New Delhi, July 17 -- The Securities and Exchange Board of India (Sebi) has allowed mutual fund investors holding their units in demat form to set up automatic instructions for regular withdrawals and transfers between schemes, ending a long-standing difference between demat and non-demat investments.

In a circular issued on Friday, the regulator said investors with mutual fund units in demat accounts will be able to give a standing instruction or a one-time instruction for systematic withdrawal plans (SWPs) and systematic transfer plans (STPs), instead of placing a fresh request every time a transaction is due.The facility will be rolled out in two phases, with unit-based instructions by 31 January 2027 and amount-based instructions by ...