SEBI cuts SIP cancellation time to two days for mutual fund investors

The Securities and Exchange Board of India (SEBI) has reduced the cancellation period for systematic investment plans (SIPs) from 10 days to 2 working days, effective December 1, 2024. This change allows for quicker processing of cancellation requests. Mutual fund investors can now cancel their SIPs more efficiently, avoiding fees from failed debit attempts. SEBI requires asset management companies (AMCs) to notify investors about cancellations and provide reasons for premature terminations. AMCs must inform investors after a failed debit attempt and explain the cancellation if three consecutive attempts fail. For online cancellations, AMCs must offer credible reasons and allow investors to provide comments.