All You Need to Know About a Basic Services Demat Account

The Basic Services Demat Account (BSDA account) is also referred to as a ‘no-frills’ account. It is nothing but a category of a Demat account that an individual can open if certain criteria is met. When you open a Basic Services Demat Account it reduces the maintenance cost of securities and is great for small investors.

Since 70% to 80% of demat holders do not trade actively, they still have to pay quite a big amount for maintaining their accounts. This discourages individuals to open a demat account. So, in order, to encourage the small investors to open an account, the SEBI has come up with opening of a Basic Services Demat Account (BSDA).

Most investors are not regular investors in bonds, stocks, ETFs, etc and hence find maintenance of a demat account relatively expensive. It becomes quite a costly affair, especially when you invest a really small amount in stocks and you still need to pay the annual maintenance charges which range between Rs. 300 and Rs. 750; regardless of the amount you have in your online demat account.



Eligibility Criteria             

Any person who already has a demat account or wishes to open one where he/she is the first or sole holder of the account are eligible for a BSDA. However, this can be done only if the value of securities in the demat account does not go above Rs. 2 lakh.

A person can have only one BSDA account in his/her name across all depositaries. You can choose to either select this option when opening a new account or convert your existing demat account.


The slab basis annual maintenance charges for a BSDA account is as follows:

  • For values up to Rs. 50,000, the investor does not have to pay any annual maintenance charges (AMC).
  • For values from Rs. 50,001 to Rs. 200,000, there will be an annual maintenance charge of Rs. 100.

However, if at any point in time the value of holding exceeds the criteria of 200,000, then you will be charged the regular rate that is charged to other customers.

Services offered with BSDA

When you use BSDA, you can still invest in IPOs, bonds, gold ETFS and stocks. You can also use all the basic services, trading tools and softwares, but the only difference in the services offered is with regards to statements.

Electronic statements are free of charge and you wouldn’t have to pay for them. If you need physical statements, the Depository Participant (DP) will give you two statements free of charge during your billing cycle. But if you require additional statements you will have to pay a fee, not more than Rs. 25.

So, if you already have a demat account, you can ask your DP to convert your account into a Basic Services Demat Account. Your DP wouldn’t tell you about it, so you need to ask for it.