SEBI’s MITRA Platform Helps Investors Track Inactive Mutual Fund Folios and Protect Against Fraud
The Securities and Exchange Board of India (SEBI) has launched a new digital platform called Mutual Fund Investment Tracing and Retrieval Assistant (MITRA). This platform is designed to help investors find and reclaim their inactive mutual fund folios that may have been forgotten over time.
Many investors lose track of their mutual fund investments due to outdated contact details or lack of awareness. MITRA aims to help individuals track inactive folios, update their KYC information, and reduce the risks of fraudulent redemptions from dormant accounts.
What is MITRA?
MITRA is a searchable online platform that allows investors to look up and retrieve inactive mutual fund folios. It helps individuals identify forgotten investments and take action to update their KYC details, as per the latest regulations. The platform is part of SEBI’s effort to ensure security for investors and protect them from fraudulent activities related to inactive folios.
Key Features of MITRA:
- Searchable Database: Investors can easily search for inactive folios they may have forgotten about.
- KYC Updates: The platform encourages investors to update their Know Your Customer (KYC) details in line with current regulations.
- Fraud Prevention: MITRA helps reduce the risk of fraudulent redemptions by ensuring that inactive folios are tracked properly.
How Does MITRA Work?
A mutual fund folio becomes inactive if there are no transactions initiated by the investor for a period of 10 years, despite still holding a balance. These dormant folios can be at risk for fraudulent activities, as investors may forget about them.
MITRA allows investors to search for their inactive folios and take necessary actions to reactivate them. By updating their KYC details, investors can ensure their accounts remain secure.
Role of Qualified RTAs
To maintain the integrity of the MITRA platform, two Qualified Registrars and Transfer Agents (QRTAs) — CAMS and KFIN Technologies — will manage the system. These RTAs will ensure compliance with SEBI regulations and oversee the platform’s operations, ensuring a secure experience for investors.
Why is MITRA Important?
Inactive folios can often go unnoticed by investors due to the lack of activity or communication from fund houses. MITRA helps prevent this by providing a simple way to trace forgotten investments and update KYC information.
By using this platform, investors can take control of their finances and avoid leaving investments unclaimed. It also plays a crucial role in fraud prevention by reducing the chances of fraudulent redemption requests on dormant accounts.
Key Points:
- MITRA helps track inactive mutual fund folios.
- It allows investors to update KYC details.
- The platform reduces the risk of fraudulent redemptions.
- CAMS and KFIN Technologies manage the platform.
- A folio becomes inactive after 10 years of no transactions.
