Reasons why BSDA status is removed from a Demat account

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

  1. 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
  2. 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
  3. 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    • Even with holdings under ₹10 lakh, BSDA may be withdrawn if: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...

ScenarioOutcome
I reduce my holdings below ₹10 lakhBSDA status may not be reactivated unless you close other Demat accounts or reapply after review.
I unknowingly opened two Demat accountsThe depository will retain BSDA status for only one—others will be reclassified.
I was never informed of the changeThe depository enforces BSDA eligibility and brokers may not receive advance notice of removal.

Last updated: 24 Jun 2025

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