NISM Series II-A (RTA Corporate) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

SEBI RTA Regulations, 1993

The regulation under which registrars to an issue and share transfer agents must obtain a certificate of registration from SEBI before commencing business.

Category I RTA

An RTA permitted to act both as registrar to an issue and as share transfer agent, subject to a minimum net worth of Rs. 50 lakh.

Category II RTA

An RTA permitted to act only as registrar to an issue or only as share transfer agent, subject to a minimum net worth of Rs. 25 lakh.

Registration validity period

Registration as an RTA is granted for an initial period of five years and must be renewed before expiry.

Renewal application timing

An application for renewal of RTA registration must be made not less than three months before the expiry of the existing registration.

Compliance officer role

An RTA must appoint a compliance officer to monitor compliance with the Act, rules, regulations and bye-laws and to handle investor grievances.

SAT appeal period

A person aggrieved by a SEBI order of suspension or cancellation of RTA registration may appeal to the Securities Appellate Tribunal within 45 days.

RTA code of conduct

The code requires confidentiality, avoidance of conflicts of interest, fair and timely service to issuers and investors, and proper record maintenance.

Written agreement with issuer

Before commencing services, an RTA must enter into a written agreement with each issuer client specifying scope of services, duties, fees and responsibilities.

Record retention period

An RTA must preserve records of transactions, correspondence and registers for a minimum period of five years and produce them to SEBI on demand.

Conflict of interest prohibition

An RTA must not act as registrar to an issue where it is an associate of the issuer or has any conflict of interest with the issuer.

KYC for RTA clients

An RTA must verify the identity and address of its clients and maintain records of such verification in accordance with prescribed KYC norms.

Reporting to SEBI

An RTA must report changes in its status, including change of management, address or net worth below the minimum, to SEBI.

Surrender of registration

On ceasing to act as an RTA, the entity must surrender its certificate of registration and transfer all records as directed by SEBI.

Grievance register

An RTA must maintain a register of investor grievances and report the status of pending complaints to SEBI periodically.

Net worth certificate

An RTA must submit an annual certificate confirming that it maintains the minimum net worth required for its category of registration.

Physical transfer timeline

A valid physical share transfer must be registered within 30 days of receipt; if rejected, the reason must be communicated within 30 days.

Demat confirmation timeline

On receiving a dematerialisation request from a depository participant, the RTA must confirm or reject it within 21 days as per depository bye-laws.

Dividend dispatch timeline

Dividend warrants or ECS credits must be dispatched within 30 days of declaration of the dividend by the company.

IEPF transfer period

Dividends unpaid or unclaimed for seven consecutive years, and the corresponding shares, must be transferred to the Investor Education and Protection Fund.

Form IEPF-2

The form filed with the IEPF Authority by the company or its RTA reporting transfer of unpaid dividends and underlying shares to the Fund.

Register of members

An up-to-date register of members and debenture holders must be maintained by the RTA and made available for inspection under the Companies Act.

Transmission of shares

Processing of share transmission requests after verifying succession documents, without insisting on documents beyond those prescribed by law.

Corporate action processing

Processing of bonus, rights, splits and mergers within SEBI and depository timelines, with reconciliation of entitlements against depository records.

Basis of allotment

The RTA finalises the basis of allotment with the lead manager and stock exchange and ensures allotment within SEBI-prescribed timelines.

Refund timeline

Refund of application money must be made within the prescribed period, generally 15 days of issue closure, with interest for delays.

Issue account handling

Issue proceeds must be kept in a designated escrow or issue account and released only per the offer document and issuer instructions.

Demat credit of allotment

The RTA must ensure allotted securities are credited to allottees' demat accounts within the prescribed timeline after listing approval.

Rights issue processing

The RTA processes rights issue applications, issues letters of offer, and manages allotment and refunds under the Companies Act and SEBI ICDR Regulations.

Application reconciliation

The RTA must reconcile applications, amounts collected and allotments, and ensure the issue is not oversubscribed beyond disclosed limits without approval.

Reporting deviations

The RTA must report material deviations or non-compliance in the issue process to SEBI and the lead manager immediately.

Record of applications

The RTA must maintain records of applications, allotment, refunds and demat credits for the prescribed period for inspection by SEBI and exchanges.