InvestorQ : I recently read that Sebi has revised charges related to basic services demat accounts. What does this mean?
Ishita Jain made post

I recently read that Sebi has revised charges related to basic services demat accounts. What does this mean?

Answer
user profile image
Anusha Savla answered.
1 year ago


Market regulator Securities and Exchange Board of India (SEBI), recently announced that it will revise annual maintenance charges that are levied on debt securities held through basic services demat accounts. This revision will be effective June 1, 2019.

The SEBI’s move is expected to boost participation of retail investors in the debt market. A basic services demat account (BSDA) offers limited services at a lower cost for retail investors. Currently, an annual maintenance charge of Rs 100 is uniformly being levied on securities worth over Rs 50,000 and up to Rs 2 lakh irrespective of type of holding.

Please note, there is no such charge for holdings valued up to Rs 50,000.

New charges:

- For debt securities worth up to Rs 1 lakh held through BSDA, there would no annual maintenance charge

- A maximum charge of Rs 100 would be levied if the value of holdings is above Rs 1 lakh and up to Rs 2 lakh.