Nomination for Physical Shares Explained
Nomination is the cheapest piece of estate planning available to a shareholder, and the most widely misunderstood. This page sets out what a nomination does, what it does not do, and how it sits alongside a will.
We at ClaimMyFunds deal with the consequences of missing nominations constantly. Families who face a succession certificate almost always tell us they did not know a nomination was an option.
In short
A nomination names the person who may claim your shares on your death. With a valid nomination the claim needs little more than a death certificate and the nominee's KYC. Without one, heirs face the transmission process and, above a value threshold, a court-issued succession certificate.
When This Applies to You
- You hold physical shares and have never nominated anyone
- You are completing KYC and must record a nomination decision
- You want to spare your family a succession certificate
- You have a will and are unsure whether nomination is still needed
- You are a nominee wanting to understand your position
At a Glance
| Requirement | Form / Status | What to attach |
|---|---|---|
| Nominate someone | Form SH-13 | Heir claims with death certificate and their own KYC |
| Change or cancel | Form SH-14 | File a fresh SH-13 alongside, or the folio has no nominee |
| Opt out formally | Form ISR-3 | Heirs go through transmission using Form ISR-5 |
| Claim as nominee after death | Form ISR-5 | Lightest document set of any transmission route |
What to Attach
- Completed Form SH-13
- Self-attested PAN of every holder
- Nominee's PAN or Aadhaar copy
- Guardian's identity proof, where the nominee is a minor
- Two independent witnesses, who must not be the nominee
Where to Send It
Send to the company's RTA and keep the acknowledgement. That receipt is what proves, years later, that the nomination was actually filed.
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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 |
|---|---|---|
| Decide and gather the nominee's details | Same day | Full legal name, date of birth, address and PAN. |
| Complete SH-13 with two witnesses | Same day | Witnesses must not be the nominee. |
| Submit to the RTA | 1-3 days | One form per folio. |
| Nomination recorded | 2-6 weeks | Retain the acknowledgement permanently. |
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
Does the nominee become the owner of the shares?
This is genuinely contested ground in India. The general position is that a nominee receives and holds the securities, while beneficial ownership can still be determined by succession law and any will. Courts have reached different conclusions on different facts. If your will and nomination point at different people, take legal advice.
Can I nominate more than one person for one folio?
The prescribed form contemplates a single nominee per folio. To split a holding, the practical options are separate folios or dealing with it through your will. Ask your RTA what they will accept.
What if the nominee dies before me?
The nomination lapses in practical terms. File Form SH-14 to remove them and a fresh SH-13 to appoint someone else, otherwise the folio effectively has no nominee.
Can a minor be a nominee?
Yes, provided you name a guardian on the form who will act until the nominee turns eighteen. Omitting the guardian makes the form incomplete.
Is nomination compulsory?
You must record a decision either way — nominate on SH-13 or opt out on ISR-3. Leaving the question blank is treated as incomplete KYC. Requirements have been revised more than once, so confirm the current position with your RTA.
Does nomination avoid inheritance disputes within the family?
It avoids the procedural obstacle at the RTA, which is a real and substantial benefit. It does not settle who is beneficially entitled. If your family is likely to disagree about entitlement, a nomination on its own will not resolve that — you need a properly drafted will as well, and ideally one consistent with the nomination.
My shares are jointly held with my spouse. Do we still need a nomination?
Yes, and it is often overlooked. Survivorship covers the first death, so the surviving holder simply removes the deceased holder's name. But once one of you holds alone, there is no survivorship left. A nomination determines what happens on the second death.
Can ClaimMyFunds set up nominations for me?
Yes. We prepare the SH-13 forms for each folio you hold, make sure the nominee details are recorded in a form that will actually stand up years later, and confirm each one has been registered by the Registrar.
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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