look news india
Capital market regulator SEBI is planning to change the rules related to demat accounts. SEBI plans to increase the limit of securities deposit in Basic Services Demat Account (BSDA).
Let us tell you that Basic Services Demat Account was started in the year 2012 to promote financial inclusion.
At present, other securities worth up to Rs 2 lakh can be kept in the Basic Services Demat Account. Now SEBI is planning to increase this limit to Rs 10 lakh.
What is a Basic Demat Account?
Basic Services Demat Account is a type of Demat account. This account is for retail investors. In this account, the investor cannot invest in stocks, bonds, ETFs, mutual funds, etc. Apart from this, the maintenance cost of this account is also low.
SEBI has issued a consultation paper to increase the limit of securities in this account. SEBI has asked in the consultation paper whether the limit of Basic Services Demat Account should be increased or not.
Why does SEBI want to increase the limit?
According to SEBI's consultation paper, the growth of stock exchanges and the participation of retail investors in the securities market has increased in the last 10 years. In view of the increase in the participation of retail investors, SEBI is planning to increase the limit of demat account. Apart from this, SEBI is also considering maintenance charges.
Basic Services Demat Account is planning to charge Rs 100 on securities worth Rs 4 lakh to Rs 10 lakh. Currently, no charges are levied by the brokerage firm on debt securities up to Rs 1 lakh and non-debt securities worth Rs 50,000. SEBI is also proposing to increase the limit for debt securities to Rs 4 lakh.
