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<br>A BSDA is a demat account that is intended for small investors who don't or can't invest regularly in stocks, bonds, ETFs, mutual funds, etc. The BSDA can be opened and maintained at a reduced cost.
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Basic Service Demat Account About Basic Service DematAccount What are the Requirements to Open a Basic Service Demat Account?
About Basic Service Demat Account • In 2012, the Securities & Exchange Board of India (SEBI) introduced the BSDA, or Basic Service Demat Account, for qualified Indian citizens. Even if they had little to no prior knowledge of stocks, mutual funds, and ETFs, small investors were encouraged to access the market and trade or invest thanks to the account that SEBI specifically developed. • Although various maintenance fees are involved, the benefits of a BSDA account are practically the same as those of a regular Demat account. In contrast to a conventional Demat account, a simple Demat account user does not have to pay any fees on assets under INR 50,000. If your holding amount is between INR 50,000 and INR 2 lakh, a nominal maintenance fee of INR 100 must be paid yearly.
What are the Requirements to Open a Basic Service Demat Account? Although while a Demat account with few services can be remarkably cost-effective, opening one requires that the investor first be eligible. The following is a list of the qualifications for BSDA Demat accounts: 1. The investor must act alone to open the account. 2. The investor must be opening their first Demat account. 3. A shareholder is limited to keeping one BSDA Demat account. 4. The gross value of BSDA shares (principal plus profit) cannot exceed INR 2 lakh in a fiscal year. 5. The investor cannot be the primary account holder if the investor is a joint holder of any Demat account.
