Mumbai, Feb 6 || The Securities and Exchange Board of India (SEBI) has proposed to allow investors to set up standing instructions for systematic withdrawal plans (SWP) and systematic transfer plans (STP) for mutual fund units held in demat accounts, a facility currently available only for units held in the statement‑of‑account mode.
Under the proposal, demat investors would be able to do one time registration of SWP or STP mandates with depositories or stock Exchanges, which removes the need to submit separate instructions for each SWP or STP transaction, according to a statement.
Currently, investors holding MF units in demat form are required to place separate instructions for redemption of units (through Delivery Instruction Slip (DIS) for each withdrawal or transfer.
Investors also give such instructions by way of two-factor authentication by the DP or through authorisation given by the investor to the stockbroker through Power of Attorney (PoA) or Demat Debit and Pledge Instructions (DDPI).
However, in case of PoA, this reduces the direct control of investors on their investments, the market regulator said in a statement.