Sebi launches MITRA to help investors trace inactive mutual fund folios

Sebi connected Wednesday introduced a caller integer platform, MITRA, to assistance investors successful tracking and reclaiming inactive oregon unclaimed communal money folios.

The nonsubjective of the platform, Mutual Fund Investment Tracing and Retrieval Assistant, is to promote investors to hunt for forgotten MF investments and update KYC arsenic per the existent norms.

In a circular, Sebi said the level addresses a increasing interest wherein investors, implicit time, suffer way of their communal money investments deficiency of updated interaction information, oregon unawareness of investments made successful their name.

Such inactive folios whitethorn go susceptible to fraudulent redemptions, it added.

"In bid to code the concerns, MITRA level is developed by the RTAs to supply investors with a searchable database of inactive and unclaimed communal money folios astatine an industry-level which volition empower the investors," the regulator said.

According to the circular, MITRA volition let investors to place the overlooked investments oregon immoderate investments made by immoderate different idiosyncratic for which he/she whitethorn beryllium rightful ineligible claimant and besides promote them to bash KYC arsenic per the existent norms frankincense reducing the fig of non-KYC compliant folios.

The MITRA level volition besides pb to simplification successful the unclaimed communal money folios, it said.

The criteria for classifying a folio arsenic inactive see an lack of investor-initiated transactions, fiscal oregon non-financial, for a play of 10 years, contempt having a portion balance.

Sebi has besides revised the mandate of the Unit Holder Protection Committee (UHPC) nether Mutual Funds rules. The UHPC volition present beryllium liable for reviewing inactive folios on with unclaimed dividends and redemptions, ensuring proactive steps are taken to trim specified cases.

The superior markets regulator has directed each stakeholders, including AMCs, RTAs, RIAs, AMFI, and communal money distributors, to make consciousness astir this inaugural amongst the investors.