SEBI issues circular strengthening the guidelines and Raising Industry standards for RTA, Issuer Companies and Banker to an Issue

SEBI on recommendation of Committee has issued circular strengthening the guidelines and Raising Industry standards for RTA, Issuer Companies and Banker covering 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

The records /documents shall be maintained for period not less than 8 years after completion of the relevant transactions by Bankers to issue, Issuer Companies, and/or by RTAs on behalf of Issuer Companies. RTAs, BTIs and Issuer Companies shall strictly comply with guidelines. 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.

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

 

URL: https://www.sebi.gov.in/legal/circulars/apr-2018/strengthening-the-guidelines-and-raising-industry-standards-for-rta-issuer-companies-and-banker-to-an-issue_38749.html