The full form of RTA is Registrar and Transfer agents, such firms would be enrolled with the Securities and Exchange Board of India (SEBI). In mutual fund companies, Registrar and Transfer Agent is used to maintain the records. Towards the investors, RTA act as a single window reference. The outcome of that would be, that they could collect all the mutual fund investment-related data via RTA.
Between the investors and mutual fund houses, the registrar and transfer agent (RTA) acts as a mediator. These financial institutions used to hire RTAs towards handling and maintaining the records effectively for the data of the investors. The proper maintenance of the records of the investor data like account balances and transactions is being managed by the RTA agents.
SAG RTA, 3i Infotech Ltd., CAMS (Computer Age Management Services), and Karvy are counted as prevalent RTA companies in India. They propose Registrar & Transfer Agent Services to financial institutions, mutual fund companies, and investors.
What is the Registrar and Transfer Agent Role for Mutual Fund
RTAs' role, monitors the transactions of the investors in the mutual funds. It consists of various kinds of investor transactions like buying, redeeming, and switching in or out of an investment. Registrar and Share Transfer Agent supports the people to amend the bank mandates and update their personal details.
RTAs would be qualified with the professional skills towards maintaining the investor along with the AMC information. All the transactions of the investor would get maintained through one company.
Despite the investment might perform with various AMCs. most of the RTAs are having a link with other countries for the same context. Online services are available which the RTA incurred.
The services proposed through the registrar and transfer agents
Towards both the AMCs and investors, the Registrars and transfer agent furnish their services.
For mutual Fund Investors
Investment and transactions: With the help of a portal RTA provides its services. Their system would empower investors to transact with mutual fund companies. You could invest in NFO or transact with an enrolled MF company through an RTA.
An R&T agent generates distinct kinds of statements like CAS, portfolio valuation statements, transaction details of a single folio, and gains statements. An investor is enabled to analyze these statements to reevaluate their mutual fund.
The mentioned below service requests can be placed by any investors with the RTA:
- Revocation or stoppage request of an ongoing SIP, STP or SWP
- Modification in bank mandate
- Consolidation of all investor folios under a single folio
- Nomination form
- Updation of records of a minor to major for an individual (change in the guardian, tax details, update investor name)
- Redemption
- CKYC (Central Know Your Customer) forms and a few others are examples of service requests.
For AIF Investors
- The below-mentioned services would be provided to AIFs and PMS
- Investor servicing
- Fund accounting
- Value-added services
- KYC
- Pre-launch support
- Document management services
- Knowledge and technology partner
The below-mentioned services would be provided to AIFs and PMS:
For Mutual Fund Distributors
RTA Services to MF (Mutual Funds) distributors. They could assist the distributors to buy/sell funds on the grounds of the investor. MF distributors are able to submit the online application forms (scanned copies prepared through a scanner installed in the agent’s office).
Hence their agents would not be required to give a physical presence at the RTA office by 3 PM. Before that, 3 PM was the cut-off time to submit the application for investment. An applicant is entitled to the same day’s net asset value or NAV only when their application was submitted prior to the cut-off time.
Agents indeed generate the sales report performed through them in the mentioned duration. The information could be drawn for any frequency as required monthly, quarterly, or yearly. On the website of the RTA, a distributor can mention his needs to obtain the reports.
A recent service would be started by RTA Know-Your-Customer (KYC) forms for investors. Likewise, they indeed process know your distributor forms for the distributors. Some RTAs like CAMS service insurance companies also.
For Mutual Fund Companies
RTAs secured links across the country which would assist the fund houses to lessen costs. They would set up offices all over India and directed that the fund houses not be required to open branches at these locations.
RTA is used to deliver electronic communication like account statements, newsletters, or other important communication from the AMC. They furnished essential information to investors and distributors.
Registrar & Transfer Agent levies the fund houses for their services. This cost would ultimately be handed on to the investor as a portion of the yearly cost imposed via MF houses. The cost for equity funds would be about 10 basis points (bps). One bps would be equal to one-hundredth of a percentage point. It is near 5-7 bps for debt funds and about 3-4 bps for liquid funds.