If you have a bank account and wish to open a Demat account, it's easy to do so and you may not have to pay any charges for starting one. Several banks and finance companies like Motilal Oswal offer Demat accounts in which to hold your stocks and other assets. However, certain charges associated with a Demat account may put you off starting one. A way to avoid much of the cost of a Demat account is to open a BSDA account.
A unique type of Demat account was introduced by the Securities and Exchange board of India (SEBI) in 2012. This is called a BSDA or Basic Services Demat Account. It requires you to invest much less than you would in a regular Demat account, serving the purpose of small investors who may be vigorous investors. Furthermore, it reduces the monetary burden on investors who wish to hold a Demat account with relatively small portfolios, with limits of Rs. 2 lakhs and under.
Finance companies like Motilal Oswal offer you Demat and trading accounts with low fees and charges. You can easily open an online trading account. However, if you wish to cut your expenses all the more, then a BSDA Demat Account is a good option. Here are benefits you should know about before knowing how to convert to one:
In the event you are paying heavy DP charges on your regular Demat account, you may want to switch to a Basic Service Demat Account to mitigate expenses. You can request your DP to change the status of your account and this happens under certain conditions. Below, you can find some pointers on how to tackle this:
If you trade heavily, then you may end up paying bulky fees and charges per transaction when you trade. At Motilal Oswal, you will find nominal fees levied for brokerage and regular Demat account charges.
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