Regulatory relook: Move to push firms away from in-house RTAs on the cards

Sebi looking to increase networth requirement, other measures; may float discussion paper

The Securities and Exchange Board of India (Sebi) plans to roll out a new regulatory framework for registrar and transfer agents (RTAs) –the market intermediaries responsible for the record-keeping of bondholders and shareholders after a company offers securities to the public.
 

The markets regulator, sources said, is considering a multifold increase in net-worth requirement, a move that may dissuade companies from having in-house RTAs for record-keeping.
 

At present, the minimum net worth required for RTAs is Rs 50 lakh and Rs 25 lakh in categories I and II, respectively. The net worth requirement could be increased to Rs 10 crore