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What is a Basic Service DEMAT Account?

A BSDA is a DEMAT account which is intended for small investors who don’t or can’t invest regularly in stocks, bonds, ETFs, mutual funds, etc. The BSDA can be opened and maintained at a reduced cost.

SEBI felt that majority of DEMAT account holders don’t really use their accounts as much as they should and still end up paying high maintenance fees. So, to help out such investors they came up with this account type.

A criterion for BSDA is that you need to have only one single DEMAT account i.e the BSDA needs to be your only DEMAT account across all depositories.

The Annual Maintenance Charges (AMC) structure for BSDA shall be on a slab basis on the value of holding illustrated below:
Security SlabAMC Charges
DebtUpto Rs 1,00,000No AMC

Rs 1,00,000 to Rs 2,00,000Rs 100
Non-DebtUpto Rs 50,000

Rs 50,000 to Rs 2,00,000
Rs 100
If you hold a combination of both debt and non-debt holdings, you can remain exempt from AMC charge upto Rs 1,50,000(Debt- Rs 1,00,000; Non-Debt- Rs 50,000) or pay Rs 100 upto Rs 4,00,000((Debt- Rs 2,00,000; Non-Debt- Rs 2,00,000)

The brokerage and taxes remain the same for BSDA and regular accounts.

The value of holding shall be determined by the DPs (a broker in this case) 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.

For more information, you can refer to the SEBI notification.