The Basic Service Demat Account (BSDA), a special type of Demat account, was created by SEBI in 2012. This account requires a lower investment than a regular Demat Account. It is intended for smaller investors who don't want to invest in stocks, ETF's or mutual funds. Investors with smaller portfolios (less than Rs. 2,000) also find it easier to invest in this account. 2,00,000.lakhs in total across all depositories.
There are many benefits to the BSDA when it comes down to reducing costs and expenses. Here are some of the main benefits of BSDA.
- The customer will not be charged for any physical statements that must be mailed.
- Dematerialization charges have been eliminated.
Annual maintenance fees that range from Rs. 600 to Rs. 800 are discounted.
Although BSDA may offer many benefits, you must meet certain criteria in order to be eligible for a Basic Service Demat account. This is a list of criteria you should keep in mind.
1. The account should belong to the investor alone. The investor should have no other Demat account.
3. One Demat account is allowed to be owned under the BSDA Category.
4. The total value for all BSDA shares must not exceed Rs. At any given point, 2 lakh.
5. 5.If the investor is the sole holder of the joint account, he/she shouldn't be the first to hold it.
The charges for BSDA vary from Broker to Broker. Angel One charges BSDA as follows.
|Value of Holdings||AMC Fees|
|Rs.50,000-Rs.2 Lakhs||Rs.100 + GST/Year|
|> Rs.2 Lakhs||Same as Non-BSDA accounts|
Only certain conditions can be met before a Demat account can convert into a BSDA Account. The regulator is entitled to contact depositories. The depository can convert the Demat account to BSDA whenever it is possible. Your account status will be changed to BSDA by the regulator.
You must ensure that your Demat Account is not linked to another Demat Account in order for your current Demat account to be converted into BDSA. AMC will be assessed based on the highest amount of your holdings. If your holding value exceeds the threshold or you have an active Demat account with another broker, your BSDA will be converted into a non-BSDA.