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.
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View Comments
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
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).
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.
Arunachalam-Non-BSDA offers you charges and rest features may be same.
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.
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.
thanks i checked the details.
other thing wanted to ask is what parameters are most important to evaluate a mutual fund.
Vinamra-I listed all parameters in my post "Top 10 Best SIP Mutual Funds to invest in India in 2016".
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...
It's happening for me also. Is this a fraud from Sharekhan?
Harsha-If it is so, then you can complain with SEBI.
Shankar-How for Rs.100 purchase charges will be Rs.49??
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?
Sandesh-I am not sure of why they are saying so. But recently there are no such changes.
Thanks!
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
Manoj-Now tracking is easy. Do at your own risk.
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.
Sanjiv-Rules not at all changed. But they changed their mind to earn another Rs.400 from you.
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,
Ritesh-Yes as of now it is allowed.
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.
Hoshang-Check the above eligibility at first.
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
Atul-Yes, you can consider.