The Securities and Exchange Board of India (SEBI) on February 05, 2026, issued a Draft Consultation paper on extending the facility of standing instructions for Systemic Withdrawal Plan (SWP)/Systemic Transfer Plan (STP) for Mutual Fund units held in demat form.
The following has been stated: -
•SEBI has proposed extending standing instruction facilities for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) to mutual fund units held in demat form, similar to the SOA mode.
•Currently, demat investors must give separate instructions for each transaction, making the process less efficient.
•The proposal suggests a two-phase implementation—Phase I enabling unit-based mandates through depositories and stock exchanges, and Phase II enabling amount-based and advanced variants through RTAs.
•Public and stakeholder feedback has been invited on the proposed framework and operational processes before final implementation by February 26, 2026.
The detailed notification is given in the document below.
