Capital market regulator SEBI is planning to change the rules related to Demat Account. SEBI has planned to increase the securities deposit limit in Basic Services Demat Account (BSDA). SEBI has issued a consultation paper to increase the securities limit in this account. Let us know in detail in this report.
Let us tell you that Basic Services Demat Account was started in the year 2012 to promote financial inclusion. At present, other securities worth Rs 2 lakh can be kept in Basic Services Demat Account. Now SEBI is planning to increase this limit to Rs 10 lakh.
What is Basic Demat Account?
Basic Services Demat Account is a type of Demat account. This account is for retail investors. In this account, the investor cannot invest in stocks, bonds, ETFs, mutual funds etc. Apart from this, the maintenance cost of this account is also low.
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SEBI has issued a consultation paper to increase the securities limit in this account. SEBI has asked in the consultation paper whether the limit of Basic Services Demat Account should be increased or not.
Why does SEBI want to increase the limit?
According to SEBI’s consultation paper, in the last 10 years, the growth of stock exchanges and the participation of retail investors in the securities market has increased. In view of the increasing participation of retail investors, SEBI is planning to increase the limit of demat account. Apart from this, SEBI is also considering maintenance charges.
Basic Services is planning to charge Rs 100 on securities worth Rs 4 lakh to Rs 10 lakh in demat account. Currently, no charge is levied by the brokerage firm on debt securities up to Rs 1 lakh and non-debt securities up to Rs 50,000. SEBI is also proposing to increase the limit of debt securities to Rs 4 lakh.
