Context:
There are millions of investors in India who have lost touch with old mutual fund (MF) investments owing to dead accounts. One solution paving the way to this issue is Mitraa (Mutual Fund Investment Tracing and Retrieval Assistant), a platform launched by the Securities and Exchange Board of India (SEBI) to assist investors in tracking and recovering dormant MF folios.
What is Mitraa?
- A centralized online platform assisting investors in locating and recovering lost mutual fund investments.
- Developed in collaboration with KFin Technologies and CAMS, India’s largest qualified registrar and transfer agents (QRTAs).
Why Was Mitraa Developed?
- Pre 2006 MF Accounts Lacked PAN Requirement
- Prior to PAN becoming a mandatory requirement in 2006, a number of mutual fund investors opened accounts unlinked to PAN.
- Consequently, such accounts practically became dormant, leaving them difficult to trace.
Definition of Inactive Folios
- Under this definition, SEBI termed an inactive folio wherein the investor has not initiated any transactions (financial or otherwise) for 10 years but still holds units.
- There are an estimated over 7.5 million inactive folios throughout the industry.
How Does Mitraa Work?
- Investors can search for old mutual fund folios using any of several identifiers rather than restricting themselves to PAN only.
- Search Parameters
- Primary Identifiers: PAN, registered phone number, email, or bank account number.
- Additional Identifiers: Name, address, PIN code, city or nominee details.
- Investors can visit MFcentral.com to access Mitraa.
Challenges & Reactions from the Industry
- Verification Problems
- Investors may find it a challenge to prove ownership if they opened accounts prior to PAN being compulsory.
- Having SEBI’s policy of fixing inaccuracies with multiple unique identifiers such as being able to punch in different PIN codes actually works in favor of those trying to work this out.
Source: Mint
