If you are interested in investing in the stock market, you will need a demat account. The annual maintenance charges of a regular Demat account are very high, due to which low value investors are not participating in the stock market.

In 2012, SEBI made the move to introduce the BSDA Demat account, which allows investors to provide basic services at a low price.

What is BSDA Demat Account?

BSDA (Basic Service Demat Account) is designed to provide all basic services at low cost to retail investors. It was introduced by SEBI (Securities and Exchange Board of India) in 2012, BSDA aims to provide limited services to individual retail investors by providing maintenance charges for demat accounts at an affordable price.

The basic demat account also has some limitations. Investors can hold only up to ₹2 lakh in a BSDA or Basic Demat account at any time. For example, suppose you invested ₹2 lakh and made a profit of ₹10,000. Now your portfolio holdings will be ₹2.1 lakh. In such case, the basic service demat account will be converted into a regular or full-service demat account (FSDA).

Charges for BSDA Account

Eligibility criteria for opening a BSDA account:

BSDA Demat Accouunt

In order to open a Basic Service Demat account, you need to meet certain criteria.

  1. The BSDA account is for retail investors with small portfolio holdings. Your portfolio should remain under 2 lakh rupees.
  2. One investor can have only one BSDA account across all depository participants.
  3. According to SEBI regulations, the applicant should be a resident of India.

How do I open a BSDA account?

You can easily create a BSDA account. If you’ve already got a demat with DP, you can easily convert into BSDA. All the Depository Participant have been asked to open a BSDA account for retail investors who meets the criteria.

Follow step by step guide to create BSDA account?

  1. Firstly, check your criteria to see if you are eligible to create a BSDA account.
  2. Choose a Depository participant or stockbroker to open a basic service demat account.
  3. Submit all the required documents and signatures for completion of the registration process.
  4. After successful verification of your submitted documents, your account will be activated successfully. You can start using the BSDA account.

Advantages & Disadvantages Of BSDA account

Difference between Regular Demat Account Vs BSDA Account


BSDA demat account, which is completely different from regular demat account. Regular demat accounts offer many services like customer support, research support & assistance for simple and straightforward investment. But with a BSDA account, you will get limited service at zero or low charges.

By The Invest Advisory

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