SIP Cancellations Surge After SEBI’s New Cancellation Norms
Why in the news
SIP cancellations spiked in April 2025 as new SEBI norms were implemented and inactive records were removed from industry data.
Key facts
| SIP frequency | Auto-cancelled after |
|---|---|
| Daily, weekly, fortnightly, monthly | 3 consecutive failed instalments |
| Quarterly, bimonthly | 2 missed payments |
- Source of the rules: SEBI circular of 3 January 2024.
- AMCs must act on an investor’s cancellation request within 10 days.
- SEBI asked AMFI and AMCs to show only active contributing SIPs; the clean-up ran from Dec 2024-Jan 2025 and finished in April 2025.
About SIP
- Regular investing in mutual funds from ₹500 a month; helps rupee cost averaging.
Significance
- Gives a truer picture of active participation and data reliability.
- Related: in March 2025 SEBI cut the rights issue completion time to 23 days.
About SEBI
- Established 12 April 1988; statutory powers from 30 January 1992 under the SEBI Act, 1992; headquartered in Mumbai; chairman Tuhin Kanta Pandey.
Exam angle
- Cancellation requests must be processed in 10 days.
- April 2025 cancelled SIPs: 162.3 lakh.