Opening a demat account is the primary requirement to trade or invest in the Indian financial market. The introduction of demat account has brought safety and security while investing in the financial market. In addition, the risks that were involved in holding physical shares have been eliminated completely because the demat account holds shares and securities in electronic form.
In order to boost the usage of demat account, Securities and Exchange Board of India (SEBI) has eased the charges on the Basic Services Demat Account (BSDA). In this article, you will learn about the various charges revised by SEBI.
In order to boost retail participation in the debt market, SEBI has eased various charges on Basic Services Demat Account. From 1st June 2019 onwards, the annual maintenance charges applicable on the debt securities held through the demat account have been revised. The Basic Services Demat Account aims to offer limited services to retail investors at very affordable rates.
On the basis of representation received by SEBI from the various market participants, the structure of charges for the debt securities has been revised. Holding debt securities in BSDA up to Rs. 1 lakh shall attract no annual maintenance charges. For holdings above Rs. 1 lakh and up to Rs. 2 lakh, the maximum annual maintenance charge would be Rs. 100. Before the revision of charges, the annual maintenance charge on securities worth Rs. 50,000 and up to Rs. 2 lakh was Rs. 100.
In 2012, SEBI gave directions to the depository participants to make BSDA available to the retail investors so as to reduce the cost of maintaining securities held in the demat account. Kotak Securities provides its customers with the service of BSDA. If you are looking to open a Basic Services Demat Account, Kotak Securities is the best option. They help you open the account in minimum time and with minimum paperwork. They also provide unmatched experience to the users at lowest demat charges.