The Securities and Exchange Board of India (“SEBI”) has, vide circular dated February 12, 2025, introduced a new initiative—MITRA (Mutual Fund Investment Tracing and Retrieval Assistant)—to help investors identify and recover their inactive and unclaimed mutual fund folios. The platform, developed by Registrar and Transfer Agents (RTAs), aims to bring transparency and prevent fraudulent redemptions.
Key Features of the MITRA Platform:
Investor-Friendly Search: Enables investors to track overlooked or forgotten investments.
Encourages KYC Compliance: Helps update details for smoother transactions.
Reduces Unclaimed Folios: Aims to lower inactive mutual fund investments.
Fraud Prevention Measures: Incorporates safeguards against unauthorized redemptions.
Criteria for Inactive Folios:
A folio will be classified as inactive if no investor-initiated financial or non-financial transactions have taken place for the past 10 years, but the units remain unredeemed.
Implementation & Compliance:
The platform will be hosted jointly by CAMS & KFIN Technologies, accessible via MF Central, AMCs, and SEBI.
Cybersecurity and compliance frameworks will be aligned with SEBI’s guidelines.
Asset Management Companies (AMCs) and industry stakeholders will promote awareness about MITRA.
The platform will go live within 15 working days from the circular issuance, with a beta version for two months.
Investor Action Points:
Check for forgotten investments using MITRA once the platform is live.
Update KYC details to avoid account inactivation.
Stay informed about mutual fund investments to prevent loss of access.
The launch of the MITRA platform marks a significant step by SEBI towards safeguarding investor interests and ensuring financial transparency. By enabling investors to track and recover their inactive mutual fund folios, MITRA not only reduces the risk of fraudulent redemptions but also promotes better compliance with KYC norms.
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