BSDA Account: A Guide on Basic Service Demat Account

What is a Basic Service DEMAT Account?

Basic Service Demat Account (BSDA) is a special type of DEMAT account that was introduced in 2012 by SEBI (Securities and Exchange Board of India). It requires much less of an investment compared to a general Demat Account and is mainly intended for small investors who are not keen on regularly investing in Stocks, ETFs, mutual funds, etc. It also reduces the burden on investors who have a DEMAT account with smaller portfolios of below Rs. 2,00,000 Lakhs across the depositories.

Benefits of BSDA

The BSDA has a several benefits when it comes to cutting down on costs and expenses. Here is a list of the key benefits of BSDA.

– Charges for physical statements that are to be mailed to the customer are mitigated.

– The dematerialization charges are cut off.

– Annual maintenance charges that amount between Rs. 600 and Rs. 800 are reduced.

What are the Eligibility Criteria for BSDA?

While BSDA can come along with several benefits, there are certain criteria to be met to be eligible to open a Basic Service Demat Account. Here is the list of the criteria to keep in mind.

1. The investor should be the sole owner of the account. 2. The investor should not have any other Demat account. 3. Only one Demat account can be held under the BSDA category. 4. The total value of the BSDA shares should not exceed Rs. 2 lakh at any point. 5. If the investor has a joint account, he/she should not be the first holder of the account.

What are the Eligible Limits for the BSDA Account?

According to SEBI guidelines, the value of the securities held in a BSDA account shouldn’t cross ₹2 lakh. If the security value in your account exceeds the ₹2 lakh limit, regular Demat charges will apply. For example, you bought securities worth ₹1.50 lakh, which have now appreciated in value to become ₹2.30 lakh. In this case, the usual brokerage charges will apply.

As per SEBI’s stipulation, Depository Participants (DP) must create BSDA accounts with limited services and reduced costs. They can’t refuse to operate your account as a BSDA account as long as it fulfills the eligibility criteria. 

What are the charges levied on BSDA?

Charges for BSDA will differ from Broker to Broker. However, at Angel One the following are the charges levied on BSDA. 

  1. AMC (Annual Maintenance Charges)

Value of holdings AMC Charges
< Rs.50,000 Zero
Rs.50,000-Rs.2 Lakhs Rs.100 + GST/year
> Rs.2 Lakhs Same as non-BSDA accounts
  1. Physical statements

    Two hard-copy statements are provided free of cost during the billing cycle. Additional statements can be availed at some additional cost. 

  2. Additional charges

    Some of these include cheque bounce charges, rejection of a Delivery Instruction Slip (DIS), rejection of a Demat Request Form (DRF), and regular transaction & other charges.

How do I convert my Demat Account to a BSDA Account?

An existing Demat account can be converted into a BSDA Account only under certain conditions. The regulator has a right to check with depositories. Wherever applicable, the depository will exercise the right to convert the Demat account into BSDA. The regulator will then change the status of your account to a BSDA account.  

It is important to ensure that you have no other Demat Account for your current Demat Account to be converted to BDSA. Based on the highest value of your holding, AMC will be charged accordingly. However, in case the threshold is crossed by your holding value or you have an active Demat Account with another broker, your BSDA account will be converted to a non-BSDA account.

SEBI Stipulates the Following Conditions for BSDA Accounts:

  • DPs can’t charge an AMC fee on a BSDA account if the total value of the holdings is less than ₹50,000.
  • For a holding value between ₹50,001 and ₹2,00,000, DPs can charge an AMC fee exceeding ₹100 per year.
  • If the holding value exceeds ₹2,00,000 during any period of the year, the DP can apply charges applicable to a non-BSDA account.


What are the types of Demat accounts?

In India, 4 types of Demat accounts are available.

  • Regular Demat account
  • Repatriable Demat account 
  • Non-repatriable Demat account
  • BSDA or Basic Service Demat Account

What is the difference between a BSDA and a non-BSDA account?

BSDA is a Basic Service Demat Account. It charges a lower fee than a regular Demat account if the total holding value of the securities doesn’t exceed ₹2,00,000.

What are the benefits of a BSDA account?

  • Lower account maintenance charges 
  • No cost for dematerialisation 
  • No AMC charges if the value of the securities in the BSDA account is less than ₹50,000.

How can I convert my Demat account to BSDA?

You must submit an application and a declaration form for your BSDA account to your DP at least 15 days before your next billing cycle.

How do I know if my account is a BSDA account?

However, the primary differentiating criteria for a BSDA account and a regular Demat account is a maximum holding value of ₹2,00,000 for the BSDA account. BSDA account holders must pay lower fees than standard Demat account holders.