📢 SEBI to Launch MITRA for Tracing Inactive Mutual Funds
In a groundbreaking move, the Securities and Exchange Board of India (SEBI) has proposed the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) to help investors locate inactive mutual fund folios and minimize fraud risks.
📋 What is an Inactive Folio?
According to SEBI’s consultation paper floated on December 17, 2024, inactive folios are those where:
- No investor-initiated transaction (financial or non-financial) has occurred in 10 years.
- The folio still holds a unit balance.
🔍 Why Was MITRA Proposed?
Over the years, many investors lose track of their mutual fund investments due to:
- Physical investments with minimal KYC details.
- Outdated contact information (PAN, email, or address).
- Missing entries in the Consolidated Account Statement (CAS).
Such folios become vulnerable to fraudulent redemptions if left unchecked.
🛠️ How MITRA Will Help Investors:
✅ Track Forgotten Investments:
Identify overlooked or unclaimed investments and rightful claims made by nominees or legal heirs.
✅ Encourage KYC Compliance:
MITRA will push investors to update their KYC details, reducing non-compliant folios.
✅ Reduce Unclaimed Folios:
The searchable platform will consolidate industry-wide data to track inactive folios easily.
✅ Build Financial Transparency:
MITRA will contribute to a fraud-free, transparent financial ecosystem.
✅ Prevent Fraud Risks:
Fraud mitigation measures will be incorporated into the platform to safeguard investor interests.
💡 Public Input Open:
SEBI invites suggestions and comments on the proposal until January 7, 2025.
📊 The Bigger Picture:
By empowering investors to locate and manage forgotten investments, SEBI’s MITRA aims to make India’s mutual fund ecosystem more efficient and transparent.
