What is a Basic Service Demat Account (BSDA)?
The concept of a Basic Services Demat Account (BSDA) was introduced by SEBI in 2012 to reduce the burden of demat charges on investors with small portfolios (below Rs. 2 lakhs).
Based on the value of holdings on the cut-off date, the applicable AMC (Annual Maintenance Charge) is waived. Further, account holders are entitled to receive only online statements (no physical statements).
The brokerage, taxes and other charges (excluding AMC) remain the same for BSDA and Regular Service Demat Accounts (RSDA).
Who is eligible to open a BSDA? The following conditions must be met in order to be eligible for a BSDA:
The individual shall have only one BSDA in his/her name across depositories.
The individual shall have only one demat account where he/she is the sole or first holder.
If the individual has other demat accounts, he/she shall be eligible for a BSDA (for the sole or first holder account) only if they are not the sole or first holder in these other accounts.
The value of securities held in his/her demat account shall not exceed Rs. 2 lakhs at any point of time.
The AMC structure for BSDAs is based on the security type and holdings amount:
|Debt Securities |
Up to Rs.1,00,000 - No AMC
Rs.1,00,001 to Rs.2,00,000 - Max Rs.100
|Other Securities |
Rs.50,001 to Rs.2,00,000 - Max Rs.100
Though BSDAs have discounted AMC, transaction charges (DIS/inter-settlement) are higher than RSDAs. Learn more.