In the ever-evolving world of finance, it’s not uncommon for investors to lose track of their investments, especially those made years ago. Whether it’s due to a change in contact details, lack of updated KYC information, or simply forgetting about an old investment, many mutual fund folios remain inactive and unclaimed.
To address this issue, the Securities and Exchange Board of India (SEBI) has introduced MITRA (Mutual Fund Investment Tracing and Retrieval Assistant), a groundbreaking platform designed to help investors trace and reclaim their forgotten mutual fund investments.
What is MITRA?
MITRA is a centralized, searchable database developed by Registrar and Transfer Agents (RTAs) to help investors identify and reclaim their inactive and unclaimed mutual fund folios. The platform is a joint initiative by the two Qualified RTAs (QRTAs) – Computer Age Management Services Limited (CAMS) and KFIN Technologies Limited – and is hosted on the websites of MF Central, AMCs, AMFI, and SEBI.
Why Was MITRA Introduced?
Over the years, many mutual fund investors have lost track of their investments, especially those made in physical form with minimal KYC details. These investments often remain in open-ended growth option schemes, perpetually invested until the investor or their nominee/legal heir approaches the Asset Management Company (AMC) for redemption, transfer, or transmission. However, due to the lack of updated contact information, such as PAN, email ID, or a valid address, these folios may not appear in the investor’s Consolidated Account Statement (CAS). This inactivity can lead to the risk of fraudulent redemptions or the investments being forgotten entirely.
MITRA aims to address these concerns by providing a transparent and reliable platform for investors to trace their inactive and unclaimed mutual fund folios. The platform is designed to:
- Enable investors to identify overlooked investments: Investors can search for any investments they may have forgotten or those made by others for which they may be the rightful legal claimant.
- Encourage KYC compliance: By tracing their investments, investors are encouraged to update their KYC details as per current norms, reducing the number of non-KYC compliant folios.
- Reduce unclaimed folios: MITRA aims to significantly reduce the number of unclaimed mutual fund folios, ensuring that investors can reclaim their rightful investments.
- Build a transparent financial ecosystem: The platform contributes to a more transparent and trustworthy financial ecosystem, empowering investors to take control of their investments.
- Mitigate fraud risk: By providing a centralized database, MITRA helps reduce the risk of fraudulent redemptions and ensures that investors’ funds are secure.
How Does MITRA Work?
MITRA is designed to be user-friendly and accessible. Investors can access the platform through the websites of MF Central, AMCs, AMFI, CAMS, KFIN Technologies, and SEBI. The platform allows investors to search for inactive folios by entering their details, such as PAN, name, or folio number.
Criteria for Classifying a Folio as Inactive
A mutual fund folio is classified as inactive if no investor-initiated transactions (financial or non-financial) have taken place in the last 10 years, but a unit balance is still available. This includes folios where the investor may have chosen to remain invested in an open-ended scheme or simply lost track of the investment.
Key Features of MITRA
- Centralized Database: MITRA provides a centralized, industry-level database of inactive and unclaimed mutual fund folios, making it easier for investors to trace their investments.
- Cyber Security: The platform adheres to the cyber security and cyber resilience framework specified by SEBI, ensuring that investor data is secure and protected.
- Business Continuity and Disaster Recovery: MITRA complies with SEBI’s guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR), ensuring uninterrupted service for investors.
- Awareness Campaigns: AMCs, RTAs, Registered Investment Advisors (RIAs), AMFI, and mutual fund distributors are encouraged to create awareness about MITRA among investors, ensuring that more people can benefit from the platform.
Role of the Unit Holder Protection Committee (UHPC)
The Unit Holder Protection Committee (UHPC), constituted by AMCs, plays a crucial role in protecting the interests of mutual fund unit holders. As per SEBI’s revised guidelines, the UHPC is now responsible for reviewing inactive folios, unclaimed amounts of dividends, and redemptions. The committee will also take measures to reduce the quantum of such unclaimed amounts, further aligning with MITRA’s objectives.
How to Access MITRA?
MITRA is expected to become operational by the end of this month, February 2025. A beta version of the platform will be launched for 2 months to ensure smooth functioning and address any initial issues. Investors can access MITRA through the websites of MF Central, AMCs, AMFI, CAMS, KFIN Technologies, and SEBI.
Conclusion
MITRA is a significant step forward in empowering mutual fund investors and ensuring that no investment is left forgotten. By providing a centralized, transparent, and secure platform, MITRA not only helps investors reclaim their inactive and unclaimed folios but also contributes to building a more trustworthy financial ecosystem. Investors are encouraged to use this platform to trace their investments, update their KYC details, and take control of their financial future.
For more information, you can visit the SEBI website under the Legal -> Circulars section or access MITRA through the websites of MF Central, AMCs, AMFI, CAMS, and KFIN Technologies.
Disclaimer: This blog is based on the SEBI circular dated February 12, 2025. For the latest updates and guidelines, please refer to the official SEBI website or consult with a financial advisor.
