CIRCULAR
SEBI/HO/IMD/IMD-SEC-3/P/CIR/2025/15 February 12, 2025
All Mutual Funds (MFs)
Asset Management Companies (AMCs)
All Trustee Companies/Boards of Trustees of Mutual Funds
Registrar and Transfer Agent (RTAs)
Association of Mutual Funds in India (AMFI)
Registered Investment Advisors (RIAs)
Sir/ Madam,
Subject: Service platform for investors to trace inactive and unclaimed Mutual Fund
folios- MITRA (Mutual Fund Investment Tracing and Retrieval Assistant)
1. Over a number of years, Mutual Fund investors sometimes lose track of their
investments considering investments might have been made in physical form with bare
minimum KYC details. The investments in open- ended growth option mutual fund
schemes may remain invested perpetually until and unless investor/his nominee/legal
heir approaches the concerned AMC for redemption/transfer/transmission. Due to
non- availability of PAN, email ID or valid address it is also possible that these MF folios
may not appear in the unitholder’s Consolidated Account Statement. Thus, inactivity
in Mutual Fund folios could be on account of the investor losing track of his/her
investment, demise etc. Such inactive folios may become susceptible to fraudulent
redemptions.
2. In order to address the aforesaid concerns, MITRA platform is developed by the RTAs
to provide investors with a searchable database of inactive and unclaimed Mutual Fund
folios at an industry-level which will empower the investors in following manner:
2.1. Enable investors to identify the overlooked investments or any investments made
by any other person for which he/she may be rightful legal claimant;
2.2. Encourage investors to do KYC as per the current norms thus reducing the number
of non-KYC compliant folios;
2.3. The MITRA platform will lead to reduction in the unclaimed Mutual Fund folios;
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2.4. Contribute towards building a transparent financial ecosystem and will be reliable
medium for investors to find their inactive and unclaimed Mutual Fund
investments;
2.5. Build and incorporate mitigants against fraud risk.
Criterion for classifying a Mutual Fund folio as inactive
3. An inactive folio shall be defined as “Mutual Fund Folio(s) where no investor initiated
transaction/s (financial and non-financial) have taken place in the last 10 years but unit
balance is available”.
4. Thus, the inactive folios will include those folios where the investor might have
remained invested in an open ended scheme and has either chosen not to redeem or
simply might have lost track of the investment. There is no consequence for those folios
appearing in the platform where the unitholder is aware of the investment and has
chosen to remain invested. The objective of the platform is to encourage the investors
to search for forgotten MF investments and update KYC as per the current norms.
Details of the MITRA Platform
5. The MITRA platform will be hosted jointly by the two Qualified RTAs (QRTAs) viz.
Computer Age Management Services Limited (CAMS) and KFIN Technologies Limited
as agents of AMCs and available through a link on the website of MF Central, AMCs,
AMFI, the two QRTAs and SEBI.
6. The cyber security and cyber resilience framework as applicable to QRTAs in terms of
SEBI Master Circular on Mutual Funds dated June 27, 2024 shall be applicable to the
MITRA platform.
7. The QRTAs are jointly and severally responsible for compliance with all the applicable
regulations including system audit and cyber security audit. Further, the QRTAs shall
ensure that the platform complies with the guidelines for Business Continuity Plan
(BCP) and Disaster Recovery (DR) specified by SEBI from time to time to MIIs.
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8. AMCs, QRTAs, RIAs, AMFI and Mutual Fund Distributors are advised to create
awareness about this initiative amongst the investors.
9. The QRTAs shall make the MITRA platform operational within 15 working days of
issuance of the circular. Beta version shall be launched for 2 months.
10. Any RTA providing its services to Mutual Fund(s), subsequent to issuance of this
circular, shall follow the guidelines specified in this circular or amendments thereto as
may be intimated by SEBI from time to time.
11. In terms of Regulation 25(24) of SEBI (Mutual Funds) Regulation, 1996, AMCs are
responsible for constitution of Unit Holder Protection Committee (UHPC). As per
clause 6.7C.2 (a) of Master circular on Mutual Funds dated June 27, 2024, UHPC is
responsible for protection of interest of unit holders of Mutual Fund schemes vis-à-vis
all products and services. Further, as per clause 4.3(c) in Annexure 15 of Master
circular on Mutual Funds dated June 27, 2024 it is the function of the UHPC to review
unclaimed amounts of dividend and redemptions and take measures to reduce the
quantum of such unclaimed amounts.
12. The clause 4.3 (c) is revised as under to include review of inactive folios:
“ANNEXURE 15: UNIT HOLDER PROTECTION COMMITTEE (UHPC)
…
4.3 Regulatory and other functions
…
c) Review of inactive folios, unclaimed amounts of dividend and redemptions and
measures taken by AMC to reduce the quantum of such unclaimed amounts.”
13. Towards achievement of objective of aforementioned clause 4.3 (c), AMCs through
their RTAs shall provide the MITRA platform for investors to trace inactive and
unclaimed Mutual Fund folios.
14. This circular is issued in exercise of the powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act 1992, read with the provision of Regulation
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77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities market.
15. This circular is available on SEBI website at www.sebi.gov.in under the category
“Legal”-> “Circulars”.
Yours faithfully,
Priyanka Mahapatra
General Manager
Investment Management Department
Email: priyankam@sebi.gov.in
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