Currently, to qualify for BSDA, an individual can hold debt securities worth up to Rs 20 lakh and non-debt securities worth up to Rs 20 lakh in a single demat account.
The BDSA regime has been comprehensively reviewed to further promote participation in the securities market and facilitate ease of investment, the Securities and Exchange Commission said in a consultation paper.
The regulator proposed that the value of securities held in a demat account, both debt and non-debt securities, combined, should not exceed Rs 1 million at any point of time.
Listing the eligibility criteria, it said an individual should have only one demat account in which he is the sole or initial holder and an individual should have only one BSDA in his name across all depositories. Further, the regulator suggested to review the annual maintenance charge (AMC) cap for BSDA. Annual maintenance charge for BDSA should be free if the portfolio value is up to Rs 4 lakh and the charge should be Rs 100 for portfolio value between Rs 4 lakh and up to Rs 1 million, Sebi suggested. However, if the portfolio value exceeds Rs 1 million, the BDSA should be automatically converted into a regular demat account.
With regard to services for BDSAs, the regulator said e-statements should be provided free of cost to such account holders, while physical statements can be charged at Rs 25 per copy.
The Securities and Exchange Board of India (SEBI) has invited comments on the proposal till June 26.
