Basic services demat account is more or less like a basic services bank deposit account where the brokerage service offers limited services to retail customers at a reduced cost. And with effect from June 1, the SEBI has revised the annual charges for debt securities maintained via basic services demat account. The move is likely to push the participation of more investors in the debt market.
"Based on representation received from market participants... it has been decided to revise the structure of charges for debt securities," Sebi said in a circular on Wednesday.
So, for debt securities worth up to Rs. 1 lakh there shall be no annual maintenance fee for basic services demat account. However for debt instruments value over this threshold and up to Rs. 2 lakh, there shall be charged a maximum of Rs. 100 towards annual maintenance.
In the current scenario, a uniform rate which is equal to Rs. 100 is charged regardless of the holding type for securities valuing more than Rs 50,000 and up to Rs 2 lakh. The concept of BSDA came about in 2012 to provide retail investors with a competitive cost structure for keeping securities in demat account.