SIMPLY 3 FINSERV PRIVATE LIMITED [CIN: U67190PB2022PTC056099] is an AMFI Registered Mutual Fund Distributors & SIF Distributor (ARN-249158)
SEBI Extends SWP & STP Standing Instructions to Demat-Held Units
Until now, investors holding mutual fund units in Statement of Account (SoA) format could register systematic instructions such as Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP).
Investors holding mutual fund units in demat form did not have the same facility.
That distinction is now changing.
On 17 July 2026, SEBI extended the facility for creating standing instructions for SWP and STP for mutual fund units held in demat form.
What Does This Mean?
🔹 SWP: Periodic withdrawal of a specified number of units or amount.
🔹 STP: Systematic transfer from one mutual fund scheme to another scheme of the same AMC through simultaneous redemption and subscription transactions.
Implementation in Two Phases
Phase 1 – Unit-Based SWP & STP
Investors will be able to instruct the redemption or transfer of a fixed number of units at specified intervals.
To be implemented by: 31 January 2027
Phase 2 – Amount-Based SWP & STP
The facility will subsequently be extended to allow redemption or transfer of a fixed amount at periodic intervals.
To be implemented by: 30 April 2027
The depositories have been designated as the nodal facilitators for implementing the framework and will work towards developing a standard operating process for the industry.
Why Does This Matter?
For investors who prefer holding mutual fund investments in demat accounts, this change could make systematic withdrawals and transfers more convenient.
As more investors consolidate their financial assets in demat accounts, such measures can help create a more consistent and seamless investment experience.
A small operational change—but a meaningful step towards greater flexibility for demat-held mutual fund units.
Disclaimer: This article is for general information and investor awareness only. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The actual availability and operational implementation of these facilities will be subject to applicable regulations and intermediary processes.
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