Markets regulator SEBI has proposed the idea of developing a platform that helps investors track and trace inactive and unclaimed mutual fund folios. The proposed platform will be called MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) and it will be developed by RTAs (Registrar and Transfer Agents).

The regulator has defined an inactive folio as an MF folio where no investor initiated transactions have taken place in the last 10 years but unit balance is available.

The MF Lite Regulations state that the minimum net-worth criteria for a mutual fund should be ₹ 35 crore. If the MF Lite AMC can demonstrate profits for five consecutive years after getting the licence, the net worth requirement can be reduced to ₹ 25 crore.

Sebi proposed a platform, MITR, to help investors find inactive or unclaimed mutual fund folios. Developed by RTAs, it aims to update KYC, prevent fraud, and increase transparency. The platform will be hosted by CAMS and KFin Technologies and accessible via MF Central,

The market regulator observed that investors in mutual funds occasionally lose track of their holdings over time.

The paper said, "Over a number of years, Mutual Fund investors may lose track of their investments considering investments might have been made in physical form with bare minimum

The service, called MITRA (Mutual Fund Investment Tracing and Retrieval Assistant), will allow investors to track their overlooked or forgotten MF investments.