Registrar and Transfer Agents

Registrar and Transfer Agents or RTAs are key players in the Indian financial market. RTAs offer different services to AMCs allowing them to maintain the funds. As an investor, it is important to understand about registrar and transfer agent, the roles of registrar and transfer agent, and other related concepts in detail. Keep reading!

What is Registrar and Transfer Agent?  

RTAs or Registrar and Transfer Agent assist mutual fund companies to maintain records. You will be given a single-window reference for all the mutual fund investment-related information by the RTAs. Registrar and Transfer agent are private firms—registered with the Securities and Exchange Board of India.

Role of Registrar and Transfer Agent

As per the CDSL and NSDL’s websites, there are more than 200 RTAs and 100 RTAs present in India respectively. In India, CAMS and KFin Technologies Limited are the two most well-known RTAs.

RTAs are professionals skilled in maintaining records and keeping track of investors’ transactions in mutual funds. Buying, switching in or out, changing bank mandates, redeeming, updating personal information, and many others are different types of investor transactions. With RTAs, you can find all the transactions under one organization even if you have invested with multiple AMCs. You can access the RTA services from anywhere in India and enjoy online services and online investing.

Services to AMC

RTAs offer the following services to AMC:

• RTAs are responsible for handling operations and investors & distribution services.
• RTAs share responsibilities with AMC for compliance risk management, sales, and marketing.
• RTAs maintain the record for AMC.
• RTA will be assigned to you depending on the AMC you are invested in. 

Services to Mutual Fund Investors

RTAs offer the following services to mutual fund investors:

• As an investor, you can transact with mutual fund companies registered with RTAs and invest in NFO using the portals on the RTA’s platform.
• You can study your mutual fund portfolio using the different statements generated by the RTA agents. To get a consolidated view of your mutual fund holding across different AMCs, you can download the CAS or consolidated account statement.
• Portfolio valuation statements, transaction details of a single folio, gains statement, and a few others are some of the statements that will be generated specific to mutual fund companies that are registered with the RTA.
•  You can enjoy certain service requests with RTAs such as:

·       Cancellation request of an ongoing SIP, STP or SWP

·       Change in bank mandate

·       Consolidation of all folios under a single folio

·       Nomination form

·       Conversion of minor to major for a person (change in guardian, tax details, update investor name)

·       Redemption

·       CKYC forms and a few others are examples of service requests.

Services to AIF Investors

Most RTAs provide services to AIFs and PMS. Below is a list of the services:

·       Investor Servicing

·       Fund Accounting

·       Value-added services

·       KYC

·       Pre-launch support

·       Document management services

·       Knowledge and technology partner

What is the AIF?

AIF needs to be incorporated or established in India in the form of LLPs (Limited Liability partnerships). It is not governed by SEBI which is a privately pooled investment vehicle. The primary function of the AIF is to collect funds from sophisticated Indian and foreign investors. With AIF, there is a high risk as investors are required to a minimum amount to be invested.

What is PMS?

Portfolio Management Service or PMS allows you to own the stocks and acts as a customized mutual fund portfolio. With PMS, you can customize to the extent that you decide the weightage of all the stocks.