Cancelled SIPs tripled in April as AMFI implemented SEBI norms on cancellations

The bounce in SIP cancellation was more with the rules fixed in a SEBI circular rather than fears between investors. , Photo Credit: Hemanshi Kamani

The number of cancellation of SIP in April exceeded three times in April compared to last month, which led to the perception that market volatility had submerged investors into mutual funds. However, Hindu It is learned that this increase in cancellation was more with the rules prescribed in a SEBI circular rather than apprehensions among investors.

In a circular, reviewed by Hindu, On January 3, 2024, the Capital Market Regulator of India, the Securities and Exchange Board of India (SEBI) said that the SIPS had to be attributed to the payment efforts to pay payments with more than three consecutive failed installations. This applies to daily, weekly, monthly and fortnightly contribution. SIP with quarterly and bipolar contribution will be invalid after recalling the payment for two consecutive terms, reading the circular. The AMCS should process the cancellation within 10 days from the day when the investor requests, SEBI added to the circular. SEBI had given AMCS and AMFI time till April 1, 2024 to provide more transparent data on the canceled SIP. Prior to the circular, the data on the number of SIP accounts also included inactive accounts. Circular data spread was to improve.

AMFI Chief Executive Officer Venkat Chalasani said, “The entire cleaning process took longer than expected. In January 2025, the backlog of all invalid accounts was being cleared. The number of closed accounts fell 56% in January, 21% in February and 15% in March 2025 and then three times in April.

Mr. Chalasani said that AMFI has also started showing the number of SIPs, which is between 70-80% of the total outstanding accounts since April 2024. “This month we have completed a completely clean-up process.” With new data, it only counts the number of SIPs and outstanding SIPs contributing. Therefore, the monthly dip can be calculated by searching the share of non-yogan accounts in total outstanding SIP accounts.

AMFI’s comments have accepted the importance that the number of closed SIPs was increased with an increase in improvement and market instability, leaving mutual fund investors being released by the markets.