ecosystem, the Securities and Exchange Board of India (SEBI) has launched a new digital platform—MITRA (Mutual Fund Investment Tracing and Retrieval Assistant).

Key Features:

• Objective:MITRA aims to help investors trace, identify, and reclaim inactive or unclaimed mutual fund folios, while ensuring KYC (Know Your Customer) compliance under prevailing regulatory norms.
• Developed by:The platform has been developed at an industry level by the two Qualified Registrar and Transfer Agents (QRTAs) —
  • Computer Age Management Services Ltd. (CAMS)
  • KFIN Technologies Ltd.

These firms serve as agents of Asset Management Companies (AMCs).

• Hosted by:The platform is hosted jointly by CAMS and KFIN Technologies to serve as a centralized, searchable database for inactive and unclaimed mutual fund folios across the industry.
• Functions:
  • Enables investors to search for overlooked investments or investments made in their name by others.
  • Facilitates rightful legal claims by heirs or nominees.
  • Encourages KYC compliance, thus reducing the number of non-KYC compliant folios.
  • Aims to minimize the risks of fraudulent redemptions linked to dormant folios.
  • Supports the creation of a transparent financial ecosystem by reducing unclaimed investments.

Definition of Inactive Folio:

• A mutual fund folio is considered inactive when no investor-initiated financial or non-financial transactions have occurred for ten consecutive years, even though the folio holds units.

Institutional Measures:

• Unit Holder Protection Committee (UHPC):SEBI has broadened the role of the UHPC under mutual fund regulations. The committee is now tasked with monitoring inactive folios, unclaimed dividends, and pending redemptions, ensuring proactive steps are taken for investor protection.
• Stakeholder Involvement:SEBI has directed AMCs, RTAs, Registered Investment Advisers (RIAs), the Association of Mutual Funds in India (AMFI), and mutual fund distributors to actively promote awareness regarding MITRA among investors.