Sebi tweaks rules for Basic Service Demat Account. Check eligibility, charges

The Securities and Exchange Board of India (Sebi) on Friday comprehensively reviewed the eligibility criteria of the Basic Service Demat Account (BSDA) with an aim to further boost participation in the securities market and promote ease of doing investments.

In a circular issued on Friday, Sebi laid down rules for opting BSDA. An individual will be eligible for the BSDA if he/she has or proposes to have only one demat account where he/she is the sole or first holder. The individual should have only one BSDA in his/her name across all depositories.

Moreover, the value of securities held in the demat account shall not exceed Rs 10 lakh for debt and other than debt securities combined at any point of time. This circular shall come into effect from September 1, 2024.

Opening of BSDA/conversion of existing eligible demat accounts to BSDA:

1) The depository participants (DPs) shall open only BSDA for Beneficial Owners (BOs), if the aforementioned eligibility criteria for BSDA is satisfied. The beneficial owners will specifically have to provide their consent through email from their registered email-id to avail the facility of a regular demat account.

2) The DPs will have to reassess the eligibility of all the existing BOs with respect to BSDA within two months from the date of this circular coming into effect and will have to convert all eligible demat accounts into BSDA unless the BOs specifically provide their consent to continue with a regular demat account. Later, this exercise should be carried out by DPs at the end of every billing cycle.

Charges

-- NIL if the value of holdings in the demat account (debt as well as other than debt securities combined) is up to Rs 4 lakh.
-- Rs 100 for an amount more than Rs 4 lakhs but up to Rs 10 lakhs.
-- If not a BSDA or more than Rs 10 lakhs then regular AMC may be levied.

Services for BSDA

1) Electronic statements should be provided free of cost.

b) Physical statement will be charged at a fee not exceeding Rs 25 per statement.

c) All other conditions as applicable to regular demat accounts, other than the ones mentioned above, shall continue to apply to basic services demat account.

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