Sebi asks registrars, transfer agents to set up online system for investor requests, complaints

For the second phase, a common website should be made and operated by QRTAs from July 1, 2024, according to the Sebi circular.

The market regulator has asked all registrars and share transfer agents (RTAs) of listed companies to set up an online system to process service requests and complaints from investors.

The digitization process is to happen in two phases. In the first phase, RTAs will need to have a functional website for this; and in the second phase, there will be a common website for all RTAs and the investors will be directed to the concerned RTA’s website from this main portal.

Qualified RTA or QRTAs, who are RTAs who service more than 2 crore folios, should have the first phase ready from January 1, 2024, according to the circular issued by the Securities and Exchange Board of India (Sebi). RTAs should have it in place by June 1, 2024.

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For the second phase, a common website should be made and operated by QRTAs from July 1, 2024, according to the Sebi circular.

For the first phase, website of individual RTAs should have basic details of the RTA such as registration number and address; names and contact details of key management personnel (KMPs) and FAQs, among other things.

The RTAs have to make sure the website is user-friendly with minimum features such as easy registration format through the generation of OTP, complaint-registration and tracking feature, complaint or service-request-categories for the investors to choose from and list of documents needed to go with the complaints among others.

Investors can submit the necessary documents in-person, through post or as e-signed.

“The circular added, “It may be noted that wherever investor service requests require submission of physical documents, those requests shall be considered and taken up for processing by RTA only after receipt of physical documents.”

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This online mechanism should be scalable with robust cyber security protocols, stated the circular. “Further, RTAs shall ensure that the online mechanism complies with the existing guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) specified by SEBI,” it added.

After setting this mechanism up, the RTAs have to get a certificate of compliance from a practicing Company Secretary within 30 days of the implementation.