A Basic Service Demat Account or a BSDA Account is a distinctive Demat account that SEBI (Securities Exchange Board of India) launched in 2012. Focusing on the small investor with a cap on maximal holdings, a BSDA account can only be opened if your holdings add up to a maximum of Rs. 2 lakhs. If you have different portfolios over depositories, amounting to Rs. 2 lakhs each, you cannot open a BSDA account. If your holdings are valued at above the maximum amount of Rs. 2 lakhs, a normal Demat account, and not a BSDA Demat Account will apply to you.
Features and Benefits of a BSDA Account
A Basic Service Demat Account holds many benefits that are part of its unique features, catering to the small-time investor. Some key ones are mentioned here:
Eligibility Criteria for BSDA Accounts
When you are clear about BSDA Demat Account meaning, you can consider the eligibility criteria, outlined by SEBI, that you must fulfil to open one. These are listed below:
Other Aspects to Know
While charges on a BSDA Account are kept low, they do exist. You should now about these:
For small investors who are sure of not increasing their portfolios, BSDA Demat Accounts are a boon. However, your investment may tend to grow and it's a good idea to open a Demat Account with nominal charges like the one from ace broker Motilal Oswal.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account
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