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BSDA

Basic Services Demat Account (BSDA) is a demat account type for small investors. It has lower charges in comparison to the regular demat account.

Basic Services Demat Account (BSDA) is a demat account type for small investors. It has lower charges in comparison to the regular demat account.

The Demat AMC (Annual Maintenance charges) is free in the BSDA demat account if the holdings are less than Rs 50,000. The regular demat account has an AMC of around Rs 300 per year which you have to pay irrespective of the uses of the demat account.

A demat account holds shares, mutual funds, and other securities in electronic format. It is like a bank account but instead of holding money, it holds shares or mutual funds. Brokers or banks charge Demat Account Annual Maintenence Charges (AMC) of around Rs 400 per year irrespective to the uses of the account.

The BSDA account is not very useful because:

  1. As soon as the holding increases to Rs 2,00,000, the account is considered a regular account.
  2. Brokers charge higher demat transaction fees in the BSDA account.
  3. Many stockbrokers are now offering lifetime Rs 0 AMC Regular Demat account. This makes the BSDA account more expensive than a regular demat account.
Know more about Demat Account...

BSDA vs Regular Demat Account

BSDA Regular Demat Account

Basic services for free. Other services are chargeable.

You get all the services available in a Demat account.

For Zero AMC, the holding limit is Rs 50,000 in stocks or Rs 1 lakhs in debt funds. AMC charges are applicable if the holding exceeds the mentioned limits.

No limit on the value of holdings in the account.

Only one BSDA demat account is allowed per person across brokers.

One can hold multiple demat accounts with various stock brokers.

Designed for small investors.

Designed for traders of all types.

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