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What is a Basic Services Demat Account (BSDA) and how can one be opened at Zerodha?

A Basic Services Demat Account (BSDA) is a demat account intended for small investors who do not or cannot regularly invest in stocks, bonds, ETFs, mutual funds, etc. The BSDA can be maintained at a reduced cost.

A demat account is automatically considered BSDA if the following conditions are met:

  • If only 1 demat is registered with that PAN across brokers.
  • The value of the holdings in the demat account is less than ₹2,00,000.

AMC is charged per quarter, i.e., every 90 days starting from the account opening date, and is deducted from the Zerodha account. AMC is posted on the funds statement, and the amount can be seen by visiting console.zerodha.com/funds/statement.

The AMC for a BSDA account is charged based on the value of the holdings and is as follows:

Slab Highest Holding Value AMC (exclusive of GST)
1 Up to ₹50,000 ₹0
2 ₹50,001 to ₹2,00,000 ₹25 per quarter
3 Above ₹2,00,000 ₹75 per quarter

Example scenario

  1. A Zerodha account was opened on the 5th of January, 2022. The highest value of the holdings for the 1st quarter (ending 5th April) was ₹1,50,000. The AMC charged for the 1st quarter would be ₹25 as per slab 2 and will be due on the 5th of April.
  2. The highest value of the holdings for the 2nd quarter was ₹2,50,000. The AMC charged for the quarter would be ₹75 as per slab 3.
  3. The highest value of the holdings for the 3rd quarter was ₹1,00,000. The AMC charged for the quarter would be ₹25 as per slab 2.

If AMC is charged when there are insufficient funds in the Zerodha account, the account balance will become negative. A negative balance of up to ₹300 will not be displayed on Kite. However, this can be viewed on Console by visiting console.zerodha.com/funds/statement.