Sebi mulls service platform for tracking inactive, unclaimed mutual fund folios

The market regulator SEBI has proposed the development of a service platform to help investors trace inactive and unclaimed mutual fund folios. The proposed platform, MITRA (Mutual Fund Investment Tracing and Retrieval Assistant), will be developed by the RTAs and offer investors a searchable industry-wide database of inactive and unclaimed mutual fund folios.

The platform will allow investors to identify overlooked investments or any investments made by others for which they may be the rightful legal claimant. It will encourage investors to complete KYC in accordance with current regulations, thereby reducing the number of non-KYC-compliant folios. The platform’s database will also help reduce the number of unclaimed mutual fund folios.

In other words, the platform aims to encourage investors to search for forgotten mutual fund investments and update their KYC in accordance with current regulations.


The market regulator has outlined the criteria for classifying a mutual fund folio as inactive. An inactive folio is defined as a "Mutual Fund Folio(s) where no investor-initiated transactions (financial or non-financial) have occurred in the last 10 years, although a unit balance remains."

Inactive folios will include those where the investor may have remained invested in an open-ended scheme but either chose not to redeem or lost track of the investment. There will be no consequence for folios listed on the platform where the unitholder is aware of the investment and has decided to remain invested.

The platform will be jointly hosted by the two Qualified RTAs (QRTAs), Computer Age Management Services Limited (CAMS) and KFIN Technologies Limited, acting as agents of AMCs. It will be accessible via links on the websites of MF Central, AMCs, AMFI, the two QRTAs, and SEBI.

The QRTAs are jointly responsible for ensuring compliance with all applicable regulations, including system and cybersecurity audits. Additionally, the QRTAs must ensure the platform adheres to SEBI’s Business Continuity Plan (BCP) and Disaster Recovery (DR) guidelines, as specified for Market Infrastructure Institutions (MIIs).