Facility for a Basic Services Demat Account (BSDA)
Summary
This circular mandates the introduction of Basic Services Demat Accounts (BSDA) to promote financial inclusion and reduce costs for retail investors. It establishes eligibility criteria, including a holding value cap of Rs. 2 Lakhs, and prescribes specific fee structures and service limitations for these accounts. Additionally, it outlines rationalization measures for regular demat accounts and instructs depositories on implementation.
Text
All depository participants (DPs) shall make available a 'Basic Services Demat Account' (BSDA) with limited services as per terms specified herein to achieve wider financial inclusion and reduce cost of maintaining securities.
Individuals who have or propose to have only one demat account where they are the sole or first holder are eligible to opt for BSDA.
Individuals having any other demat account/s where they are not the first holder shall be eligible for BSDA in respect of the single demat account where they are sole or first holder.
The individual shall have only one BSDA in his/her name across all depositories.
Value of securities held in the demat account shall not exceed Rupees Two Lakhs at any point of time.
The DP shall give option to open BSDA to all eligible individuals who open a demat account after the date of applicability of this circular.
DPs shall give option to all existing eligible individuals to convert their demat account into BSDA on the date of the next billing cycle based on value of holding.
No Annual Maintenance Charges (AMC) shall be levied, if the value of holding is upto Rs. 50,000.
For the value of holding from Rs 50,001 to Rs 200,000, AMC not exceeding Rs 100 may be charged.
The value of holding shall be determined by the DPs on the basis of the daily closing price or NAV... Where such price is not available the last traded price may be taken into account...
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.
The DPs shall reassess the eligibility of the BOs at the end of every billing cycle and give option to the BOs who are eligible to opt for BSDA.
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Source: SecMarx — Facility for a Basic Services Demat Account (BSDA). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.