A Basic Services Demat Account (BSDA) is a low-cost Demat account designed for small investors. It helps you save money on Annual Maintenance Charges (AMC) if your total holdings stay within SEBI’s prescribed limits.
With a BSDA, you enjoy the same safety and convenience of a normal Demat account, but at a much lower cost making it ideal for beginners or investors who hold smaller portfolios.
Who can open a BSDA?
You are eligible for a BSDA if:
- You are the sole or first holder of the Demat account.
- You do not hold more than one Demat account across all depositories (NSDL/CDSL).
- Your total Demat holdings are up to ₹10 lakh.
- Your account is not jointly held with another person.
AMC (Annual Maintenance Charges) for a BSDA
| Value of Holdings in Demat Account | Maximum AMC |
| Up to ₹4 lakhs | NIL |
| More than ₹4 lakhs up to ₹10 lakhs | ₹100 |
| More than ₹10 lakhs | Not a BSDA – Regular AMC applies |
Simple realistic example to understand BSDA
Riya wants to start investing, so she opens a Demat account linked with one broker to buy and hold shares.
She does not have any other Demat account with any broker or depository. Since this is her only Demat account and she is the sole holder, she is eligible for BSDA.
Year 1:
She buys a few shares.
Total value of her holdings = ₹3.5 lakhs
She pays zero AMC because it is below ₹4 lakhs.
Year 2:
She adds more stocks and her portfolio grows.
Total value = ₹8 lakhs
She pays only ₹100 per year as AMC.
Year 3:
She invests more and the market performs well.
Total value crosses ₹10 lakhs
Now her account is treated as a regular Demat account, and normal AMC charges apply.
Note: If she opens more than one Demat account at any point of time, her BSDA status will be discontinued and it will be converted into a regular Demat account.
Easy & quick
Leave A Comment?