To strengthen investor protection and promote financial inclusion and literacy, especially with new developments like the Online Dispute Resolution (ODR) platform and SCORES 2.0, markets regulator Sebi on Wednesday updated the Investor Charter for RTAs. Under this, all RTAs (Registrars to an Issue and Share Transfer Agent) are required to share the updated Investor Charter on their websites and via email to existing and new shareholders.
Also, they need to display the charter prominently at their offices.
Further, the Registrar Association of India (RAIN) are required to publish the Investor Charter on its website.
The investor charter provides details about the activities of registrars to an issue and share transfer agents (RTAs).
Additionally, these investor charters should outline the Dos and Don’ts for investors engaging with RTAs.
The investor charter for RTAs outlines services such as KYC updates, transmission of shares, dividend processing, and corporate actions like ESOPs and bonus issues, with expected timelines ranging from 15-30 days.
For transparency, RTAs are required to continue to disclose complaint-related data on their websites by the 7th of each month, as per the format specified by Sebi.
These disclosures are in addition to any other Sebi-mandated requirements.
The updated provisions come into immediate effect. In November 2021, Sebi had previously issued an Investor Charter for RTAs.
