The Securities and Exchange Board of India (SEBI) has introduced a new digital platform called MITRA (Mutual Fund Investment Tracing and Retrieval Assistant). This platform will help investors track and reclaim their inactive or unclaimed mutual fund folios. The main goal of MITRA is to help investors find forgotten investments and update their KYC details as per the latest norms.
Many investors lose track of their mutual fund investments due to outdated contact information, lack of awareness, or investments made in their name by someone else. Over time, such inactive folios become vulnerable to fraudulent redemptions. To prevent this, SEBI has directed Registrar and Transfer Agents (RTAs) to develop MITRA, which will serve as a centralized search platform for investors to recover their unclaimed mutual fund investments.
The MITRA platform allows investors to search for inactive mutual fund folios using their details. It helps investors identify any overlooked investments or funds invested in their name by someone else. Additionally, the platform encourages investors to complete their KYC updates to comply with regulations, reducing the number of non-KYC compliant folios. This initiative is expected to increase investor awareness and ensure better protection of mutual fund investments.
According to SEBI, a mutual fund folio is classified as inactive if there have been no investor-initiated transactions (financial or non-financial) for ten years, even if there is a balance in the folio. Many such folios remain unclaimed, leading to investors losing track of their funds.
Along with launching MITRA, SEBI has also expanded the role of the Unit Holder Protection Committee (UHPC). The UHPC will now be responsible for reviewing inactive mutual fund folios, unclaimed dividends, and unclaimed redemption amounts. It will take steps to ensure that such cases are reduced, making the mutual fund industry more secure and investor-friendly.
To create awareness about MITRA, SEBI has directed Asset Management Companies (AMCs), Registrar and Transfer Agents (RTAs), Registered Investment Advisors (RIAs), the Association of Mutual Funds in India (AMFI), and mutual fund distributors to educate investors about the platform. This will help more investors find and reclaim their lost investments.
The launch of MITRA is a significant step in investor protection, allowing investors to easily track, claim, and secure their unclaimed mutual fund investments. Investors are encouraged to use the MITRA platform to check for any forgotten investments and complete their KYC updates. With this initiative, SEBI aims to make mutual fund investments more transparent, accessible, and safe for all investors.
