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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 an individual who wishes to open a Basic Services Demat Account (BSDA). Which condition must the investor satisfy to be eligible?

An individual seeking a BSDA must hold only one demat account, with the value of securities within the prescribed limit. BSDA is designed for small investors and offers reduced charges; multiple accounts or corporate status make a person ineligible.

  1. AHe must hold only one demat account and the value of securities must be within the prescribed limitCorrect
  2. BHe must be a non-resident Indian
  3. CHe must hold at least three demat accounts
  4. DHe must be a corporate body with a net worth above the prescribed limit

Explanation

BSDA is meant for small investors who hold a single demat account (individual holders) with securities value up to the prescribed limit. It offers lower annual maintenance charges. Multiple accounts or corporate status disqualify.

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