Currently, this facility is only available to investors who hold units directly with the respective fund houses | Photo credit: Getty Images
Currently, this facility is only available to investors who hold units directly with the respective fund houses. Investors can submit their comments on the proposals by February 26.
In a consultation paper on Thursday, SEBI said that by availing the facility of SWP, the customer can place standing instructions with MF or its Registrar and Transfer Agent (RTA) for periodic repayment of a specified number of MF units or a specified amount.
Whereas, using STP, a client can give standing instructions to transfer exposure in one MF scheme to another MF scheme managed by the same AMC, through simultaneous redemption and subscription of MF units in another scheme.
However, SWP/STP is currently not available for MF units in demat form. Investors holding MF units in demat form are required to post separate unit redemption instructions through the delivery instruction form for each withdrawal or transfer.
In phase one, it has been proposed to register investors’ requests through one-time registration of standing instructions with depositories/stock exchanges for execution of orders on the order entry platform of stock exchanges, which will facilitate unit-based SWP/STP transactions.
In phase two, standing instructions for SWP/STP transactions in MF units held in demat form will be processed through RTA, which will facilitate amount-based and other variants of SWP/STP, SEBI said.
Published on February 5, 2026
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