SEBI Launches MITRA Platform

February 13, 2025

The Securities and Exchange Board of India (SEBI) has introduced a new digital platform named Mutual Fund Investment Tracing and Retrieval Assistant (MITRA). This initiative aims to assist investors in tracking inactive or unclaimed mutual fund folios. The platform responds to concerns where investors lose track of their investments due to outdated contact information or lack of awareness regarding investments made in their name.

Purpose of MITRA

MITRA seeks to empower investors by providing a searchable database of inactive mutual fund folios.
It encourages individuals to search for forgotten investments and update their Know Your Customer (KYC) details as per current regulations.
The platform aims to mitigate the risks associated with fraudulent redemptions of inactive folios.

Criteria for Inactive Folios

A mutual fund folio is classified as inactive if there are no investor-initiated transactions for a period of ten years, despite having a unit balance. This classification helps identify investments that may have been overlooked by the investor.

Role of Qualified RTAs

The platform will be managed by two Qualified Registrars and Transfer Agents (QRTAs), namely Computer Age Management Services Limited (CAMS) and KFIN Technologies Limited. These QRTAs are responsible for ensuring compliance with regulations and maintaining the platform’s integrity.

Awareness and Compliance

SEBI has directed all stakeholders, including Asset Management Companies (AMCs) and mutual fund distributors, to raise awareness about the MITRA platform among investors. This initiative aims to reduce the number of non-KYC compliant folios and unclaimed mutual fund investments.

Impact on Investors

The launch of MITRA is expected to encourage investors to reclaim their forgotten investments. It also aims to reduce the number of inactive folios, thereby enhancing investor protection. By making it easier for investors to trace their investments, SEBI hopes to encourage a more informed and engaged investor community.

Technological Considerations

The QRTAs must ensure the platform complies with guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) as specified by SEBI. This emphasis on technological compliance ensures that the platform remains secure and accessible to all investors.

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