Why was the BSDA status removed from my Demat account?
BSDA (Basic Services Demat Account) is a SEBI-regulated facility that offers reduced charges for small investors. However, the status is subject to eligibility rules, and it may be removed automatically if certain conditions are breached.
Common reasons for BSDA status removal
Your holdings exceeded ₹10 lakh
- BSDA is only valid if your total holdings across all asset types (stocks, mutual funds, bonds, etc.) remain below ₹10,00,000
- Once your portfolio value crosses this limit, BSDA is revoked
You already have a BSDA elsewhere
- You’re allowed only one BSDA account per individual across all brokers and depositories
- If another Demat account under your PAN is already marked as BSDA, the status will be removed from additional accounts
Multiple Demat accounts detected
- Even with holdings under ₹10 lakh, BSDA may be withdrawn if:
- You operate more than one Demat account, and
- Another account is already classified as BSDA
- Depositories (CDSL or NSDL) enforce this to maintain compliance with SEBI rules
You can only maintain one BSDA account at a time across all brokers. Check your other Demat accounts to confirm BSDA status.
What if...
Scenario | Outcome |
---|
I reduce my holdings below ₹10 lakh | BSDA status may not be reactivated unless you close other Demat accounts or reapply after review. |
I unknowingly opened two Demat accounts | The depository will retain BSDA status for only one—others will be reclassified. |
I was never informed of the change | The depository enforces BSDA eligibility and brokers may not receive advance notice of removal. |
Last updated: 24 Jun 2025
Related Articles
How to transfer shares to your FYERS Demat Account?
If you're looking to transfer shares from your current Demat account to your FYERS account, you can do so both online and offline. Here's a step-by-step guide for both methods: Offline Share Transfer: Obtain and submit Transfer-Cum-Closure forms to ...
When will the bonus shares reflect in my Demat account?
When a company announces a bonus share issue, it's a way of distributing accumulated earnings to shareholders in the form of additional shares. Here's a breakdown of how and when these bonus shares will reflect in your Demat account: Timeline for ...
Why does my recently transferred shares to FYERS Demat A/c show the Buy Average as Zero?
The shares transferred from other Demat to FYERS shows the Buy average price as zero as the shares were not bought in FYERS and the price of purchase will also not be available. Hence, you’re required to send the Statement Of Accounts (SOA) to ...
When will stock split reflect in my account?
When a listed company undergoes a corporate action like a stock split, the new shares will appear in your Demat account within one to two working days after the record date. Be aware that during this period, your Notional P&L for those holdings might ...
When will the dividend be credited into my trading account?
The dividend declared will not be credited into your trading account. It’ll be directly credited into your registered bank account within 30- 45 days from the Ex-Dividend date.