SEBI proposes activity-based regulations for RTAs

SEBI Report; dated: 07.08.2025

1. SEBI Issues Consultation Paper on RTA Regulations

The Securities and Exchange Board of India (SEBI) has released a consultation paper aimed at reviewing and updating the regulatory framework applicable to Registrars to an Issue and Share Transfer Agents (RTAs). The objective is to ensure that the scope of regulation is clearly defined and aligned with the nature of services provided.

2. Activity-Based Regulatory Approach Proposed

One of the key proposals in the consultation paper is the introduction of an activity-based regulatory framework. Under this approach, only the services rendered by RTAs to listed companies would come under SEBI’s regulatory ambit. In contrast, services provided by RTAs to unlisted companies would be regulated by the Ministry of Corporate Affairs (MCA).

3. Common Definition for RTAs Suggested

To bring clarity and uniformity, SEBI has also proposed establishing a common definition for RTAs. This standardised definition would apply across all relevant regulations, thereby reducing ambiguity and ensuring consistent interpretation by market participants and regulators.

4. Public Feedback Timeline

SEBI has invited stakeholders, industry participants, and the public to provide comments on the proposals outlined in the consultation paper. The deadline for submitting feedback is August 28, 2025, after which SEBI will review the inputs and finalise the regulatory changes.

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