A Basic Services Demat Account (BSDA) was started by SEBI to promote financial inclusion by encouraging small investors to familiarize themselves with Demat accounts without any Annual Maintenance Charges (AMC). However, a BSDA can be opened only if you have a single Demat account and your holding value should be less than Rs. 50,000/- to avail free service without recurring maintenance charges. If your holdings are above Rs. 50,000 but below Rs. 2,00,000, then an AMC of Rs. 100+GST (Annually) will be levied. To learn more about BSDA, read this SEBI circular.
To open a BSDA account, While filling up the Demat form you will have to mention as BSDA Demat Account to avail the BSDA facility. As on the billing cycle of AMC, if the total portfolio value in an account falls below the BSDA limit and if your account qualifies to be a BSDA account, the account is automatically converted to BSDA, and levies as applicable to a BSDA are charged.
However, all clients who have opened their Demat accounts with us on or before 31st March 2020 will be continued with zero AMC. To open an account with us, click here.
Note: Once a regular Demat account is opened, it cannot be converted to BSDA account.