Most of us who don’t invest regularly in stocks, bonds, gold ETFs, IPO, etc may find maintaining our demat accounts a pain because of the charges. The costs, such as annual maintenance and statement charges, make these accounts relatively expensive.

But with the introduction of Basic Service Demat Account (BSDA) by SEBI (Securities and Exchange Board of India), the annual maintenance charges structure will be on a slab basis. Here we provide you with information about BSDA.

  • Who can open a basic service demat account?

    • The basic services demat account promises to provide limited services at reduced costs to retail investors. These accounts are also called no-frills or basic demat accounts.
    • An individual—who currently has a demat account or plans to open a demat account where he is the only first / sole holder—will be allowed to open the BSDA.
    • The individual needs to ensure that the value of securities held in his basic trading account will not be more than Rs. 2 lakh at any given point of time.
    • According to SEBI circular, all depository participants (DPs) will make basic trading accounts available with limited services and reduced costs. DPs’ will offer BSDA from 1 October 2012. Remember that you are allowed to open only one BSDA across all DPs.
  • What is the cost structure?

    As per SEBI directive, the charge structure will be based on value of holdings in the accounts as indicated below:
    1. No AMC shall be levied, if the value of holding is up to Rs. 50,000.
    2. For the value of holding from Rs 50,001 to Rs 200,000, AMC not exceeding Rs 100 may be charged.
    3. If the value of holding in such BSDA exceeds Rs. 200,000 at any date, the DPs may levy charges as applicable to regular accounts (non-BSDA) from that date onwards.
  • Who will determine the value of investments in BSDA?

    • SEBI has assigned DPs to determine the value of holding on the basis of the daily closing price or NAV (net asset value) of the securities or units of mutual funds.
    • If the value of your holdings exceeds the slabs mentioned above, DP’s are permitted to charge you the same as they charge non-BSDA regular demat accounts.
  • How I can convert my demat account into BSDA?

    You do not need to submit any request for converting your account into BSDA.
    Its an automated process wherein DP verify all the accounts to convert them under BSDA on the date of the next billing cycle based on value of holding of securities in the account as on the last day of previous billing cycle (Financial Year).
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