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SEBI Raised Basic Service Demat Account (BSDA) Limit to Rs 10 Lakh

Published on July 02, 2024
Current Context: The Securities and Exchange Board of India (SEBI) increased the limit for Basic Service Demat Accounts (BSDAs) to ₹10 lakh from ₹2 lakh to encourage more retail investors to participate in the stock market. This change will be effective from September 1, 2024.
SEBI Raised Basic Service Demat Account (BSDA) Limit to Rs 10 Lakh
  • Here's a detail of the new BSDA limits:
    • Increased Threshold: The total value of securities you can hold in a BSDA has increased to ₹10 lakh.
    • Lower Charges: There's no annual maintenance charge for a BSDA if your portfolio value is up to ₹4 lakh. A small ₹100 annual fee applies if your portfolio value is between ₹4 lakh and ₹10 lakh.
    • Automatic Conversion: If your portfolio exceeds ₹10 lakh, your BSDA will automatically convert to a regular demat account, which may have different fee structures.
    • This move by SEBI aims to make the stock market more accessible to small investors by reducing costs and simplifying the process.

Question:

1 What is the new limit set by SEBI for Basic Service Demat Accounts (BSDAs) effective from September 1, 2024?

  • A) 1 lakh
  • B) 2 lakh
  • C) 4 lakh
  • D) 10 lakh
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