SEBI KYC Rules for Physical Shareholders
SEBI has progressively tightened what must be recorded against a physical share folio. The detail of the rules has been revised more than once, but the substance has been consistent: a folio without PAN, contact details, bank details and a nomination decision will cause its holder problems.
We at ClaimMyFunds track these requirements closely because they change. What has not changed is the underlying risk: a folio with incomplete KYC causes problems at the moment you need it most.
In short
SEBI requires PAN, postal address, mobile, email, bank account details, a specimen signature and a nomination decision to be recorded against physical folios. These are supplied through Form ISR-1 and its companion forms.
When This Applies to You
- You hold shares in physical form
- You have received a KYC letter from an RTA
- You have inherited an old folio and do not know its status
- You are planning an IEPF claim and want the folio in order first
- You want to understand what is actually required before spending money
At a Glance
| Requirement | Form / Status | What to attach |
|---|---|---|
| PAN of every holder | Mandatory | Form ISR-1 |
| Postal address with proof | Mandatory | Form ISR-1 |
| Mobile number and email | Mandatory | Form ISR-1 |
| Bank account details | Mandatory | Form ISR-1 |
| Specimen signature | Where it has changed | Form ISR-2 |
| Nomination decision | Mandatory — one way or the other | Form SH-13 or ISR-3 |
What to Attach
- Self-attested PAN of every holder
- Address proof matching the address declared
- Cancelled cheque with the holder's name printed
- Form SH-13 or ISR-3 for the nomination decision
- Form ISR-2 where the signature has changed
Where to Send It
All of it goes to the RTA that holds the folio. SEBI prescribes the requirements but does not process the paperwork.
Stuck on this?
Inherited a folio and unsure what state it is in? We can obtain a full position from the Registrar and tell you what is missing.
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 |
|---|---|---|
| Audit each folio you hold | 1-2 weeks | Establish what is missing on each before doing anything else. |
| Assemble one document set per folio | 1-2 weeks | PAN, address proof, cancelled cheque, nomination form. |
| Submit to each RTA | 1-3 days | Separately per company. |
| Records updated | 2-6 weeks per folio | Files with queries take substantially longer. |
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 is the current deadline for completing KYC?
We deliberately do not quote a date here. SEBI has extended and revised these timelines more than once, and a stale date on a compliance page is worse than none. Confirm the current position directly with your RTA or from SEBI's own circulars before you rely on it.
Will my folio be frozen if I do not complete KYC?
The freezing provisions have been introduced and then modified, so the current position should be checked with your RTA. What is consistently true is that servicing a folio with incomplete KYC is difficult — transfers, transmission and claims all become harder.
Does this apply to shares I hold in demat form?
Largely no. The ISR framework addresses physical securities. Demat holdings are governed by your depository participant's KYC process.
What is the real risk of doing nothing?
Dividends may not reach you. If dividends then remain unclaimed for seven consecutive years, the shares themselves are transferred to the IEPF Authority under the Companies Act. Recovering them requires a Form IEPF-5 claim, which typically takes several months.
Is there a penalty or fine?
There is no fine levied on the shareholder. The consequence is practical rather than punitive: restricted servicing, undelivered dividends, and ultimately transfer of the shares to IEPF.
I inherited an old folio and have no idea what state its KYC is in. Where do I start?
Write to the RTA quoting the folio number and ask for a statement of the folio and confirmation of which KYC items are recorded. That single letter tells you what you are dealing with and stops you guessing. If the original holder has died, deal with the transmission first — updating a deceased holder's KYC is not the right route.
Do these requirements apply to shares held by a company or a trust?
Non-individual holders face a broader document set — constitutional documents, board or trustee resolutions, and KYC for the authorised signatories, alongside the entity's own PAN. The underlying principle is the same but the paperwork is heavier, so confirm the specific list with your RTA before you begin.
Can ClaimMyFunds audit my folios for me?
Yes. We write to each Registrar, obtain a statement of the folio and confirmation of which KYC items are recorded, and give you a single list of what needs doing. That alone stops a great deal of guesswork.
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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