‘Qualified RTA’ defined as RTA Servicing < 2 Cr Folios for Listed Cos. in a FY: SEBI
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- Last Updated on 15 March, 2023
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Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/36, Dated March 10, 2023
Earlier, the SEBI vide circular no. SEBI/HO/MIRSD/CIR/P/2017/0000000100 dated September 08, 2017, specified framework for Cyber Security and Cyber Resilience for Registrars to an Issue and Share Transfer Agents (RTAs).
Under the said framework, Qualified Registrars and Transfer Agents (QRTAs) were defined as RTAs serving more than 2 crore folios. Also, QRTAs were mandated to comply with enhanced responsibilities through the adoption and implementation of an internal policy framework and periodic reporting requirements.
Now, the SEBI has issued a clarification to indicate that an RTA shall be categorized as a QRTA if, at any point during a financial year, the combined number of physical and demat folios being serviced by the RTA for listed companies exceeds 2 crore. Once RTA becomes a QRTA, they are obligated to inform SEBI within 5 working days.
An RTA will be considered as a QRTA from the date of their categorisation as such, and will retain the said categorization for the next 3 financial years, irrespective of any subsequent fall in number of folios and will be liable to comply with all requirements specified by the SEBI.
Further, considering the various systems and procedures to be put in place by a new QRTA, SEBI has granted a relaxation period of 60 days from the date of categorisation as a QRTA to comply with the enhanced requirements mandated for QRTAs. This circular shall be effective immediately.
Click Here To Read The Full Circular
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