyber security, and role of RTAs with respect to primary market, among other details.
Sebi’s master circular for RTAs dated May 17, 2024 was a compilation of relevant circulars issued by Sebi which were operational as on May 17, 2023. Thereafter various guidelines/ directions were issued to the RTAs by way of circulars/ advisory.
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In view of this, this master circular dated May 7, 20024 has been prepared which now subsumes the master circular for RTAs dated May 17, 2023 and the subsequent circulars on the subject.
Investor grievances
All registered RTAs are advised to designate an email ID of the grievance redressal division/ compliance officer exclusively for the purpose of registering complaints by investors.
They are advised to display the email ID and other relevant details prominently on their websites and in the various materials/ pamphlets/ advertisements for creating investor awareness.
A daily alert on pending complaints will be forwarded at the email id registered with Sebi for regulatory communications.
RTAs are also advised to refer to this circular issued by SEBI dated Sep 20, 2023 on the redressal of investor grievances through the SCORES platform and linking it to online dispute resolution.
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Submission of the net worth certificate
Every RTI (registrar to an issue)/ STA (share transfer agents) whether a body corporate or not, is meant to keep and maintain in respect of the three preceding financial years, statement of capital adequacy requirement for each quarter.
All RTIs/STAs are meant to submit not later than three months from the close of each financial year, a certified true copy of their net worth certificate.
Periodic reporting
The circular stipulates that reports relating to regulatory compliance and investor grievances redressal will be furnished to SEBI in the format given.
The reports are to be sent by the compliance officer of the RTI/STA on a half yearly basis within three months of the expiry of the half year.
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The board of the RTI and STA will review the report and record their observations on the deficiencies and non-compliances and corrective measures initiated to avoid such instances in future.
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Published: 09 May 2024, 09:01 AM IST