Sebi suspends registration of RTA for three months over operational lapses

Findings against Satellite Corporate Services "shocking and disturbing", says Sebi order

The Securities and Exchange Board of India (Sebi) on Friday suspended the registration of Satellite Corporate Services (SCS), a registrar and transfer agent (RTA), for three months for alleged lapses in operations.

An RTA is a Sebi-registered intermediary tasked with the responsibility of recording-keeping of all the transactions. SCS acted as an RTA mainly for SME IPOs.

An inspection done by Sebi found several failures at the RTA. SCS had less than 50 per cent of the specimen signatures with respect to client companies available with it. Also, SCS allowed transfer of shares without making any attempts to verify the