SEBI changes rules for Basic Service Demat Account, check eligibility and charges

Market regulator Sebi on Friday comprehensively reviewed the eligibility criteria for Basic Service Demat Account (BSDA) with an aim to further promote participation in securities market and ease of investment. In a circular, Sebi said that regulations have been framed for choosing a BSDA. A person shall be eligible for BSDA if he holds or proposes to hold only one demat account in which he is the sole or first holder, There shall be only one BSDA in the name of the person across all depositories.

Further, the value of securities held in the demat account should not exceed Rs 10 lakh at any point of 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 for Beneficial Owners (BOs) only if the above eligibility criteria for BSDA are satisfied.

To avail the facility of Regular Demat Account the beneficial owners are required to specifically provide their consent through email from their registered email ID.

2- DPs are required to re-evaluate the eligibility of all existing BOs with respect to BSDA within two months from the date of coming into effect of this circular and convert all eligible demat accounts to BSDA, unless the BO specifically gives 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.

charge

Nil if total holdings (other than loans and debt securities) in the demat account are up to Rs 4 lakh.

Rs 100 for amount exceeding Rs 4 lakh but up to Rs 10 lakh.

If there is no BSDA or the amount exceeds Rs 10 lakh then regular AMC charges may be levied.