SEBI To Launch Mitra Platform To Track Inactive Mutual Fund, SIP Portfolios - All You Need To Know

Markets regulator SEBI has proposed the idea of developing a platform that helps investors track and trace inactive and unclaimed mutual fund folios.

The proposed platform will be called MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) and it will be developed by RTAs (Registrar and Transfer Agents).

The objective of the platform is to offer investors an industry-wide database where one can search for inactive and unclaimed fund folios.

It will also allow investors to identify overlooked investments as well as investments made by others for which they might be the rightful legal claimants.

SEBI in a draft circular, said that over the years several mutual fund investors have lost track of their investments, especially when these investments were made in physical firm with minimal KYC details. These investments are usually open-ended growth schemes, which remain perpetually inactive and unclaimed till nominees or legal heirs approach Asset Management Companies (AMCs).

How Can MITRA Help?

For starters, the proposed platform will identify these inactive mutual fund investments at an industry level.

SEBI has defined inactive folios as ones where there have been no investor-initiated transactions (financial or non-financial) in the last ten years, but units remain available.

SEBI also added that there will be no consequence for those folios appearing in the platform where the unitholder is aware of the investment and has chosen to remain invested.

"The objective of the platform is to encourage the investors to search for forgotten MF investments and update KYC as per the current norms," the regulator added.

The platform will empower investors by helping them identify ignored investments or claims that they are legally entitled to and encourage them to complete KYC formalities in line with the current norms, SEBI said.

The platform shall also be cyber-resilient and compliant with SEBI's security and audit norms, the draft circular added.