Extending facility of creating standing instructions for Systematic Withdrawal Plan (SWP)/ Systematic Transfer Plan (STP) for Mutual Fund units held in demat form
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Demat mutual fund SWP and STP mandates expand through phased unit-based and amount-based standing instruction facilities. Standing instructions for Systematic Withdrawal Plans and Systematic Transfer Plans are extended to mutual fund units held in demat form. Phase I enables unit-based mandates for periodic redemption of a fixed number of units, while Phase II enables amount-based mandates for fixed periodic payouts or investments in another scheme of the same mutual fund. Depositories act as nodal facilitators, publish a standard framework, make necessary regulatory and system changes, and implement the two phases within the prescribed timelines.
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Provisions expressly mentioned in the judgment/order text.
Demat mutual fund SWP and STP mandates expand through phased unit-based and amount-based standing instruction facilities.
Standing instructions for Systematic Withdrawal Plans and Systematic Transfer Plans are extended to mutual fund units held in demat form. Phase I enables unit-based mandates for periodic redemption of a fixed number of units, while Phase II enables amount-based mandates for fixed periodic payouts or investments in another scheme of the same mutual fund. Depositories act as nodal facilitators, publish a standard framework, make necessary regulatory and system changes, and implement the two phases within the prescribed timelines.
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