What Is a Basic Services Demat Account (BSDA) — And What’s New in 2024?

A Basic Services Demat Account (BSDA) is SEBI’s cost-saving demat option introduced in 2012 to boost retail participation in the stock markets. Starting September 1, 2024, SEBI’s updated circular sets clearer rules on automatic classification, account limits, and charges.

🧩 Who Qualifies for BSDA?

From September 2024, your demat account becomes a BSDA automatically if all the following are true:

• You hold only one demat account under your PAN (check via the Consolidated Account Statement or CAS).

• The total value of all securities in that account remains below ₹10 lakh at any time.
  

Example:–

• If Sarah has ₹7 lakh worth of stocks in her only account, it qualifies as BSDA.

• If the value rises to ₹10.5 lakh, the account switches automatically to a standard demat.
  

💰 New AMC Slabs (from September 1, 2024)

BSDA maintenance charges now depend on portfolio value:

Holding Value (₹)	AMC (Annual)
Up to ₹4 lakh	₹0
₹4–10 lakh	₹100 + 18% GST
Above ₹10 lakh	Regular AMC, same as standard account

These changed from earlier slabs of ₹2 lakh (before September 1, 2024):

Holding Value (₹)	AMC (Annual)
Up to ₹50,000/-	₹0
₹50,001 - 2 lakh	₹100 + 18% GST
Above ₹2 lakh	Regular AMC, same as standard account

📑 Other Important Details

• Electronic statements are always free.

• Physical statement requests may cost up to ₹25 each.

• Eligible regular accounts are auto-converted to BSDA unless you opt out via email.

• Daily closing price/NAV determines account value; if unavailable, last traded price or face value is used.
  

🎯 When Is BSDA a Smart Choice?

• Passive investors with ≤ ₹10 lakh holdings – especially under ₹4 lakh benefit most.

• Infrequent traders who stick to buy-and-hold strategies—BSDA keeps holding costs low.

• Cost-aware individuals looking to minimize fixed fees while staying in the equities market.
  

✅ Summary

• BSDA = Reduced or zero AMC for ₹10 lakh and below portfolios.

• Wider eligibility and lower costs post-September 2024 (₹4 lakh → ₹0; ₹4–10 lakh → ₹100).

• Automatic conversion — no form filling, simply opt out if you need a regular account.

• Ideal for new or small investors, those focused on long-term growth and minimal trading.
  

🔍 Final Take

The revamped BSDA rules aim to democratize investing by trimming costs for smaller portfolios and simplifying the user experience. Ensure you hold just one demat account and keep tabs on your holdings — if they stay below ₹10 lakh, you'll enjoy a more affordable route to enter the markets.