MITRA Platform

14.02.2025

MITRA Platform

Why in the news?   

Recently, the Securities and Exchange Board of India introduced a new digital platform called MITRA.

About MITRA Platform:

• Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) will assist investors in tracking and reclaiming inactive or unclaimed mutual fund folios.
• It is developed by the Registrar and Transfer Agent (RTAs) to provide investors with a searchable database of inactive and unclaimed mutual fund folios at an industry-level which will empower the investors.
• The criteria for classifying a folio as inactive include an absence of investor-initiated transactions, financial or non-financial, for a period of ten years, despite having a unit balance.
• SEBI has also revised the mandate of the Unit Holder Protection Committee (UHPC) under Mutual Funds rules.
• The UHPC will now be responsible for reviewing inactive folios along with unclaimed dividends and redemptions, ensuring proactive steps are taken to reduce such cases.

Features of the Platform:

• The platform addresses a growing concern wherein investors, over time, lose track of their mutual fund investments, lack of updated contact information, or unawareness of investments made in their name.
• It will allow investors to identify the overlooked investments or any investments made by any other person for which he/she may be rightful legal claimant and also encourage them to do KYC as per the current norms thus reducing the number of non-KYC compliant folios.

                                                         Source: The Hindu

Consider the following statements regarding the MITRA Platform:

Statement-I: It assists investors in tracking and reclaiming inactive or unclaimed mutual fund folios.

Statement-II: It is an initiative of the Reserve Bank of India.

Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

B.Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

C.Statement-I is correct, but Statement-II is incorrect.

D.Statement-I is incorrect, but Statement-II is correct.

Answer  C