NISM Series II-A (RTA Corporate) key terms

A SEBI-registered intermediary appointed by a company that issues securities to handle applications, allotment, refunds, and investor records during a public or rights offering.

A SEBI-registered intermediary that maintains the register of members and processes transfers, transmissions, and related record updates for a listed company's securities.

A registrar permitted to act for issuers of any size and to handle both issue management and ongoing transfer work, having met the higher net worth and infrastructure criteria.

A registrar restricted to smaller issues and limited activities, subject to lower capital requirements, and barred from acting for large or frequently issuing companies.

The formal approval granted by SEBI that authorises an entity to carry on registrar or share transfer agent activity, subject to stated conditions.

The minimum capital cushion an applicant must demonstrate, computed as paid-up capital plus free reserves less intangible assets and accumulated losses, to qualify for registration.

The schedule of ethical and operational duties prescribed for registrars and transfer agents, covering fair dealing, confidentiality, record keeping, and avoidance of conflicts.

The statutory record listing every holder of a company's shares, showing names, addresses, and holdings, which determines entitlement to notices, dividends, and voting.

The statutory record of persons holding a company's debentures, maintained in parallel with the members' register and used to establish interest and redemption entitlements.

A person whose name appears as the holder in the records of a depository, holding rights in securities that are held in dematerialised form through a depository participant.

An intermediary registered with a depository that opens and services demat accounts for clients and routes instructions on transfers and pledges to the depository.

An account maintained with a depository participant in which securities are held electronically, replacing physical certificates and enabling book-entry transfer.

The process of converting electronically held securities back into physical certificates, initiated by the holder through the depository participant.

A physical document issued under the company's seal evidencing the holder's title to a stated number of shares, bearing distinctive numbers.

The transfer of title to securities by operation of law, such as on death, insolvency, or lunacy, rather than by a voluntary sale, and handled on production of specified documents.

A facility allowing a holder to name a person who will receive the securities on the holder's death, simplifying transmission and reducing documentation for the nominee.

A court-issued document establishing a person's right to inherit the securities of a deceased holder, often required where no valid nomination exists.

A change in the order of names of joint holders, which alters the priority of entitlement to dividends and notices and requires a signed request from all holders.

An arrangement where two or more persons hold securities together, with the first-named holder receiving communications and survivorship applying on death.

A flag placed on a holder's account that prevents processing of transfer requests, typically applied when a dispute, court order, or fraud allegation is under examination.

The prescribed instrument, executed by transferor and transferee, that conveys title to physical securities and accompanies the certificate for registration.

A written communication from the registrar to the lodger listing defects in a transfer document set and requesting rectification within a stated period.

The refusal to register a transfer where documents remain defective or the transfer is barred by law, requiring notice to the parties and return of the lodgement.

The SEBI-approved formula used to finalise share allocation in an oversubscribed issue, including the lottery mechanism applied to the retail category.

The return of application money to unsuccessful bidders, effected through the banking system within the timeline fixed by regulation.

Application Supported by Blocked Amount, a mechanism where the applicant's bank blocks funds in the account until allotment, with only the allotted amount debited.

The formal act by which a company issues securities to applicants, creating a binding entitlement and triggering the obligation to credit or despatch the securities.

The admission of a company's securities to trading on a recognised stock exchange, following which ongoing compliance and transfer obligations apply.

The repayment of principal on debentures or preference shares at maturity or on a scheduled date, after which the securities are extinguished and records updated.

The periodic distribution of coupon to debenture holders, requiring the registrar to maintain accurate holder records and bank mandates.

The documented process by which a registrar receives, investigates, and resolves investor complaints within prescribed timelines, with escalation to SEBI if unresolved.

The obligation of a registrar or transfer agent to act in the best interests of holders and the issuer, avoiding misuse of confidential information or personal gain.

The requirement to preserve books, documents, and records for a specified minimum period, keeping them available for inspection by SEBI or the issuer.

A periodic independent examination of a registrar's operations and records, conducted as required by regulation and reported to the management and SEBI.

The written contract between a registrar and the issuing company setting out scope, fees, service standards, and responsibilities for the assignment.

The investigation a registrar performs before accepting an assignment or processing a transaction, verifying documents, authority, and absence of legal impediments.

The identification and verification process applied to holders and applicants to prevent fraud, impersonation, and money laundering in securities transactions.