Common and Simplified Norms for processing investor’s service request by Registrar and Share Transfer Agents (RTA) and norms for furnishing PAN, KYC details and Nomination – Mandatory furnishing of Documents

The Securities Exchange Board of India vide its circular SEBI/HO/MIRSD_RTAMB/P/CIR/2021/655 dated Nov 3, 2021 amongst other things has advised the Companies and Registrar and Transfer Agents (RTA) as follows.

Mandatory furnishing of PAN, KYC details and Nomination by the holders of physical securities

SEBI has mandated that from January 1, 2022 that all holders of Physical securities in listed company shall mandatorily furnish the following documents / details to the RTA and the RTA shall not process any service requests or complaints received from the holder(s) / claimant(s) till documents / details are furnished to the RTA

  1. Permanent Account Number (PAN).
  2. Nomination – Details of nomination shall be furnished in hard copy or through electronic mode with e-signature.
    1. Either
      • Nomination through Form SH-13 as provided in the Rules 19 (1) of Companies (Shares capital and debenture) Rules, 2014 or
      • Declaration to Opt-out, as per Form ISR-3
    2. In case of cancellation of nomination by the holder(s) through Form SH 14, then ‘Declaration to Opt-out’ shall be provided by the holder(s)
    3. Securities holder(s) can change their nominee through Form SH-14
  3. Contact – Postal address with PIN, Mobile number, E-mail address.
  4. Bank account details – Bank name and branch, bank account number, IFS Code.
  5. Specimen signature.
Please note the following:
  • Upon receipt or updation of bank details, the RTA shall suo-moto, pay electronically, all the moneys of / payments to the holder that were previous unclaimed / unsuccessful.
  • The folios wherein any one of the above stated documents/ details are not available on or after April 1, 2023, the said folios shall be frozen by RTA and the frozen folios shall be restored to normal status by RTA upon receipt by RTA all the completed documents/ details as stated above or on dematerlisation of all the securities in such folios.
  • Those securities that were frozen on or after April 1, 2023 and continues to remain frozen as on December 31, 2025, then such securities will be referred by RTA/ Company to the administering authority under Benami Transactions (Prohibitions) Act, 1988 and or Prevention of Money Laundering Act, 2002.
  • The securities in the frozen folios shall be eligible to lodge grievance or avail service request from the RTA only after furnishing the complete documents / details as aforesaid.
  • The securities in the frozen folios shall be eligible for any payment including dividend, interest or redemption payment only through electronic mode and an intimation from the RTA to the holder that the aforesaid such payment is due and shall be made electronically upon complying with the requirements in paragraph 4 above.