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Registrar & Transfer Agent

Keeping Records

Every mutual fund house has a large number of investors and it is essential to maintain records of all transactions made by each investor. Registrar and Transfer agent (R&T agent) is a body that maintains these records on behalf of the fund house. There are two main R&T agents in India—Computer Age Management Services (Cams) and Karvy. Few MFs, such as Franklin Templeton MF, have their own in-house R&T agents.

How An R&T Agent Works

Function

An R&T agent acts as a third-party on behalf of a fund house and has a vital role to play. It has a wide network through which it helps investors with their transactions, for example, getting the forms of various fund houses, transacting with fund houses or providing account statements. An R&T agent also provides technology-based services like online transaction or account statement facilities. It acts as single-window system for investors.

An R&T agent also helps investors with information on various corporate actions like details on new fund offers, dividend distributions or even maturity dates of investments. This information is also available with the fund houses, but an R&T Agent is a one-stop shop for all the information. Investors can get information about his various investments into different schemes of different fund house at a single place.

Importance

An R&T agent helps MF investors in submitting forms. This is very useful, especially for those investors who want to invest in many MFs. As per the Securities and Exchange Board of India’s (Sebi) rules, there is a cut-off time by when the investment has to be made for that day. So, if an investor has to make multiple investments, he can use an R&T agent’s single window system instead of rushing to different fund houses to submit applications.

R&T agents also help MFs reduce costs. Since they are present across the country, they also double as branches for their affiliated MFs as point-of-sale terminals.


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