If you trade in stock markets regularly, a Demat account is a must. However, if you don't trade often, you can avail a Basic Service Demat account or a BSDA account.
As stated above, BSDA stands for a Basic Service Demat Account. It’s a simpler and more basic version of a Demat account for investors whose portfolio’s value doesn’t exceed Rs. 2 lakhs. However, if the portfolio’s value crosses Rs. 2 lakhs, a BSDA account gets automatically converted into a regular Demat account. A BSDA account is perfect for new investors learning the tricks of stock market investment.
Now that you know what BSDA means let’s see the eligibility for this account opening. To open this account:
Opening a BSDA account is easy. To open this account, you can approach any registered brokerage house and provide the basic documents about your address, identity, and income. In the case of a BSDA account:
BSDA is a boon for small investors as it’s easy to maintain with lower charges. That said, it’s essential to ensure that your holdings' value exceeds Rs. 2 lakhs at no point because if it happens, your BSDA account can be converted into a regular Demat account. Before switching to a regular account, you can learn the ropes of stock market trading with a BSDA account.
No, you can’t. You can only open one BSDA account where you are the sole holder.
A BSDA and regular Demat account are almost similar, with different charges for both. A BSDA account charges are less than a regular Demat account.
Talk to your brokerage house about the same. Generally, you need to submit a request letter and ask for the conversion of your regular account to BSDA before your next billing cycle starts.
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