Quick summary
SEBI is extending the facility to create standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) for Mutual Fund units held in demat form. This will be implemented in two phases: first for unit-based instructions and then for amount-based instructions, to facilitate ease of doing business.
Who is affected
- Depositories
- Recognized Stock Exchanges (SEs)
- Registrar and Transfer Agents (RTAs)
- Depository Participants (DPs)
- Mutual Funds (MFs) / Asset Management Companies (AMCs)
- Association of Mutual Funds in India (AMFI)
What changes
Standing instructions for SWP and STP, which were previously unavailable for Mutual Fund units held in demat form, are now permitted. The rollout is divided into two stages:
- Phase I: Facility for “Unit-based SWP / STP” (standing instructions based on a fixed number of units to be redeemed).
- Phase II: Facility for “Amount-based SWP / STP” (standing instructions for a fixed amount as pay-out).
Action items
Depositories, acting as the nodal facilitator, are directed to:
- Jointly publish a standard framework on their website to operationalize the facility.
- Amend relevant bye-laws, rules, and regulations as necessary.
- Carry out required system changes.
- Disseminate the provisions of the circular on their website.
Key dates-deadlines
- Effective Date: Immediate effect (July 17, 2026).
- Standard Framework Publication: October 31, 2026.
- Phase I Implementation: January 31, 2027.
- Phase II Implementation: April 30, 2027.
Source reference
HO/47/14/13(2)2026-MRD-POD2/I/16590/2026, July 17, 2026