Purbalee Dutta 
The Securities and Exchange Board of India (SEBI) on November 24 proposed reforms to the Basic Services Demat Account (BSDA) scheme to enhance ease of doing business and promote financial inclusion. In its consultation paper titled “Ease of Investments and Ease of Doing Business Measures – Review of the BSDA for Financial Inclusion,” SEBI outlined several key changes.
BSDA, introduced in 2012, is a simplified version of a regular demat account designed for investors with small portfolios, offering reduced annual maintenance charges. Accounts with holdings below ₹50,000 are exempt from annual fees, which can otherwise range from ₹100 to ₹1,000 plus GST.
The regulator proposed excluding Zero Coupon Zero Principal (ZCZP) bonds from portfolio value when determining BSDA eligibility and treating delisted securities the same as suspended securities, as both lack liquidity, active trading, and transparent pricing. Illiquid securities, which are still listed but trade infrequently, would follow a specific valuation mechanism.
SEBI also suggested a system-driven quarterly reassessment of BSDA eligibility for existing beneficial owners to simplify operations across Depository Participants (DPs). Additionally, investor consent could now be submitted via registered email or other authenticated channels to improve convenience and investor experience.
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