Basic Demat Account Limit Increased To Rs 10 Lakh: Here's What It Means And Other Details
basic demat account limit increased to rs 10 lakh: here's what it means and other details
The Securities and Exchange Board of India (SEBI) has announced a significant increase in the threshold for basic services demat accounts (BSDA) from Rs 2 lakh to Rs 10 lakh. The latest change in rule is effective from September 1.
What Is Basic Services Demat Account?
A basic services demat account is a simplified version of a regular demat account introduced by SEBI in 2012.
Why Is It Designed?
It is designed to reduce demat charges for investors with smaller portfolios.
What Is In New Guidelines?
Under the new guidelines, BSDA holders will now be allowed to hold securities worth up to Rs 10 lakh in dematerialized form, compared to the previous limit of Rs 2 lakh.
What Are Eligibility Criteria For Investors?
Investors who qualify for a BSDA must meet specific criteria: they can have only one demat account as the sole or first holder, and they are limited to one BSDA across all depositories.
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Maintenance Charge For BSDA Holders
Additionally, BSDA holders will benefit from reduced annual maintenance charges. Accounts with portfolios valued up to Rs 4 lakh will incur no annual maintenance fees, while those with portfolios above Rs 4 lakh but up to Rs 10 lakh will be charged Rs 100 annually.
What If Amount Exceeds Rs 10 Lakh?
If a BSDA holder's portfolio exceeds Rs 10 lakh, their basic demat account will automatically be converted into a regular demat account.
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