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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

A BO with a basic services demat account (BSDA) asks his DP about eligibility. Which condition must be met under the BSDA framework?

For a BSDA, the BO must be an individual with just one demat account, where he is the sole or first holder, and the value of securities must remain within the prescribed limit. Multiple accounts, unlimited holdings or corporate status make an investor ineligible for BSDA.

  1. AThe BO must hold only one demat account across depositories and have a limited value of securities heldCorrect
  2. BThe BO may hold unlimited securities across several demat accounts
  3. CThe BO must be a corporate entity
  4. DThe BO must hold only physical certificates

Explanation

BSDA is meant for small investors: the individual must have only one demat account in which he is the sole or first holder, and the value of securities held must stay within the prescribed limit. Corporates and investors with several accounts are not eligible, and physical holding is irrelevant to BSDA.

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