Sebi's New Proposal to Boost Retail Participation in Securities Market

Sebi has proposed enhancing the threshold for Basic Service Demat Accounts (BSDA) from Rs 2 lakh to Rs 10 lakh to encourage more retail investors to participate in the securities market. The proposal includes reviewing annual maintenance charges and eligibility criteria for BSDA holders. Comments are sought till June 26.

In a significant move to boost retail investor participation, the Securities and Exchange Board of India (Sebi) on Wednesday proposed raising the threshold for Basic Service Demat Accounts (BSDA) from the existing Rs 2 lakh to Rs 10 lakh.

The BSDA, introduced by Sebi in 2012, aims to ease the burden of demat charges on small investors. Currently, investors can hold securities worth up to Rs 2 lakh in a single BSDA to qualify. The new proposal seeks to allow the combined value of debt and non-debt securities to reach Rs 10 lakh.

The regulator also plans to review annual maintenance charges (AMC) and has suggested a tiered fee structure. For portfolios valued up to Rs 4 lakh, AMC would be zero, while portfolios between Rs 4 lakh and Rs 10 lakh would incur a nominal charge of Rs 100. Additionally, electronic statements will be free, but physical statements will cost Rs 25 each.

Sebi is inviting feedback on these changes until June 26.

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