At FYERS, we offer the Basic Services Demat Account (BSDA) facility as per SEBI regulations to help small investors reduce maintenance costs. However, this facility is available only when specific eligibility conditions are met. If your BSDA status was removed, it means the depository (CDSL) identified that one or more of the regulatory conditions were no longer being satisfied.
It’s important to note that BSDA eligibility is determined based on your total holdings across all Demat accounts linked to your PAN — including accounts held with FYERS and any other brokers or Depository Participants (DPs).
Common Reasons for BSDA Status Removal
Your combined holdings exceeded ₹10 lakh across all Demat accounts
- As per SEBI, BSDA status applies only if your total holdings across all securities and all Demat accounts remain below ₹10,00,000 in value.
- For example, if you hold ₹6 lakh worth of shares in your FYERS account and ₹5 lakh in another broker’s Demat (say, with XYZ Securities), your total holdings become ₹11 lakh. In this case, the BSDA facility is automatically revoked by the depository.
You already have a BSDA account with another broker
- SEBI allows only one BSDA per individual PAN across all brokers and depositories.
- If you already have a BSDA with another broker or DP, your FYERS account will be converted to a regular Demat account.
You hold multiple active Demat accounts under the same PAN
- Even if your total holdings are within ₹10 lakh, maintaining more than one active Demat account makes you ineligible for multiple BSDAs.
- For instance, if you have Demat accounts with FYERS, ABC Broking, and PQR Investments, only one of them can retain BSDA classification.
Reclassification triggered by CDSL or NSDL
- Depositories regularly monitor PAN-linked accounts to ensure compliance.
- If your holdings or account structure change, CDSL automatically reclassifies the BSDA to a standard Demat without requiring prior broker confirmation.
Holdings transferred or value fluctuation after market revaluation
- If your portfolio value temporarily exceeds ₹10 lakh due to market movements, CDSL may still reclassify your account, even if values drop later.
Important: There is no change in FYERS account benefits after BSDA removal, as we do not charge any Annual Maintenance Charges (AMC) on Demat accounts, regardless of BSDA status.
Eligibility Criteria for BSDA
To maintain BSDA status, all the following SEBI-mandated conditions must be met:
- You are an individual investor (not a corporate, HUF, or joint account holder).
- You hold only one Demat account across all Depository Participants (DPs) under your PAN.
- The aggregate market value of all your holdings across all Demat accounts must remain below ₹10 lakh.
- No other Demat account under your PAN should be tagged as BSDA.
How to Restore or Verify BSDA Status
If your account was reclassified but you believe you still meet the eligibility criteria, you can request a re-evaluation. To initiate this:
In your message, please include:
- Your FYERS Demat account number and registered PAN
- A declaration confirming that you do not have another BSDA with any other broker or DP
- Confirmation that your combined holdings across all Demat accounts are below ₹10 lakh
Our DP Operations team will review your request with CDSL. If you meet SEBI’s conditions, we will reapply for BSDA reinstatement on your behalf.
Tip: You can verify your current BSDA status and total holdings by logging into the CDSL Easi portal or by checking your FYERS Demat Statement of Holdings. What If...
| Scenario | Outcome |
|---|
| I hold ₹6 lakh with FYERS and ₹5 lakh with another broker | Your combined holdings exceed ₹10 lakh. CDSL will automatically remove BSDA status from one or both accounts. |
| I reduce my total holdings below ₹10 lakh later | BSDA will not be reinstated automatically. You must request reclassification through FYERS after CDSL re-verifies your eligibility. |
| I hold multiple active Demat accounts | Only one account can remain BSDA. The rest are converted to regular Demat as per SEBI’s “one BSDA per PAN” rule. |
| I didn’t receive prior notification | Depositories apply BSDA removal automatically based on your PAN-linked data. Brokers are not required to issue advance alerts. |
| I want to confirm or restore my BSDA classification | You can contact our support team or email our DP team for re-verification and guidance. |
Last updated: 06 Nov 2025
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