The Securities and Exchange Board of India (SEBI) has proposed significant updates to the Basic Services Demat Account (BSDA) framework. In a draft circular released on Monday, SEBI suggested clearer valuation norms for certain securities and a simplified method to determine investor eligibility for BSDA.
BSDA offers lower annual maintenance charges compared to regular demat accounts. Accounts with holdings up to ₹4 lakh are free, while holdings between ₹4–10 lakh incur ₹25 per quarter plus 18% GST, and above ₹10 lakh, ₹75 per quarter plus 18% GST. The rules, effective September 1, 2024, previously applied only up to ₹2 lakh.
SEBI noted that delisted and illiquid securities are not explicitly addressed in current rules. The regulator proposed excluding delisted securities from BSDA valuation, treating them like suspended securities. Illiquid securities’ last closing price would determine their value. Promoters are exempt from these norms.
SEBI also suggested quarterly system-driven reassessment of BSDA eligibility to ease operational challenges. Consent from investors could be accepted via additional authenticated channels beyond registered email. Zero Coupon Zero Principal (ZCZP) bonds would be excluded from BSDA holdings, as they have no tradable or realizable value.
SEBI has invited public feedback on these “Ease of Investment” and “Ease of Doing Business” measures until December 15, 2025.
