Details of a Demat Account - Introduction, Benefits and Steps to Acquire One

A large number of shares are bought and purchased by the investors with SEBI being the regulatory body in the whole process. In line with the protocols of legal authorities, such shares are present in either physical or electronic form. Physical Shares or Share certificates have a paper presence whereas electronic shares are in the dematerialized form stored in the Demat Account of the concerned Investor.  

As stated by the Laws of Companies Act 2013, the complete transaction of Shares and Securities will be in Demat Form effective from 2nd October 2018, which also means from 1 October 2019 no company will be allowed to transfer its shares and securities in physical form. Owing to this current amendment investors have to open a Demat Account under their name by submitting the Dematerialization request.   

An Registrar & Transfer Agent Service provider offers assistance such as dematerialization of shares, complete record-keeping, contact with the national depositories, expert assistance related to investment opportunities or assistance to any other query of the customer.

Demat Account

Dematerialization of Shares is a process in which shares owned by the investor are converted into electronic form and stored in the Demat Account of the respective investor. So clearly a Demat Account holds the shares and securities present in the electronic form to facilitate the investor with online visibility of his purchased shares.  

The concept of Demat Account was initiated by the Securities and Exchange Board of India (SEBI). SEBI is India’s largest regulatory body for all types of share transactions in the Indian market, operating since 1996 in India.

Demat Account is almost equivalent to a bank account. The only difference is that it holds shares, securities, bonds and mutual funds on behalf of the investor. Earlier, holding a Demat Account was recommended to those who trade with shares and securities on a regular basis. But from now onwards it is mandatory for every investor to get a Demat Account regardless of how frequently he is trading on shares. 

Before we jump into the step-wise procedure to open a Demat Account lets get familiar with the two crucial terms with regards to share transactions (i) Depositories and (ii) Depository Participant. 

National Depositories and Depository Participants 

National Depositories - Operating under the surveillance of SEBI, National Depositories are the organizations responsible for holding all the registered shares and securities in the country. There are two major depositories namely National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CSDL). Transactions of all the registered shares and securities is possible only through these two main depositories.       

Depository Participants - These are organizations working as an intermediary between the investor and the main depositories. For opening a Demat Account, the investor needs to approach the Depository Participants. 

Steps to open a Demat Account

Step 1: Approach a DP which can be any financial institution like banks, brokers, etc. 

Step 2: Fill in the application form with accurate details for opening a Demat Account affixing the copies of the required documents.    

Step 3: Once the online documents are submitted by the investor, the officers from the DP comes for the in-person verification.   

Step 4: Once the information is checked for its authenticity, a unique account number is given to the applicant by the DP which is required by the investor to access his/her online Demat Account.   

The expense for opening a Demat Account

Following the completion of the account opening process, the Demat account holder gets an agreement copy from the concerned DP enlisting the terms and conditions, rules and regulations along with the applicable charges. Generally, the DPs offer free of cost Demat Account while there are some who charge a certain amount or some take refundable charges. 

The account holder is charged with the transaction fees along with the annual maintenance fees and the conversion fees (dematerialization of shares and securities). 

Read Also:- Complete Procedure For Dematerialisation Of Shares Under RTA

Points to remember while opening a Demat Account    

1. It takes 7-14 days for a Demat Account to get active.
2. Investors can open different accounts with different DPs. 
3. No minimum share limit is set for opening a Demat Account. 
4. It is mandatory to add a beneficiary while opening a Demat Account
5. KYC is mandatory before opening a Demat Account. 

KYC Conformity

Getting KYC done is mandatory if you want to have a Demat Account. As the process above says that the investor has to apply by submitting the application along with the valid documents to the concerned DP for availing a Demat Account. 

Identity Proof - The copy of any government authorized ID like Adhaar Card, PAN Card, Passport or Voter ID can be submitted by the applicant. 

Address Proof - Applicant’s residence proof like ration card, electricity bill, water bill or any ID Proof having the place of residence mentioned in it. 

Bank Details - It is a must for the applicant to submit his/her basic bank details like bank account number, etc. 

Benefits of owning a Demat Account

• A Demat account eliminates the chances of your shares, securities, bonds and debentures getting misplaced, robbed or damaged. 
• The charges on the transaction of shares is less if done via a Demat Account as compared to the physical one.
• A Demat Account has made transactions more easy and less time consuming for investors. 
• There are no restrictions on the number of shares you buy or sell via a Demat Account. 
• Online transactions and management is far convenient these days than physical transactions of shares. 
• More secure than physical shares transactions. 

Owing a Demat Account gives you all the above facilities simultaneously adhering to the compliance of the Government.

Read More»

Revolution of Mutual Fund Industry by RTAs

It is the technology which takes a normal growth rate of business to an accelerated progress dexterity. Whether it is a normal course of operation of an organisation or serving the clients with customer care facilities, technical advancement is necessary to make a win-win. In today’s digital era, if you are not upgraded with technologies and latest utilities, you can not ensure automation, ease and accuracy. 

Last few years evidence the enormous growth & success encountered by Mutual Fund houses. Here as well, the credit goes to high technology, the hi-tech facilities given by the Registrar & Share Transfer Agent (RTA).

It is only because Registrar and Transfer Agents (RTAs) that mutual fund houses could get to the top quickly and amazingly among other institutions of the financial sector such as banks, insurance companies, brokerage firms, etc. 

Read Also:- RTA - An “all-inclusive” Solution for Mutual Fund Investors

RTA agent is a cornerstone behind the astounding progress of mutual fund houses. By introducing & promoting advanced technology in the mutual fund houses, RTA Agent has assured accuracy and value addition in the services of mutual fund houses. 

Technology has transformed the financial sectors in a never-imagined way. Some of the examples include e-investment tools for investors and distributors, intermediary interfaces, data sharing apps, digital transaction systems; they all are techno-driven and bolstered.

Today, it's a matter of a few clicks and seconds to encash the money, to transfer the money, to get monthly payouts, to upload the investment statistics on different platforms. Similarly, executing a Systematic Investment Plan (SIP) with a mutual fund houses, asset management entity or insurance firm has brought high-level of convenience for investors, it would not have been possible without technological advancement.

Now let us shift our focus to Registrar and Transfer Agent and the way they have implemented technological up-gradation in the mutual fund industry to greet the ease, automation, speediness and many other exquisite services in the industry. We all know that RTA is linchpin behind the triumph & popularity of mutual fund houses. Let us march towards the answer to HOW?

A Registrar and Share Transfer Agent like SAG RTA being an intermediary serve the facilities to and interact with every stakeholder while maintaining the records of clients’ transactions on behalf of mutual fund houses. 

Different key stakeholders like asset management companies (AMCs), fund accountants, couriers & postal agencies, exchanges, depositories, depository participants, mutual fund utilities, channel partners, payment aggregators, and banks are served through sustained interfaces.

Management of Data

RTAs also processes & transfers all the investors’ & investment-associated details & data from diversified sources in multiple formats. RTAs regularly interact and help every stakeholder of the mutual fund industry in the management & maintenance of their data.

Import Data in all Formats and Exporting Them in the Relevant One

With the use of technology-based systems Registrar & Transfer Agent meets the diversified needs of different mutual fund investors easily and also exchange data with them in multiple formats which includes  CSV, DBF, Excel, text or advanced XML through web-services.

RTAs use technology-embedded system that creates the output files in accordance to the required data format and also input data in different formats from the stakeholders. Technology allows the RTAs to preserve the input and generate the output in the desired format. 

Read Also:- RTA is a Cornerstone of Mutual Fund Companies. See How?

It is because of the innovative approach of the Registrar & Transfer Agent industry that mutual fund houses could be ahead of the game and break new grounds. RTAs have been in the client’s best interest as well.

High Technology to Serve the Clients

Despite being highly successful & gangbusters, the whole Registrar & Share Transfer Agent industry endures to adopt cutting-edge technologies and implement ground-breaking ideas to serve the mutual fund industry and its clients in the best possible way. 

Adherence to Government Rules & Regulations

RTAs keep updating themselves as per the amendments in government rules & regulations and latest notifications. This up-to-minute leg-up alongside the adoption of lead-forward technology let RTAs like SAG Infotech provide world-class services to mutual fund houses and investors in adherence to legal norms. 

Safety, Security & Reliability

Beyond the shadow of a doubt, RTAs have been the true supporter for mutual fund stakeholders and the non-stop advancement in the RTA’s system & software guarantees reliability, security and confidentiality of big-league financial & investment-related facts & figures. 

Read Also:- RTA Expertise for Mutual Fund Houses and Investors

Reduction in no. of Complaints and Increment in Investments 

Unprecedented technologies of RTA have revolutionised the mutual fund arena in which number of complaints have reduced and the mutual fund investments have grown quickly in the past few years.

Taking the Stakeholder Ahead

Besides, leading off important services, processes and statutory changes in the mutual fund industry, RTAs are driving the industry stakeholders to become a top-drawer with technological advancements through ground-breaking innovation and out of the box ideas. 

Boosts Trust and Credibility within Investors & Regulators

Also, RTAs have upsurge the trust and assurance for mutual fund houses within investors, regulators and stakeholders. With the optimal use of hi-end technologies, RTAs are inviting front-line products, projects and procedures in the mutual fund industry. 

For mutual fund customers as well, RTAs have played no small role by catering the most efficient & valuable facilities to them. 

In the ever-changing dynamic market also, RTAs have potency and foresee to take mutual fund industry parallel or an advance of the banking sector.

Read More»

RTA - An End to End Solution For MF Investors & Companies

A mutual fund transaction involves a trail of activities that include digital and manual as well. Several transactions such as buying, selling and switching the shares are carried out by investors regularly and these transactions must be properly recorded & updated by the mutual fund companies to grease the wheels for future activities.

Sometimes circumstances to change investors’ address name or bank details also germinates and many investors need to dematerialise or rematerialise the share & securities, they also need to payout dividend etc.

So, in a scenario when they are busy executing their core responsibilities, who accomplish these tasks on their behalf?

Read Also:-  Why Registrar and Transfer Agent Boon For MF Houses & Investors?

Registrar and Transfer Agent Services of SAG Infotech takes on this responsibility. SAG RTA maintains & records the transactions carried out by the mutual fund investors on behalf of mutual fund companies and also facilitates investors doing their mutual fund related job.

It caters investors with services such as Transmission, Transposition, Name Removal, Investors’ Name & Address Change, Alteration in Client Signature, etc.

Apart from these basic RTA services, SAG RTA Registrar and Share Transfer Agent helps investors in settlement of all the IEPF claim, dematerialization of securities through CDSL/NSDL depositories, paying out dividends through ECS transfer, and so on also.

First, let us understand the meaning of Registrar and Transfer Agent Services and their role to dive into the benefits offered by them to mutual fund companies and mutual fund investors. 

Registrar and Transfer Agent

What is the meaning of Registrar & Share Transfer Agent?

Registrar and Transfer Agents refers to the trusts or third-party organisations which are appointed by mutual fund companies, financial institutions & publicly-traded companies to register and upkeep the detailed records of the transactions executed by their investors for their convenience. 

Such companies often have many investors who possess a part of the organisation and so their records need to recorded & preserved well and so they hire a third-party professional service by Registrar & Transfer Agents to carry out these tasks on behalf of these companies. However, some companies do not prefer such third party services and act as their own Registrar and Transfer Agent. 

What is the importance of Registrar & Transfer Agent for Mutual Funds Companies and Investors?

R&T agent is a single-window solution for Mutual Funds Companies as they execute all the investors’ and their transaction-related work like record keeping, updating the personal information of investors, etc on behalf of these companies and spare them with a lot of time to focus on their core job.

Since an R&T Agent is a specialised professional and works through its widely extended branches across the nation, it very-well meets the multiple needs of mutual fund companies as well as investors.

Read Also:- RTA is a Cornerstone of Mutual Fund Companies. See How?

RTA notifies the investors about new offers and schemes also and so act as marketing personnel for mutual fund companies while assisting investors to make a beneficial deal. R&T provides an end-to-end solution (E2ES) to all the three stakeholders of Mutual Fund Companies - Distributors, Investors and the Asset Management Companies (AMC).

Registrar & Transfer Agent is an all-inclusive solution for mutual fund investors as well and fully knock off the need for investors to visit the mutual fund offices. RTAs provide forms of fund houses to the investors, they also notify the investors about the dates of dividend distribution, new offers and maturity dates in case of fixed maturity plans (FMPs).

Besides, RTAs also complete the transactions of investors and procure their account statements.

Adding stars to the benefits, RTAs directly do not charge a fee from investors, mutual fund companies pay RTA which these companies recover from investors. 

Notably, SAG RTA Registrar & Transfer Agent Services must be availed from Securities and Exchange Board of India (SEBI) accredited RTA service provider like SAG Infotech that promises accuracy and adherence to prevailing laws.  

Leading RTA Agent in the Mutual Fund world of India are as follows:-

• SAG RTA by SAG Infotech Private Limited
• Franklin Templeton International Services Private Limited
• Computer Age Management Services (CAMS) Limited.
• Karvy Computershare Limited 

Read More»

RTA is a Cornerstone of Mutual Fund Companies. See How?

Mutual Fund is the first option that punches the clock of the investors when they think of making an investment to earn big. Mutual Fund sector is a never-depressing market with lakhs of investors making investments in various schemes.

A mutual fund house needs a manager for the proficient management of its tasks and to help its clients with diversified needs. So, instead of appointing an in-house manager or managers, mutual fund houses outsource these jobs to a professional and trustworthy Registrar and Transfer Agent (RTA Agent) who is specialized in RTA Services & having a presence throughout the nation.

Read Also:- How Mutual Fund Companies Primarily Based on RTA Services?

Advancement in technologies has made the digital presence of an organisation possible in different cities across the world. Similarly, R&T Agent are present at different places through its virtually connected expanded branches. In this way, an R&T Agent facilitates all the client living in different cities with multiple services such as the management of transactions carried out by them, notifying them about different offers & investment opportunities, changing their name, address as required etc in addition to the managerial facilities to the concerned mutual fund houses.

Facilities offered by Agent is based on the agent type you have hired. Some companies appoint an agent only for investment guidance while some appoint for the complete management of the investment portfolio. Registrar and Transfer Service are appointed by mutual fund houses either permanently or on a clientele basis.

Registrar and Transfer Agent can Increase the Financial Worth of Business

Read Also:- 

A Registrar and Transfer Agent Service is a single-window solution for the management of the mutual fund process. Once the tasks related to mutual funds are outsourced to Registrar & Transfer Agent, It knocks off the need to appoint an exclusive workforce by being an intermediary between clients & mutual fund houses and serving both simultaneously.

• RTA Agent notify the client about new offers and provide them with quality service which generates new & more sales. 
• Helps investors execute transactions such as selling, buying and switching funds and also simplify the paperwork for them.  
• Advice the best offers to make an investment to the clients which further increases their investment potentials and so the profits. 
• Provides business-like ideas associated with a mutual fund investment. 
• RTA assists you to make rational decisions, upkeep and monitor diversified investments.

A Registrar and Transfer Agent Services is a sure way for any investment company to prosper and multiply their profits. When a company outsources its investment-related decisions & tasks to a leading Registrar & Transfer Agent Services like SAG RTA, their back-end processes and clientele services are managed properly & proficiently. 

SAG RTA Registrar and Share Transfer Agent are first SEBI accredited RTA service provider and one of the leading RTA in India. Contact us now to avail our top-rated RTA services.

Read More»

SAG RTA Now Answers The Call For Dematerializing Equity Shares

SAG Infotech, an established name in the taxation industry has now entered the premises of Registrar and Transfer Agent (RTA) services. The company is now home to Rajasthan’s first-ever RTA services popular with the name of SAG RTA and is fulfilling the needs of investors as well as mutual fund houses. SAG RTA works in line with the clause issued by MCA saying that it is compulsory for Unlisted Public Companies to issue securities only in dematerialized form.

SAG RTA Registrar and Share Transfer Agent puts on view the unlisted equities as well as common debt assets including Certificate of Deposit, Securitized instruments, and lot more.

Authorization from SEBI

SAG RTA, a subordinate of SAG Infotech Pvt Ltd, has authorization from government-regulated share/security controller SEBI or  Securities and Exchange Board of India for working as Registrar to an Issue and Share Transfer Agent to an Issuer of Security. Remember, SAG RTA is Rajasthan’s 1st ever SEBI certified RTA services provider.

SAG RTAs Expertise Compass

SAG RTA services are hired also for dematerialization of shares via depository registered with CDSL and NSDL, payout of dividends and interest transfers. Also, the company has an inside track in maintaining investor database as well as security transfer. SAG RTA does renewals of dividends on shareholder’s requests and issues them dividend warrants.

Incharges for Backhand Management and Investor Issues 

An expert team is hired for handling backhand business like solving investor’s issues and guiding them with good investment opportunities. The company reaches out to its clients via phone, mail and fax.

SAG RTA is a quick aid to documentation related processes like Change of Name/Name Deletion/Transposition/Transmission, Signature and Address Change. The department facilitates the investor with Duplicate Share Certificate in case the original one is missing, for that the investor must intimate the department regarding the loss.

For issuing the shares/securities in the dematerialized form to the potential investors, the companies need to communicate with SEBI authorized Registrar and Transfer Agent Services which have direct or online access to depositories. SAG RTA will act as a bridge between the Shares/Security Issuers and main depositories (CDSL and NSDL) while maintaining the issuer's transaction with depositories.

Additional Features provided by SAG RTA:

• A unique login dashboard facility for professionals like CA, CS and others and Companies associated with SAG RTA. 
• Tracking records of various clients at a time in single login. 
• Fee Calculator feature for the clients to gain exact figures of fees payable to depositories and RTA. 
• Pre-prepared documents for corporate reportings.
• Log of activities by issuer and professionals in login dashboard
• Maintaining the joint with both CDSL & NSDL depositories.

SAG RTA now is a trustworthy name after reviews from its existing clients. Various reputed Issuers rely upon us on the grounds of our services, security and privacy.

Read More»

How To Transfer Physical Shares

To transfer a physical share certificate to another person’s name, you would need a transfer deed.

A Transfer deed is a document that is provided to you at the time when you originally purchase physical shares. Keep it safe for use when you want to sell or transfer shares.

A transfer deed has two parts - the seller’s part and the buyer’s part.

Both the seller and the buyer need to fill their respective parts in order to give effect to the share sale. Besides these two, other parties involved in the transaction include the company registrar (RTA) and the government.

Step-by-step Process to Transfer Physical Shares

Step 1: Information to provide in the seller’s part of the Transfer Deed

This part will contain the following points:

• Name of the company
• Quantity both in figures and words
• Distinctive numbers
• Certificate number
• Name of the seller
• In front of the name of the seller you have his signature
• Witness name and signature

Step 2: Information to provide in the buyer's part of the Transfer Deed

When a buyer purchases shares, he reviews the share certificate along with the transfer deed already completed by the seller. The buyer then needs to complete his part by providing the following details:

• Consideration both in words and figures (which is quantity x price)
• Buyer's name and signature
• Buyer's occupation
• Buyer's address
• Date of purchase (which has to be after the date of the transfer deed)
• Stamp duty (which is 50 paise per Rs100 or part thereof on the value of consideration)

Read Also:- A Guide for Dematerialization of Physical Shares

Step 3: Share Transfer Stamp

Once the transfer deed is completed by both the buyer and the seller, the next step is to attach the share transfer stamps by the buyer. The same must be purchased with the government and can be found at a post office or stamp office or other authorized vendors.

The share transfer stamp is a way for the government to collect revenue on the transfer of shares. The value of the stamp is decided by the government upon the value of consideration for the shares.

The share transfer stamp must be attached in the space provided on the reverse side of the transfer deed.

Step 4: Sending to the Registrar

A Registrar and Share Transfer Agent (RTA) is the person or company that handles share purchase, sale and transfer tasks on behalf of the mutual fund house or company.

Upon completing the details in the transfer deed and attaching the stamp, the buyer needs to send the deed along with the share certificate and other documents (if needed), by post or in person, to the respective registrar to the company.

To find the registrar of a funds company, you can either contact the company itself or search Google for the same. Otherwise, you can also share the deed to the company’s address mentioned on the share certificate.

The documents must be sent to the registrar on or before the last date as mentioned in the transfer deed, also known as the deed’s validity.

Step 5: Transfer of Certificates

When the Registrar and Transfer Agent of the company receive such a transfer request, they will check the attached details to confirm the ownership and also match the seller’s signature with the one recorded with the company. They will also check if the consideration amount is right according to the stock’s market price and includes the stamp duty. Further, they will check that the deed validity if not over.

Upon confirming and validating all the things to their satisfaction, Registrar will transfer the shares in the name of the buyer and store the buyer’s signature as a specimen/sample in their records. They will also update their member register with the buyer’s name.

The duly endorsed share certificate is then sent to the buyer’s address, as mentioned in the documents.

Read More»

Why Registrar and Transfer Agent Boon For MF Houses & Investors?

If you are one from the world of share investment and trading, you must have heard the word - Registrar And Transfer Agent more often. And there could be a possibility that you might have just heard about it but do not know its meaning and role.

This article is all about Registrar & Transfer Agents and their role. Let us start with its meaning.

Meaning of A Registrar & Transfer Agent

A Registrar & Transfer Agent, generally known as RTA refers to an intermediary or agent appointed by the mutual fund houses to execute the operations such as facilitating the transactions and maintenance of its records on behalf of mutual fund houses. 

The beneficial role of an RTA Agent is not limited to the mutual fund houses but it extends to assisting the clients as well. RTA takes care of financial as well as non-financial transactions for the mutual fund houses and at the same it caters the multiple needs such as handling the transactions, releasing the investors’ forms, issuing the account statements and so on, of the diversified clients situated at different locations of the country as well-known RTAs such as SAG RTA have their roots expanded all over the country through its branches.  Besides, Registrar & Share Transfer Agent notifies the investors about different beneficial offers and schemes, help them with securities dematerialization and dividend payment. 

In short, RTA is an important link between mutual fund houses and investors with enormous benefits, when chosen correctly. SAG Registrar And Transfer agent is the one such RTA which serves all ordinary services such as Transposition, Transmission, Name Deletion, Name Change, Client Signature and Address change in addition to the exceptional benefits such as IEPF claim settlement, Securities dematerialization via CDSL/NSDL depositories, dividend payout through ECS transfer; to the investors. 

SAG RTA is a SEBI certified & Rajasthan's first RTA Services provider and its innovative approach adds value to its services & guarantees accuracy, alacrity & on-time execution of responsibility on investors’ behalf.

Now, let us hone in on to the need for Registrar and Transfer Agents and benefits served by them.

Firstly, let's understand why mutual fund houses need RTA?

Need of RTA for Mutual Fund Houses

Mutual fund houses have a large number of investors who carry out numerous transactions regularly. Transactions such as switching, selling and purchasing shares or equities carried by investors need to be recorded by the mutual fund companies which also has to upkeep and update the personal details of investors from time to time or whenever required. 

Managing, maintaining and recording the personal details of the investor such as inventors' name, address, contact information along with the transactions executed by them is a big task in itself which demands time, energy and expertise. Mutual Fund Houses may or may have that much time and proficiency which is required but RTAs are experts and specialized in all these activities so mutual fund houses hire them or outsource their work to these trained agents who will take the entire responsibility on their shoulder.

Read Also:- Registrar and Share Transfer Agents To Facilitate Transactions in Mutual Funds 

Benefits of Registrar and Transfer Agent to the mutual fund houses and Investors

The first and fundamental benefit of hiring an RTA for the mutual fund house is the reduced cost and availability of time & energy for the mutual fund houses to focus on their core activities and hunt more opportunities to grow in the share market. 

Since RTAs take care of client’s transactions on behalf of mutual fund houses, the task is accomplished in a professional sense as RTAs are trained professionals and also mutual fund companies do not need to invest their time in the same. 

RTA acts as a promoter also. RTA has its presence throughout the country via its branches so it promotes the mutual fund houses at a faraway level & generating new clients while satisfying its current clients already present in different areas. In this way, it acts as a sales & popularity booster for the mutual fund houses. 

Benefits of Registrar and Transfer Agents to investors include the availability of different investment offers & schemes at a single window. RTA informs investors about various beneficial schemes and this knocks off the need for the investor to visit different fund houses to invest with them which also saves time & energy of the investor.

An R&T agent serves as a single-window solution to make an in-time investment in different fund houses. 

Ensure to choose an RTA which is SEBI approved and has excelled in providing innovative services. After-sale service is also a point to ponder while choosing an RTA service provider. SAG RTA Registrar and Share Transfer Agent have a squad of experts for all-day-long customer care support.

Read More»