How-to STP modify STP parameters

How to modify an STP (Systematic Transfer Plan)

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~4 min.

Key facts

Direct modification	Typically not supported; cancel-and-re-register pattern
Common modifications	Amount, frequency, target scheme, source scheme
Mandate continuity	STP doesn't use NACH mandate; source-fund balance is the input
Timing	Modify mid-month, not close to next transfer date

Modifying an active STP is operationally similar to SIP modification: most parameters can’t be edited in place; the standard pattern is cancel-and-re-register. The cleanup is simpler than SIP modification because STP doesn’t use NACH mandates (source fund balance is the input).

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Step-by-step procedure

See the procedure infobox above.

What can be modified

Parameter	Modification
Per-installment amount	Cancel + fresh register
Frequency	Cancel + fresh register
Target scheme	Cancel + fresh register
Source scheme	Cancel + fresh register (different source means different STP)
Number of installments	Cancel + fresh register
Start date	Cancel + fresh register

Most modifications follow the cancel-and-re-register pattern. Some AMCs allow direct edit on amount only.

Mandate-style consideration

Unlike SIP (which depends on NACH / UPI Auto-Pay mandate from bank), STP uses the source-fund balance:

No bank-debit involved.
Source units redeemed at transfer date NAV.
Target units allotted at transfer date NAV.

This means STP modification doesn’t require new mandate registration.

Timing the modification

Submit 7-10 working days before next scheduled transfer:

Old STP’s next transfer cancelled.
New STP’s first transfer scheduled.
Avoid both running concurrently.

For monthly STP, modifying mid-month avoids transfer-cycle ambiguity.

Common modification scenarios

Scenario	Modification
Source corpus growing slower than expected	Reduce per-installment amount
Volatile markets, want faster deployment	Shorten duration (fewer installments)
Target scheme underperforming	Change target
Cash flow improved	Add additional STP from new source

Tax considerations during modification

Each STP transfer is a taxable event. Modification doesn’t create additional tax; it just changes the future transfer pattern. Cumulative realised gains in the FY are unaffected by mid-stream modifications.

External references

References

SEBI (Mutual Funds) Regulations, 1996.
AMFI Best Practice Guidelines on STP modification.
Income Tax Act, 1961, Sections 112A, 111A, 50AA.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.