TMI Blog2006 (10) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... admittedly providing the services as the registrar to an issue (RTA) and share transfer agent (STA). They are also engaged in the preparation of voter list for Chief Electoral Officer, Bhopal. The various activities which are to be undertaken by the respondent company as contained in Regulation 14(2) of the SEBI as indicated in Para 6 of the Assistant Commissioner's order dated 15-12-2004 read as follows:- In the instant case, Party No. l is bound by Regulation 14(2) of the SEBI (Registrar to an Issue and Share Transfer Agents) Regulation, 1993, the same specifies the general obligations and responsibilities of a RTA which are as follows: Every registrar to an issue shall also maintain the following records with respect to:- (a) all the application received from the investors in respect of an issue (b) all the applications of investors rejected and reasons thereof (c) Basis of allotment of securities to the investors as finalized in consultation with the stock exchange (d) Terms and conditions of purhase of securities (e) Allotment of securities (f) List of names of allottes and non-allottes of the securities (g) Refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w: (89c) 'registrar to an issue' means any person carrying on the activities in relation to an issue including collecting application forms from investors, keeping a record of applications and money received from investors or paid to the seller of securities, assisting in determining the basis of allotment of securities, finalizing the list of persons entitled to allotment of securities and processing and dispatching allotment letters, refund orders or certificates and other related documents. (95a) 'Share transfer agent' means any person who maintains the record of holders of securities and deals with all matters connected with the transfer or redemption of securities or activities incidental thereto. 6.It was emphasized that the new service has been brought under tax net only from the current year and that in this context, the learned Counsel pointed out the contents of foot note No. 52(a) inserted when clause (zzzi) under sub-section (105) of Section 65 came into existence. The foot note reads:- Inserted by the Finance Act, 2006 with effect from a date yet to be notified. Drawing inference from this fact, it was pleaded by the learned Counsel that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to ascertain the nature of activities engaged in by the respondents. Para 8 of the said agreement (Dematerialization) indicates the nature of activities undertaken by the respondent as RTA which is reproduced below :- Dematerialisation - 8.1. CDS will electronically intimate, on a daily basis, all dematerialisation requests received from its participants to the RTA. 8.2. Upon receipt of the Dematerialisation Request Form (DRF) along with the securities of which dematerialisation is sought, the RTA shall firstly verify the validity and authenticity of the certificates or other documents of title to the securities and accuracy of the contents of the DRF and secondly, shall confirm from his/its records that such dematerialisation has been required by the person whose name appears as the holder of those securities in the register of securities maintained by the RTA in respect of those securities. 8.3. The RTA undertakes that the data pertaining to the securities to be dematerialization received from participants through CDS shall be validated against the database of securities maintained by the issure and/or RTA and that only valid securities with clear the shall be permitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms and conditions of the issuance thereof; 8.8.5. any other reason as may be specified by CDS in his/its operating instructions 8.9. The RTA shall return to the concerned participant the certificates and/or other documents of title to such of the securities submitted for dematerialisation as are rejected by the RTA provided however that in the event of dematerialisation in part or in whole being rejected for any of the reasons set out in clause 8.8 above, the certificated relating to those securities shall be retained by the RTA and shall be dealt with by the RTA in accordance with law. 8.10. In all cases where the RTA rejects any request for dematerialisation of any securities in whole or in part, the RTA shall communicate in writing to the concerned participant the precise reason for such rejection. 8.11. The RTA shall, forthwith send intimation to the concerned stock exchange where the dematerialised security is listed giving particulars of the securities which have been dematerialised in such format as may be specified by the concerned stock exchange. 8.12. Every intimation to CDS permitting dematerialisation of any securities, shall be deemed to be backed by a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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