SEBI has proposed a set of important changes to the Basic Service Demat Account (BSDA) rules — moves that are likely to benefit small, retail investors while clarifying who qualifies and how much they’re charged. Here’s a breakdown of what has changed and what it means for demat account holders.
Key Changes to BSDA Rules
- Value Threshold Raised
- SEBI has raised the BSDA eligibility cap to ₹10 lakh for combined holdings (both debt and non-debt securities).
- This is a big jump from the earlier limit of ₹2 lakh.
- As of March 2025, CDSL’s rules reflect this new limit: BSDA is available if holdings don’t exceed ₹10 lakh.
- Account & Service Rules
- An individual can have only one BSDA across all depositories.
- Electronic holding statements must be sent for free, while physical statements (if opted for) can be charged up to ₹25 per statement.
- Depository participants (DPs) must offer BSDA to eligible accounts; but if you prefer a regular demat account, you can explicitly opt out via email.
What This Means for Small Investors
- Lower Costs
If you have a small-to-mid-sized portfolio (up to ₹10 lakh), you’ll likely pay much less (or no) AMC. This can significantly reduce your annual costs. - Better Value Calculation
By excluding delisted securities and certain bonds, SEBI ensures your BSDA eligibility is based on active holdings — not “dead weight” in your account. - Smoother Maintenance
With free electronic statements, managing your demat becomes simpler. Physical statements are also cheaper than before. - Automatic Conversion Risk
If your holdings cross ₹10 lakh, your account will automatically be converted to a regular demat account, which could mean higher charges.
The revised BSDA rules are a clear win for retail investors with modest portfolios. SEBI’s changes make demat account maintenance more affordable, inclusive, and aligned with actual investable assets. If you qualify, now might be a good time to review your demat status and take advantage of these cost savings.
Leave A Comment