What is the recent decision by SEBI regarding Basic Demat Accounts (BSDA)?

SEBI has announced a restructuring of Basic Demat Accounts (BSDA) by increasing the holding limit from Rs. 2 lakh to Rs. 10 lakh. Additionally, the cap on Annual Maintenance Charges (AMCs) has been revised. There will be no maintenance charges for holdings up to Rs. 4 lakh, and a charge of Rs. 100 for holdings between Rs. 4 lakh and Rs. 10 lakh.

What is a Basic Demat Account (BSDA)?

A Basic Demat Account (BSDA) is designed for small retail investors to hold financial shares and other securities digitally. It offers lower maintenance charges to encourage participation in the share market. If the total value of securities in a BSDA exceeds Rs. 10 lakh, the account is converted into a regular Demat account.

How is the value of holdings in a BSDA calculated?

The value of holdings is calculated based on the daily closing value or Net Asset Value (NAV). If this information is not available, the last traded price is used. For unlisted securities, the face value is considered.

How does the new BSDA framework benefit small investors?

The new framework lowers costs for small investors, making it easier for them to participate in the securities market. The increased holding limit and reduced maintenance charges also provide more flexibility and potential for growth in their investments.

What are the additional changes announced by SEBI for Foreign Portfolio Investors (FPIs)?

SEBI has relaxed guidelines for FPIs based in International Financial Services Centres (IFSCs), allowing them to aggregate up to 100% of the corpus from contributions by NRIs, overseas citizens of India, and resident Indians.

What is the recent decision by SEBI regarding Basic Demat Accounts (BSDA)?

SEBI has announced a restructuring of Basic Demat Accounts (BSDA) by increasing the holding limit from Rs. 2 lakh to Rs. 10 lakh. Additionally, the cap on Annual Maintenance Charges (AMCs) has been revised. There will be no maintenance charges for holdings up to Rs. 4 lakh, and a charge of Rs. 100 for holdings between Rs. 4 lakh and Rs. 10 lakh.

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SEBI’s New Decision For Demat Account Holders: Good News For BSDA Holders

Samridhi

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Updated: 28-01-2025 at 6:24 AM

SEBI’s New Decision For Demat Account Holders: Good News For BSDA Holders

The government of India will be expanding its authority to control telecommunications services beginning June 26, 2024 (inclusive), by enforcing the Telecommunications Act 2023.

Read about the Telecom Act 2023 in detail in this article.

Telecommunications Act 2023: More Governmental Control

The Centre has only partially notified the Telecommunications Act 2023. As reported in the Gazette, the act’s sections 1, 2, 10 to 30, 42 to 44, 46, 47, 50 to 58, 61, and 62, will enter into effect on June 26, 2024. This bill allows the government to take over, ban or suspend any telecom service or network in the interest of citizens and national security.

In this bill, provisions have been made in the law keeping the consumers at the centre and keeping their interests in mind.

If a person fraudulently obtains a SIM, then a punishment of 3 years and a fine of up to Rs 50 lakh have been kept for this. Along with this, anyone who damages the telecommunication network in addition to the important telecommunication infrastructure will be liable for compensation for the damage and a fine of up to Rs 50 lakh.

The bill states that any officer authorised by the central government may search any building, vehicle, aircraft, or place where he has reason to believe that any unauthorised equipment is kept or concealed.

Replacing Pre-existing Decrees

After the Telecom Act 2023 comes into full force and effect, all earlier telecom regulations laid down in the Indian Telegraph Act of 1885, the Wireless Telegraphy Act of 1933 and a few others will be repealed. The new telecom regulations consolidate all the decrees into one, reflecting the government’s aim to revamp its telecom laws.

Although the administrative allocation of spectrum, such as services provided via satellite, and the mechanism for decisions to be made by officials empowered by the Act have not yet been determined, this may be part of the challenges the legislature will face in adapting to the new assembly.

Conclusion

The new act looks modern and will do a lot to update the legal framework and meet the current challenges, but those in industry and consumer groups will be watching how it is put into practice.

To read more about the Telecommunication Act 2023, read the official guidelines here.

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