SEBI Update - Extending facility of creating standing instructions for Systematic Withdrawal Plan (SWP)/ Systematic Transfer Plan (STP) for Mutual Fund units held in demat form

SEBI has issued a circular regarding extending the facility of creating standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) to Mutual Fund units held in demat form, which was previously unavailable. Under the new framework, implementation will take place in two phases: Phase I will enable unit-based SWP/STP mandates by 31 January 2027, while Phase II will introduce amount-based SWP/STP mandates by 30 April 2027. Depositories have been designated as nodal facilitators and are required to jointly publish a standard operational framework by 31 October 2026, undertake necessary regulatory and system changes, and disseminate the circular on their websites. The measure aims to enhance investor convenience and promote ease of doing business in the securities market.