Reasons why BSDA status is removed from a Demat account

Why was the BSDA status removed from my Demat account?

Your BSDA (Basic Services Demat Account) status may be removed based on specific conditions defined by SEBI (Securities and Exchange Board of India) and the depository (CDSL/NSDL). Below are the most common reasons:

1. If your holding value exceeded ₹10 lakh  :
BSDA status is only applicable if the total value of your holdings (shares, mutual funds, bonds, etc.) in a Demat account is not more than ₹10 lakh. If your holdings cross this limit, your account will automatically lose BSDA status.

2. If BSDA already exists in another Demat account:
As per guidelines, only one BSDA account is allowed per individual across all brokers and depositories. If you have another Demat account already marked as BSDA, the BSDA tag will be removed from the newer or additional account.
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3. If multiple Demat accounts detected:
Even if your current holdings are below ₹10 lakh, BSDA status may still be removed if:
  • You have more than one Demat account, and
  • Another account is already marked as BSDA.
The depository (CDSL or NSDL) will remove BSDA status from the extra accounts to comply with the one-account rule.  

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