The Securities and Exchange Board of India (SEBI) has launched the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA), a new platform that assists investors in tracking, tracing, and reclaiming inactive or unclaimed mutual fund folios. This initiative aims to tackle a significant problem in the mutual fund sector—investors losing access to their investments because of outdated contact information, lack of awareness, or non-compliance with KYC regulations.
How Will MITRA Help Investors Reclaim Lost Mutual Funds?
One of the major challenges in the mutual fund sector is the presence of inactive folios, where no transactions—either financial or non-financial—have been initiated by the investor for a decade, even though there is still a balance in the account. SEBI’s MITRA offers investors a comprehensive searchable database to help them locate these unclaimed investments.
Additionally, MITRA promotes KYC compliance, helping investors update their details and reducing the number of non-KYC compliant folios, which are often at risk of fraudulent claims. Investors can access the platform through MF Central, AMCs, the Association of Mutual Funds in India (AMFI), and SEBI’s website. The platform is expected to be fully operational within 15 working days from the circular’s issuance.
Why Is SEBI Launching MITRA Now?
For years, many investors have been unaware of their unclaimed or inactive mutual fund folios, particularly those made in physical form with minimal KYC details. Such folios often become susceptible to fraud, as unauthorized individuals might attempt redemptions.
Recognizing this issue, SEBI took a proactive step to develop MITRA, ensuring investors get a centralized system for tracing their forgotten investments. According to a report by CFO Economic Times, SEBI has been considering an industry-level solution to this issue for some time, and MITRA is the result of this effort.
This platform aligns with SEBI’s broader vision of investor security, financial inclusion, and transparency in the mutual fund industry. By launching MITRA, SEBI is ensuring that investors reclaim what rightfully belongs to them, creating a safer and more accountable investment landscape.
