How to Become a RTA
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 centralised database architecture with on-line connectivity with RTAs. Because of this centralisation, 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 RTAs to offer services to issuer companies at a significantly lower cost. The centralised architecture also allows the RTAs to provide the companies with a to-the-minute status of the holdings of their shareholders.
All leading RTAs are currently connected to CDSL and are providing services to a number of companies across the country. A company can also obtain direct in-house connectivity with CDSL, the procedure and the cost for doing so is similar to that of a RTA.
SEBI, vide its circular dated 27-12-2002, has advised issuers that "all the work related to share registry in terms of both physical and electronic should be maintained at a single point i.e either in-house by the company or by a SEBI registered R & T Agent".
Admission Procedure
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The applicant is required to forward a formal request to register itself as a RTA / to establish in-house connectivity with CDSL. The letter should be accompanied with Master Creation Form as per format (4.1-Annexure-B-RTA-Master Creation Form). The letter should be accompanied with the following annexures:
- Certified true copies of last 3 years balance sheets
- Certified true copy of SEBI registration (If not available, submit undertaking as per the format (UNDERTAKING-CUM_INDEMNITY in case of inhouse connectivity).
- List of directors and the latest shareholding pattern.
- Brief profile of Applicant Company detailing its history and activities carried by it.
- Memorandum & Articles of Association duty notarized.
- List of clients for which RTA services are being provided.
- Organization structure should be attached of those personnel who would be involved in the RTA activities.A compliance officer for RTA activity should be designated in the organization structure.
- Details of compliance officer as per the format. (Compliance-Official-Details-of-Issuers-RTAs)
- Experience & background (previous experience and the area working) of key personnel who will handle the CDSL functions.
- Certified true copies of the board resolution for joining CDSL as RTA & also containing the list of authorized signatories. (For Partnership firms the letter with partner’s signatures & the name of the partner authorized to do so).
- The applicant has to choose VSAT/ Lease line/ Ethernet/ Router technology for providing connectivity between the Central Depository Accounting System (CDAS) and RTA/Issuer (for in-house connectivity) or internet based.
- Application forms/ NOC for connectivity / Cost comparison for establishing connectivity are attached (Application_New _connectivity.zip).
- The applicant should procure the computer hardware and software as per the configuration specified by CDSL (Communiqué 36). The Hardware is to be used exclusively for CDSL operations. CDSL has not empaneled any vendors and the RTA/Issuer (for in-house connectivity) can procure the hardware from any vendor of its choice. The hardware should be installed at a secure place in the RTA’s/Issuer’s (for in-house connectivity) office.
- CDSL will conduct training programme for a maximum of 2 staff persons of the RTA/Issuer for free of cost and for additional staff a fee of Rs. 2,500.00 plus GST per person will be levied. The applicant should ensure that its personnel undergo the training before the RTA/Issuer (for in-house connectivity) goes live with CDSL.
- On receipt of confirmation of installation of hardware and connectivity site the engineer deputed by CDSL will do site inspection. Format of site inspection form is as per (WEBCDAS Site Inspection (Ann C).
- The applicant is also required to give the refundable deposit of Rs.1, 50,000/- and document processing charges of Rs.20,000/- + service tax in favour of “Central Depository Services (India) Limited”. The bank details are provided based on inquiry from the RTA.
Further, as per the policy, the procedure for admission of RTA i.e. RTA must be created / admitted in our system within 14 working days from the date receipt of the application. Failing which the application will be treated as closed/rejected due to non-receipt of complete set of documents and a reprocessing fee of Rs. 20,000/- plus GST will be charged to the RTA for reprocessing.
- CDSL has acquired state-of-the-art equipment including the HP 64 Bit Enterprise server system (super computer technology with the robustness of enterprise class), which is the highest performing RISC/UNIX server system available in the marketplace.
- This system is connected to a near fault tolerant storage system from EMC2 Corporation. This is the world's best storage system and the first of its kind to be installed in India, nay Asia.
- The data is mirrored onto another system at CDSLs state-of-the-art disaster recovery site which is located more than 1000 kms away from the main site in a different seismic zone
- The software developed has all the security features conforming to world standards. The software facilitates a robust accounting and transaction management system.
- CDSL's system is based on a centralised database with on-line connectivity with Depository Participants (DPs) who provide on-line services to investors. All data pertaining to investor holdings are stored at CDSL. CDSL has also established extensive back up systems, where a back up of the data is also stored at a remote site.
- CDSL ensures the security and integrity of all data by protecting it from any misuse or manipulation by unauthorised users as all communications between CDSL and its users is encrypted. There is no dial-up access for any user and only authorised users can access the system.
- The hardware, software and connectivity systems are reviewed continuously to strengthen the systems & procedures and to comply with the stringent international standards.
Hardware and Software Requirements
| Hardware Requirement |
| Pentium IV 1.8 GHz Processor or Higher |
| 1 GB RAM |
| 80 GB or Higher Capacity Hard Disk Drive |
| CD-ROM drive (48X or above) |
| CD Writer (52-X -24X-52X) or Higher Capacity backup device |
| 1.44 MB Floppy Disk Drive. |
| 15" SVGA Color Monitor.. |
| 2 Serial and 1 Parallel ports |
| 104 key Keyboard, Mouse. |
| 2 USB Ports |
| Software Requirement |
| Windows XP Workstation with Service Pack 2 OR Windows 2000 Professional with Service Pack 4.0 (Operating System) |
| MS Office 2000 Professional Edition. |
| Antivirus software (recommended - McAfee) |
| Peripheral Requirement |
| Printer Deskjet |
| Flatbed Scanner with Parallel or USB Interface |
| Online 700VA Un-interrupted Power Supply (UPS) |
| Other Recommendations |
| All the users using VSAT network are advised to migrate to the Leased line for better performance and response |
| ISDN as backup for primary network |
| Server Hardware Requirement |
| Pentium IV 1.8 GHz Processor or Higher |
| 1 GB RAM |
| 80 GB or Higher Capacity Hard Disk Drive |
| CD-ROM drive (48X or above) |
| CD Writer (52-X -24X-52X) or Higher Capacity backup device |
| 1.44 MB Floppy Disk Drive. |
| AGP Display Card. |
| 15" SVGA Color Monitor.. |
| 2 Serial and 1 Parallel ports |
| 104 key Keyboard, Mouse. |
| 2 USB Ports |
| Server Software Requirement |
| Windows 2000 Server edition with service Pack 4 (Operating System ) |
| MS Office 2000 Professional Edition. |
| Antivirus software (recommended - McAfee) |
| Workstation Configuration for Multi user (Node) |
| Pentium IV 1.8 GHz Processor. |
| 1 GB RAM. |
| 80 GB Hard Disk Drive |
| 1.44 MB Floppy Disk Drive. |
| AGP Display Card. |
| 15" SVGA Color Monitor. |
| 2 Serial and 1 Parallel Ports. |
| 104 Keyboard, Mouse. |
| Workstation Software Requirement |
| Windows XP with Service Pack 2(Operating System) OR Windows 2000 Professional with Service Pack 4.0 |
| MS Office 2000 Professional Edition. |
| Antivirus Software - (Recommended - Mcafee ) |
| Peripheral Requirement |
| Printer Deskjet |
| Flatbed Scanner with Parallel or USB Interface |
| Online 700VA Un-interrupted Power Supply (UPS) |
Connectivity Requirements
As per SEBI guidelines, there should be continuous mode of connectivity between CDSL and the DP. Hence, CDSL has chosen Local leased line / MPLS leased line as the mode of connectivity between the Central Depository Accounting System (CDAS) and the users. The user can also user their own Internet connectivity to access CDAS.
In case the applicant wishes to obtain leased line connectivity with CDSL, kindly download the Connectivity form and return the same duly completed to CDSL along with advance payment of Rs. 1,00,000/-, favouring CDSL. This advance amount will be adjusted against the first invoice raised by CDSL after commissioning the connectivity, against the applicable annual charges of the applied mode of connectivity.
CDSL Tariff
Note : Recurring Charges will be pro-rated daily from the day on which the RTA is connected. For subsequent years the same is payable at the beginning of the year.
Hardware & Connectivity - Set up Charges for RTA's
| Particulars | Cost | Payable to |
| Indicative Hardware Cost | ||
| For Single user setup | 1,84,000 (INR) (INR) | Vendor |
| For Multi-user setup(Server + 1 node) | 5,50,000 (INR) (INR) | Vendor |
| Admission and Connectivity charges | Click here for Admission and Connectivity charges |