A Registrar and Transfer Agent is a separate body registered with SEBI and offers a wide range of services, including statement generation, share registry management, share transfer activities, etc. In order to simplify services like dematerialization, rematerialization, initial public offerings, and related corporate actions, it also serves as an intermediary between the issuer and the depository.
A SEBI-registered Registrar and Share Transfer Agent is necessary because he has direct or online access to depositories, enabling businesses to offer securities or shares in dematerialized form. To manage user transactions with depositories, the RTA serves as a direct point of contact between the security issuer and depositories.
Following the amendments to the law, the government has made it necessary to appoint an RTA for both listed and public companies. Private companies are soon to be announced to fall under the same scope. To carry out various corporate actions such as right issue, bonus issue, preferential allotment, transfer of shares, ESOP, etc., registrars and transfer agents are required.