On Jul. 17, 2026, IND SEBI has extended the standing-instruction facility for SWPs and STPs to MF units held in dematerialized form.
Unit-based instructions must be implemented by Jan. 31, 2027, and amount-based instructions by Apr. 30, 2027.
Depositories must publish a standard framework by Oct. 31, 2026, make required rule and system changes, and act as nodal facilitators.
The circular is effective from Jul. 17, 2026.
On Feb. 5, IND SEBI proposed extending mutual fund units' standing instructions.
IND SEBI proposed to extend the facility of standing instructions for Systemic Withdrawal Plans (SWP) and Systemic Transfer Plans (STP) to mutual fund (MF) units held in dematerialized form.
IND SEBI seeks comments on extending the standing instruction facility, the proposed processes under both phases and whether a phased rollout is appropriate.
Consultation Proposals
Extend SWP/STP standing instruction for MF units held in demat form by investors to facilitate stakeholder ease of doing business (EoDB) in the MF industry.
Instructions will be valid until cancelled by the investor, an expiry date is reached, or the underlying holdings are exhausted.
Investors can customize SWP or STP instructions, such as withdrawing only the appreciated portion, or gradually increasing or decreasing withdrawal amounts.
Implementation
A two-phase implementation process has been recommended.
Phase I: one-time registration of standing instructions for SWP/STP with depositories or stock exchange members to facilitate unit-based SWP/STP transactions.
Phase II: standing instructions for SWP/STP transactions in MF units held in demat form to be processed via RTA to facilitate amount-based/other variants of SWP/STP.
Consultation End
Consultation closes on Feb. 26, 2026.
Jul. 2026 Facility Extended
On Jul. 17, 2026, IND SEBI has extended the standing-instruction facility for SWPs and STPs to MF units held in dematerialized form.
Unit-based instructions must be implemented by Jan. 31, 2027, and amount-based instructions by Apr. 30, 2027.
Depositories must publish a standard framework by Oct. 31, 2026, make required rule and system changes, and act as nodal facilitators.
