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SEBI ReportPublished 17 Jul 2026Read time 1 min

Mutual Fund SWP and STP Now Easier for Demat Account Holders

SEBI now allows automatic SWP and STP instructions for demat mutual fund units.

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What happened

SEBI has extended the facility to set up standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) for mutual fund units held in demat form. SWP means automatically withdrawing a fixed amount from your mutual fund at regular intervals. STP means automatically moving money from one mutual fund to another at regular intervals. Earlier, this automatic instruction facility was not available if your mutual fund units were held in a demat account.

Why it matters

Many investors hold their mutual fund units in demat accounts, the same account used for shares. Until now, they had to manage withdrawals and transfers manually. This change brings the convenience of automatic, scheduled transactions to demat-held mutual fund investors, reducing manual effort and the risk of missing planned withdrawals.

What to check

  • →Check whether your mutual fund units are held in a demat account or directly with the fund house, as this facility applies to demat-held units.
  • →Ask your broker or depository participant (DP) — the company managing your demat account — when this facility will be live on their platform.
  • →Look at whether setting up a SWP suits your need for regular income from your mutual fund investments.
  • →Consider whether a STP could help you move money gradually from a debt fund to an equity fund, or vice versa, in a disciplined way.
  • →Find out if there are any charges or minimum amount requirements your broker or DP applies for standing instructions.

This is general information, not financial advice. Check your own position with your lender or an adviser.

What this means for you

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