Ba­sic Ser­vices De­mat Ac­count (BSDA)

Consumer Voice - - Demat Account -

Se­cu­rity Ex­change Board of In­dia (SEBI) had asked de­pos­i­tory par­tic­i­pants (DPs) to make Ba­sic Ser­vices De­mat Ac­count (BSDA) avail­able for all re­tail in­vestors. As per its cir­cu­lar in Au­gust 2012, this move was taken to achieve wider fi­nan­cial in­clu­sion, en­cour­age hold­ing of de­mat ac­counts, and re­duce the cost of main­tain­ing se­cu­ri­ties in de­mat ac­counts for re­tail in­di­vid­ual in­vestors in­clud­ing those go­ing in for ini­tial public of­fer (IPO).

Who can open this ac­count?

The BSDA prom­ises to pro­vide lim­ited ser­vices at re­duced costs to re­tail in­vestors. All in­di­vid­u­als who cur­rently have one de­mat ac­count or plan to open a de­mat ac­count (where they are/will be the sole first holder) will be al­lowed to open a BSDA, pro­vided that the value of se­cu­ri­ties held here will not be more than Rs 200,000 at any given point of time. Bear in mind that one is al­lowed to open only one BSDA across all DPs.

What are the charges?

The an­nual main­te­nance charges (AMC) that you will have to pay for main­tain­ing the BSDA will be as per pre­de­ter­mined slabs. If the value of your hold­ings is up to Rs 50,000, there won't be any an­nual main­te­nance charge. How­ever, if the value of your hold­ing is be­tween Rs 50,001 and Rs 200,000, you will have to pay a fee of Rs 100 as AMC.

Who de­cides the value?

SEBI has en­trusted the DPs to de­ter­mine the value of hold­ing on the ba­sis of the daily clos­ing price or net as­set value (NAV) of the se­cu­ri­ties or units of mu­tual funds. Note that if the value of your hold­ings ex­ceeds the slabs men­tioned above, DPs are per­mit­ted to charge you the same as they charge non-BSDA, reg­u­lar de­mat ac­counts.

What about state­ments?

If you choose to avail the elec­tronic state­ments, you won't have to pay any­thing. For phys­i­cal state­ments, DPs have to pro­vide two state­ments free of cost to you dur­ing the billing cy­cle. All ad­di­tional state­ments will be charged a fee, which, how­ever, can­not be more than Rs 25. You will get a trans­ac­tion state­ment at the end of ev­ery quar­ter, pro­vided there has been at least one sin­gle trans­ac­tion in the quar­ter. For ac­counts where there are trans­ac­tions, you will get an an­nual state­ment of hold­ing as per your choice – elec­tron­i­cally or phys­i­cal.

What if you are an ex­ist­ing de­mat ac­count holder?

If you are an ex­ist­ing el­i­gi­ble in­di­vid­ual and hold a de­mat ac­count with a DP, you can ask the DP to con­vert your de­mat ac­count into BSDA on the date of the next billing cy­cle, based on the value of hold­ing of se­cu­ri­ties in the ac­count as on the last day of pre­vi­ous billing cy­cle.

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