Trace inactive and unclaimed Mutual Fund folios (MITRA Link)

MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) Platform

Vide circular SEBI/HO/IMD/IMD-SEC-3/P/CIR/2025/15 dated February 12, 2024, SEBI announced the launch of MITRA platform, which is designed to help investors to trace their inactive and unclaimed mutual fund folios. Extract of the circular is as below”

“Mutual Fund investors sometimes lose track of their investments considering investments might have been made in physical form with bare minimum KYC details. The investments in open- ended growth option mutual fund schemes may remain invested perpetually until and unless investor/his nominee/legal heir approaches the concerned AMC for redemption/ transfer/ transmission. Due to non- availability of PAN, email ID or valid address it is also possible that these MF folios may not appear in the unitholder’s Consolidated Account Statement. Thus, inactivity in Mutual Fund folios could be on account of the investor losing track of his/her investment, demise etc. Such inactive folios may become susceptible to fraudulent redemptions”.

An “inactive folio” is defined as one where no transactions (financial or non-financial) have occurred in the last 10 years, but there is still a unit balance. These folios may represent forgotten investments that could potentially be reclaimed by the rightful investor.

In order to address the aforesaid concerns, the MITRA platform is developed and will be jointly hosted by CAMS and KFIN Technologies to provide investors with a searchable database of inactive and unclaimed Mutual Fund folios at an industry-level which will empower the investors in following manner:

• Enable investors to identify the overlooked investments or any investments made by any other person for which he/she may be rightful legal claimant
• Encourage investors to do KYC as per the current norms thus reducing the number of non-KYC compliant folios
• The MITRA platform will lead to reduction in the unclaimed Mutual Fund folios
• Contribute towards building a transparent financial ecosystem and will be reliable medium for investors to find their inactive and unclaimed Mutual Fund investments
• Build and incorporate mitigants against fraud risk