Sebi Revamps BSDA Framework: Simplifying Investor Compliance

Sebi has decided to exclude Zero Coupon Zero Principal (ZCZP) bonds and delisted securities from the BSDA valuation, simplifying the investment process. DPs must now assess BSDA eligibility quarterly and automate account conversions. These changes aim to ease compliance burdens and will be effective from March 31, 2026.

In a move to streamline investment processes, Sebi has decided to exclude Zero Coupon Zero Principal (ZCZP) bonds and delisted securities from the valuation threshold to determine Basic Services Demat Account (BSDA) eligibility.

This decision follows feedback from market participants, aiming to simplify compliance for investors and depository participants (DPs). The regulator has also mandated that DPs review and convert eligible accounts into BSDAs every quarter by default.

The changes, effective from March 31, 2026, are designed to make the BSDA facility more accessible. The basic service demat account was introduced by Sebi in 2012 to reduce demat charges for small investors.

(With inputs from agencies.)