• The Basic Service Demat Account (BSDA) is a type of demat account introduced by SEBI to promote financial inclusion, particularly for retail investors, by providing them with an affordable way to hold and trade securities.
• As per the recent SEBI guidelines, the threshold for holding a BSDA has been increased from Rs. 2 lakh to Rs. 5 lakh. This means that investors with up to Rs. 5 lakh worth of securities can now maintain a BSDA without incurring additional charges typically associated with regular demat accounts.
• The change aims to make demat accounts more accessible for a larger number of retail investors while encouraging more people to invest in the stock market and hold their investments electronically.
Study Notes
Category
