The Securities and Exchange Board of India (SEBI) has issued a clarification on Qualified Registrars to an Issue and Share Transfer Agents (QRTAs). This clarification was issued on 10th March, 2023 and has come into immediate effect.
Through its earlier Circular dated 8th September, 2017, SEBI had defined QRTAs have been defined as RTAs servicing more than 2 crore folios.
The following has been clarified:
Categorization of an RTA as QRTA
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.
Period for which an RTA shall be recognized as QRTA
An RTA shall be considered as a QRTA from the date of categorisation as a QRTA till the next 3 financial years, irrespective of subsequent fall in number of folios. It 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 shall be provided to the new QRTA for complying with the enhanced requirements mandated for QRTAs.