Basic demat account limit has been increased by SEBI to Rs 10 lakh from the current Rs 2 lakh.
To encourage more small investors to participate in the securities market, the limit has been raised.
The revised rules will take effect on September 1.
The Basic Services Demat Account (BSDA) value limit on stocks has been increased to encourage small investors to engage in the stock market.
A more basic form of a standard demat account is called a basic service demat account (BSDA).
In order to lessen the financial burden of demat fees on investors with small holdings, SEBI launched this facility in 2012.
According to SEBI, a person is qualified for a BSDA provided they satisfy specific requirements, like having only one demat account as the primary holder and just one BSDA in their name across all depositories.
A BSDA will have no annual maintenance fees for portfolio values up to Rs 4 lakh.
The fees would be Rs 100 for portfolio values exceeding Rs 4 lakh and up to Rs 10 lakh.
The BSDA account ought to be automatically transformed into a conventional demat account if the value of the portfolio is above Rs 10 lakh.
Such account holders would receive free of cost electronic statements.
The cost of a physical statement can be Rs 25 per statement.
