ISR-3: Opting Out of Nomination for Shares
Form ISR-3 is a declaration that you do not wish to nominate anyone against your folio. It exists because SEBI requires a positive answer either way — you must either nominate, or state on record that you are choosing not to.
In our experience at ClaimMyFunds, most people who opt out of nomination have not been told what it means for their heirs. Read the consequence below before you sign.
In short
ISR-3 is a signed declaration that you are opting out of nomination for a physical share folio. It satisfies the requirement to record a nomination decision without actually appointing a nominee.
When This Applies to You
- You genuinely do not want to name a nominee
- Your shares are already covered by a will and you prefer that route
- The holding is jointly held and you are relying on survivorship
- You cannot agree within the family on who the nominee should be
- You want to complete KYC now and decide on nomination later
Field by Field
What to write in each box, and the entries that most often cause a form to be returned.
What to Attach
- The completed ISR-3 declaration
- Self-attested PAN copy for each holder
- Usually filed alongside Form ISR-1 as part of the same KYC submission
Where to Send It
Send it to the company's RTA, normally together with your ISR-1. It is not filed with SEBI or with the company.
Stuck on this?
Unsure whether to nominate or opt out? We will talk you through what each choice means for your family, at no cost.
Free first assessment — we tell you what is recoverable before any fee is discussed.
Why These Get Rejected
Across the files we handle at ClaimMyFunds, almost every returned form fails for one of these reasons.
How Long It Takes
Indicative timings from cases we have handled. The variable that matters most is whether the file is complete when it arrives.
| Stage | Typical | What affects it |
|---|---|---|
| Complete and sign the declaration | Same day | All joint holders must sign, plus witnesses where your RTA's version requires them. |
| Submit, usually with Form ISR-1 | 1-3 days | Filed as part of the same KYC package. |
| RTA records the opt-out | 2-6 weeks | The nomination field on the folio is then marked as decided. |
| Changing your mind later | Any time | A fresh Form SH-13 supersedes the opt-out; there is no waiting period. |
What It Actually Costs
Indicative only. Stamp duty, notary rates and RTA service charges vary by state and by registrar, so treat these as what to budget for rather than a price list.
Frequently Asked Questions
What actually happens to my shares if I opt out of nomination?
On your death the shares pass through transmission rather than to a nominee. Your legal heirs must approach the RTA with a death certificate and proof of entitlement, which above a certain value usually means a succession certificate from a civil court — slower and considerably more expensive than a nomination.
Can I change my mind after filing ISR-3?
Yes. Opting out is not irreversible. Submitting a Form SH-13 nomination at any later date supersedes the earlier declaration.
Is opting out ever the right choice?
Occasionally. If the holding is jointly held with a spouse, survivorship already covers the common case. Where a will comprehensively deals with the estate and the family agrees, opting out can avoid a conflict between the nominee and the will. For most single holders, nominating is simpler and cheaper for the family.
Does a nominee override my will?
This has been litigated repeatedly in India and the position is not as simple as either side claims. A nominee generally receives the securities and holds them, but beneficial ownership can still be determined by succession law and the will. Take legal advice if the two point in different directions.
Do I need ISR-3 if my shares are in demat form?
No. ISR-3 is for physical folios. Nomination for a demat account is handled through your depository participant under their own process.
Should I ask ClaimMyFunds before opting out?
It is worth a conversation. Opting out is free today but can push your heirs into a succession certificate later, where court fees run to a percentage of the estate. We will set out both routes plainly so you can decide.
About ClaimMyFunds
You have just read a detailed walkthrough of a SEBI investor form. We publish these because the same handful of mistakes cost investors months, and most of them are avoidable.
We are a share recovery practice based in Ahmedabad, working with investors, legal heirs and NRIs across India. We have resolved more than 2,500 cases covering IEPF claims, unclaimed dividends, duplicate certificates, transmission and physical-to-demat conversion. We handle the paperwork end to end, and we tell you at the outset whether a case is worth pursuing.
Want Us to Handle the Paperwork?
We at ClaimMyFunds prepare the correct forms, tell you exactly what to get notarised or attested locally, and follow the file through with the Registrar. The first assessment is free.
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