In the post, we will discuss all about the PPB syllabus 2022 – important topic – share transfer agent for NOV Exams.

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So, today we will discuss who are share transfer agents & what do they do.

In today’s fast-paced investment environment, mutual fund investors, publicly traded companies and financial institutions have – multiple investors who conduct a number of transactions per day such that involves: 

  • buying, 
  • selling or 
  • exchanging units and 
  • require accurate records or information regarding the same.

It is imperative that stocks and the stock market play a big role in the world of economics. This brings us to the institutions or authorities that are responsible for keeping records of these transactions to help banks, corporates and financial institutions monitor investments and suggest policies to improve or maximize the investment with the least possible risk. Registrars and share transfer agents are authorized bodies responsible for maintaining financial balance by keeping accurate records of transactions made by an investor.


As per Section 65(95a) of Finance Act, 1994 as amended, Share transfer agent means any person who maintains the record of holders of securities and deals with all matters connected with the transfer or redemption of securities or activities incidental thereto

So, a “share transfer agent” is a representative who, on behalf of a legal entity, keeps records of holders of securities issued by the legal entity and deals with the processes of transfer and redemption of securities. 

This is a representative appointed by the company to keep records of the owners of securities. The main function of a transfer agent is: 

  • To issue & cancel certificates that reflect changes in ownership of the entity’s securities
  • To act as an intermediary for the listed entity.
  • To transfer securities and do the record keeping for investors
  • Inform investors about new fund offers
  • Approval of certificates/allotments/call payments.
  • Transfer, consolidation, division of securities.
  • Sending transferred securities and securities accepted for transfer / consolidation / distribution etc. directly to investors.
  • Cancel the name and certificate of the shareholder who sold the securities shares and replace them with a new shareholder.



Share Transfer Agents, as we have read above so far, deal a lot with securities. Now, we will understand the what are securities and what do they include.

  • Shares, scrips, bonds, stocks, debentures, or anything related thereto
  • Derivatives
  • Issuance of units or any such instrument by an investment scheme to the investors of such schemes
  • Issue of unit certificates or any such instrument to investors under any mutual fund scheme
  • Certificate of security under the “Securitisation and Reconstruction of Financial Assets and Securities Enforcement Act, 2002”
  • Government securities: shares or bonds
  • Other instruments declared as securities by the Central Government
  • Any rights or interests in securities

Note: Exchangeable goods are not securities.


Provisions of Share Transfer Agent that are mentioned in Rule 7 of SEBI (NOTIFICATION OBLIGATIONS AND PUBLICATION REQUIREMENTS), 2015 (i.e. Updated on January 10, 2020)

  1. Appointment of a share transfer agent or manage the share transfer facility in-house.

If the entity has < or = 100000 of Shareholders: The listed entity shall appoint a share transfer agent or manage the share transfer facility internally.

If the entity has > 100000 of Shareholders: The listed entity shall either register with the Board as a Category II Share Transfer Agent or appoint a Share Transfer Agent.

  1. Certificate of Compliance to the Board of Directors

The said entity shall also submit to the Exchange – a certificate of compliance, duly signed by both the responsible officer of the listed entity and the authorized representative of the share transfer agent, if applicable, within one month of the end of each half-year financial year.

  1. Change or appointment of a new agent for the transfer of shares

In the event of any change or appointment of a new share transfer agent, the said entity shall enter into a tripartite agreement between: 

  • the existing share transfer agent, 
  • the new share transfer agent and 
  • the listed entity.

Provided that in case the existing share transfer facility is managed internally, the above agreement will be entered into between said entity and the new share transfer agent.

Furthermore, the listed entity shall notify the stock exchange or stock exchange s of this appointment within 7 days of the conclusion of the contract.

Furthermore, the above agreement will be presented at the next meeting of the board of directors.

Note: The requirements of this regulation do not apply to units which are issued by mutual funds (MF) that are listed on recognized stock exchanges.


Hey, you can check out other short & free notes on JAIIB for NOV 2022 Exams.  You can also check out our free JAIIB Classes conducted on YouTube channel for November exams too.

All the very best for your exams!!


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