Registrar & Transfer Agent:
Registrar & transfer agent is a medium entity taking all the responsibilities of the back end process of all the multiple transactions based on mutual funds, financial & non-financial dealings. The RTA undertakes the responsibility of record keeping maintenance of each and every mutual fund’s transactions of the fund house via the chain of offices across the country.
The RTA service provider also manages all the financial as well as non-financial transactions while providing investors with the forms of dedicated fund house and works upon all the account statements.
Also, the registrar & transfer agent helps the investors into all the information based on upcoming or ongoing fund offers, portfolio consolidations, paid-up dividend etc.
Registrar & Transfer Agent Importance for Investors & Fund Houses:
All in all the RTA is a single place for all the information of multiple schemes offered by the fund houses. However, if we deeply understand the roles of a registrar and transfer agent, they are being outsourced by the Mutual fund house for all the back end process work.
The mutual fund house has to perform numerous transactions based on selling, purchasing or switching of the share units on a daily basis, which accumulates into a lot of transactional data.
Mutual fund house is incompetent in such handling of processing data which they further allocate it to the RTA service providers. And here comes the question of benefit from RTA service provider?
The mutual fund house remains the centre point of all the investors while they are being served by the RTA via multiple branches across the country, saving time and cost of the fund houses in record keeping matters.
Securities and Exchange Board of India (SEBI) also requires the exact cut off time for the investment done on a particular day to validate the days’ NAV. Therefore, the RTA service provider is an utmost requirement for every mutual fund house to continue the overall process of investments.