ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It’s part of the company’s fiduciary responsibility to its shareholders to ensure that all investor records, account balances, and transactions are safeguarded and accurately tracked. Transfer agents fulfill this vital role in maintaining records and providing investors with timely and reliable information.

Detailed explanation-2: -Transfer agents work for the security issuer to record changes of ownership, maintain the issuer’s security holder records, cancel and issue certificates, and distribute dividends. Transfer agents are usually banks or trust companies, but sometimes a company acts as its own transfer agent.

Detailed explanation-3: -The transfer agent maintains the records of the ownership of the mutual fund units and handles tasks such as issuing and redeeming mutual fund units, updating the ownership records, and processing transactions related to the transfer of ownership.

Detailed explanation-4: -A transfer agent’s principal functions are to issue and cancel certificates to reflect changes in ownership of the securities of an entity and to act as an intermediary for the company. A registrar’s function is to maintain the register of the issuer for each issue of securities.

Detailed explanation-5: -Meaning of Transfer Agent. A transfer agent tracks and maintains the records of an organization’s shareholders. Some examples of transfer agents are financial companies, trust companies, banks, or individuals. Listed firms often assign their shareholders’ data management to a transfer agent.