Demat Account Tips: SEBI is planning to change the rules of the Demat Account, the limit of holding securities may increase five times..
Capital market regulator SEBI is planning to change the rules related to Demat Accounts. SEBI has planned to increase the securities deposit limit in the Basic Services Demat Account (BSDA).
Let us tell you that the Basic Services Demat Account was started in the year 2012 to promote financial inclusion.
At present, other securities worth Rs 2 lakh can be kept in the Basic Services Demat Account. Now SEBI is planning to increase this limit to Rs 10 lakh.
What is a Basic Demat Account?
A Basic Services Demat Account is a type of Demat Account. This account is for retail investors. In this account, the investor cannot invest in stocks, bonds, ETFs, mutual funds, etc. Apart from this, the maintenance cost of this account is also low.
SEBI has issued a consultation paper to increase the securities limit in this account. SEBI has asked in the consultation paper whether the limit of the Basic Services Demat Account should be increased or not.
Why does SEBI want to increase the limit?
According to SEBI's consultation paper, in the last 10 years, the growth of the stock exchange and the participation of retail investors in the securities market has increased. Given the increase in the participation of retail investors, SEBI is planning to increase the limit of demat accounts. Apart from this, SEBI is also considering the maintenance charge.
Basic Services Demat Account is planning to charge Rs 100 on securities from Rs 4 lakh to Rs 10 lakh. Currently, no charge is levied by the brokerage firm on debt securities up to Rs 1 lakh and non-debt securities of Rs 50,000. SEBI is also proposing to increase the limit of debt securities to Rs 4 lakh.
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