SBI shareholders, bondholders: State Bank of India appoints new Registrar & Share Transfer Agent (RTA); check details

State Bank of India (SBI) has informed that it has appointed KFin Technologies Limited as the Registrar & Share Transfer Agent (RTA) of the Bank in place of existing RTA Alankit Assignments.

SBI published an advertisement in the Times of India newspaper on July 8, 2024, regarding the same.

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Bank Notice is hereby given to the Shareholders, Bondholders, Beneficial owners, Depository Participants and all concerned that the RTA of the Bank has been changed from Alankit Assignments Limited to KFin Technologies Limited. This will be with effect from July 5, 2024 as date of shifting of electronic connectivity to the new RTA.

SBI as per advertisement mentioned in the newspaper, “All documents/correspondence such as transmission / transposition of shares, issuance of duplicate shares, change of address and updation of KYC (Physical shares), claim of unpaid dividend, unpaid interest, unpaid redemption amount on Bonds, shares held in abeyance, claim from unclaimed suspense account, etc. may be delivered to the new RTA.”

Who are Registrar and Transfer Agents

Registrar and Transfer Agents (RTAs) are firms registered with SEBI that offer services pertaining to the upkeep of share registries and share transfers on behalf of businesses that have released shares for public trading.

Registrar and Transfer Agents play a vital role as intermediaries that facilitate transactions between investors and companies or fund houses. They are responsible for ensuring the seamless transfer of ownership of securities and maintaining comprehensive records of all transactions. Additionally, RTAs are entrusted with the crucial task of maintaining accurate, transparent, and compliant investor records, effectively serving as custodians for the investors they represent.

What are the functions of an RTA

According to the Angel One website, these are the functions of an RTA:

Issuance of Securities
Whether it is stocks or mutual funds, the Registrar and Transfer Agent plays a vital role in their issuance. Whenever an Initial Public Offering (IPO) or New Fund Offer (NFO) is announced, the RTA works closely with the organisation and ensures that the issue of the respective security is carried out smoothly. In fact, when you apply for a mutual fund or an IPO, it is the RTA that determines your eligibility and credits the shares or mutual fund units into your demat account.

Transfer of Securities
In addition to issuing securities, the RTA also handles transfer and transmission requests from investors. When you sell stocks or mutual funds in the secondary market, the Registrar and Share Transfer Agent ensures the smooth transfer of ownership by debiting your demat account and crediting the account of the buyer. In the case of manual transfer requests, you’re required to lodge them with the RTA, who in turn processes the request and affects the transfer.

Maintenance of Investor Records
The Registrar and Transfer Agent is responsible for maintaining accurate and up-to-date records of all of the investors of the company or the AMC (Asset Management Company). The entity maintains a comprehensive database containing extensive investor information. This includes the names and addresses of investors, their contact information and the number of securities held by them. These records are updated as and when there’s a change, enabling issuing entities to track ownership details at any point in time.

Dividend and Interest Payments
Whenever a company or an AMC declares a dividend, the transfer agent determines the investors eligible for receiving it based on the record date. The RTA also makes sure that the appropriate dividend is credited to the investors on time and in compliance with the existing legal and regulatory policies in place.

Executing Other Corporate Actions
The Registrar and Transfer Agent also plays a critical role in ensuring that the various corporate actions declared by the issuing entities are successful. Special actions like mergers, acquisitions, rights issues, bonus issues, stock splits, share buybacks and reverse stock splits would not be possible without the assistance of an RTA.

Investor Relations and Services
Since RTAs act as an intermediary between the issuing entity and the investors, they’re also tasked with the responsibility of redressing investor queries and grievances. This includes replying to various inquiries, disposing of requests, addressing concerns and informing investors about updates relating to their investments.