Explain the provisions for compulsory internal audit of Registrars to an Issue/Share Transfer Agents (RTAs).

SEBI vide its circular dated 20 th April, 2018 provides for compulsory internal audit of Registrar to an Issue/Share Transfer Agents (RTAs) which is discussed below: All Registrar to an Issue/Share Transfer Agents (RTAs) are required to carry out internal audit on annual basis by independent qualified CA/CS/CMA and Certified Information Systems Auditor (CISA) who don't have any conflict of interest. Eligibility of auditors for conducting the internal audit of the RTA: The audit firm shall have a minimum experience of 3 years in the financial sector. An auditor shall be appointed for a maximum term of 5 years, with a cooling-off period of 2 years. The auditor shall cover all aspects of RTA operations including investor grievance redressal mechanism and compliance with the requirements stipulated in the SEBI Act, Rules and Regulations made there under, and guidelines/circulars issued by SEBI from time to time. The reports and state the methodology adopted, deficiencies observed, and consideration of response of the management on the deficiencies. The report shall include a summary of operations and of the audit, covering the size of operations, number of transactions audited and the number of instances where violations/ deviations where observed while making observations on the compliance of any regulatory requirement. The report shall comment on the adequacy of systems adopted by the RTAs for compliance with the requirements of regulations and guidelines issued by SEBI and investor grievance redressal. The RTA shall submit a copy of report of the internal audit to Issuer Company within 3 months from the end of the financial year. Copy of the same shall also be preserved by the RTA. The Governing Council (Board of Directors, Board of Partners, proprietor, etc. as applicable) of the RTA shall consider the report of the internal auditor and take steps to rectify the deficiencies, if any. The RTA shall send the Action Taken Report in prescribed format to Issuer Company within next one month and a copy thereof shall be maintained by the RTA. The audit observations along with the corrective steps taken by the RTA shall be placed before the Board of Directors of the Issuer Company. The Issuer Companies shall satisfy themselves regarding the adequacy of the corrective measures taken by the concerned RTA. If not satisfied with the corrective measures, Issuer Company may take more stringent corrective measures.