Basic Services Demat Account (BSDA)
Here’s a comprehensive Basic Services Demat Account (BSDA) Documentation guide to help users understand the account's features, eligibility, benefits, and usage policies.
Basic Services Demat Account (BSDA) Documentation
1. Introduction
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Purpose of the BSDA: The Basic Services Demat Account (BSDA) is designed for investors with low trading volumes, offering reduced charges compared to a regular Demat account. It provides affordable access to equity investments and holds securities electronically.
2. Eligibility and Application Requirements
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Eligibility Criteria: Outline who qualifies for a BSDA, including:
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Must be a resident individual.
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Can hold only one BSDA across all depositories.
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Required Documentation: List the documents needed for BSDA application:
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Proof of identity (Aadhaar, PAN card, Passport, etc.)
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Proof of address (utility bills, bank statements, etc.)
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PAN card (mandatory for Demat accounts in India).
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3. Key Features of BSDA
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Reduced Annual Maintenance Charges (AMC): Explain the maintenance charges for BSDA, which are tiered based on holding value. For example:
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No AMC for holdings up to ₹50,000.
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Lowered AMC for holdings between ₹50,001 and ₹2 lakh.
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Limitations on Holdings: Explain the holding limits. BSDA status and its benefits apply only if the value of holdings remains within the prescribed limits.