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SEBI introduced a new platform called MITRA to help investors track and reclaim inactive or unclaimed mutual fund folios.
MITRA
Mutual Fund Investment Tracing and Retrieval Assistant (MITRA).
This initiative aims to assist investors in tracking inactive or unclaimed mutual fund folios.
The platform responds to concerns where investors lose track of their investments due to outdated contact information or lack of awareness regarding investments made in their name.
Purpose of MITRA
MITRA seeks to empower investors by providing a searchable database of inactive mutual fund folios.
It encourages individuals to search for forgotten investments and update their Know Your Customer (KYC) details as per current regulations.
The platform aims to mitigate the risks associated with fraudulent redemptions of inactive folios.
Criteria for Inactive Folios
A mutual fund folio is classified as inactive if there are no investor-initiated transactions for a period of ten years, despite having a unit balance.
This classification helps identify investments that may have been overlooked by the investor.
Role of Qualified RTAs
The platform will be managed by two Qualified Registrars and Transfer Agents (QRTAs), namely Computer Age Management Services Limited (CAMS) and KFIN Technologies Limited.
These QRTAs are responsible for ensuring compliance with regulations and maintaining the platform’s integrity.
Impact on Investors
The launch of MITRA is expected to encourage investors to reclaim their forgotten investments.
It also aims to reduce the number of inactive folios, thereby enhancing investor protection.
By making it easier for investors to trace their investments, SEBI hopes to encourage a more informed and engaged investor community.
Technological Considerations
The QRTAs must ensure the platform complies with guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) as specified by SEBI.
This emphasis on technological compliance ensures that the platform remains secure and accessible to all investors.
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