Exercises · Q5
Q.Explain the role of the Registrar and Transfer Agent (RTA) in the depository system.
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Start your 14-day free trial to unlock the full solution →The Registrar and Transfer Agent (RTA) is an agency, often appointed by the issuer company, that maintains the company's register of members and handles matters relating to the transfer, transmission and issue of its securities. Within the depository system, the RTA plays several specific roles:
- Confirming dematerialisation requests. When a DP forwards a Dematerialisation Request Form and the underlying physical certificates (via the depository), the RTA verifies the certificates against the company's own records and confirms the dematerialisation, after which the certificates are cancelled.
- Confirming rematerialisation requests. Similarly, when an investor requests rematerialisation, the RTA prints and issues the fresh physical certificates and updates the company's records accordingly.
- Keeping the register of members current. The RTA ensures the company's own statutory records of who holds its securities stay consistent with the electronic records held by the depository.
- Processing corporate actions. On any record date, the RTA uses the depository's Beneficial Owner data to correctly compute and credit dividends, interest, bonus shares and rights entitlements to the right investors. …
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