Unclaimed Amount Redemptions

Q1. What is an Unclaimed amount? 

Mutual Funds make payments to the investors on account of Redemptions, Maturity

proceeds or Dividend. These payments are issued to the investors either electronically

to the registered bank account or through physical cheque despatched to the registered

address of the investor as per available records.

Whenever the payments issued by Mutual Funds are not credited to the bank account or

realized by the investor due to reasons such as change in bank account, bank account

closure, incomplete bank account in records, cheque not received or encashed by the

investor, address not updated in the records etc, such amounts are treated as unclaimed

amounts.

If the investors are not KYC compliant, the payments cannot be made to them. Hence,

such payments are directly credited to unclaimed scheme on the date of payment.

Q2. How will investors come to know if they have any unclaimed amounts lying

with Mutual Funds?

The information of unclaimed amount is made available to the investor on the websites

of Asset Management Company (AMC) and Registrar & transfer Agent (RTA).

Investors can also logon to MF Central at www.mfcentral.com The investor has to log-in

with user ID, password or OTP and provide required details for viewing the unclaimed

amount.

Information on unpaid / unclaimed amount is also included as part of Consolidated

Account Statements (CAS) sent to investors.

Mutual Funds also send periodic reminders / communications to investors informing

them about unclaimed amount.

Q3. What is Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) and

how it can help in identifying unclaimed amounts?

MITRA is a Service Platform for investors to trace inactive as well as unclaimed mutual

fund investments. An inactive folio is where no investor initiated transaction (financial

or non-financial) has taken place in last 10 years but unit balance is available in the

folio.

MITRA can be accessed by visiting MF Central website www.mfcentral.com and clicking

on the link of “MITRA” available on the home page. Here, the investors can search for

their unclaimed or inactive investment by providing input of various search parameters.

If the search inputs matches with the inactive and unclaimed records, investors will be

shown the name of Mutual Fund in which they have such investments. Thereafter, the

investors can contact the respective Mutual Fund or the RTA in order to claim the

unclaimed amounts. The claim process and FAQs are also available on MITRA.

Q4. What is the process of claiming unclaimed amount by the investor?

The investor can download the form available on AMC’s website and submit the duly

signed form to the AMC/RTA’s office. After verification of records and matching of

signature, the unclaimed amount is paid from the Unclaimed Dividend and Redemption

Scheme (UDRS) along with the applicable appreciation.

Investor can reach out to RTA (of relevant AMC where investor has unclaimed amount)

for queries in the claim process. Contact details of both RTAs are available on their

website under “Contact Us” section.

KFIN: https://www.kfintech.com/contact-us/

CAMS https://www.camsonline.com/contactus

Q5. In case of non-receipt of unclaimed amount, where can the investor lodge the

complain?

The investor can contact the respective AMC/RTA’s office or the AMC’s contact centre

and lodge the complaint, in case the payment/rejection communication is not received

within 7 working days. The details of contact centre and email ID of AMC where the

complaint can be lodged is available on AMC’s website under “Contact us”. In case the

complaint is not solved by the AMC/RTA within the stipulated time or to the satisfaction

of the investor, the same can be escalated to SEBI’s SCORES portal.

Q6. Where do Mutual Funds invest the unclaimed amounts till it is claimed by the

investor? 

Mutual Funds are permitted to invest the unclaimed amounts in call money market,

money market instruments or in a separate plan of Overnight scheme/ Liquid scheme/

Money Market Mutual Funds which generally carry much reduced capital risk and also

provide returns. The separate plan specifically floated by Mutual Funds for deployment

of unclaimed amounts is known as Unclaimed Dividend/ Redemption Scheme (UDRS).

Q7. How is the appreciation in unclaimed amounts passed on to the investors?

As the investments are in Liquid / Overnight schemes appreciation is in the form of

daily NAV declared by the AMC. While such appreciations are passed on to investors for

a period of 3 years from the date of unit creation, beyond 3 years, these appreciations

are passed on to investor education fund.

Q8. How often is the allotment done in UDRS? 

Allotment is done on a weekly or fortnightly basis depending on bank’s providing

information on unpaid instruments.  

Q9. How can the investors avoid their dues becoming unclaimed?

The investors should keep their records such as PAN/ KYC, address, bank account

details etc. updated with the RTA/AMC in which they have investment, all the time.

Whenever they apply for redemption of units, Investors should check their bank

account for credit of amount. In case the amount is not received within 3 working days

in case of electronic credit (where complete bank account details including CBS A/c

number and IFS code) and through cheque within 5-7 working days, investors should

contact the nearest office of RTA/AMC or their distributor.