The Securities and Exchange Board of India (SEBI) issued a circular further enhancing the Facility for Basic Services Demat Account (BSDA), changing how depository participants (DPs) determine BSDA eligibility and when investors must actively consent to a regular demat account. For BSDA threshold calculations, DPs must exclude Zero Coupon Zero Principal (ZCZP) bonds and delisted securities. Illiquid securities must be valued at the last closing price, and BSDA eligibility must now be reassessed quarterly. The revised framework also requires beneficial owners to provide specific consent, through an authenticated and verifiable channel specified by the depositories, to open or continue with a regular demat account; otherwise, eligible accounts are to be opened or converted as BSDAs. These changes replace and supersede specified provisions in SEBI’s June 28, 2024 circular on BSDA. The circular takes effect from March 31, 2026. Depositories are instructed to amend relevant bye-laws, rules and regulations, and to put systems and procedures in place within 75 days and implement the provisions after user testing within 90 days from issuance.
Securities & Exchange Board of India 2025-12-24
Securities and Exchange Board of India excludes ZCZP bonds and delisted securities from Basic Services Demat Account thresholds and tightens consent rules
The Securities and Exchange Board of India (SEBI) has issued a circular enhancing the Facility for Basic Services Demat Account (BSDA), altering eligibility criteria and consent requirements for regular demat accounts. Depository participants must exclude Zero Coupon Zero Principal bonds and delisted securities from BSDA threshold calculations and reassess eligibility quarterly. Beneficial owners must provide consent to maintain a regular demat account, with eligible accounts defaulting to BSDAs if consent is not given.