SEBI has launched the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) to help investors track inactive and unclaimed mutual fund folios. As per . inactive folios may become susceptible to fraudulent redemptions. This initiative aims to enhance investor protection, reduce fraud risks, and build a transparent financial ecosystem.
𝐖𝐡𝐲 𝐢𝐬 𝐌𝐈𝐓𝐑𝐀 𝐍𝐞𝐞𝐝𝐞𝐝?
Over the years, many investors have lost track of their mutual fund investments, particularly those made in physical form with minimal KYC details. Changes in PAN, email ID, or address often prevent these folios from appearing in Consolidated Account Statements, making them susceptible to fraudulent redemptions. MITRA will provide a centralized industry-wide database to help investors identify and retrieve such investments.
𝐊𝐞𝐲 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐬 𝐨𝐟 𝐌𝐈𝐓𝐑𝐀
(a) 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲-𝐖𝐢𝐝𝐞 𝐒𝐞𝐚𝐫𝐜𝐡: A single platform to search for unclaimed folios across all AMCs.
(b) 𝐊𝐘𝐂 𝐔𝐩𝐝𝐚𝐭𝐢𝐨𝐧: Encourages investors to update KYC, reducing non-compliant folios.
(c) 𝐅𝐫𝐚𝐮𝐝 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐨𝐧: Prevents unauthorized redemptions from long-inactive accounts.
(d) 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲: Brings forgotten investments back into circulation, strengthening financial security.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚𝐧 𝐈𝐧𝐚𝐜𝐭𝐢𝐯𝐞 𝐅𝐨𝐥𝐢𝐨?
An inactive folio shall be defined as “𝘔𝘶𝘵𝘶𝘢𝘭 𝘍𝘶𝘯𝘥 𝘍𝘰𝘭𝘪𝘰(𝘴) 𝘸𝘩𝘦𝘳𝘦 𝘯𝘰 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳 𝘪𝘯𝘪𝘵𝘪𝘢𝘵𝘦𝘥 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯/𝘴 (𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘯𝘥 𝘯𝘰𝘯-𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭) 𝘩𝘢𝘷𝘦 𝘵𝘢𝘬𝘦𝘯 𝘱𝘭𝘢𝘤𝘦 𝘪𝘯 𝘵𝘩𝘦 𝘭𝘢𝘴𝘵 10 𝘺𝘦𝘢𝘳𝘴 𝘣𝘶𝘵 𝘶𝘯𝘪𝘵 𝘣𝘢𝘭𝘢𝘯𝘤𝘦 𝘪𝘴 𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦”.
MITRA platform will be available via:
(a) MF Central
(b) Websites of AMCs, AMFI, SEBI
(c) Qualified Registrar and Transfer Agents (CAMS Computer Age Management Services & KFin Technologies Ltd.)
𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐓𝐢𝐦𝐞𝐥𝐢𝐧𝐞: MITRA will be operational within 15 working days from the issuance of SEBI’s circular. A Beta version will run for two months before full rollout.
AMCs, RTAs, RIAs, and Mutual Fund Distributors should actively create awareness about MITRA.
UHPCs (Unit Holder Protection Committees) must review inactive folios and unclaimed amounts to enhance investor security and transparency.
A copy of the circular is enclosed.
Readers are welcome to send their views to Regstreet Law Advisors at info@regstreetlaw.com