Why Was the BSDA Status Removed from My Demat Account?
BSDA (Basic Services Demat Account) is a SEBI-regulated facility designed to reduce account maintenance costs for small investors. However, this status is conditional and may be automatically withdrawn if specific eligibility criteria are not met.
Common Reasons for BSDA Status Removal
Your holdings exceeded ₹10 lakh
- BSDA eligibility applies only if your total holdings across all securities (stocks, mutual funds, bonds, etc.) remain below ₹10,00,000.
- If your holdings cross this limit, the BSDA classification is automatically revoked by the depository.
You already have a BSDA elsewhere
- SEBI permits only one BSDA per individual PAN across all brokers and depositories.
- If another Demat account under your PAN is already tagged as BSDA, this status is withdrawn from the additional accounts.
Multiple Demat accounts detected
- Even with holdings below ₹10 lakh, BSDA may be removed if you maintain more than one active Demat account.
- Depositories (CDSL or NSDL) automatically identify and reclassify accounts to comply with SEBI regulations.
Important: There will be no change to your account, as FYERS does not charge any Annual Maintenance Charges (AMC), even if your BSDA status is removed.
Tip: You can maintain only one BSDA account across all brokers. Check your other Demat accounts to identify where BSDA remains active.
What if...
| Scenario | Outcome |
|---|
| I reduce my holdings below ₹10 lakh | BSDA status may not be reinstated automatically. You may reapply once eligibility is reverified by the depository. |
| I unknowingly opened two Demat accounts | The depository will retain BSDA status for only one account under your PAN. The other will be reclassified as a regular Demat account. |
| I was not notified of the BSDA removal | Depositories automatically update classifications as per SEBI norms. Brokers are not required to issue advance alerts for this change. |
Last updated: 13 Oct 2025