Recently market regulator SEBI introduced new type of Demat Account to woo small investors in opting securities in Demat form. This type of demat account is called “Basic Services Demat Account (BSDA)”. This initiative is to reach the IPOs to retail investors and promoting small investors to have their securities in Demat form. Let us see few of it’s features and benefits.
1) Individuals can have only one BSDA account where they have as sole or first holder.
2) If individuals already have normal demat account where they are not first holder can avail this account.
3) Individuals are eligible to have only one BSDA account across all depositories.
4) Investors value of investment shall not exceed Rs.2,00,000 at any point of time.
So from above point it is clear that individuals can have only one account in their name as sole or first holder and investment should always be within Rs.2,00,000.
Option to open BSDA-All eligible individuals can avail this demat account. Existing demat holder can move to BSDA from next billing cycle if their existing holding is within Rs.2,00,000 limit as on last day of previous billing cycle.
1) No annual maintenance charges if investors holding is within Rs.50,000. If exceeds then maximum charges will be Rs.100 for your holding of Rs.50,001 to Rs.2,00,000.
2) Value of holding is calculated on daily closing price of securities or daily NAV of mutual fund (If daily closing price not available then last traded price is considered). For unlisted securities other than mutual funds, face value is considered for calculation.
3) If investors holding cross the maximum limit of Rs.2,00,000 then DPs can charge as per normal demat account charges from that day onwards.
4) To avail BSDA, DPs will reaccess investors eligibility conditions for every billing cycle and give option to all eligible investors to move to BSDA if they opt so.
1) Investors will receive transaction statement on quarterly base. If no transaction within that quarter then will not receive any statements.
2) If their is no transactions and no balance in investors demat account then they will not receive any statement.
3) One yearly physical statement will be available showing holding securities, zero balance or no transactions.
4) Maximum two free statement can avail on request within one billing cycle. If requested for more than two then each physical statement will cost Rs.25.
5) Investor can avail SMS alert facility for debit transactions by registering their mobile phone number.
6) Investor can avail atleast two delivery instruction slip during account opening.
7) Apart from the above said special facilities and instructions, all other facilities and instructions of normal demat account will be applicable to this account too.
8) If investors account have zero balance and no transactions during the year then will receive annual statement only once. But will receive statement as and when transaction start.
9) If investor account have zero balance and no transactions then they will not receive any quarterly statement but only receive annual statement.
10) If investor have credit balance but no transactions during a year then they will receive only one annual statement.
11) This will be come into effect from 1st October 2012.