Sebi clears automatic SWP, STP mandates for demat mutual fund holdings

SEBI has permitted mutual fund investors holding units in demat form to set up automatic standing instructions for systematic withdrawal plans (SWPs) and systematic transfer plans (STPs), ending the operational gap with non-demat holdings. The facility will be rolled out in two phases: unit-based instructions by 31 January 2027 and amount-based instructions by 30 April 2027, with depositories required to publish operational guidelines by 31 October 2026.