Markets regulator SEBI has decided that all demat accounts would be
considered as a basic services demat account (BSDA) unless the demat
account holder specifically opts to continue with a regular demat
account.
This decision reverses the SEBI circular of August 27, 2012, which
allowed existing eligible demat
account holders to convert their regular
demat accounts into BSDAs. Depository Participants (DPs) have to assess
the eligibility of the beneficial owner (demat account holder) at the
end of the current billing cycle and convert eligible demat accounts
into BSDAs. Finding few takers after the BSDA was introduced and the
conversion option in place, SEBI took this decision with the objective
of achieving wider financial inclusion and to encourage holding of demat
accounts.
The SEBI circular of August 2012 allowed only one demat account for
individuals opting for BSDA, across all depositories where they are the
sole or the first holder. The maximum value of securities in a BSDA
should not exceed ₹2 lakh and at any point in time annual maintenance
charges would not be levied for value of securities held in a BSDA up to
₹50,000. Anything above ₹50,000 and up to ₹2 lakh would attract annual
maintenance charges of ₹100.
Depositories have to amend their bylaws to implement the SEBI circular
and include the implementation status in their monthly reports.
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