Sebi raises basic demat account limit to Rs 10 lakh

PTI

New Delhi, June 28

To boost participation of small investors in the securities market, Sebi on Friday increased the threshold for the basic service demat account to Rs 10 lakh from the current Rs 2 lakh. The new guidelines will come into force from September 1, the Securities and Exchange Board of India (Sebi) said in a circular.

Increasing the limit of securities' value held in the Basic Services Demat Account (BSDA) will encourage small investors to trade in the stock market and ensure their financial inclusion.

A basic service demat account, or BSDA, is a more basic version of a regular demat account.