Updated Jun 5, 2024 | 10:52 PM IST
In 2012, Sebi came up with a low cost format of the demat account called BSDA (Basic service demat account), which is available to the folks who are not very well off in terms of investments.
A demat account is basically a bank account for equities and debts. (Image: Shutterstock/ET NOW News)
Sebi, the regulatory body for the stock market, is looking to facilitate small investors to park funds in their demat accounts in a cheaper way. A demat account is basically a bank account for equities and debts. In 2012, Sebi came up with a low cost format of the demat account called BSDA (Basic service demat account), which is available to the folks who are not very well off in terms of investments.
Currently, an individual can hold a maximum of Rs 2 lakh in shares or debts in a BSDA. Sebi is considering to allow investors to hold up to Rs 10 lakh in their BSDA. The BSDA of an investor crossing the Rs 10 lakh limit will be upgraded to an ordinary account (costly).
Sebi also wants to make the rules clearer:
- You can only have one BSDA.
- You can’t be charged for online statements.
- If you want a printed statement, it will cost Rs 25.
There will be no charges for an individual holding up to Rs 4 lakh in his/her BSDA. For Rs 4 lakh to Rs 10 lakh, the charges will be Rs 100 annually.
The Sebi proposal invites comments till June 26.
Shares Directly in Demat Account
In a major move which will be liked by the investors, the market regulator Securities and Exchange Board of India on Wednesday announced payout of securities in client’s demat account.
SEBI, through a circular issued on Wednesday, announced payout of shares in client’s demat account. “This shall prevent misuse of client securities and ensure that the stock broker keeps the securities of the client or clients in segregation so that the said client securities are not available for misuse,” it said.
At present, the received securities in the payout are pooled account with the broker and thereafter the same are credited to respective client demat accounts. The regulator said that the payout to client account was already issued on voluntary basis on February 1, 2001.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
