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

September 2, 2012by Basavaraj Tonagatti

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.

Eligibility-

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.

Charges-

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.

 

Category: Investment PlanningTag: Basic Services Demat Account, BSDA, no-frills demat account

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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Reader Interactions

Comments

  1. Pradeep Sohoni

    August 31, 2017 at 12:19 AM

    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

    Reply
    • Basavaraj Tonagatti

      August 31, 2017 at 5:39 AM

      Pradeep-Once your limit crossed Rs.2 lakh limit, then you are not eligible to hold BSDA account (even though you sell or your reduce your holding below the specified limit).

      Reply
  2. Arunachalam

    October 11, 2016 at 1:56 PM

    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.

    Reply
    • Basavaraj Tonagatti

      October 11, 2016 at 2:24 PM

      Arunachalam-Non-BSDA offers you charges and rest features may be same.

      Reply
  3. Vinamra Kumar

    October 4, 2016 at 8:25 PM

    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 Direct.com. 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.

    Reply
    • Basavaraj Tonagatti

      October 4, 2016 at 8:55 PM

      Vinamra-Refer the eligibility criteria for BSDA. It clearly say that one can have only ONE BSDA but can have one more regular demat account.

      Reply
      • Vinamra Kumar

        October 4, 2016 at 8:59 PM

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

        Reply
        • Basavaraj Tonagatti

          October 4, 2016 at 9:00 PM

          Vinamra-I listed all parameters in my post “Top 10 Best SIP Mutual Funds to invest in India in 2016“.

          Reply
  4. shankar

    September 27, 2016 at 12:23 PM

    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…

    Reply
    • Basavaraj Tonagatti

      September 27, 2016 at 1:48 PM

      Shankar-How for Rs.100 purchase charges will be Rs.49??

      Reply
    • Harsha

      October 10, 2016 at 11:19 AM

      It’s happening for me also. Is this a fraud from Sharekhan?

      Reply
      • Basavaraj Tonagatti

        October 10, 2016 at 7:47 PM

        Harsha-If it is so, then you can complain with SEBI.

        Reply
  5. Sandesh Nikharge

    August 25, 2016 at 7:59 PM

    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?

    Reply
    • Basavaraj Tonagatti

      August 25, 2016 at 9:12 PM

      Sandesh-I am not sure of why they are saying so. But recently there are no such changes.

      Reply
      • Sandesh

        August 26, 2016 at 1:35 PM

        Thanks!

        Reply
  6. Manoj

    July 28, 2016 at 3:17 PM

    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

    Reply
    • Basavaraj Tonagatti

      July 28, 2016 at 9:58 PM

      Manoj-Now tracking is easy. Do at your own risk.

      Reply
  7. Sanjiv Saw

    May 30, 2016 at 5:19 PM

    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.

    Reply
    • Basavaraj Tonagatti

      May 30, 2016 at 6:18 PM

      Sanjiv-Rules not at all changed. But they changed their mind to earn another Rs.400 from you.

      Reply
  8. Ritesh Jain

    May 25, 2016 at 6:57 PM

    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?

    Regards,

    Reply
    • Basavaraj Tonagatti

      May 25, 2016 at 7:04 PM

      Ritesh-Yes as of now it is allowed.

      Reply
  9. Hoshang Billimoria

    March 22, 2016 at 9:25 PM

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

    Thanks.

    Reply
    • Basavaraj Tonagatti

      March 22, 2016 at 9:36 PM

      Hoshang-Check the above eligibility at first.

      Reply
  10. Atul

    January 20, 2016 at 7:31 PM

    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

    Reply
    • Basavaraj Tonagatti

      January 20, 2016 at 10:05 PM

      Atul-Yes, you can consider.

      Reply
  11. Sarat U

    December 29, 2015 at 11:08 AM

    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?

    Reply
    • Basavaraj Tonagatti

      December 29, 2015 at 11:13 AM

      Sarat-You have to give application to Sharekhan to convert from normal to BSDA. Otherwise, they charge you at normal account.

      Reply
      • Sarat U

        December 29, 2015 at 11:16 AM

        Thanks a lot Basavraj. I wl do it.

        Reply
  12. Nikhil

    December 25, 2015 at 11:55 AM

    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?

    Reply
    • Basavaraj Tonagatti

      December 25, 2015 at 2:02 PM

      Nikhil-YES.

      Reply
  13. mohsin khan

    June 9, 2015 at 2:00 AM

    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 ????

    Reply
    • Basavaraj Tonagatti

      June 9, 2015 at 7:20 PM

      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).

      Reply
  14. Babu

    May 15, 2015 at 1:30 PM

    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.

    Reply
    • Basavaraj Tonagatti

      May 16, 2015 at 12:17 PM

      Babu-They are wrong. They saying so as they not earning anything from you. No one will say DON’T TRADE. Let them show the rule book.

      Reply
  15. Ambar

    May 11, 2015 at 12:20 PM

    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.

    Reply
    • Basavaraj Tonagatti

      May 11, 2015 at 2:24 PM

      Ambar-You can do online transactions in BSDA Account.

      Reply
  16. SALEEM

    May 6, 2015 at 12:19 PM

    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.

    Reply
    • Basavaraj Tonagatti

      May 7, 2015 at 9:07 AM

      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.

      Reply
  17. pushkar

    April 27, 2015 at 5:53 PM

    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?

    Reply
    • Basavaraj Tonagatti

      April 27, 2015 at 6:52 PM

      Pushkar-Your account treated as normal demat account. You again can’t roll back to BSDA.

      Reply
  18. Dinesh Bansal

    January 13, 2015 at 9:26 PM

    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 ?

    Reply
    • Basavaraj Tonagatti

      January 13, 2015 at 11:07 PM

      Dinesh-Please contact your broker for the same. I think it will be mentioned in your welcome kit.

      Reply
  19. venkat

    December 21, 2014 at 11:14 AM

    are the brokerage charges lower for a bsda? can we do intraday trading through bsda?

    Reply
    • Basavaraj Tonagatti

      December 21, 2014 at 8:07 PM

      Venkat-Forget about charges, but limit is Rs.2,00,000. So do you feel it is worth for intraday??

      Reply
  20. Thomas

    July 3, 2014 at 12:46 PM

    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.

    Reply
    • Basavaraj Tonagatti

      July 3, 2014 at 3:11 PM

      Thomas-Please read the eligibility condition no.4 once again.

      Reply
  21. VISWA PRASAD

    June 21, 2014 at 1:41 PM

    sir, I have two demat accounts with my name(single holder) can i opt one demat account bsda

    Reply
    • Basavaraj Tonagatti

      June 21, 2014 at 5:30 PM

      Viswa-Please read eligibility condition number 2.

      Reply
  22. saurabh

    May 24, 2014 at 9:23 PM

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

    Reply
    • Basavaraj Tonagatti

      May 25, 2014 at 11:21 AM

      Saurabh-As name itself suggest, it is meant for low volume traders.

      Reply
  23. Kumar

    March 26, 2014 at 6:55 PM

    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.

    Reply
    • Basavaraj Tonagatti

      March 26, 2014 at 7:05 PM

      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.

      Reply
  24. veluvali

    January 18, 2014 at 5:20 PM

    hi Sir
    What is the success rate of BSDA in terms of more accounts opening?

    Reply
    • Basavaraj Tonagatti

      January 18, 2014 at 8:35 PM

      Veluvali-I don’t have data to share this.

      Reply
  25. Vince

    October 1, 2013 at 6:32 AM

    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

    Reply
    • Basavaraj Tonagatti

      October 1, 2013 at 9:04 AM

      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 🙂

      Reply
  26. ajit kumar pateriya

    August 17, 2013 at 6:22 PM

    IS limit of 2lakh include SIP amount investing monthly /

    Reply
    • Basavaraj Tonagatti

      August 17, 2013 at 6:55 PM

      Ajit-Yes it includes all your investment using that Demat Account.

      Reply
  27. raju

    February 2, 2013 at 9:06 AM

    i want opan bsda what can i do

    Reply
    • Piyu Yawalkar-Shahasane

      February 27, 2013 at 11:20 AM

      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.

      Reply
      • BasuNivesh

        February 27, 2013 at 11:25 AM

        Priya-Thanks for your reply to the above doubt. I totally missed his doubt to respond. Sorry Raju

        Reply
  28. raju

    February 2, 2013 at 9:04 AM

    how to approch bsda

    Reply
    • BasuNivesh

      February 2, 2013 at 9:42 AM

      Raju-BSDA is account type. So the same procedure applies like what you do to open normal demat account.

      Reply
  29. manoj nayak

    October 21, 2012 at 6:15 PM

    great news

    Reply
    • BasuNivesh

      October 27, 2012 at 4:17 PM

      Manoj-Thanks for comment 🙂

      Reply
  30. uday

    September 2, 2012 at 1:28 PM

    great info.

    Reply
    • BasuNivesh

      September 2, 2012 at 4:22 PM

      Uday-Thanks 🙂

      Reply

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