SEBI has, by a circular dated August 10, 2018, notified that qualified Registrars to Issue and Share Transfer Agents (i.e., Registrars to Issue and Share Transfer Agents servicing more than 200 million folios) (‘QRTA’) are required to comply with enhanced monitoring requirements through adoption and implementation of internal policy framework, periodic reporting on key risk areas, data security measures, business continuity, governance structures, measures for enhanced investor services, service standards, grievance redressal, insurance against risks, etc.

Consequently, QRTAs must formulate and implement a comprehensive policy framework, approved by the Board of Directors of the QRTAs, which will include aspects relating to maintaining risk management policies, business continuity plan, manner of keeping records, wind-down plans, data access and data protection policy, ensuring integrity of operations, scalable infrastructure, reports of board of directors/ committees of the board of directors, investor services and service standards and insurance against risks. All QRTAs must ensure compliance with this circular within six months of its notification. They must also submit compliance reports within 60 days of the expiry of each calendar quarter.