Registrar to Issue and Share transfer Agent Registration

 

Capital Adequacy Requirements

Different categories of AIF have different Capital Requirements:

1. Category 1 RTA shall have a minimum Net Worth of INR 50 Lakhs;

2. Category 2 RTA shall have a minimum Net Worth of INR 25 Lakhs;

Here 'Net Worth' means:

1. In case, if the applicant is a firm or association of persons or any body of individuals, the total value of capital contributed to such business by the applicants, and free reserves of any kind to their business denote net worth.

2. In the case of a corporate body, the value of free reserves and paid capital mentioned in the account books of the applicant at the time of submission of application as per sub-regulation (1) of regulation 3 counts as the total net worth.

 

Restriction for RTA

Registrar to an Issue not to act as such for an associate.─

Registrar to an issue shall not be associated with body corporate for acting as registrar for any issue of securities of such body corporate. A person or body corporate will be deemed to be associated if:

(a) Holds directly or indirectly not less than 10 percent of the voting power of the body corporate; or,

(b) Appointed as director or promoter or any of his relative is appointed as director or promoter of the body corporate.

Role of Registrar and transfer agent

(1) Each registrar to an issue and share transfer agent as a corporate entity shall maintain and maintain the following accounts and documents of the eight preceding financial years, namely: -

(a) With respect to the registrar to an issue and share transfer agent being a body corporate

(i) Balance sheet and profit and loss account

(ii) Auditor's report

(iii) Capital adequacy requirements for each quarter.

(b) With respect to the registrar to an issue and share transfer agent not being a body corporate –

(i) Transaction book of all sums of money received and expended by them and the matters in respect of which the receipt and expenditure take place;

(ii) Assets and liabilities; and

(iii) Capital adequacy requirements for each quarter.

(2) Each registrar to an issue shall also maintain the following records with respect to:-

(a) Each and every application received from investors in respect of an issue;

(b) Each and every application of investors rejected and reasons therefor;

(c) The basis on which investors are allocated securities as decided in consultation with the stock exchange;

(d) Terms and Conditions of Buying Securities;

 (e) List of names of the investor to whom shares allotted and non-allotted individuals;

(g) Refund notices sent to investors for applications obtained from investors in response to a question;

(h) Any other records as may be required by the Board in order to carry on the activities as registrars to an issue.

Renewal of Registration

The RTA can apply in Form A for renewal of his Registration Certificate three months before the expiry of the term of the certificate. The Board (SEBI) shall treat the extension / renewal application in the same fashion as the application for a new certificate in accordance with Regulation 3. The SEBI undertakes same level of scrutiny and meticulous procedure as if it were granting a new registartion.

Comments

Post a Comment

Popular posts from this blog

Resignation or Removal of Director

  As per section 168 Resignation of Director A director may resign from his or her position by giving written notice to the Company; upon receipt of such notice, the Board shall take note of it; the Company shall notify the Registrar, and the Company shall include the fact of such resignation in the report of directors laid before the Company's next General Meeting. A director's resignation shall take effect on the day the notice is received by the company or if stated by the director in the notice, the date specified by the director in the notice, whichever is later. Even after his resignation, the resigned director is accountable for the offenses committed during his term. Call a Board of Directors meeting [as per section 173 and Secretarial Standard-1 (SS-1)] a. Upon receipt of the resignation letter, the Company shall send a Notice of Board Meeting to all of the Company's Directors at their registered addresses at least 7 days before to the Board Meeting. In the event o
Read more

AIF Establishment in GIFT City

  The SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) also apply to AIFs in the IFSC. AIFs in IFSCs, on the other hand, have been granted specific dispensations to provide them with greater operational freedom while preserving tax efficiency. SEBI, India's capital markets regulator, which oversees AIF structures, has established special rules and restrictions for AIF formation in GIFT City. The Foreign Exchange Management (IFSC) Regulations, 2015, and the SEBI (IFSC) Guidelines, 2015, read with the Operating Guidelines, are the primary sources of regulation for AIFs in an IFSC. A fund must get registration from the IFSC Authority in order to operate as an AIF (as set up under the IFSC Authority Act, 2019). The Securities and Exchange Board of India ("SEBI") published Operating Guidelines for Alternative Investment Funds in International Financial Services Centres on November 26, 2018 ("Operating Guidelines"), which stipulate the followi
Read more