The Securities and Exchange Board of India (SEBI) on March 10, 2023, issued a clarification with respect to Qualified RTAs (QRTAs).
The following is clarified:
a. Categorization of an RTA as QRTA An RTA shall be categorized as a QRTA if at any time during a financial year, the combined number of physical and demat folios being serviced by the RTA for listed companies exceeds 2 crores. In case of an RTA being categorized as a QRTA, an intimation to this effect shall be sent by the RTA within 5 working days to SEBI.
b. Period for which an RTA shall be recognized as QRTA An RTA shall be considered as a QRTA from the date of categorization as a QRTA as per para 2(a) above and shall be considered as such for the next 3 financial years, irrespective of subsequent fall in the number of folios and shall be liable to comply with all requirements specified from time to time.
Initial relaxation Considering the various systems and procedures to be put in place by a new QRTA, a period of 60 days from the date of its categorization as a QRTA as per para 2(a) above shall be provided to the new QRTA for complying with the enhanced requirements mandated for QRTAs.
This circular shall come into effect immediately.
[Notification No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/36]
