New Delhi: Annual maintenance charges levied on debt securities held through basic services demat accounts will be revised from June 1, according to Sebi.
The move is expected to further boost participation of retail investors in the debt market. Basic Services Demat Account (BSDA) offers limited services at a lower cost for retail investors. "Based on representation received from market participants... it has been decided to revise the structure of charges for debt securities," Sebi said in a circular on Wednesday. For debt securities worth up to ₹1 lakh held through BSDA, there would no annual maintenance charge. A maximum charge of ₹100 would be levied if the value of holdings is above ₹1 lakh and up to ₹2 lakh.
The revised charges would be effective from June 1.
Currently, a uniform annual maintenance charge of ₹100 is levied on securities worth over ₹50,000 and up to ₹2 lakh irrespective of type of holding.
There is no such charge for holdings valued up to ₹50,000.
In 2012, Sebi directed depository participants to make BSDA available for retail individual investors as part of efforts to reduce the cost of maintaining securities in demat accounts.
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