What does BSDA stand for? What is the procedure to activate my BSDA facility in a Demat account?
BSDA stands for Basic Service Demat Account. The main purpose for the introduction of the BSDA Demat Account was to reduce the maintenance fees for small investors.
All the individuals who have or propose to have only one Demat account where they are the sole or first holder shall be eligible to have a BSDA provided that the value of securities held in the Demat account does not exceed Rupees Two Lakhs at any point in time. An individual can have only one BSDA in his/her name across all depositories.
Check out the Annual Maintenance Charges for BSDA Accounts below:
|Holding Value||AMC Charges|
|Up to ₹ 50,000||No AMC|
|₹ 50,000 to ₹ 2,00,000||₹ 100|
|Above ₹ 2,00,000||₹ 400|
To activate the BSDA facility you need to provide 2 sets of duly signed Declaration Form and Tariff Sheet.