SEBI Launched MITRA platform to Help Investors Trace Inactive Mutual Fund Folios

Current Context: The Securities and Exchange Board of India (SEBI) launched the MITRA platform on February 12, 2025. 

• MITRA, which stands for Mutual Fund Investment Tracing and Retrieval Assistant, is a centralized platform designed to help investors trace and reclaim inactive or unclaimed mutual fund folios. 
• The platform aims to ensure KYC compliance, reduce fraud risks, and promote financial transparency. 
• By providing a comprehensive database of these folios, investors can easily track and retrieve their investments.

Question:

1. How does SEBI’s MITRA platform contribute to financial security?

a) By centralizing a database of inactive/unclaimed mutual fund folios

b) By regulating interest rates on mutual fund investments

c) By mandating a minimum return on all mutual fund schemes

d) By allowing SEBI to directly manage mutual fund investments 

Answer: a) MITRA compiles a database of inactive and unclaimed mutual fund folios to help investors reclaim their investments.