BSDA or Basic Services Demat Account is a special type of Demat account introduced by SEBI to promote investment among small investors. It caters to those who wish to invest in financial instruments like Stocks, Bonds, SGBs, ETFs, and Mutual Funds but may not do so frequently or do not have substantial portfolios.

It’s a simplified version of a regular Demat account, tailored for investors with portfolios valued up to ₹10,00,000. One of its main advantages is the significantly reduced maintenance charges, making it a cost-effective option for small investors. This initiative aims to lower the entry barriers and encourage more individuals to participate in the financial markets.

What are the benefits of BSDA?

1. Reduced maintenance charges: BSDA have lower maintenance costs as mentioned below:

Slab	Value of Holdings in your Demat Account	Quarterly Maintenance Charges (QMC) - excl. GST	Annual Maintenance Charges (AMC)- excl. GST
1	Up to ₹400,000	₹0	₹0
2	₹400,001 to ₹10,00,000	₹25 per Quarter	₹100 per annum
3	More than ₹10,00,000	₹75 per Quarter	₹150 per annum

2. Financial inclusion: BSDA promotes inclusivity by providing an affordable choice for small investors, encouraging their participation in the securities market.

Keep in mind:

1. Eligibility to open a BSDA

• You must not have any other Demat account linked to your PAN
• You can have a joint Demat account with another broker, provided you are not the sole or first holder in that account
• The total value of Securities (Debt as well as other than debt securities) in the Demat account must be less than ₹10,00,000
• You can only have one BSDA across all Depository Participants (DPs)

2. Automatic conversion to Non-BSDA

• If your portfolio value exceeds ₹10,00,000 on any day during the last month, or if you have multiple DP accounts, your BSDA auto converts to a regular Demat account perpetually.
• Portfolio size is calculated daily based on your holdings at the last trading day closing prices
• After conversion, AMC/QMC charges as mentioned in the table above shall apply
• BSDA is an internal backend flag; all other account features remain unchanged

3. Checking BSDA status

• On the Upstox app, go to ‘Account’ at the bottom of the screen
• Click on ‘My Account’, select ‘Profile’ and then click on ‘Documents’
• Select 'CMR (Client Master Report)' to get a copy of your CMR on your registered email
• In the CMR, check the ‘Account Category’ box to know the status of your account