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Account Opening

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

The Basic Services Demat Account (BSDA) was introduced by SEBI in 2012 to encourage retail participation in the stock markets. As per the latest SEBI circular (WEB), starting 1st September 2024, a demat account will automatically be categorised as a BSDA if the following conditions are met:

  • Only 1 demat is registered with the PAN across brokers.
  • The value of the holdings in the demat account is less than ₹10,00,000.

The Account Maintenance Charge (AMC) for BSDA is charged based on the value of the holdings. The table below compares the maximum value of holdings under the old and new BSDA guidelines:

Slab Before 1st September 2024 After 1st September 2024 AMC
1 Up to ₹50,000 Up to ₹4,00,000 ₹0
2 ₹50,001 to ₹2,00,000 ₹4,00,000 to ₹10,00,000 ₹25 per quarter + 18% GST
3 Above ₹2,00,000 Above ₹10,00,000 ₹75 per quarter + 18% GST

AMC is charged quarterly, i.e., every 91 days starting from the account opening date, and is deducted from the Zerodha account. These charges are reflected in the funds statement, which can be accessed at console.zerodha.com/funds/statement.

Example scenario

  • AMC calculation from 1st September 2024:
    1. A Zerodha account was opened on September 5, 2024. The highest value of the holdings for the first quarter (ending January 5) was ₹4,50,000. The AMC charged for the first quarter would be ₹25 as per slab 2 and will be due on April 5.
    2. The highest value of the holdings for the 2nd quarter was ₹12,50,000. 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 ₹7,00,000. As per slab 2, the AMC charged for the quarter would be ₹25.
  • AMC calculation till 31st August 2024:
    1. A Zerodha account was opened on January 5, 2022. The highest value of the holdings for the first quarter (ending April 5) was ₹1,50,000. The AMC charged for the first quarter will be ₹25 as per slab 2 and will be due on April 5.
    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 third quarter was ₹1,00,000. As per slab 2, the AMC charged for the quarter would be ₹25.

To learn how to open a trading and demat account online for free, see How to open a Zerodha demat account online?

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