(TNIE)
Sebi is planning to raise the limit of the value of securities held in basic service demat account (BSDA) by five times to R 10 lakh. Currently, an individual can hold debt securities worth up to R 2 lakh and other than debt securities worth up to R2 lakh in a single demat account
The Securities and Exchange Board had introduced the BSDA facilities in 2012 to promote financial inclusion. In a consultation paper issued on Wednesday, the regulator has proposed to increase these limits to R10 lakh. The Sebi has also asked if the R10-lakh limit should be across debt and other-than-debt securities or if separate limits should be retained for the two categories.
“Keeping in view the growth of benchmark indices in the previous decade and to further enhance participation of retail investors in the securities market, including participation of investors holding securities in physical form, the facility for BSDA has been reviewed and it is proposed to enhance the limit for a demat account to be categorised as BSDA,” the paper said. The regulator is also reviewing the account maintenance charges (AMC) for BSDA and the services that will be provided through it.
