Merchant Banking and Financial Services, III Semester (MBA), UNIT-2
Definition of Registrar to an Issue and Share Transfer Agents
Functions of Registrar to an issue The Registrar to an issue, in the capacity of an intermediary in the primary market carryon the following activities:- Collecting applications from the investors Keeping a proper record of applications and money received from investors. Keeping a proper record of amount paid to seller of securities Assisting company in determining the basis of allotment of securities in consultation with stock exchanges. Finalizing the allotment of securities Processing/dispatching allotment letters, refund orders, certificates and other related documents in respect of issue of capital.
Functions of Share Transfer
Agent
Maintaining records of holders of securities or on behalf of
companies.
Dealing with all matters connected with the transfer/redemption of
securities.
Registration
The Registrars to an issue and the share transfer agents for
carrying out their function must be registered with the SEBI.
The Registrar and Share Transfer Agent fall into two categories
To carry on the functions of both Registrars to an issue and share
transfer agent
To carry on the functions of either the Registrar or share transfer
agent
Conditions for Registrations
SEBI grants Registration considering besides all relevant matters,
the following:-
Necessary infrastructure
Past experience
Capital adequacy
Should not have been convicted for any offence involving moral
turpitude, or should not have been found guilty of any economic offence.
The applicant must be a fit and proper person in terms of the SEBI
Intermediary Regulation 2008.
Capital Adequacy
Fees
The application Fee for Registration is ` 10,000/-
Conditions of Registration
The conditions of Registration are as applicable to merchant
bankers/underwriters/ Bankers:
Maintenance of Records: Records relating to
To all applications received from investors.
To rejected application together with reasons.
To basis of allotment
To terms and conditions of purchase of security.
To allotment of securities.
To list of allottees and non-allottees.
To refund orders
To list of holders of securities of corporate.
To names of transferors and transferees
To Dates of transfer of security are to be maintained and
preserved for a period of 3 years.
Appointment of Compliance Officer
They should appoint a compliance officer for Investors Grievances
Redressal and for monitoring SEBI Act rules and regulations.
Inspection
