Basic Services Demat Account (BSDA) Documentation

1. Introduction

• Purpose: The Basic Services Demat Account (BSDA) offers a cost-effective solution for investors with low trading activity, providing them a way to store securities electronically with reduced annual maintenance charges (AMC) compared to regular Demat accounts.

• Benefits: BSDA is ideal for small investors due to its reduced fees, secure electronic format for holding securities, and simplicity in managing investments.

2. Eligibility and Application Requirements

• Eligibility Criteria:

  • Must be an individual resident investor.

  • Allowed only one BSDA per person across all depositories.

• Required Documentation:

  • Proof of identity (e.g., Aadhaar card, PAN card, Passport).

  • Proof of address (e.g., utility bill, bank statement).

  • PAN card (mandatory for opening a Demat account in India).

• Application Process: Explain how to apply for a BSDA, either through an online application or at the depository participant (DP) branch.

3. Key Features of BSDA

• Reduced Annual Maintenance Charges (AMC):

  • No AMC for holding values up to ₹50,000.

  • Lowered AMC for holding values between ₹50,001 and ₹2 lakh.

• Holding Limits: The account will be converted to a regular Demat account if the holding value exceeds ₹2 lakh.