The Securities and Exchange Board of India (SEBI) has proposed the development of a centralized platform to assist investors in tracing inactive and unclaimed mutual fund (MF) folios. Named the Mutual Fund Investment Tracing and Retrieval Assistant (MITR), this initiative aims to bring transparency and prevent misuse of dormant mutual fund investments.
According to SEBI, investors often lose track of mutual fund holdings over time due to incomplete Know Your Customer (KYC) details or changes in contact information. The market regulator noted that many unclaimed investments, particularly in open-ended growth mutual fund schemes, remain unredeemed indefinitely unless a nominee, legal heir, or the investor themselves initiates action.
The MITR platform, proposed to be developed by Qualified Registrar and Transfer Agents (QRTAs) like CAMS and KFin Technologies, will offer a searchable database of dormant folios. The platform aims to:
- Update KYC details in line with current standards.
- Help investors locate and claim forgotten investments.
- Reduce the risk of fraudulent redemptions.
Accessible through links on websites of MF Central, asset management companies (AMCs), the Association of Mutual Funds in India (AMFI), and SEBI, the platform will operate under strict compliance with cybersecurity and disaster recovery protocols.
SEBI highlighted that dormant folios often stem from investors losing sight of their investments or deciding not to redeem. However, folios actively monitored by investors but appearing on the platform will remain unaffected.
The proposal is open for public comments until January 7, 2025, allowing stakeholders to provide feedback on this initiative to enhance financial security and transparency for mutual fund investors.
 has proposed the development of a centralized platform to assist investors in tracing inactive and unclaimed mutual fund (MF) folios. Named the Mutual Fund Investment Tracing and Retrieval Assistant (MITR), this initiative aims to bring transparency and prevent misuse of dormant mutual fund investments.){kind=link}