Appointment of Share transfer Agent Regulation 7 of SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS,2015

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a listed entity is required to appoint a share transfer agent or manage the share transfer facility in-house. This ensures that the transfer of securities is carried out in an efficient and transparent manner.

If the listed entity manages the share transfer facility in-house and the total number of holders of securities exceeds one lakh, the entity must either register with the Board as a Category II share transfer agent or appoint a Registrar to an issue and share transfer agent registered with the Board. This ensures that the entity is able to manage the share transfer facility effectively and efficiently.

The listed entity must ensure that all activities related to the share transfer facility are maintained either in-house or by a Registrar to an issue and share transfer agent registered with the Board. This ensures that the transfer of securities is carried out in a secure and transparent manner.

To ensure compliance with the requirements, the listed entity must submit a compliance certificate to the exchange, duly signed by both the compliance officer of the listed entity and the authorized representative of the share transfer agent, within thirty days from the end of the financial year.

If there is any change or appointment of a new share transfer agent, the listed entity must enter into a tripartite agreement between the existing share transfer agent, the new share transfer agent, and the listed entity. In case the existing share transfer facility is managed in-house, the agreement shall be entered into between the listed entity and the new share transfer agent. The listed entity must inform the stock exchange(s) about such an appointment within seven days of entering into the agreement.

The agreement must be placed in the subsequent meeting of the board of directors. This ensures that the board of directors is informed about any changes or appointments related to the share transfer facility.

It is important to note that the requirements of this regulation are not applicable to the units issued by mutual funds that are listed on recognized stock exchange(s).

In conclusion, the appointment of a share transfer agent is a crucial step for a listed entity to ensure that the transfer of securities is carried out in an efficient and transparent manner. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have laid down specific guidelines for this purpose, and it is essential for listed entities to comply with these regulations to ensure transparency and efficiency in the share transfer facility.


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