In a move to further boost participation of retail investors in the debt market, SEBI revised Annual maintenance charges (AMCs) levied on debt securities held through basic services demat accounts.
Currently, a uniform AMC of Rs100 is levied on securities worth over Rs50,000 and up to Rs2 lakh irrespective of type of holding.
But after revision, there will be no AMC on debt securities worth up to Rs1 lakh held through BSDA. A maximum charge of Rs100 would be levied if the value of holdings is above Rs1 lakh and up to Rs2 lakh.
The revised changes would be effective from June 1, according to Sebi.
Basic Services Demat Account (BSDA) offers limited services at a lower cost for retail investors.
In 2012, Sebi directed depository participants to make BSDA available for retail individual investors as part of efforts to reduce the cost of maintaining securities in demat accounts.