Basic Services Demat Account
A demat account is not just for equities but also for mutual fund, bonds, debentures, nationals savings certificate and soon insurance policies! So having a demat account is necessary for each one of us. However, the Depository Participants (DP) who actually maintain our demat account charge us a maintenance fees from anywhere between Rs.400-Rs.1000 per annum. But as noted increasingly demat account is becoming a necessity than luxury. So to promote small retail investors, SEBI came up with the concept of "Basic Services Demat Account" (BSDA) modelled on the lines of no frills savings bank account mandated by RBI. So the good news is that if your total investments (including equities and mutual funds etc.) have not crossed Rs.50,000, then you are not liable