SEBI Unveils MITRA Platform to Track Inactive Mutual Fund Investments

GS 3 – ECONOMY

The Securities and Exchange Board of India (SEBI) has launched the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) platform to help investors locate and recover inactive or unclaimed mutual fund folios.

Objectives of MITRA

• Enables investors to search for forgotten mutual fund holdings.
• Assists in updating Know Your Customer (KYC) details.
• Minimizes the risk of fraudulent redemptions from inactive accounts.

Defining Inactive Folios

• Folios with no investor-initiated transactions for 10 years, despite holding units.

Role of Qualified RTAs

• Operated by Computer Age Management Services (CAMS) and KFIN Technologies.
• Ensures compliance with regulatory guidelines.

Investor Awareness & Compliance

• SEBI has directed Asset Management Companies (AMCs) and distributors to raise awareness about MITRA.
• Aims to reduce unclaimed folios and improve KYC compliance.

Benefits for Investors

• Facilitates the recovery of lost investments.
• Strengthens investor security and participation in the financial system.

Technological Safeguards

• Designed in accordance with Business Continuity and Disaster Recovery protocols.
• Ensures secure and uninterrupted access for users.