Who gets it automatically
Per the SEBI circular of 28 June 2024 (effective 1 September 2024), an eligible account converts to BSDA automatically unless you opt out in writing through your registered email. Eligibility is checked against your holdings value, and the depositories reassess it each billing cycle. Individuals only; companies and HUFs do not qualify.
The ₹4 lakh line
The limit is about value, not activity. Holdings are valued at daily closing prices (NAV for mutual funds). The value of suspended securities is excluded. If your portfolio crosses ₹4 lakh, the AMC moves to ₹100 + GST per year, not to the full non-BSDA rate. Only crossing ₹10 lakh ends the BSDA structure.
The one-account rule
BSDA applies only when the individual has a single demat account where they are the sole or first holder. Open a second account and the structure falls back to regular AMC. This is the quiet cost of opening spare accounts: a second demat can double your annual maintenance bill for no benefit.
How the automatic conversion works
The SEBI circular of 28 June 2024 (effective 1 September 2024) made BSDA the default for eligible accounts. Depository participants reassess eligibility at the end of every billing cycle, valuing holdings at daily closing prices or NAV. The value of suspended securities is excluded from the calculation. If your portfolio crosses ₹4 lakh, the AMC for that period moves to ₹100 + GST per year; crossing ₹10 lakh ends the BSDA status and regular AMC applies from that date. A November 2025 draft circular proposes excluding delisted securities and reassessing quarterly, but that proposal is not yet final.
What opting out means
You can decline BSDA by writing to your depository participant through your registered email. Some investors opt out because they want the features they believe come with a regular account, but nothing about BSDA restricts your trading or investing: the limits apply to holdings value and account count, not to activity. A BSDA holder can trade intraday, apply to IPOs and run SIPs like anyone else. The only practical difference is the lower AMC, which is the point.
A concrete example
You open one demat account and hold mutual fund units and shares worth ₹3.2 lakh. Your AMC is ₹0, automatically, because you are under the BSDA limit. The same portfolio split across two accounts pays regular AMC at each broker.
The numbers to remember
₹0
AMC up to ₹4 lakh holdings
₹100 + GST
AMC between ₹4 lakh and ₹10 lakh
₹10 lakh
Holdings ceiling for BSDA
Questions people ask about BSDA (Basic Services Demat Account)
Your monthly consolidated account statement (CAS) states the account type. If you hold one demat account with holdings under ₹10 lakh, the conversion to BSDA happens automatically under SEBI rules unless you opted out in writing. If your statement shows regular AMC and your holdings are under ₹4 lakh, contact the broker.
The BSDA structure applies only to individuals with a single demat account. Opening a second account anywhere disqualifies the BSDA benefit. If the second account is genuinely useful (say, one for family holdings), budget for the regular AMC at both brokers.
Only where the individual is the sole or first holder, and only when that individual has a single demat account across both depositories. A second holder in someone else’s account does not break the eligibility; being first holder of two accounts does.
No. BSDA limits apply to demat accounts and the holdings inside them. Mutual fund folios held directly with AMCs are separate records and do not count against the single-account rule or the holdings value.
Sources
Figures on this page were read on 16 August 2026. Broker fees change; confirm current rates on the official page before acting.
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The account costs ₹0 to open, and the first year of AMC is free.