The Securities and Exchange Board of India (Sebi) has allowed investors holding mutual fund units in demat form to create standing instructions for Systematic Withdrawal Plans (SWPs) and Systematic Transfer Plans (STPs), extending a facility earlier available only to investors holding units in a statement of account (SOA) form.The regulator said the facility will be introduced in two phases. The first phase will cover unit-based SWPs and STPs by January 31, 2027, followed by amount-based SWPs and STPs by April 30, 2027.AMFI eases MF transmissionThe Association of Mutual Funds in India (Amfi) has revised its standard operating procedure for the transmission of mutual fund units following the death of a unit holder, in a move aimed at simplifying and streamlining the claims process for nominees.One of the key changes relates to address mismatches. If the registered address of the deceased unitholder differs from that submitted during the claim process, AMCs have been advised to rely on the latest available address, supported by documents.
Sebi clears standing instructions for SWP, STP in demat-held MFs
Sebi now permits demat mutual fund investors to set up standing instructions for systematic plans. This facility, previously for statement of account holders, will be phased in. Unit-based SWPs and STPs will be covered by January 2027. Amount-based plans will follow by April 2027. Amfi also simplified mutual fund unit transmission procedures after a unit holder's death.
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