Sebi Proposes Easier Systematic Plans for Demat Mutual Fund Investors

The Securities and Exchange Board of India (Sebi) has proposed a significant change aimed at simplifying mutual fund operations for investors with units in demat form. The market regulator has suggested extending standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) to these units, hoping to facilitate ease of doing business within the sector.

Currently, such standing instructions are only available for units in the statement of account mode, requiring demat investors to individually initiate each transaction. Sebi's proposal, detailed in a recent consultation paper, seeks to change this by allowing demat investors the same facility, thereby driving convenience and operational efficiency.

The proposed change will be rolled out in two phases but requires public feedback by February 26. This extension is expected to benefit both investors and market intermediaries, improving the mutual fund industry's business landscape.