Registrar And Transfer Agents – Who Are They?

By | June 27, 2017

Registrar And Transfer Agents – Who Are They?

Think about all the financial and non-financial Mutual Funds related transactions that happen every day. Investors are involved in buying units, selling units and switching between units.

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Apart from these transactions, there are constant changes related to contact details, bank details or addresses being changed. Mutual Fund houses are entitled to record all such transactions and maintain records of the same. But, how do they handle such an enormous task?

Well, this is where the Registrar and Transfer Agents (R&T agents) come in. Mutual Fund companies hire these agents to help them handle these back-end processes. In short, R&T agents are intermediaries who handle all Mutual Fund transactions, both financial and non-financial, at the behest of the fund company.

These agents have a wide network of branches across the country to handle these back-end processes. Thanks to their vast network, these agents act as a focal point for investors by helping them with investments, transactions and other related paperwork.

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Apart from handling various transactions, these agents also provide investors with information about different investments and schemes offered by different fund companies.

In addition, they provide details about new offers, information about dividends paid, and even help with consolidating your folios. Folio refers to all the investments you have with a fund company. Consolidating your folio helps to reduce paperwork and allows you to monitor your account statement easily.

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Why do Mutual Fund houses need R&T agents?

First and foremost, fund houses may not have the expertise to handle so many transactions on a daily basis, so R&T agents help cut additional costs that may arise if fund houses have to invest in manpower to handle back-end processes. Besides this, R&T agents also help the fund houses in increasing their sales.

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How do R&T agents help investors?

Firstly, they are the one-stop point for information on different Mutual Fund houses and their schemes. This way, investors can save themselves time and effort instead of visiting one fund house after another.

In addition to this, these agents help investors with the paperwork and transactions. SEBI has set a daily cut-off time for investments. So, if you’re looking to make multiple investments, it could be an arduous task getting in touch with all the fund houses out there. An R&T agent, however, can save you all the trouble.

How do R&T agents earn money?

Mutual Fund houses pay their R&T agents based on the volume of transactions that have been done for the fund house. These charges are then added to the expense ratio of the funds (by the fund house). As an investor, you don’t have to pay an R&T agent for their services.

A few Registrar and Transfer Agents operating in India are Karvy, Computer Age Management Services (CAMS), Sundaram BNP Paribas Fund Services, Franklin Templeton International Services, etc.

Now that you know more about R&T agents, use this information to help you pick the right investments for you.

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