On June 24, 2025, the Securities and Exchange Board of India (SEBI) released an updated Master Circular for Registrars to an Issue and Share Transfer Agents (RTAs)—a vital compendium consolidating and refining RTA guidelines under a single, accessible framework. This fresh release builds upon earlier editions (May 2023, May 2024), advancing investor protection and technological integration standards.
Why SEBI Updated It Now
SEBI periodically issues Master Circulars to align RTA compliance with evolving market dynamics, regulatory changes, and investor expectations. The latest June 2025 version notably incorporates:
A dedicated email ID for investor grievances must be prominently displayed, and daily alerts on unresolved complaints sent to SEBI-registered addresses.
Integration with SCORES 2.0 and ODR mandates quick escalation paths and resolution transparency.
RTAs are required to freeze folios without valid PAN, nomination, and KYC from October 1, 2023. Frozen folios are now subject to referral to pursuant authorities if unresolved by December 31, 2025.
Following May 2023 protocols, all service requests must issue securities in dematerialized form—duplicate certificates, transmissions, name changes, etc. RTAs issue a confirmation letter within 30 days, valid for 120 days.
Qualified RTAs (handling over 2 crore folios) must conduct biannual cyber audits, ensure chief sign-offs, and restrict sensitive data to servers within India,
New outsourcing norms mandate RTAs implement conflict-of-interest policies, retain core in-house controls, and report suspicious activity,
Net‑worth certificates must be submitted within three months of fiscal year‑end, with quarterly capital adequacy reports,
Half‑yearly compliance and grievances reports, reviewed by the board, remain mandatory;
Insurance for risks and fraud by employees is mandatory.
✅ Bottom Line
The June 2025 Master Circular offers a cohesive, investor-friendly regulatory roadmap. By integrating the latest Investor Charter, reinforcing PAN/KYC compliance, championing dematerialization, sharpening grievance channels, and fortifying tech safeguards, SEBI is driving RTAs toward greater transparency, accountability, and digital maturity. For intermediaries, staying compliant means:
Updating public disclosures (Charter, email IDs, complaint stats),
Ensuring folio-level KYC/nomination enforcement,
Integrating tech measures (demat issuance, secure outsourcing, cybersecurity),
And keeping impeccable audit and reporting records.
