The Securities and Exchange Board of India (SEBI) is considering raising the limit for basic service demat accounts (BSDA) from ₹2 lakh to ₹10 lakh. This move aims to encourage more retail investors to participate in the securities market. Introduced in 2012, BSDAs help reduce demat charges for investors with smaller portfolios.
Currently, an individual can hold up to ₹2 lakh in debt securities and ₹2 lakh in other securities in a BSDA. SEBI’s new proposal suggests that the total value of securities in a BSDA should not exceed ₹10 lakh at any time.
To qualify for a BSDA, individuals must have only one demat account where they are the primary holder and can only have one BSDA across all depositories. SEBI also proposed changes to the annual maintenance charges (AMC) for BSDAs: no charges for portfolios up to ₹4 lakh, ₹100 for portfolios between ₹4 lakh and ₹10 lakh, and automatic conversion to a regular demat account if the portfolio exceeds ₹10 lakh.
SEBI also suggested that electronic statements should be free for BSDA holders, while physical statements can cost ₹25 each. Public comments on the proposal are invited until June 26.
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