SEBI proposes MITRA: A Lifeline for Forgotten Mutual Fund Investments
MAS Team | 18 December 2024
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The Securities and Exchange Board of India (SEBI) is set to revolutionize how investors track and reclaim their forgotten mutual fund investments through an innovative platform called MITRA (mutual fund investment tracing and retrieval assistant).
Many investors unknowingly leave behind inactive mutual fund folios due to various reasons, including losing track of investments or personal circumstances like demise. Open-ended schemes can remain perpetually invested until the investor specifically requests redemption or transfer, creating a significant challenge in investment management.
An inactive folio is defined as an investment account where no investor-initiated transaction has occurred in the past decade, yet a unit balance remains. These dormant investments pose potential risks, including vulnerability to fraudulent redemptions.
The proposed MITRA platform aims to address these challenges comprehensively. Developed by registrar and transfer agents (RTAs), the service will provide a searchable database of inactive and unclaimed mutual fund folios at an industry-wide level. Investors will be able to identify overlooked investments or trace investments made on their behalf.
Key objectives of the MITRA platform include encouraging investors to update their know your customer (KYC) documentation, reducing non-compliant folios, and creating a more transparent financial ecosystem. The platform will be jointly hosted by two Qualified RTAs - Computer Age Management Services Limited (CAMS) and KFIN Technologies.
Accessibility will be crucial, with the platform available through links on MF Central, Asset Management Companies (AMCs), Association of Mutual Funds in India (AMFI), RTAs, and SEBI website. The initiative also emphasizes widespread awareness, with mutual fund distributors and related organizations encouraged to inform investors about this groundbreaking service.
By providing a reliable mechanism to trace forgotten investments, MITRA represents a significant step towards protecting investor interests and promoting financial transparency in the mutual fund landscape.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.
