Basic Services (no-frills) Demat Account (BSDA)-Features and Benefits

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.

Other features:-

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.


67 Responses

  1. Sir I have bsda account with reliance my investment is 1.5 lakh market value is 2.05 lakh
    So now STETUS of account will change
    If so then should I sale some to maintain less than 2lakh

  2. Sir,

    I received message that my BSDA converted into Non-BSDA as it exceeds 2 lakhs.
    What is disadvange and advantage of Non-BSDA account. Kindly reply. What are charges applicable for NON_BSDA account.

  3. I have been trading in equities for the past 3 years and have a current holding of Rs.5,00,000 with Sharekhan. Recently I started purchasing some equities and mutual funds through ICICI I received a message from Customer Care regarding BSDA account. I was not able to understand what it is and what does this mean?
    Does this mean I am not allowed to hold 2 demat accounts? What is the difference? If I can hold 2 demat accounts why I received this kind of email after started trading with ICICI Direct.

      1. thanks i checked the details.
        other thing wanted to ask is what parameters are most important to evaluate a mutual fund.

  4. Hi Sir,

    I have a account in sharekhan and they recently said they have converted it to BDSA, and they are charging a max of 49 rupees or 0.03% as brokerage. My portfolio value is 40K but I have shares in more than 30 companies (that is say that I invest in small quantities).
    Now with this BDSA, if I buy shares of any company for 100 rupees, they will charge 49 rupees flat as brokerage; and again when I sell them, they will charge 49 rupees more; so for 100 rupees of investment I am paying 100 as a brokerage..
    So at this juncture, I would like to know how is this BDSA is helping small investors like me…

  5. I have BSDA account with Sharekhan. Earlier I have been charged for sell transaction as (0.5% brokerage + Rs. 49 (+taxes) BSDA charges) there were no minimum brokerage I needed to pay. But now they are saying that the rules are changed & now I have to pay (0.5% brokerage but the minimum brokerage should be Rs. 16/- + 49 (+taxes). Now this minimum 16 rupees brokerage criteria is true?

  6. Hello Sir

    I have BSDA account with Axisdirect. Can I open normal Demat account with some other broker ? i would like to keep one BSDA account since AMC is less and one Normal account as my transaction crosses 3.5 Lakh.

    Please clarify.

    Thanks in Advance

  7. I have an BSDL A/c with IIFL. Now they are charging Rs 400+ taxes as AMC saying that rules have changed. Is this true? please guide where to complain against this.

  8. Thanks for the post, it has cleared lot of queries…

    One quick question – Can we have two Demat account 1 BSDA (say with HDFC) and 1 normal (with some other broker ICICI/Sharekhan or other)

    Is it allowed?


  9. If a person is holding a single joint demat account worth Rs crore what happens?
    Is he entitled for a BSDA account? Please advise..


  10. Dear sir,
    Thanks for information
    Is stockholding corporation of India a good DP. As its a government body

    And I want open my bsda then is it right dp as I have never heard before in newspaper and other forums

  11. Hi, i have a demat in sharekhan and its below 50k. How can i convert that to bsda? Is it an online convertion? Should i goto sharekhan for this or some other process?

  12. Sir, I am a student and my holdings have never crossed Rs.50k since three years in Sharekhan. Can I open a BDSA account with HDFC Scurities linked to my HDFC bank account with cash balance around 50k.

    Cash around 50k in HDFC
    Shares worth 35k in Sharekhan

    Am I eligible?

  13. Feedback
    it is humble request to all AMC and all online investment platforms brokers and sub brokers
    please send yearly one statement on paper at address registered with you
    because we are mostly invest online if suddenly something happened to us accidentally then family members dont know about our online investment and you send statements on e-mail id it is have password how family members know how many amount in how many folios we have ?
    Because all AMC do not have their offices in every city’s of Maharashtra or other state in india
    if i accidentally death where to go my family members and nominated person to transferred all fund or redeem all fund on his/her name
    Request to you please send one yearly hard copy of all investment online or offline PAN number base send on registered address most important which contains how to nominee redeem or transferred all investment on nominated person and clear maintains all processes all foms all documents details to help nominated person or families
    Because nominee or families do not worried about what to do ????

    1. Mohsin-I respect your concern. At the same time, nominate your spouse or kid to all your investments. Make sure that they know about your investment details (at least like demat account details).

  14. When I approached a DP for BSDA they said it is meant only for Rajiv Gandhi IT saving scheme and I can not trade in shares using this BSDA and there will be locking period for shares held in this account. I am totally confused as I am new in this field. Please clarify.

  15. Hi,

    I had gone through all the comments. Many thanks for clearing all the concerns.

    I am a new into this field & want to Open BSDA account. is it possible to buy/sell shares online with BSDA account.

    If no, can I have buy only account? what are the extra charges that may I have to pay for all transactions.

  16. Sir
    Im a small investor .I want to invest in IPOS .Is sbi Demat Account good to open ???For Basic Demat Acc they are charging 850 rs. For applying IPOS do i need Trading Acc as well?? Can i sell the shares of IPOS after few days of allotment ???plz reply.

    1. Saleem-You must have demat account for investing in IPOs. Trading account is required to sell them whenever you need. Hence, both are necessary. I am not aware about the charges of SBI. Yes, you can sell the allotted shared whenever you want.

  17. Suppose I opt for BSDA. Then at some point my holding value exceeds 2 lakhs. Later I sell some shares and holding value falls below 2 lakhs again. Does my account becomes BSDA again?

  18. Hi,

    I just opened a demat account. I also gave the BSDA form signed to broker while opening the account. Now How do I confirm if it is BSDA or not ?

  19. Hi, I am holding the Demat account from last 7 years. Recently I heard about this BSDA. Last year my holding value may crossed 2 lakhs. But at present my holding value is one thousand only (In this FY). Can I convert my account to BSDA now. Please suggest.

  20. Can I use One BSDA account with two trading account And please how it is differ from DPs account. Thanks in advance….

  21. Can you recommend any online trading service provider to start with BSDA demat. It seems all brokerages are reluctant to offer BSDA & charge higher brokerage for BSDA accounts.

    1. Kumar-If I personally name one or two then it is treated as if I am promoting those DPs. But it is your right to opt for BSDA, if they are reluctant to open such account then let them give in writing to raise the issue with regulators.

  22. hai basavaraj, i took a HDFC BSDA account opening form. It is showing charges like “demeterialisation Rs 40, remeterialisation Rs 40, Pledge Rs 25, transation .04% etc etc. I am a new beginner planning to buy some share and forget it for a long time. Which DP will be the cheapest for me? To my surprise some other DP’s have told me that they are not aware about BSDA and they don’t have it yet. Pls guide

    1. Vince-I think they are offering you the default higher charges. Bargain with them and I think they will reduce brokerage. Also from your cost structure sharing I am smelling that it is a normal HDFC Demat account rather than BSDA. Be sure and check twice. When you are opting for BSDA account, in my view the charges are already lowest as this account is meant for small volume traders. So if you are sure about HDFC offering you BSDA then go ahead. Yes plenty of them don’t know about this as charges are low they stay away from offering you 🙂

    1. Get in touch with your DP where you have your normal Demat account. They will convert your normal demat account to a BSDA. If you dont have any demat account as yet, you can approach any of the leading DPs like ShareKhan, IndiaBulls, or even your banks like HDFC, ICICI, SBI, etc.

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