To increase participation of small investors in the stock market, market regulator SEBI on Friday increased the demat utility account limit from Rs 2 lakh to Rs 10 lakh. The Securities and Exchange Board of India (SEBI) has said that the new guidelines will be implemented from September 1. Let us tell you that increasing the value limit of securities held in the Basic Service Demat Account (BSDA) will encourage small investors to trade in the stock market and ensure their financial inclusion. BSDA is a more basic addition to the normal demat account. Market regulator SEBI had introduced the BSDA mechanism in 2012 to reduce the burden of demat charges on investors with small portfolios.
What did SEBI say?
SEBI said that if a person maintains only one demat account as sole or first holder, he has only one account in his name in all depositories and the value of securities held in that account does not exceed Rs 10 lakh at any time. You are eligible to maintain a BSDA account. Before this change, to be eligible for BSDA, credit securities up to Rs 2 lakh and non-credit securities up to Rs 2 lakh were allowed in a single demat account.
Investors will get this benefit.
SEBI said there will be no annual maintenance fee for BDSA if the value of the portfolio is up to Rs 4 lakh, while if the value of the portfolio is more than Rs 4 lakh and up to Rs 10 lakh, a charge of 100 rupees. paid. However, if the value of the portfolio exceeds Rs 10 lakh, the BDSA should automatically convert into a regular demat account. The regulator said the e-statements will be provided to BDSA account holders free of cost. With this, the physical details of the account can be obtained by paying Rs 25.
