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Sebi Extends SWP, STP to Demat-Held Mutual Fund Units
The two-phase rollout starts January 2027 with unit-based mandates, followed by amount-based by April 2027. The move follows the industry shift from SoA to demat holdings.
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The Securities and Exchange Board of India (Sebi) will extend systematic withdrawal and transfer plans to mutual fund units held in demat form, closing a gap that had grown as the industry moved away from statement-of-account holdings.
Sebi said the facility will roll out in two phases. From January 31, 2027, investors will be able to register unit-based systematic withdrawal plan (SWP) and systematic transfer plan (STP) mandates – a fixed number of units redeemed or exchanged at a set frequency. The second phase, by April 30, 2027, will add amount-based SWPs and STPs, where a fixed rupee amount is withdrawn or transferred each period.