Do you have a demat account or a plan to get one? Then you should know what is the basic service demat account, because if you are planning to do very little business and want to save on the annual maintenance fee, it can be helpful for you.
The Basic Services Demat Account is known as the original version of a full demat account which provides basic level of services. This is ideal for those whose portfolio size is quite small. We will see the details in this article. But before that, do you know what is a demat account in the first place?

What is a Basic Services Demat Account?

Demat or dematerialized account means an electronic account in which there are various financial securities (especially shares) securely electronically. Demat account is a compulsory account for those who want to buy shares of the company from the stock market.
The demat accounts are under the control of SEBI i.e. Security and Exchange Board of India Now, from 27 August 2012, SEBI has brought a guideline that every Demat Provider will be provided "Basic Demat Account" to each early person in the stock market so that it can encourage people to invest in the business. It would be helpful to get comprehensive financial inclusion.
So all the investors, who want less business and want to reduce the size of the portfolio, can open a basic service demat account (BSDA) and save on annual maintenance charges.

Where to open a demat account?

You can open your Demat Account or BSDA in any bank like SBI, ICICI, HDFC, Kotak Mahindra and many other banks, or stock broking companies Angel Broking, 5 paisa, Sher Khan etc. Opening of both a demat account and a basic service demat account is free on both banks and broking companies, but then the AMC changes.
These banks and broking companies provide free services for the first year and from the second year they can start charging on the basis of transaction. Therefore, before applying for a BSDA or a demat account, check all the details on that particular bank's website.

How different are the Basic Services Demat Accounts?

Basic Services Demat Account is a Demat Account which can be opened with any of your preferred demat service provider, when your holdings are expected to be less than Rs. 2,00,000 / -.
If we maintain the holdings of the value at least 50,000 / - then no annual maintenance will be taken from our account. If our holdings are between 50,000 to 2,00,000 / - then the annual maintenance is Rs. 100 / - will be charged.
If our holdings exceed 200000 / - then our BSDA account will be converted into a regular Demat Account. This initiative is to encourage retail investment and encourage retail investors to keep securities in demat form.
Services provided for Basic Service Demat Account
Now you should be clear about general demat accounts and BSDA. Generally, Basic Service Demat Account provides all the major facilities included in the General Demat Account. But other, those services, there are some services in BSDA, which are slightly different from the general demat account.

These services are given below:

1) Transaction details:

When your BSDA account is activated and the balance is maintained, you will receive quarterly details of your account transaction details. But if you do not have any transactions in the quarter and you do not have any security then you will not get a transaction report or statement.
Statements are available in two forms, such as electronic and physical documents or hard copies. Electronic statements are free; You will not be charged for this. But if you want a statement in a strict copy, your first two statements will be made available for free and for additional statements you will have to pay the fee which will not exceed Rs. 25.

2) Annual Holding Statement:

An annual holding statement of the account is sent to the registered address of the holding account holder. These documents will be sent in physical or electronic form through e-mail as per the choice of account holder.

3) SMS alerts:

In order to avail the facility of SMS Alerts, the account holder should register his mobile number. Here you will find the SMS for each transaction in your account.

4) Delivery instruction slip (DIS):

Two Delivery Instructions Slips will be made available for free while opening the Basic Services Demat Account.
These are services which are slightly different in the case of general demat account after basic service demat account. If you want to read more about BSDA's services and fees, you can download the circular by SEBI.