In a move that can be helpful to holders of physical security certificates, SEBI has decided to provide a mechanism for processing of investors' service requests and complaints through online mode by Registered Transfer Agents (RTAs). The market regulator has asked RTAs to process online service requests and complaints of investors. The regulator has also asked RTAs to track the status as well as obtain periodical updates. In its recent circular, SEBI proposes to digitise the process in two phases.
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It's important to note that currently, individuals who hold physical security certificates need to submit various documents to RTAs for service requests or complaints. The physical documentation is required for everything including changes in personal details and dematerialisation and re-materialisation. The market regulator is now looking to digitise the process in two phases.
The securities market watchdog has said that the new digital mechanism would provide benefits such as a database for service requests and complaints, online acknowledgement and intimation to the investor and online tracking of status of service requests and complaints by investors. According to SEBI, the first phase will require all RTAs servicing listed companies to have a functional website. Such website should mandatorily display the following information:
1. Basic details of the RTA such as registration number, registered address of Head Office and branches.
2. Names and contact details such as email ids etc. Of key managerial personnel (KMPs) including compliance officer.
3. Step-by-step procedu res for various service requests, Frequently Asked Questions (FAQs), procedure for filing a complaint and finding out the status of the complaint, etc.
SEBI has also asked RTAs to set up a user-friendly online mechanism or portal for service requests and complaints. Features like easy registration format through the generation of OTP, complaint-registration and tracking feature, complaint or service-request-categories for the investors to choose from and list of documents needed to go with the complaints are mandatory options to be available on the website.
The circular also noted that, “It may be noted that wherever investor service requests require submission of physical documents, those requests shall be considered and taken up for processing by RTA only after receipt of physical documents. Online requests will be kept pending for receipt of physical documents for 30 days. Requests pending beyond 30 days awaiting receipt of physical documents will be closed with communication about non-receipt. In such case, the investor will have to raise a fresh request.”
According to the circular, qualified RTA or QRTAs should have the first phase ready from January 1, 2024 and RTAs should have it in place by June 1, 2024.
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