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

A DP's client has an existing Basic Services Demat Account (BSDA). Under the BSDA framework, which of the following is correct?

A Basic Services Demat Account allows an eligible small investor to hold only one such account across depositories, with concessional or nil annual maintenance charges subject to limits on the value of holdings. It is not for NRIs only.

  1. AAn investor may hold only one BSDA across depositories, and eligible holders have lower or nil annual maintenance charges subject to value of holdings limitsCorrect
  2. BAn investor may open one BSDA at every DP
  3. CBSDA is available only to non-resident investors
  4. DBSDA holders cannot hold mutual fund units

Explanation

BSDA is meant for small investors, who may hold only one such account, with only one BSDA allowed per investor across depositories and with concessional charges subject to holding value limits. It is not restricted to NRIs, and holding multiple BSDAs is not permitted. Mutual fund units can be held.

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