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

A DP is opening a Basic Services Demat Account (BSDA) for Kavita Rao, who has no other demat account. Which condition is correct for BSDA eligibility?

BSDA is available to an individual who holds only one demat account, with no other demat account in his name with any depository. It is intended for small investors and carries no minimum holding requirement or company eligibility.

  1. AThe account holder may hold any number of demat accounts, provided one is BSDA
  2. BOnly an individual who has a single demat account across depositories can be eligible, as a sole or joint holder with the same set of holders only in single BSDACorrect
  3. CBSDA is available only to companies
  4. DBSDA requires a minimum balance of securities worth Rs 10 lakh

Explanation

BSDA is meant for small investors: an individual must have only one demat account (where he is the sole or first holder) to opt for it, and no other demat account in his name in any depository. It is not for companies and has no minimum holding requirement.

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