BSDA Account: Everything You Need to Know About Basic Service Demat Account

Are you an investor? Or are you interested in investing? Well, no matter where you stand in investing, we are here to help you! If you are a first-time investor, a trader in the stock market or looking to invest a small amount of money, we have a great way to help you get started with our Bajaj Securities App.

Anyone who invests and trades in the stock market knows they require a Dematerialized (Demat) account. Investors and traders use their Demat accounts to store and sell the shares they buy while trading. If an individual investor or trader chooses to buy and sell shares through a broker, the shares will be credited to your account or debited in two days.

The Securities and Exchange Board of India (SEBI), in 2012, recognized that some investors and traders wanted to trade in the stock market but didn't have much money to invest. SEBI understood this need and introduced a new account for small investors called the Basic Service Demat Account (BSDA).

What is a Basic Service Demat Account?

A BSDA (Basic Service Demat Account) is a unique type of account that doesn't require much investment from the investor for trading in the stock market. Investors who want to start with a small initial investment and don't intend to regularly invest in exchange-traded funds (ETF), stocks, or mutual funds can opt for this type of Demat account. Investors with a portfolio of less than Rs. 2 lakhs can invest and trade through a BSDA account.

However, if you trade through a BSDA account and make a profit that crosses the Rs. 2 lakhs mark, your BSDA account will be converted into a Full-Service Demat Account (FSDA). You will have to pay the maintenance charges and account fees related to FSDA.

Top 4 Advantages of BSDA Account

There are some exciting advantages of a Basic Service Demat Account. Let's take a look:

  • On opening a BSDA account, you will have to pay annual maintenance charges based on the value slab in your account. If you have an amount between Rs. 0 and Rs. 50,000, you will not attract any maintenance charges.
  • There are no dematerialization charges.
  • BSDA account holders benefit from receiving online statements and not physical statements. This is a cost-effective benefit.
  • When you start your account and begin trading, you will receive two hard copies of your statements free of charge.

Eligibility Criteria for Opening a Basic Service Demat Account

To open a BSDA account, you must meet the following eligibility criteria. Also, consider this as BSDA Demat account rules:

Number of Holders Only one holder per account is allowed
Type of Investor You must be a first-time Demat account holder
Gross Value Your profit + portfolio value should be at most Rs. 2 lakhs in a particular year
Number of Accounts You can have only one BSDA account

Charges Applied to a Basic Service Demat Account

  • If the value of your holding is Rs. 50,000 or less, you will not be charged any maintenance fees.
  • If the value of your holding is Rs. 50,001 - Rs. 2 lakhs, the maintenance charges will be Rs. 100 + GST.
  • If the value of your holding is above Rs. 2 lakhs, the maintaining charges will be the same as other Demat accounts.
  • Other charges include rejection of a Delivery Instruction Slip (DIS), bounce charges, ejection of a Demat Request Form (DRF), etc.

Can I Convert a Full-Service Demat Account into a BSDA Account?

A Demat account can be converted to a BSDA under certain circumstances. SEBI will act as the deciding force in this situation. SEBI is allowed to contact you to inquire. However, one aspect to remember when you wish to convert your Demat account into a BSDA account is to ensure you don't have any other Demat Accounts. If your holding value exceeds the threshold charges, converting the Demat account to a BSDA will not be possible.

Moreover, converting your Demat account to a BSDA account will not be possible with an active Demat account under another broker. Last but not least, the additional maintenance charges on your account will be charged according to the highest value of your holding.


A BSDA account is an excellent option if you wish to invest less and trade in the stock market. It's an excellent option to pursue if you are a first-time trader or stock market investor. If you are considering opening a BSDA account, you have come to the right place! Bajaj Securities is at your service to help open your BSDA account.

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Frequently Asked Questions (FAQs)

BSDA means Basic Service Demat Account.

BSDA or Basic Service Demat Account, is an option introduced by SEBI in 2012 to encourage small investors interested in trading in the stock market.

A BSDA account is a basic Demat account for small investors with less than Rs. 2 lakhs holding value.

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