Clarification with respect to Qualified RTAs (QRTAs)
Summary
This circular clarifies the criteria and procedures for categorizing Registrars to an Issue and Share Transfer Agents (RTAs) as Qualified RTAs (QRTAs). An RTA is designated as a QRTA if it services more than 2 crore folios during a financial year, with such status lasting for three subsequent financial years. The regulation provides a 60-day relaxation period for new QRTAs to comply with enhanced requirements and mandates immediate intimation to SEBI upon categorization.
Text
QRTAs have been defined as RTAs servicing more than 2 crore folios and are required to comply with enhanced responsibilities through adoption and implementation of an internal policy framework and periodic reporting requirements.
An RTA shall be categorized as a QRTA if at any time during a financial year, the combined number of physical and demat folios being serviced by the RTA for listed companies exceeds 2 crore.
In case of an RTA being categorized as a QRTA, an intimation to this effect shall be sent by the RTA within 5 working days to SEBI.
An RTA shall be considered as a QRTA from the date of categorisation as a QRTA as per para 2(a) above and shall be considered as such for the next 3 financial years, irrespective of subsequent fall in number of folios and shall be liable to comply with all requirements specified from time to time.
Considering the various systems and procedures to be put in place by a new QRTA, a period of 60 days from the date of its categorisation as a QRTA as per para 2(a) above shall be provided to the new QRTA for complying with the enhanced requirements mandated for QRTAs.
This circular shall come into effect immediately.
This circular is issued in exercise of powers conferred by 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.
Source: SecMarx — Clarification with respect to Qualified RTAs (QRTAs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.