Must Know Facts About Registrar And Transfer Agent

Must Know Facts About Registrar And Transfer Agent

If you are involved in share trading or investment, you must have definitely heard about Registrar And Transfer Agents. If you often wonder who they are or what they do, then you are in the right place. In this article, we will discuss who an R&T agent is and what their roles are in the investment space. So, let’s get started.

Who is an R&T agent?

An R&T agent or RTA or Registrar and Transfer Agent is an intermediary who is hired by a mutual fund house for taking care of various processes, including the safe recording & maintenance of investors records, processing of transactions, etc. An R&T agent may be based at a single location or multiple locations throughout the country, depending on their clients. SAG RTA is one of the famous registrars.

R&T agents are usually responsible for taking care of both financial and non-financial transactions on behalf of the fund houses. They work as a link between investors and the fund house, serving various needs of the clients, including the release of investor forms, issuance of account statements, processing of transactions, and more. An RTA also helps clients with information and recommendations related to any new fund, deals, dividend payment, dematerialization of shares, etc.

In short, a SAG Registrar And Transfer agent is the one place where you can get all the details about particular investments and new schemes of different fund houses.

What are the roles (& benefits) of an R&T agent?

We have already mentioned some of the roles of RTAs above. Here we will discuss some more. Let’s start with the basics. Why do mutual fund houses need RTAs?

Each mutual fund house has multiple clients, some even have hundreds of them. Each of these investors performs transactions, such as fund purchase, selling, switching, change in personal details, contact details, etc. on a constant basis. Besides processing these transactions, the fund house is also supposed to record each transaction in a proper way.

Now, most of the fund houses do not have the time or expertise to handle these responsibilities. In many cases, the cost of recording and maintaining transactions is also quite high. So, the companies outsource the work to a professional R&T Agent. RTAs are trained in this kind of work.

Now, you must be wondering how mutual fund houses actually benefit from Registrar and transfer agents. Here’s the answer.

The first and most important benefit of RTAs for mutual funds is the reduced cost. Since most of the client tasks are handled by RTAs on behalf of the company, the fund house can actually focus on more core business tasks.

Another benefit is access to more clients, which gives a boost to popularity and sales. R&T agents usually have branches across the country, which effectively promote the fund house to more customers and also efficiently serve the existing clients.

The benefit of RTAs for investors is that they (investors) get access to multiple schemes from different fund houses at one place, making it easier to choose and invest in more than one scheme. With an RTA, the investor is no longer required to go to different fund houses in order to make investments with them. They can simply use the services of an R&T agent to conduct business with all the popular fund houses.

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