New Rules for BSDA: The Securities and Exchange Board of India (SEBI) has revised the rules for Basic Services Demat Accounts (BSDA) to promote financial inclusion.
Effective from September 1, 2024, the limit for holding securities in a BSDA has been increased from Rs 4 lakh to Rs 10 lakh. This change aims to encourage small investors to participate in the stock market.
Key Changes and Guidelines
Increased Limit: The maximum value of securities that can be held in a BSDA is now Rs 10 lakh.
Single Account Requirement: To qualify for a BSDA, an individual must have only one demat account, either as the sole or first holder, and only one BSDA across all depositories.
Annual Maintenance Charges:
No charge for portfolio values up to Rs 4 lakh.
Rs 100 for portfolio values between Rs 4 lakh and Rs 10 lakh.
If the portfolio value exceeds Rs 10 lakh, the BSDA will be converted into a regular demat account.
Benefits and Services
SEBI introduced the BSDA facility in 2012 to reduce the cost burden on investors with small portfolios.
The new guidelines further enhance these benefits by allowing a larger value of securities to be held.
Electronic Statements: Free electronic statements will be provided to BSDA holders.
Physical Statements: A charge of Rs 25 per statement may be applied for physical copies.
This move by SEBI is expected to boost the participation of small investors in the stock market, ensuring their financial inclusion and reducing the financial barriers to investing.
