SEBI Proposes MITRA Platform To Trace Unclaimed Mutual Fund Folios

The Securities and Exchange Board of India (SEBI) has proposed the launch of a central platform, Mutual Fund Investment Tracing and Retrieval Assistant (MITRA), to help investors track inactive and unclaimed mutual fund (MF) folios. The proposal, outlined in a consultation paper, aims to address concerns over forgotten MF investments, especially those made in physical form with minimal KYC details.

Identifying the Problem

Over time, investors often lose track of mutual fund investments due to incomplete personal details such as missing PAN, email, or addresses. These inactive folios may not appear in the investor’s Consolidated Account Statement (CAS), making them prone to being overlooked. SEBI defines inactive folios as those where no investor-initiated financial or non-financial transactions have occurred in the past 10 years, but units still remain.

In many cases, these investments stay indefinitely in open-ended growth schemes until the investor, nominee, or legal heir claims them. Without an updated KYC, such folios can become vulnerable to fraudulent redemptions.

How MITRA Will Help

The MITRA platform, jointly developed and hosted by Registrar and Transfer Agents (RTAs) CAMS and KFin Technologies will provide a searchable, industry-level database of inactive and unclaimed folios. This initiative will enable investors to:

• Search for forgotten MF investments.
• Discover investments made on their behalf by others.
• Update KYC details to comply with current norms.

The platform is expected to minimisze non-KYC-compliant folios and upgrade investor security through safeguards against fraudulent claims.

Launch & Accessibility

The beta version of MITRA is expected to launch within the next few months, with a two-month trial period. Investors will be able to access the platform through MF Central, Asset Management Company (AMC) websites, AMFI, and SEBI’s website.

All in all, by addressing the issue of unclaimed mutual fund folios, MITRA aims to help investors reconnect with their overlooked investments while reducing the risk of fraud. SEBI has invited public feedback on the proposal until January 7, 2025, as it moves towards a more transparent and accessible financial ecosystem.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.