December 17, 2024
New Delhi, India
SEBI
The Securities and Exchange Board of India (SEBI) has unveiled plans to introduce a platform aimed at assisting investors in tracing inactive and unclaimed mutual fund (MF) folios. Named the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA), the initiative is designed to provide a centralized, industry-wide database of forgotten investments, helping investors recover overlooked holdings.
Addressing a Growing Concern
Over the years, many investors have lost track of their mutual fund investments, often due to outdated KYC details, investments made in physical form, or missing personal information such as PAN or email IDs. These issues can leave investments perpetually inactive unless an investor, nominee, or legal heir contacts the relevant Asset Management Company (AMC) for redemption or transfer.
To combat this, SEBI aims to reduce the number of unclaimed or inactive folios and create a more transparent financial ecosystem.
Key Features of the MITRA Platform
The MITRA platform, to be jointly developed by leading Registrar and Transfer Agents (RTAs) — CAMS and KFin Technologies — offers several advantages:
- Investor Empowerment: Enables investors to search for forgotten investments and identify rightful claims.
- KYC Compliance: Encourages updating KYC details to align with current norms.
- Fraud Prevention: Introduces safeguards to minimize the risk of fraudulent redemptions.
- Transparency: Contributes to a clear financial ecosystem by addressing unclaimed investments.
Inactive folios, defined by SEBI as those with no investor-initiated transactions for over 10 years but with remaining units, will be accessible for tracing through this platform.
Platform Accessibility
The MITRA platform will be accessible through:
- MF Central
- Websites of AMCs
- The Association of Mutual Funds in India (AMFI)
- SEBI’s official website
The RTAs will host the platform and ensure its compliance with cybersecurity and audit regulations.
Timeline and Public Feedback
The beta version of MITRA is expected to roll out in the coming months for a trial period. SEBI has invited public comments on the draft circular until January 7, 2025. Stakeholders can submit their feedback online via the SEBI website.
This initiative underscores SEBI’s commitment to addressing investor challenges and fostering a secure, transparent, and compliant investment environment.
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