SEBI revises the BSDA limit for Debt Segment

Apr 10, 2019 | by Avantis RegTech Legal Research Team


The Securities Exchange Board of India (SEBI) on April 10, 2019, in order to boost participation in Debt Market, decided to revise the structure of charges for debt securities as defined in SEBI (Issue and Listing of Debt Securities) Regulations, 2008. SEBI vide Circular CIR/MRD/DP/22/2012 dated August 27, 2012 and CIR/MRD/DP/20/2015 dated December 11, 2015, introduced the facility of Basic Services Demat Account (BSDA) with limited services for eligible individuals with the objective of achieving wider financial inclusion and to encourage holding of demat accounts.

The revised structure is mentioned below:

•No AMC shall be levied in case the value of holdings of debt securities is up to Rs. 1 lakh and maximum AMC of Rs. 100 shall be levied if the value of holdings of debt securities is between Rs. 1,00,001 and Rs. 2,00,000.

•No AMC shall be levied in case the value of holdings other than debt securities is below Rs. 50,000 and maximum AMC of Rs. 100 shall be levied if the value of holdings of debt securities is between Rs. 50,001 and Rs. 2,00,000.

This Circular will come into effect from June 01, 2019.

[Circular No. MRD./DoP2DA2/CIR/P/2019/51]

Click here to download the Circular.


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