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

A DP receives an account opening form from a client who wants a Basic Services Demat Account (BSDA). Which condition applies to eligibility for a BSDA?

A BSDA is available to an individual who holds only one demat account and whose securities remain within the prescribed value limit. It is not for corporates and has no minimum share-holding requirement.

  1. AThe client may hold any number of demat accounts and still qualify
  2. BThe client must be an individual who holds only one demat account, with no other demat account as sole or first holder, and holds securities within the prescribed value limitCorrect
  3. COnly corporate bodies can open a BSDA
  4. DThe client must hold at least one lakh shares

Explanation

BSDA is meant for small investors: individuals with only one demat account (as the first holder, in any depository) and with securities value within the prescribed limit. Companies are not eligible, and there is no minimum share count.

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