- Posted by: admin
- Category: Stock Market
The basic differences between normal Demat Account and Basic Services Demat Account are Annual Maintenance charges (AMC) & clearing charges.
In the BSDA (Basic Service Demat Account), Annual Maintenance charges are applied as follow:
1) If the value of the investment (holding value) is between 0 to 50,000 then there is no Annual Maintenance charge (AMC) .
2) If the value of the investment (holding value) is between 50,001 to 2,00,000 then AMC of Rs. 200 will be applied.
3) If the value of the investment (holding value) is above 2,00,000 then your BSDA (Basic Service Demat Account) account will convert into normal Demat account & normal AMC charge will be applied.
By using BSDA you can use the regular trading tools, softwares & other basic services of the DP. If you are an existing eligible individual and hold a Demat account with a DP, you should ask the depository participant(DP) to convert the account into a basic services account. DP won’t tell you about BSDA, so you have to ask your DP to convert your account into BSDA.
You can open multiple regular Demat accounts, but you cannot have multiple BSDA i.e, you can have only one BSDA in your name across all depositaries.
Note: Most of the Brokerage firms charge extra clearing charges on selling side (debit transaction) for BSDA accounts. Please check the clearing charges of your broker for BSDA accounts before converting your normal Demat account into BSDA account.
As shown in the picture below, you can clearly see the extra clearing charges HDFC charging to the BSDA holders.
Hence, BSDA is suitable for only those investors who invest for long term & trade rarely(2-3 times a year). It is not suitable for investors who invest frequently.