SEBI for auto standing instruction for Mutual Fund redemption in Demat accounts |
New Delhi: The Securities and Exchange Board of India (SEBI) is contemplating to introduce an automatic standing instruction facility to simplify the redemption process of mutual fund units for individuals investing in MFs through demat accounts. The market regulator’s consultation paper issued on February 5, 2026, proposes to get rid of the differences between demat mode and statement of account (SOA) mode.
No separate forms
The current rules mandate the investors, who have mutual funds in demat accounts, are required to submit a Delivery Instruction Slip (DIS) for every redemption. SEBI terms the process as cumbersome and also prevents investors from regular income planning. Filling forms repeatedly or giving digital consent every month or quarter often leads to delays and errors. Scores of investors are unable to use SWP or STP in demat mode.
At present some investors submit a Power of........