Mkt regulator Sebi proposes platform to track unclaimed MF folios

The Securities and Exchange Board of India (Sebi) on Tuesday proposed a new platform for investors to track inactive or unclaimed mutual fund folios. The platform called Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) will enable investors to identify the overlooked investments or any other investment made by someone else for which they are a rightful legal claimant.

 

The platform will be developed by two RTAs Computer Age Management Services (CAMS) and KFIN Technologies and will provide a searchable database along with encouraging investors to do KYC as per current norms.

 

A folio is considered inactive when no investor has initiated any transaction in the last 10 years but the unit balance is available.

 

In an open-ended growth mutual fund, the investments can remain invested perpetually until investors or their nominees approach the concerned asset management company for redemption or transfer.

 

“Due to unavailability of PAN, email ID or valid address it is also possible that these folios do not appear in the unit holder’s Consolidated Account Statement,” said Sebi.