HO/47/14/13(2)2026-MRD-POD2/I/16590/2026 July 17, 2026
To,
All Depositories
All Recognized Stock Exchanges (SEs)
All Registrar and Transfer Agents (RTAs)
All Depository Participants (DPs)
All Mutual Funds (MFs) / All Asset Management Companies (AMCs)
Association of Mutual Funds in India (AMFI)
Sir/Madam,
Subject: Extending facility of creating standing instructions for Systematic
Withdrawal Plan (SWP)/ Systematic Transfer Plan (STP) for Mutual Fund units
held in demat form
1. Mutual Fund investors can avail the facility of SWP by creating standing
instructions with Mutual Fund or its RTA for periodic redemption of specified
number of Mutual Fund units or amount. Mutual Fund investors can also avail
the facility of STP by creating standing instructions for transferring their
investment in one scheme of Mutual Fund to another scheme of the same
Mutual Fund, by way of redemption from one scheme and subscription to the
other scheme of the same Mutual Fund.
2. Presently, the facility of creating such standing instructions for SWP / STP
mandate is not available for the Mutual Fund units held in demat form.
3. In this context, taking into account the representations received from the
Depositories, recommendations of a Working Group setup by SEBI and
recommendations of Secondary Market Advisory Committee of SEBI, it has
been decided to extend the facility of creating standing instruction for SWP/STP
mandate for the Mutual Fund units held in demat form, to facilitate ease of doing
business.
4. The aforesaid facility shall be implemented in the following two phases-
4.1. In Phase - I, the facility shall be made available for “Unit-based SWP
/ STP” i.e. standing instructions based on fixed number of units to be
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redeemed at a specified frequency for withdrawal or for purchasing
units of another scheme of the same Mutual Fund.
4.2. In Phase - ll, the facility shall be extended to “Amount-based SWP /
STP” i.e. standing instruction for fixed amount which is required as
pay-out at a specified frequency or for purchasing units of another
scheme of the same Mutual Fund.
5. Depositories shall be the nodal facilitator for implementation of this framework
and shall ensure the implementation of Phase - I by January 31, 2027 and
implementation of Phase - ll by April 30, 2027.
6. Further, Depositories are directed to :
6.1. Jointly publish a standard framework on their website to
operationalize the aforesaid facility by October 31, 2026.
6.2. Make amendments to the relevant bye-laws, rules and regulations
for the implementation of the above framework, as may be
applicable/necessary;
6.3. Carry out system changes, if any, to implement the above framework;
6.4. Disseminate the provisions of this circular on their website.
7. The provisions of this circular shall come into force with immediate effect.
8. This circular is being issued in exercise of powers conferred under Section
11(1) of the Securities and Exchange Board of India Act, 1992 read with Section
26(3) of Depositories Act, 1996 and Regulation 97 of Securities and Exchange
Board of India (Depositories and Participants) Regulations, 2018 to protect the
interest of investors in securities and to promote development of, and to
regulate securities market.
9. This circular is available on SEBI website at www.sebi.gov.in at “Legal
Framework - Circulars.”
10. The circular has been issued with the approval of the competent authority.
Yours faithfully,
Sanjay Singh Bhati
General Manager
Tel. No. 022-26449222
Email: ssbhati@sebi.gov.in
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