Registrar and transfer agents (RTAs) are among the key players in India’s mutual fund ecosystem. RTAs help mutual fund companies and investors in equal measures and are pivotal in the smooth operations of the industry. So, who exactly are RTAs, and what’s their role? Let’s find out.

Who are RTAs?

RTAs act as mediators between mutual fund houses and investors. They are SEBI-registered organisations offering vital record-keeping and administrative services to mutual fund companies. They maintain all records of mutual fund investors and provide single-point access to information related to your mutual fund investments.

Role of RTAs

RTAs provide a variety of essential services to mutual fund investors and fund houses.

1. Services offered to mutual fund investors

• Statement generation: An RTA generates various types of statements related to your mutual fund investment. These include a consolidated account statement (CAS), capital gains statement, portfolio valuation statement, etc. You can study these statements and review your mutual fund portfolio. They are also required while filing income tax.

• Ad-hoc services: RTAs also provide various other ad-hoc services to investors. With the help of an RTA, you can:
  • Place a cancellation or stop request for your mutual fund SIP, SWP or STP
  • Make changes in the bank mandate
  • Place a redemption request for your mutual fund units
  • Update nominee details

2. Services offered to mutual fund houses

RTAs work with AMCs, taking care of various responsibilities, investor services and distribution. They help AMCs maintain accurate records of all mutual fund investors and their transactions. Thanks to their PAN-India presence, they help mutual fund companies reduce operational costs. They have offices across locations in India, meaning fund houses aren’t required to open their offices in these places.

Apart from mutual fund companies, RTAs also help mutual fund distributors by buying and selling funds on investors’ behalf.

In conclusion

RTAs are like the unsung heroes of the mutual fund industry, working diligently behind the scenes to ensure the smooth functioning of the industry. By balancing the needs of investors and fund houses, they help maintain trust and transparency among investors and fund houses.