RTA- Corporate Certification Examination Overview

In the depository system, companies who wish to admit their shares and securities into the system should obtain electronic connectivity with CDSL or avail the services of a registrar and transfer agents (RTA), for connectivity. CDSL functions as the central accounting and record keeping office in respect of the securities admitted by these companies.

CDSL’s system is based on centralized database architecture with online connectivity with RTAs. Because of this centralization, the cost for setting up RTA connectivity is significantly less without compromising in any manner on security and safety of the system. RTAs also need not incur high recurring costs in terms of maintaining back-ups and the related data storage. These advantages provide the wherewithal to RTA to offer services to issuer companies at a significantly lower cost. The centralized architecture also allows the RTA to provide the companies with a to-the-minute status of the holdings of their shareholders.

What are the course objectives?
  • Know the basics of securities and securities markets
  • Understand broadly the role and functions of the RTAs in the corporate securities issuance and transaction process.
  • Know the regulatory environment in which the RTAs operate in India.
Course Fees ?

Fees Details

name off Module: NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents – Corporate Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate # Validity (in years)
1500+ 120 100 100 50 3
Benefits from this Course ?
  • Medical insurance, including prescription drug coverage
  • Dental insurance
  • Vision insurance
  • Wellness program
  • Ohio Public Employees Retirement System (OPERS)(link is external)
  • Ohio Deferred Compensation Program(link is external)
  • Paid vacation
  • Paid holidays
  • Paid sick time
  • Employee Assistance Program (EAP)
  • Tuition reimbursement program
  • Free transportation

RTA Corporate Syllabus 

 

CHAPTER-1: Introduction to Securities

  • Categorization of securities into equity, debt, and hybrid
  • Characteristics of securities

CHAPTER-2: Characteristics of Equities

  • Rights of common shareholders
  • Par value, Face value, and share premium
  • Dividend calculation and distribution
  • Authorized capital
  • Issued capital
  • Outstanding shares
  • Paid-up shares
  • Placement of preferred shares and features
  • Share buy-back
  • Rights issue

CHAPTER-3: Characteristics of other Securities

  • Warrants
  • Types of convertible bonds
  • Types of depository receipts
  • Fully convertible currency bonds (FCCBs)

CHAPTER-4: Characteristics of Debt Instruments

  • Payment terms
  • Face value
  • Coupon
  • Term to maturity
  • Market value
  • Current Yield
  • Yield to maturity
  • Corporate debt securities
  • Government securities
  • Methods of corporate debt retirement
  • Types of fixed and floating rate instruments and relevant benchmarks
  • Standards and significance of credit rating of debt instruments
  • Types of money market instruments and features
  • Government debt securities and features
  • Company fixed deposits and features

CHAPTER-5: Basics of Mutual Funds

  • Structure and objective of a mutual fund
  • Units of a fund, face value, and ongoing value.
  • Benefits of mutual funds to investors
  • Characteristics of open and closed-end funds
  • Assets Under Management (AUM)
  • Net Asset Value (NAV)
  • Unit Capital
  • Types of mutual fund products and classification by investment category
  • Returns as dividends and capital gains

CHAPTER-6: SEBI’s Role and Relevant Regulations

  • Securities market regulatory environment
  • SEBI’s and role
  • SEBI’s powers
  • Investor Protection
  • SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
  • SEBI (Intermediaries) Regulations, 2008
  • SEBI (Depositories and Participants) Regulations, 1996

CHAPTER-7: Public Offer of Securities -Features

  • Types of public issue and private placements
  • Types and process of Initial Public Offer
  • Buyback process through tenders, stock exchanges and reverse book building

CHAPTER-8: Private Placement of Shares

  • Qualified Institutional Placement
  • Rights Issues

CHAPTER-9: Public Offer of Securities -Processes

  • Concepts in Public Issue of Shares
  • Underwriting
  • Green Shoe Option
  • Sequence in IPO Process
  • Features of Fixed Price Offering
  • Features of Book Built Offering

CHAPTER-10: Roles and Responsibilities in a Public Issue

  • Role of the Registrar and Transfer Agent (R&T) in dematerialization and rematerialization of securities
  • Role of the R&T agent in reconciliation of daily balances
  • Role of the R&T agent in transfer of ownership of physical securities
  • Role of the R&T agent in issue of duplicate certificates
  • Role of the R&T agent in stop transfer for certificates reported Lost/ Stolen
  • Role of the R&T agent in issue of new certificates in corporate reorganizations

CHAPTER-11: Depository Services

  • Registration as a Depository and its role
  • Registration as a DP
  • Role of DP in transfer, transmission, and transposition
  • Delivery Instruction Slip (DIS)
  • Ownership of dematerialized securities
  • Rights of Beneficial Owners

CHAPTER-12: Process related to Depositories

  • Process for pledging and hypothecation
  • Dispatch of periodic statements of accounts
  • Role of R&T and DP in providing information to issuers
  • Role of DP in downloading beneficiary positions to R&T agents
  • Role of R&T and DP in reflecting corporate actions
  • Process of trading and settlement of market and off-market trades
  • Process of reconciliation of records between the Depository and R&T agent

CHAPTER-13: Investor Servicing Processes

  • Processes related to recording changes of address, bank & Power of Attorney
  • Processes related to dividend/interest payments
  • Processes related to transfer of ownership of securities
  • Processes related to issue of duplicate certificates
  • Processes related to lost securities and stop transfer instructions
  • Processes related to transmissions and deletions
  • Processes related to handling shareholder inquiries and complaints

CHAPTER-14: Role of stock exchanges and other participants in the secondary market

  • Role of the secondary market
  • Role of the stock exchanges
  • Role of various participants in the stock markets
  • Advantages of listing
  • Salient features of the listing agreement