Mumbai, Feb. 9 -- The Securities and Exchange Board of India (Sebi) has proposed extending the facility of standing instructions for systematic withdrawal plans (SWP) and systematic transfer plans (STP) to mutual fund units held in demat form, a move that could simplify cash flow planning for investors.

In a consultation paper issued on 5 February, the markets regulator said the change is aimed at improving ease of doing business and bringing parity between mutual fund units held in statement of account (SoA) form and those held in dematerialized form.

Mint explains what Sebi has proposed and why it matters.

Sebi has proposed allowing investors to register standing instructions for SWP and STP even when their mutual fund units are held...