Comments
Markets regulator SEBI has decided that all demat accounts would be considered as a basic services demat account (BSDA) unless the demat account holder specifically opts to continue with a regular demat account.
This decision reverses the SEBI circular of August 27, 2012, which allowed existing eligible demat account holders to convert their regular demat accounts into BSDAs. Depository Participants (DPs) have to assess the eligibility of the beneficial owner (demat account holder) at the end of the current billing cycle and convert eligible demat accounts into BSDAs. Finding few takers after the BSDA was introduced and the conversion option in place, SEBI took this decision with the objective of achieving wider financial inclusion and to encourage holding of demat accounts.
The SEBI circular of August 2012 allowed only one demat account for individuals opting for BSDA, across all depositories where they are the sole or the first holder. The maximum value of securities in a BSDA should not exceed ₹2 lakh and at any point in time annual maintenance charges would not be levied for value of securities held in a BSDA up to ₹50,000. Anything above ₹50,000 and up to ₹2 lakh would attract annual maintenance charges of ₹100.
Depositories have to amend their bylaws to implement the SEBI circular and include the implementation status in their monthly reports.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.