look news india
Market regulator Securities and Exchange Board of India (SEBI) has increased the limit of Basic Service Demat Account (BSDA) from Rs 2 lakh to Rs 10 lakh to increase the participation of small investors in the stock market.
SEBI said, the new directive will come into effect from September 1. The reforms made by SEBI will encourage small investors to trade in the stock market and ensure their financial inclusion.
BSDA is a more basic version of a regular demat account. Market regulator Sebi introduced the BSDA facility in 2012 to reduce the burden of demat charges on investors with small investments. Before Sebi's new change, debt securities up to Rs 2 lakh and non-debt securities up to Rs 2 lakh were allowed to be held in a single demat account to be eligible for BSDA. There is no annual maintenance charge for BSDA if the portfolio value is up to Rs 4 lakh. A fee of Rs 100 will be levied if the portfolio value is more than Rs 4 lakh and up to Rs 10 lakh, Sebi said.
Investors who hold only one demat account as sole or first holder, hold only one BSDA in their name across all depositories and the value of securities in the account does not exceed Rs 10 lakh at any point of time for both debt and non-debt securities are eligible for BSDA, Sebi said.