SEBI has proposed to introduce MITRA, a platform developed by the Registrars and Transfer Agents (RTAs) of the mutual fund industry. MITRA is designed to provide a searchable database of inactive and unclaimed mutual fund folios, allowing investors to trace investments they may have forgotten or even investments made by others for which they could be the rightful claimant.
The platform offers several advantages:
- Identification of Overlooked Investments: MITRA will allow investors to locate forgotten investments or those made by others in their name.
- Encouragement for KYC Compliance: Investors will be encouraged to update their KYC details, aligning with current norms and helping reduce the number of non-compliant folios.
- Reduction in Unclaimed Folios: By bringing attention to inactive investments, MITRA will contribute to lowering the number of unclaimed folios in the industry.
- Transparent Financial Ecosystem: MITRA aims to provide a reliable, transparent medium for investors to track inactive mutual fund investments.
- Fraud Mitigation: By making it easier to trace and reclaim investments, the platform helps mitigate fraud risks associated with inactive folios.
The Importance of Public Participation
SEBI has made the draft circular for MITRA available for public comment, inviting feedback from investors, industry professionals, and other stakeholders. Public comments are crucial in ensuring that the platform is as effective and user-friendly as possible. The consultation period ends on January 7, 2025, and interested parties can submit their comments via the SEBI website. The feedback will be used to refine the platform and ensure it meets the needs of investors while addressing concerns related to security and usability.
