There are many Demat accounts; however, the IIFL BSDA account is quite a bit different from its other accounts. Let us see how?
Before moving further, are you aware of the BSDA account, who has introduced it, and how it is different from a Demat account?
Generally, the Basic Services Demat Account is abbreviated as BSDA and is entirely different from the Demat account features and its certain principles.
If you are an occasional trader or investor who wants to trade in stocks, shares, IPOs, etc. then the charges related to the BSDA account seem to be a pain.
To overcome this pain, the Securities and Exchange Board of India (SEBI) had introduced a new Demat account feature in 2012 known as the BSDA account for these occasional traders and investors.
You can also read our BSDA related blog, which will offer you a full package of the in-depth information in regards to the same. Click here and read our article in English or Hindi.
Who can open a BSDA account with IIFL?
To open a BSDA account with the IIFL, a trader or an investor must fulfill the essential eligibility criteria.
Any individual can open a BSDA account with the IIFL, and even the existing Demat account holders can shift their account to the BSDA account if the conditions are pleased.
These conditions are as follows
The BSDA or an existing account holder must be an individual. This means that no joint accounts or holders are entertained by the IIFL Securities under the BSDA facility.
The second condition is that the IIFL offers only a single BSDA account to its customer or account holder, which remains the same across all the DPs.
Hence, any person can open a BSDA account with IIFL who falls under the above conditions and can avail of its services smoothly.
BSDA Demat Account Rules with IIFL
There are certain eligible limits or rules for the BSDA Demat account holders with the India Infoline and these conditions are implemented by the Securities Board of Exchange.
IIFL follows the below conditions while opening a BSDA account for its customers
During a year, if the value of the holdings in the BSDA account exceeds Rs. 2,00,000 then the IIFL will levy charges as per the nominal account charges.
However, if the value of the holdings is less than Rs. 2,00,000 and higher than Rs. 50,000, then the IIFL AMC charges are applicable.
The third condition is that IIFL does not charge AMC charges if the value of the holdings is lesser than or up to Rs. 50,000 per annum.
To have a brief understanding of the same, you can view the details in the below table:
Value (per annum)
Charges levied by the IIFL
Less than Rs. 50,000
No AMC charges
Rs. 50,000 to Rs. 2,00,000
Nominal AMC charges
More than Rs. 2,00,000
Demat account charges
From the above criteria, we can clearly assume that to be eligible for a BSDA account one must have holdings lesser than Rs. 2 lakh.
Applying for a BSDA account with IIFL
Through a simple and easy process, a trader or an investor can apply for a BSDA account with the IIFL by following a quick procedure.
A new client can open a BSDA account by opting of the following ways
Contact their customer support
Visit their nearest branch
Contacting sub-broker or agents
Hence, a person can open the account by either contact their staff, visiting IIFL Branch, or even contacting a sub-broker or any agent dealing with the IIFL.
To make the process more quick and smooth, it is recommended to keep all your documents copy with you.
And, if you an existing IIFL customer and wishes to transfer your account to a BSDA account then you can easily transfer it online. Even IIFL automatically transfers your account into BSDA if you fall under their eligibility criteria.
For this process, the IIFL calculate the value of your holdings such as mutual funds, shares, and ETFs, and if the value of these holdings is less than Rs. 50,000 or Rs. 2 lakhthen you are eligible for the same.
BSDA Account Charges
To open and handle the BSDA account, there are certain charges that are levied by the IIFL to its customers.
These charges include AMC charges, GST, STT, and other additional charges such as bounce charges, rejection charges of DIS or DRF, etc.
BSDA account-related charges levied by the India Infoline are as follows
IIFL BSDA Account Charges
Rs. 600 to Rs. 800 (per annum)
Other miscellaneous charges
As per the transactions
Apart from the Demat account, traders or investors can instantly open a BSDA account (Basic Services Demat Account) with the IIFL.
Apart from the new customers even existing ones can transfer their Demat account into BSDA by following simple and quick ways.
Any individual who fulfills the eligibility conditions delightedly can open the BSDA account with the IIFL without paying anything.
Isn’t that great? Generally, to open a BSDA account IIFL or with any other stockbroker, one must have a value of the holdings less than Rs. 2 lakhannually.
If the value of the holdings exceeds this amount, then the regular charges are applied and the account falls under Demat account.
There are quite a few questions that are frequently asked by the people interested in BSDA accounts. Here are some of them along with their answers:
What is BSDA and NON-BSDA?
BSDA (Basic Services Demat Account) is a type of Demat account established by SEBI to offers stock market-related services with fair or lesser charges for the seasonal or occasional traders or investors. The main idea of having a BSDA Demat account is that the users can open and maintain their accounts and holdings at a reduced cost.
Whereas, a NON-BSDA account is the regular Demat account for the frequent traders or investors who holds a value of more than Rs. 2 lakh per annum in their Demat account.
2. What is BSDA Demat account?
A BSDA Demat account is established particularly for the small investors who occasionally invest in stocks, bonds, ETFs, mutual funds, etc. and do not want to pay higher charges to their Demat account or its maintenance.
3. What is the eligibility for opening a BSDA account?
To open a BSDA account with IIFL or any other stockbroker one must have holdings with a value of less than Rs. 2 lakh (annually).
4. What is the process to open a BSDA account with IIFL?
To open a BSDA account with the IIFL, you can follow the simple and quick offline process which is as below:
Fill the IIFL Demat account opening form. Simply, tick the BSDA account box and your BSDA account will be instantly opened with the IIFL. On certain occasions, the IIFL automatically shifts one’s trader or an investor Demat account into BSDA if he fulfills the criteria for the same.
Willing to open a Demat Account? Please refer to the below form