InvestorQ : Can I open basic services demat account with any broker
Rashi Mehra made post

Can I open basic services demat account with any broker

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Abhi Yadav answered.
2 years ago

The idea of a Basic Services Demat Account (BSDA) was implemented by SEBI to reduce the cost load on small investors and also to spread the equity cult and encourage more retail investors to participate in the equity markets. Remember, you open a BSDA account and your demat account with a DP and not with a broker. That your broker and DP are the same is only incidental. Here are a few basic facts that you need to know about BSDA…
BSDA provides limited services at a reduced cost and is only open to retail investors. There is a value limit for the BSDA and your total value of holdings cannot be more than Rs.2 lakh at any point of time to qualify for a BSDA. The condition is that you can have only 1 BSDA account across all the DPs put together. Remember BSDA accounts are meant for those who don’t want to pay high charges due to the high cost of maintaining a demat account. The BSDA account has a very nominal AMC and even that AMC is waived if the value of the holdings is less than Rs.50,000.