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BASIC SERVICES DEMAT ACCOUNT (BSDA)

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With a view to achieve wider financial inclusion, encourage holding of Demat accounts and to reduce the cost of maintaining securities in Demat accounts for retail individual investors, SEBI introduced the concept of basic services Demat account (BSDA). All depository participants (DPs) shall make available a “Basic Services Demat Account” (BSDA) with limited services and reduced costs compared to conventional Demat accounts. These BSDA will also offer SMS alert facility for debit transactions. 

Eligible Investor: The “Basic Services Demat Account” (BSDA) promises to provide limited services at reduced costs to retail investors. All individual who currently have one account or plan to open an Demat account where they are the sole first holder will be allowed to open the BSDA, provided that the value of securities held will not be more than Rs.2 lakh at any given point of time. However, Investors can open only one BSDA across all DPs. 

An existing eligible individual who holds a Demat account with a DP can convert Demat account into BSDA  on the date of the next billing cycle based on value of holding of securities as on the last day of previous billing cycle.

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