Sebi eases BSDA guidelines, excludes ZCZP bonds, delisted shares from account valuation
The transfer is aimed toward additional bettering BSDA facility to make investing easier for traders and scale back the compliance burden for depository contributors (DPs).
“It has been determined to exclude Zero Coupon Zero Principal (ZCZP) bonds and delisted securities for reckoning the brink for BSDA,” Sebi stated in its round.
Which means the worth of those securities is not going to be counted whereas checking BSDA eligibility.
This determination follows suggestions acquired from market contributors after the sooner round issued on June 28, 2024.
For illiquid securities, DPs will calculate the account worth utilizing the final accessible closing value. As well as, DPs at the moment are required to evaluation the BSDA eligibility of all accounts each quarter, as an alternative of doing it often.
The regulator has additionally mandated that if an investor is eligible for BSDA, the DP is required to open or convert the account into BSDA by default. If the investor needs to maintain a daily demat account as an alternative, they’re required to offer their lively consent by way of a verifiable and authenticated channel prescribed by the depositories.
Additional, DPs should reassess all current demat accounts each quarter and convert all eligible accounts into BSDA until the investor particularly consents to proceed with a daily demat account.
For valuation functions, the worth of holdings can be based mostly on day by day closing costs or NAVs. If costs should not accessible, the final traded value could also be used.
For unlisted securities aside from mutual fund items, face worth might be thought of. For illiquid securities, final closing value can be used.
Nevertheless, the worth of suspended securities, delisted securities and ZCZP bonds is not going to be thought of in any respect whereas figuring out BSDA eligibility.
These adjustments will come into impact from March 31, 2026, Sebi stated.
A fundamental service demat account, or BSDA, is a extra fundamental model of a daily demat account. The worth of holdings within the BSDA ought to be beneath Rs 10 lakh. The power was launched by Sebi in 2012 for lowering the burden of demat fees on traders with small portfolios.
