SEBI asks DPs to provide basic services demat account for small investors
Moneylife Digital Team 27 August 2012

All depository participants have been asked by SEBI to provide basic services demat account with limited services and reduced cost to retail investors

Market regulator Securities and Exchange Board of India (SEBI) has asked all depository participants (DPs) to provide a “basic services demat account” (BSDA) with limited services and reduced cost to small, retail investors.

 

“An individual can have only one BSDA in his or name across all DPs where the value of securities would be capped at Rs2 lakh at any point of time,” SEBI said in a release.

 

The Annual Maintenance Charges (AMC) structure for the BSDA shall be on a slab basis—if the value of holding is (1) up to Rs50,000 there will be NIL AMC and (2) for value of holding from Rs50,001 to Rs2 lakh AMC will be up to Rs100.

 

“The value of the holding shall be determined by the DPs on the basis of the daily closing price or NAV of the securities or units of mutual funds. If the value of holding in such BSDA exceeds the prescribed criteria at any date, the DPs may levy charges as applicable to regular accounts (non-BSDA) from that date onwards," SEBI said.

 

The BSDA account holder can get an electronic statement free of cost. He can also have two physical statements during the billing cycle free of cost, but would have to pay up to Rs25 for additional statements in physical format.

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