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Strengthening the Guidelines and Raising Industry standards for RTA, Issuer Companies and Banker to an Issue: SEBI

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MIRSD/DOP1/CIR/P/2018/73

April 20, 2018

To,
All Listed entities (Through Stock Exchanges)
All Registered Bankers to an Issue (BTIs),
All Registrars to an Issue / Share Transfer Agents (RTAs) acting on behalf of listed entities
All Depositories
All Recognised Stock Exchanges

Dear Sir/Madam,

Subject: Strengthening the Guidelines and Raising Industry standards for RTA, Issuer Companies and Banker to an Issue

1. SEBI constituted a Committee on “Strengthening the Guidelines and Raising Industry Standards for RTAs”, which included representatives from RTAs, Issuer Companies, Depositories and Bankers to Issue. The objective of the Committee was to suggest guidelines to streamline and strengthen the procedures and processes with regard to handling and maintenance of records, transfer of securities and payment of dividend/interest/redemption by the RTAs, Issuer Companies and Bankers to Issue.

2. Based on recommendation of Committee, the guidelines as annexed to this Circular are being issued. These guidelines cover the following broad areas:

i. Provisions with respect to Payment of Dividend/interest/redemption/ redemption

ii. Provisions with respect to Transfer/Transmission/ Correction of errors etc.

iii. Compulsory internal audit of RTAs

3. Unless otherwise indicated in the annexure, , the records /documents described in annexure shall be maintained for period not less than eight years after completion of the relevant transactions by Bankers to issue, Issuer Companies, and/or by RTAs on behalf of Issuer Companies

4. RTAs, BTIs and Issuer Companies shall strictly comply with guidelines (annexed). Issuer companies shall strictly monitor the activities of their RTAs and ensure compliance of provision of this circular. It is clarified that where share transfer agent activities are carried out in-house by issuer companies, the issuer companies shall ensure that their in-house share transfer activities comply with the relevant norms as applicable to them.

5. RTAs, Bankers to issue, and the Issuer Companies can put in place more stringent internal checks and controls if they so desire.

6. These guidelines issued through this circular shall be effective with immediate effect except where a timeframe has been prescribed in the guidelines itself.

7. Stock Exchanges are advised to bring the contents of this circular to entities listed on their respective Exchange.

8. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

Debashis Bandyopadhyay

General Manager

ANNEXURE

I. Provisions with regard to Payment of Dividend/Interest/Redemption :

II. Provisions with regard to Transfer/Transmission/Correction of Errors etc. :

III. Compulsory internal audit of RTAs

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