Online processing of investor service requests and complaints by RTAs
Summary
This circular mandates the digitization of investor service requests and complaints by Registrars to an Issue and Share Transfer Agents (RTAs) through a two-phase online portal implementation. It requires RTAs to establish functional websites with specific informational displays and user-friendly portals featuring unique reference numbers, status tracking, and automated alerts for investors. The regulation sets strict compliance deadlines for Qualified RTAs and other RTAs, along with requirements for cybersecurity, business continuity, and post-implementation certification.
Text
Holders of physical security certificates are required to submit various documents to the RTAs with respect to various service requests/ complaints including but not limited to: Intimation of / updation of / change in Permanent Account Number, Nominee, Bank details, Contact details, Signature, Name etc.; Processing of investor requests; Services through depository participants such as dematerialization, re-materialization etc.
It is proposed to digitize this process in two phases and provide a mechanism for the investor to lodge service requests and complaints online and thereafter track the status and obtain periodical updates which would, inter-alia, confer the following benefits: Database for service requests and complaints; Online acknowledgement and intimation to the investor; Online tracking of status of service requests and complaints by investors.
All RTAs servicing listed companies shall have a functional website. Such website shall mandatorily display the following information, in addition to all such information, which have been mandated by SEBI from time to time: Basic details of the RTA such as registration number, registered address of Head Office and branches, if any; Names and contact details such as email ids etc. of key managerial personnel (KMPs) including compliance officer in the format provided at Annexure-A; Step-by-step procedures for various service requests, Frequently Asked Questions (FAQs), procedure for filing a complaint and finding out the status of the complaint, etc.
The online system should provide an option for the investors to directly apply for login credentials in the portal of the RTA after appropriate authentication/validation mechanism including One Time Passwords (OTPs) on mobile. Upon successful registration on the portal, the investor would be able to view his/her holdings, lodge service requests/ complaints for the respective companies and track the status of service requests/complaints so lodged.
The service request/ complaint can be submitted either through upload of duly filled in relevant standard forms prescribed by SEBI or through fillable relevant standard forms provided in the portal.
For each service request/ complaint, the online system shall display a number of categories in order to enable the investor to choose the most relevant category for lodging his/her service request/ complaint. The system shall also display a list of documents required to be provided by the investor and the instructions thereof for each category. These documents shall be finalized by the QRTAs latest by September 30, 2023 in accordance with various SEBI circulars issued from time to time and shall be uniform across all the RTAs.
However, additional documents may be sought by the RTA on the basis of specific facts of the matter and wherein any additional due diligence is required to be done.
In terms of SEBI’s master circular for RTAs SEBI/HO/MIRSD/POD-1/P/CIR/2023/70 dated May 17, 2023, the documents are required to be submitted either in-person, through post or e-signed. However, copy of the self-attested documents which are required to be submitted to the RTA may also be submitted by way of uploading the same on the portal.
On uploading of the documents required for processing of investor’s service requests/ complaints on the portal, a URN shall be generated and displayed on the portal. The same shall also be sent to the investor by way of email and SMS to the email id and mobile number respectively registered with RTA. RTAs shall also advise the investor to indicate the URN while sending physical documents in respect of requests/ complaints already lodged on the portal.
For an investor who submits only physical documents to the RTA for processing of his/her service requests/ complaints, RTAs shall provide an acknowledgement in terms of SEBI’s master circular for RTAs SEBI/HO/MIRSD/POD-1/P/CIR/2023/70 dated May 17, 2023 which shall also quote URN.
By using URN along with appropriate authentication/validation, the investor can track the status of his/her service request/ complaint on website/portal of the RTA.
It may be noted that wherever investor service requests require submission of physical documents, those requests shall be considered and taken up for processing by RTA only after receipt of physical documents.
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Source: SecMarx — Online processing of investor service requests and complaints by RTAs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.