Table of content

BSDA Account Charges

Table of content

Process for Converting your Demat Account into a BSDA Account

A demat account is mandatory to invest in the stock market. You cannot purchase or sell shares through the stock exchange without it. There are currently two kinds of demat accounts that you can open - a regular demat account and a BSDA account.

Although the function of both of these types of accounts remains the same, they do differ from each other in a few ways. Here’s everything you need to know about the BSDA demat account and how to convert your existing account to a BSDA account.

What is a BSDA Account?

In 2012, the Securities and Exchange Board of India (SEBI) launched a new variant of the demat account known as the Basic Service Demat Account (BSDA). The BSDA account is meant to be a cost-effective way to hold securities electronically and is aimed at small and infrequent investors with a total portfolio value of less than ₹2 lakhs.

Benefits of a BSDA Demat Account

Compared to a regular Demat account, a BSDA account offers several benefits. Here’s a quick overview of a few of them.

  • Flexible Annual Maintenance Charges

    One of the major advantages of the Basic Service Demat Account is that the AMC or Annual Maintenance Charges are levied based on the value of your holdings. The AMC will not be levied on a BSDA account if the total value of the securities held is less than ₹50,000.
    However, if the total value of the securities is between ₹50,001 and ₹2 lakhs, you will only have to pay an AMC of ₹100 + GST, which is far lower than that of a regular account.
  • Zero Charges for Dematerialisation

    You will have to pay a charge for the dematerialisation of securities if you possess a regular demat account. This charge can be anywhere from ₹10 to ₹50 per share certificate. However, with a BSDA account, no charges are levied for the dematerialisation of securities at all.
  • Ability to Choose the Holding Statement Delivery Mode

    If you have a BSDA demat account, you can choose to either get a physical copy or a soft copy of your annual holding statement. Physical copies are sent to the address specified by you at the time of opening a demat account.

How to Convert a Regular Demat Account to a BSDA Demat Account

If you’re a long-term investor who rarely purchases or sells securities, you may opt to convert your regular demat account into a BSDA. All you need to do is place a formal request for conversion with your Depository Participant (DP). However, before you place a request for conversion, you need to first ensure that you satisfy the following conditions.

  • You must be the first holder or the sole holder of the demat account you wish to convert.
  • You shouldn’t already have another demat account (BSDA or otherwise) in your name.
  • Your total value of securities in your demat account must be less than ₹2 lakhs.

Once you’ve ensured that you’ve satisfied all the above conditions, you can proceed to convert your account. The process involves sending a duly filled demat account modification form along with a BSDA declaration form to your Depository Participant. Once the forms are received by your DP, the account conversion should be complete within a few working days. That said, the conversion process may vary slightly depending on the DP you’re associated with.


As you can see, BSDA demat account charges are very low compared to that of a regular account. Therefore, if you don’t invest or sell securities frequently and have a portfolio value of less than ₹2 lakhs, you may consider converting your regular demat account to a BSDA.

If high account charges are something that’s worrying you, you can consider opening a trading and demat account with m.Stock. You not only get to enjoy zero AMC charges for life but also zero brokerage on trades across segments.

Frequently Asked Questions

Yes, NRIs trading in the Indian stock market are subject to tax implications. The tax treatment depends on various factors, such as the type of investment income, the duration of holding, and the Double Taxation Avoidance Agreement (DTAA) between India and the NRI's country of residence. NRIs should consult with a tax advisor to understand the tax obligations and benefits applicable to their specific circumstances.

The main difference between an NRE (Non-Resident External) and an NRO (Non-Resident Ordinary) trading account lies in the repatriation of funds. In an NRE trading account, funds can be freely repatriated back to the NRI's foreign bank account without any restrictions. On the other hand, in an NRO trading account, repatriation of funds is subject to specific conditions and requires prior approval from the authorised bank.

Yes, NRIs can hold both NRE and NRO trading accounts simultaneously. However, it's important to note that the funds in each account have different repatriation rules. NRIs can choose to maintain separate trading accounts based on their repatriation requirements and the source of funds. It's advisable to consult with a financial advisor or a brokerage firm experienced in handling NRI accounts to determine the most suitable account structure based on individual needs and preferences.

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