The Securities and Exchange Board of India (SEBI) on Tuesday proposed a service platform called MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) for investors to trace inactive and unclaimed mutual fund (MF) folios.
The new platform is aimed at preventing the risk of fraudulent redemptions of any inactive or unclaimed folios in cases where the investor has lost track of their investments, especially the ones made in physical form with bare minimum KYC details.
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“The objective of the platform is to encourage the investors to search for forgotten MF investments and update KYC as per the current norms,” SEBI said in a draft paper, inviting public comments by January 7.
The platform will help identify overlooked MF investments, update KYC as per the current norms, and build safeguards to reduce inactive MF accounts and the risk of fraudulent redemptions. It would become a reliable medium for investors to find their unclaimed MF investments and build a transparent financial ecosystem.
The two qualified Registrar and Transfer Agents (RTAs)—Computer Age Management Services (CAMS) and KFIN Technologies—will develop the platform and launch a beta version for two months.
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The regulator has defined an inactive folio as an MF folio where no investor initiated transactions have taken place in the last 10 years but unit balance is available.
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