New Delhi: With an aim to encourage an investment culture in the country, market regulator Sebi on Monday announced no-frills or basic trading accounts for retail individual investors with no charges applicable for holdings up to Rs 50,000.
The investors can hold securities worth up to Rs two lakh in these no-frills accounts, to be called Basic Services Demat Account (BSDA), but the charges would be capped at a maximum of Rs 100 a year for funds exceeding Rs 50,000.
There will be no Annual Maintenance Charges if the value of holding in these accounts is up to Rs 50,000, Sebi said in a circular. The move follows a facility of no-frills savings account already in place at various banks as per directions of the banking sector regulator RBI (Reserve Bank of India).
Investors can hold stocks, mutual funds and other securities in these accounts and Sebi has asked the depositories to facilitate opening of such accounts with effect from October 1, 2012.
Sebi said that investors would get electronic statements free of cost for these accounts. Besides, at least two physical statements would also be provided free of cost during the billing cycle and any additional physical statement may be charged at a fee not exceeding Rs 25 per statement.
The investors would be able to get SMS alert facility for all debit transactions on these accounts through their mobile phones.
First Published: Tuesday, August 28, 2012, 10:43