Market regulator Sebi on Friday conducted a comprehensive review of the eligibility criteria for Basic Service Demat Account (BSDA) with an aim to further promote participation in the securities market and facilitate investing.
Market regulator Sebi on Friday conducted a comprehensive review of the eligibility criteria for Basic Service Demat Account (BSDA), aimed at further promoting participation in the securities market and making investment easier. In a circular, Sebi has said that rules have been laid down for choosing BSDA. A person will be eligible for BSDA if he has or proposes to hold only one demat account in which he is the sole or first holder, there should be only one BSDA in all depositories in the name of the person.
Further, the value of securities held in the demat account should not exceed Rs 10 lakh at any time for debt and other than debt securities. This circular will come into effect from September 1, 2024.
1- Depository Participants (DPs) will open BSDA only for Beneficial Owners (BOs) if the above eligibility criteria for BSDA are satisfied.
Beneficial Owners are required to provide their consent specifically through email from their registered email-id for availing the facility of Regular Demat Account.
2- DPs are required to re-evaluate the eligibility of all existing BOs with respect to BSDA within two months from the date of effectivity of this circular and convert all eligible demat accounts into BSDAs, unless the BO specifically provides its consent to continue with the regular demat account. This exercise is to be carried out by the DP at the end of each billing cycle.
Charges
NIL if total holdings in demat account (debt as well as other than debt securities combined) is up to Rs 4 lakh.
Rs 100 for amount exceeding Rs 4 lakh but up to Rs 10 lakh.
Regular AMC may be charged if there is no BSDA or if the amount exceeds Rs 10 lakh.
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