Demat account limit increase: Currently, a person can hold a maximum of Rs 2 lakh of shares or debt in a BSDA. SEBI is considering allowing investors to hold up to Rs 10 lakh in their BSDA.
Demat account limit increase: SEBI, the regulatory body of the stock market, wants to allow small investors to store money in their demat accounts in a cheap way. A demat account is basically a bank account for equities and debt. In 2012, SEBI introduced a low-cost format of a demat account called BSDA (Basic Service Demat Account), which is available to those who are not very into investing.
Currently, a person can hold a maximum of Rs 2 lakh of shares or debt in a BSDA. SEBI is considering allowing investors to hold up to Rs 10 lakh in their BSDA. The BSDA of an investor who crosses the limit of Rs 10 lakh will be upgraded to an ordinary account (expensive). Comments have been invited on Sebi’s proposal till June 26.
Sebi will also bring clarity in these rules
- You can have only one BSDA.
- You cannot be charged for online statements.
- If you want printed statements, it will cost Rs 25.
- A person holding up to Rs 4 lakh in BSDA will not have to pay any fee.
- A person holding an amount between Rs 4 lakh and Rs 10 lakh will have to pay an annual fee of Rs 100.
Shares directly in demat account
In a major move that will please investors, market regulator Securities and Exchange Board of India on Wednesday announced payment of securities into the demat account of clients.
Sebi announced payment of shares into the demat account of clients through a circular issued on Wednesday. It said, “This will prevent misappropriation of client securities and ensure that the stock broker keeps the securities of the client or clients separately so that the said client securities are not available for misappropriation.” Currently, securities received in payment are deposited with the broker and are then credited to the respective client demat accounts. The regulator said that payment into client account has already been introduced on a voluntary basis on February 1, 2001.
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