SEBI Plans Phased Rollout of SWP, STP for Demat MF Units

SEBI is planning to introduce a new feature for people who invest in mutual funds through demat accounts.

This feature will allow them to withdraw money or transfer funds between different schemes automatically at regular intervals.

The plan is to do this in two phases.

In the first phase, investors can specify a fixed number of units to be withdrawn or transferred.

This will be done through depositories and stock exchanges, making the process simpler.

In the second phase, which will come later, investors will be able to specify a fixed amount of money instead of units.

This phase will also include transferring money from special short-term funds to other schemes.

SEBI will first seek public feedback before implementing the more complex features in the second phase.