Archive · 25 Sep 2025
SEBI Considers Extending SWP, STP for Demat Mutual Funds
Currently, if you have mutual funds in a special account, you can't easily set up regular withdrawals or transfers like those with regular accounts.
SEBI is thinking about changing this.
They're planning to let investors with special accounts use Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP), making it easier to take money out or move it to different funds.
Right now, investors with these accounts need to do a lot of paperwork for withdrawals.
The new system, if approved, would let them set it up once, and then everything would happen automatically.
This change is meant to make things simpler and fairer for all investors.
It is expected to be implemented in two phases.
SEBI is considering extending SWP and STP to demat mutual fund units.
Currently, SWP and STP are not available for units held in demat mode.
The objective is to provide parity between SOA and demat holdings.
A working group proposes a two-phase implementation plan.
The system will auto-generate transactions once a mandate is registered.
- Who
- Investors with mutual funds in demat form
- What
- SEBI is considering extending SWP and STP facilities.
- When
- As of September 25, 2025, the proposal was being considered.
- Where
- Across mutual fund schemes in demat mode.
- Why
- To achieve parity, ease business, and reduce paperwork.
- Proposed Change
- Extending SWP/STP to demat mutual fund units
- Current Restriction
- SWP/STP unavailable for demat units
- Benefit
- Achieving parity between SOA and demat holdings
- SWP Definition
- Redeeming fixed sum/units at intervals
- STP Definition
- Moving money between schemes
- Implementation
- Proposed in two phases by a working group
