SEBI Proposes Changes:
The Securities and Exchange Board of India (SEBI) has proposed a key revision to the framework governing Basic Services Demat Accounts (BSDA). In a draft circular released on November 25, 2025, SEBI suggested that zero-coupon, zero-principal (ZCZP) bonds should be excluded from the valuation of securities used to determine BSDA eligibility. This development comes as part of a broader review of BSDA norms, aimed at aligning the eligibility criteria with the evolving nature of financial instruments and improving the focus on genuine small investors. A Basic Services Demat Account (BSDA) is a simplified demat account facility introduced by SEBI in 2012. It is designed to reduce the cost burden on small and first-time investors by capping annual maintenance charges based on the value of securities held.To be eligible, the value of holdings in a BSDA must remain below a prescribed limit, currently ₹2 lakh. Investors can only hold one BSDA across depositories. BSDA accounts offer a reduced cost structure, making market access more inclusive.
