Sebi introduces standing instructions for SWP, STP in mutual funds in demat holdings

SEBI has allowed investors to create Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP) standing instructions for mutual fund units held in demat accounts. The move aims to improve investor convenience and will be rolled out in two phases by April 2027.

Sebi has allowed SWP and STP standing instructions for mutual fund units held in demat form, simplifying investing. The rollout will occur in two phases, with unit-based transactions by January 2027 and amount-based transactions by April 2027 through depositories.