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CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising

Which of the following best describes the difference between a Registrar to an Issue and a Share Transfer Agent?

A Registrar to an Issue manages the allotment process of a specific public issue, including applications, basis of allotment and refunds. A Share Transfer Agent maintains holder records and handles transfers and related service requests continuously for the company. One entity may hold both registrations.

  1. AA Registrar to an Issue handles the allotment process of a particular public issue, while a Share Transfer Agent maintains the records of holders and handles transfers on an ongoing basis for a companyCorrect
  2. BBoth perform identical functions in all respects
  3. CA Share Transfer Agent decides the issue price while a Registrar to an Issue maintains the register of members permanently
  4. DA Registrar to an Issue is an underwriter and a Share Transfer Agent is a banker to the issue

Explanation

The Registrar to an Issue works on the offer process: collecting applications, allotment and refunds. The Share Transfer Agent maintains the holder records and processes transfers, transmission and similar requests on a continuing basis. The same entity can be registered for both roles, but the functions are different, and neither underwrites or prices the issue.

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