Ease of investments and ease of doing business measures – enhancing the ‘Facility for Basic Services Demat Account (BSDA)’
Summary
SEBI amends the Facility for Basic Services Demat Account (BSDA) by excluding Zero Coupon Zero Principal bonds and delisted securities from threshold calculations. Depository Participants are mandated to reassess BSDA eligibility quarterly and obtain active consent for regular demat accounts. These provisions replace specific paragraphs of a previous circular and come into force on March 31, 2026.
Text
it has been decided to exclude the following securities for reckoning the threshold for BSDA: 2.1. Zero Coupon Zero Principal (ZCZP) bonds; 2.2. Delisted securities
The valuation of the illiquid securities shall be at last closing price for calculating the threshold for BSDA
DPs shall now be required to reassess the BSDA eligibility every quarter
DPs shall require the beneficiary owner to submit consent to avail / continue to avail the facility of a regular demat account by active consent through a verifiable channel as specified by the Depositories
The effect of this circular shall replace paras 2.2(a), 2.2(b) and 2.3(c) of the circular, which stand modified as under... Para 2.2(a) The DPs shall open only BSDA for Beneficial Owners (BOs)... unless such BOs specifically provide their consent... Para 2.2(b) The DPs shall also reassess the eligibility... at the end of every quarter... Para 2.3(c) ...The value of suspended securities, delisted securities and Zero Coupon Zero Principal bonds may not be considered...
The provisions of this circular shall come into force with effect from March 31, 2026 in supersession of paras 2.2(a), 2.2(b) and 2.3(c) of the circular
make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary
bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website
put in place appropriate systems and procedures to give effect to the provisions made in this circular within a period of 75 days, and implement the provisions after user testing within 90 days from the date of issuance of this circular
This circular is being issued in exercise of powers conferred under section 11 (1) of the Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996
Source: SecMarx — Ease of investments and ease of doing business measures – enhancing the ‘Facility for Basic Services Demat Account (BSDA)’. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.