The Securities and Exchange Board of India (SEBI) has reduced the processing period for Systematic Investment Plans (SIPs) cancellations from 10 to 2 working days.
This modification, beginning December 1, 2024, requires all mutual fund companies to apply it for both online and offline SIPs. The reform intends to simplify and speed up the cancellation process, which previously differed between fund houses and frequently caused delays.
SEBI improves operational efficiency and gives investors speedier control over their investments, increasing convenience and flexibility in managing mutual fund portfolios.
When financial circumstances are normal, SIP should be halted and then resumed. However, registration is necessary to proceed in the event that a SIP is canceled.
The new guidelines have several key characteristics, including mandating processing time, options for online cancelation , and check status communication for more smooth working.
Experts recommend that if short-term financial issues occur, SIPs should be halted and resumed when financial conditions are normal, but registration is necessary in case of a SIP cancellation.
