Role of Registrar and Transfer Agents (RTAs) in Mutual Funds
Who is a RTA
The full form of RTA is Registrar and Transfer Agent. RTAs are entities registered with the Securities and Exchange Board of India (SEBI). Every asset management company (AMC) is required to appoint a registrar and transfer agent (RTA), unless they have an in-house RTA. RTAs specialize in maintaining records for asset management companies and provide all mutual fund investment-related information to investors.
Services Offered by Registrar and Transfer Agents
Registrars and transfer agents offer their services to both AMCs and investors.
1. Services offered to AMCs/Fund Houses:
RTAs helps with the record keeping and maintenance of all the below mutual fund investor transactions. Mutual fund investors engage in a wide variety of transactions on a daily basis. These transactions can be broadly categorized into two types:
1. Financial Transactions:
1. Buying and selling of mutual fund units
2. Switching between different mutual fund schemes
3. Redeeming units etc.,
2. Non-Financial Transactions:
1. Updating bank account details
2. Changing contact information (phone, email, address)
3. Modifying personal details etc.,
Each and every one of these transactions, both financial and non-financial, needs to be meticulously recorded and maintained by the mutual fund houses. This is crucial for ensuring accurate record-keeping, compliance, and providing a seamless experience for the investors.
This data is essential for various purposes, such as
- Tracking investment history and portfolio details
- Facilitating timely processing of financial transactions
- Updating investor profiles and contact information
- Ensuring regulatory compliance
- Providing comprehensive statements and reports to investors
By utilizing the services of RTAs, fund houses can efficiently manage the large volume of investor transactions and details, ensuring accurate record-keeping and regulatory compliance.By implementing robust data management practices, RTAs ensure that the integrity and security of the mutual fund investor data are maintained at all times. This provides fund houses and investors with the confidence that their information is well-protected.
2. Services offered to Investors:Here are some instances showcasing the services offered by the register and transfer agent for investors:
- Consolidated Account Statement (CAS): Consolidated Account Statement (CAS) is a single/combined account statement that shows the details of financial transactions made by an investor across all their mutual fund holdings. CAS is issued for those folios/accounts wherein a financial transaction has been made during a month and where unit holders are identified by their Income Tax Permanent Account Number (PAN). Investors can access and download their CAS from the RTA websites.
- KYC (Know your customer) Registration and Verification: RTAs facilitate the KYC registration process for new investors.RTAs forward the KYC documents submitted by investors, including PAN card, Aadhaar, address proof, etc. to the KRAs (KYC Registration Agency) who perform the KYC verification. They ensure the KYC details are complete and in compliance with SEBI regulations. RTAs also facilitate the process of KYC updation when investors need to update their personal information like address, contact details, etc.
- RTAs also handle other investor requests such as changing bank mandates, updating personal details, starting/stopping SIPs, etc.
Conclusion:
RTAs are essential for the smooth functioning of the mutual fund industry. Their services enhance the investor experience, ensure regulatory compliance, and contribute to the industry's growth and stability.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.
