No-frills demat account from today

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No-frills demat account from today
Small investors to get no-frills account from today without any annual maintenance charges for holdings up to Rs 50,000.

In a move to encourage small investor market regulator, Securities Exchange Board of India (SEBI) slashed the demat annual charges in a aim to extend the reach of IPOs for the benefit of retail investors.

"With a view to achieve wider financial inclusion, encourage holding of demat accounts and to reduce the cost of maintaining securities in demat accounts for retail individual investors, it has been decided that all depository participants (DPs) shall make available a "Basic Services Demat Account" (BSDA) with limited services as per terms specified herein", SEBI said in circular earlier.

While, investors holding from Rs 50,001 to Rs 200,000, AMC not exceeding Rs 100 will be charged.
The value of holding shall be determined by the DPs on the basis of the daily closing price or NAV of the securities or units of mutual funds, as the case may be.

However, existing eligible individuals to convert their demat account into BSDA on the date of the next billing cycle based on value of holding of securities in the account as on the last day of previous billing cycle.

GoodReturns.in

Read more about: sebi, demat account
Story first published: Monday, October 1, 2012, 11:39 [IST]
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