Currently, this facility is available only for investors holding units directly with the respective fund houses. Photo Credit: Getty Images
Capital markets regulator SEBI has proposed to allow systematic withdrawal plan (SWP) and systemic transfer plan (STP) facility for investors holding mutual fund units in demat form. This facility is being planned to be rolled out in two phases based on the number of units and the value of units.
Currently, this facility is available only for investors holding units directly with the respective fund houses. Investors can send in their comments to the proposals by February 26.
In a consultation paper, SEBI on Thursday said by availing facility of SWP, client can place standing instruction with MF or its Registrar and Transfer Agent (RTA) for periodic redemption of specified number of MF units or amount.
Whereas, by availing of STP, a client can place standing instruction of transferring the exposure to one scheme of MF to another scheme of MF managed by the same AMC, by way of simultaneous redemption and subscription of MF units in another scheme.
However, SWP/STP is currently not available for MF units held in demat form. Investors holding MF units in demat form are required to place separate instructions for redemption of units through Delivery Instruction Slip for each withdrawal or transfer.
In phase one, it has been proposed to register investors’ requests through one-time registration of standing instructions with depositories/stock exchanges for execution of orders on order entry platform of stock exchanges, which shall facilitate unit-based SWP/STP transactions.
In phase two, standing instructions for SWP/STP transactions in MF Units held in demat form to be processed through RTA, which will facilitate amount-based and other variants of SWP/STP, said SEBI.
Published on February 5, 2026