Facility for Basic Services Demat Account (BSDA) for Financial Inclusion and Ease of Investing
Summary
SEBI has revised the Basic Services Demat Account (BSDA) facility to enhance financial inclusion and ease of investing. The circular mandates Depository Participants to open BSDAs for eligible individuals and convert existing eligible accounts within two months. It establishes specific eligibility criteria, a capped annual maintenance charge structure, and free electronic statement services.
Text
With the objective of achieving wider financial inclusion to encourage holding of demat accounts and to facilitate ease of investing, SEBI... provided for the facility of “Basic Services Demat Account” with a set of defined services for eligible individuals.
An individual shall be eligible to opt for BSDA subject to the following conditions: a) The individual has or proposes to have only one demat account where he/she is the sole or first holder. b) The individual shall have only one BSDA in his/her name across all depositories. c) Value of securities held in the demat account shall not exceed ` 10 Lakhs...
The DPs shall open only BSDA for Beneficial Owners (BOs), if such demat accounts are eligible for BSDA as per para 2.1 above, unless such BOs specifically provide their consent by way of email from their email-id registered with the DP to avail the facility of a regular demat account.
The DPs shall also reassess the eligibility of all the existing BOs with respect to BSDA as provided in para 2.1 above within two months from the date of this circular coming into effect and shall convert all such eligible demat accounts into BSDA unless such BOs specifically provide their consent... to continue to avail the facility of a regular demat account.
The charge structure shall be as indicated below: Value of Holdings... Up to ` 4 lakhs Maximum Annual Maintenance Charges NIL; More than ` 4 lakhs but up to ` 10 lakhs ` 100; More than ` 10 lakhs Not a BSDA.
It is emphasized that other than AMC as specified above, BSDA shall be treated at par with non-BSDA for the purpose of levying charges for various other services and DPs shall not levy higher charges to BSDA.
The value of holding shall be determined by the DPs on the basis of the daily closing price or NAV of the securities or units of mutual funds... Where such price is not available, the last traded price may be taken into account... The value of suspended securities may not be considered...
If the value of holding in such BSDA exceeds the prescribed criteria at any date, the DPs may levy charges as applicable to regular accounts (non-BSDA) from that date onwards.
Electronic statements shall be provided free of cost.
Physical statement may be charged at a fee not exceeding ` 25/- per statement.
This circular shall come into effect from September 01, 2024 in supersession of para 1.8.1 to para 1.8.5 of the Master Circular for Depositories dated October 06, 2023.
make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;
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Source: SecMarx — Facility for Basic Services Demat Account (BSDA) for Financial Inclusion and Ease of Investing. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.