SEBI Launches MITRA to Track Unclaimed Mutual Fund Investments

Why in the news?

The Securities and Exchange Board of India (SEBI) has introduced the MITRA platform to help investors track and reclaim inactive mutual fund folios. This initiative aims to enhance transparency, protect investor interests, and ensure compliance with updated KYC norms.

SEBI Launches MITRA to Track Unclaimed Mutual Fund Investments

Introduction to MITRA Platform:

  • SEBI has launched the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) to assist investors in tracking and reclaiming inactive or unclaimed mutual fund folios.
  • The platform addresses concerns related to investors losing track of investments due to outdated contact details or lack of awareness.
  • Developed by Registrar and Transfer Agents (RTAs), MITRA ensures a centralized industry-level database for easier access to inactive mutual fund folios.

Features and Functionality

  • Inactive folios are defined as those with no investor-initiated financial or non-financial transactions for ten years, despite having a unit balance.
  • The platform enables investors to search for their forgotten investments and retrieve them by updating KYC details.
  • MITRA enhances compliance with KYC norms, thereby reducing the number of non-compliant folios.
  • Investors can use the platform to identify, verify, and initiate the process of reclaiming their rightful holdings.

SEBI’s Efforts for Investor Protection

  • SEBI has revised the mandate of the Unit Holder Protection Committee (UHPC) to review inactive folios, unclaimed dividends, and redemptions.
  • The initiative aligns with SEBI’s broader goal of enhancing investor protection and transparency in mutual fund investments.
  • By introducing MITRA, SEBI aims to streamline mutual fund tracking, safeguard investor assets, and minimize financial losses due to unclaimed investments.