Markets regulator Sebi on Thursday came out with a model tripartite agreement for the issuer company, existing share transfer agent and new share transfer agent.Under Sebi norms, in case of any change or appointment of a new share transfer agent, the listed entity should enter into a tripartite agreement.
The pact has to be signed by the existing transfer agent, the new share transfer agent and the listed entity. In this regard, the watchdog has come out with a “model tripartite agreement has been prepared in consultation with Registrar Association of India (RAIN) and some issuer companies”.
According to a circular, Registrar and Share Transfer Agents (RTAs) and listed companies have been asked to publish the format of the tripartite agreement on their respective websites. RTAs have been advised to submit compliance with the direction by June 1, along with the link of their websites containing the format of the tripartite agreement.
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They have also been asked to make necessary amendments to the relevant bye-laws, rules and regulations, and operational instructions, as the case may be, for the implementation of the circular.