If you still hold shares in physical form, it is essential to update your PAN, KYC details, bank information, and nomination records. To protect investors and simplify service requests, the Securities and Exchange Board of India (SEBI) issued Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 3, 2021, which introduced common and simplified norms for processing investor service requests by Registrars and Transfer Agents (RTAs).
For investors dealing with old, forgotten, or inherited physical shares, Claim The Unclaimed offers expert assistance in updating records, recovering unclaimed dividends, and converting physical shares into demat form.
What is SEBI Circular 2021/655?
SEBI’s November 3, 2021 circular was introduced to make investor services easier and more standardized. The circular covers:
- Updating PAN, KYC details, and nomination
- Change of address and bank details
- Signature updates
- Transmission and transposition of shares
- Duplicate share certificate requests
- Dematerialization support
The circular also made it mandatory for all holders of physical securities to furnish valid PAN, KYC details, and nomination information to their respective RTAs.
Why Updating PAN, KYC and Nomination is Important
If PAN, KYC, and nomination details are not updated:
- Service requests may be rejected
- Dividend payments may be withheld
- Folios can be frozen by the RTA
- Shares may become difficult to transfer or transmit to legal heirs
SEBI introduced these requirements to ensure that investor records remain accurate and secure.
Mandatory Details to be Submitted
According to SEBI, holders of physical shares must submit the following details:
1. PAN Card
PAN is mandatory for all shareholders and claimants.
2. KYC Details
- Postal address with PIN code
- Mobile number
- Email address
- Bank account details (including IFSC code)
3. Nomination Details
Investors must either:
- Register a nominee using Form SH-13, or
- Opt out using Form ISR-3
4. Specimen Signature
Updated signatures may be required if records are outdated.
Important Forms Prescribed by SEBI
- Form ISR-1 – Request to update PAN, KYC, and nomination
- Form ISR-2 – Signature verification by banker
- Form ISR-3 – Declaration to opt out of nomination
- Form SH-13 – Nomination form
- Form SH-14 – Change or cancellation of nomination
What Happens if You Do Not Update These Details?
SEBI directed RTAs to freeze folios where PAN, KYC, or nomination details are incomplete. Frozen folios:
- Cannot process most investor service requests
- Receive payments only through electronic mode after compliance
- May face further regulatory scrutiny if left unresolved for extended periods
How Claim The Unclaimed Can Help
Claim The Unclaimed assists investors with:
- Identifying incomplete folios
- Preparing and filing ISR forms
- Coordinating with RTAs
- Recovering unclaimed shares and dividends
- Dematerialization and transmission support
FAQs
What is Form ISR-1 used for?
It is used to update PAN, KYC details, bank information, and nomination for physical shares.
Is nomination mandatory?
Yes, investors must either register a nominee or submit a formal opt-out declaration.
What happens if my folio is frozen?
You will need to submit all required documents before most services can be processed.
Can Claim The Unclaimed help with old physical shares?
Yes, they provide end-to-end assistance for compliance and share recovery.
Conclusion
SEBI’s Circular No. 2021/655 has made it mandatory for investors holding physical shares to update PAN, KYC, and nomination details. Completing these requirements is essential to avoid frozen folios and to ensure smooth access to dividends, transmission, and other investor services. If you need help with compliance or recovering old shares, Claim The Unclaimed offers expert support to simplify the entire process.