Archive · 18 Jul 2026
SEBI Extends SWP, STP to Demat MF Investors
The Securities and Exchange Board of India (SEBI) has decided to allow investors who hold mutual fund units in demat form to use systematic withdrawal plan (SWP) and systematic transfer plan (STP) facilities.
Until now, these facilities were only available for units held in the statement of account (SoA) form.
The change will happen in two phases.
The first phase, starting January 31, 2027, will allow investors to withdraw or transfer a fixed number of units at regular intervals.
The second phase, by April 30, 2027, will extend this to withdrawing or transferring a fixed amount.
SEBI has asked the depositories to publish the operational framework by October 31, 2026, and make the necessary technology upgrades.
This move comes as more investors are shifting from SoA to demat holdings, and it aims to provide them with the same automated facilities that were previously available only in SoA mode.
SEBI extends SWP and STP facilities to demat-held mutual fund units, ending a long-standing limitation.
Implementation will occur in two phases: unit-based transactions by January 31, 2027, and amount-based transactions by April 30, 2027.
Depositories must publish the operational framework by October 31, 2026, and complete technology upgrades before implementation.
The move addresses the gap created by the increasing shift of investors from SoA to demat holdings.
SWPs provide regular withdrawals, while STPs enable systematic transfers between mutual fund schemes for efficient portfolio management.
- Who
- Investors holding mutual fund units in demat form
- What
- Extension of SWP and STP facilities to demat-held MF units
- When
- Implementation by January 31, 2027 (Phase 1) and April 30, 2027 (Phase 2)
- Where
- India
- Why
- To address the gap created by the shift from SoA to demat holdings and provide automated withdrawal and transfer facilities
- Facility Extended
- SWP and STP for demat-held MF units
- Implementation Phases
- Two phases: unit-based (Jan 2027) and amount-based (Apr 2027)
- Operational Framework Deadline
- October 31, 2026
- Current Holding Mode
- Statement of Account (SoA)
- Shift Trend
- Investors moving from SoA to demat holdings
- Major Distributor
- Groww
- Consultation Paper Date
- February 5, 2026
