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.

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.

• Demat Account Charges Explained
• Why Do I Need Demat Account?
• Best Demat Account for Beginners
• Zero AMC Demat Account (Lifetime Free AMC)
• Best Demat Account in India

Answered on 2021-11-16