SEBI proposes expanding BSDA limit, enhancing investment accessibility

In a bid to benefit demat account holders and facilitate investment for investors, particularly for small-scale investors, the Securities Exchange Board of India (SEBI) has proposed to raise the limit for a basic service demat account (BSDA).

The new proposal by SEBI will help retail investors cut down on the cost of maintaining securities in their accounts.

Currently, investors can hold securities worth up to Rs 2 lakh in BSDA. Now, SEBI is planning to enhance the limit to Rs 10 lakh.

At present, demat accounts are not charged for holdings up to Rs 1 lakh in debt securities and up to Rs 50,000 in securities other than debt. SEBI intends to increase this limit to Rs 4 lakh.

Accounts that hold between Rs 4 lakh and Rs 10 lakh may be charged Rs 100.

Similarly, accounts with a value above Rs 10 lakh will be converted automatically into a regular account and thus attract higher fees.

SEBI has invited feedback from people on the latest proposal seeking details on BSDA limit enhancement, AMC, and the combined limit of securities. Investors and people can submit their responses until June 26, 2024.

After carefully considering the comments from people, SEBI will decide on the changes to be made.

Here’s the link to submit your comments:

https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes

The move is aimed to enhance financial inclusion and ease of investing, which may help investors in large numbers and attract new investors.