One Demat, Multiple Benefits: Power of a Single Demat Account

📌 Introduction

Ever felt like your investment journey is costing more than it’s earning? You’re not alone. Between multiple demat accounts, AMC fees, and maintenance charges, small investors often end up paying more than they should. But what if we told you that “One Demat, Multiple Benefits” isn’t just a catchphrase—it’s a money-saving reality now?

Thanks to SEBI’s latest update to the Basic Services Demat Account (BSDA) rules in September 2024, it’s now easier (and cheaper) for small investors to invest smartly.

🧾 What Is a Demat Account?

A Demat (Dematerialized) account holds your stocks and securities in electronic format. Just like a bank account holds your money, a demat account holds your shares. It’s mandatory for stock trading in India.

But here’s the twist: maintaining multiple demat accounts means multiple headaches—multiple logins, multiple AMC fees, and lots of paperwork if something goes wrong.

🌱 Why “One Demat, Multiple Benefits” Matters

Let’s be honest: who really needs three demat accounts to hold their ₹20,000 SIPs and a few Tata Power shares?

Maintaining just one demat account—especially a BSDA—can:

• ✅ Cut costs (zero or low AMC fees)
• ✅ Keep all investments in one place
• ✅ Reduce paperwork and confusion
• ✅ Simplify transmission and nominations

And the best part? If your holdings are modest, you might not pay anything at all.

💸 What Is a Basic Services Demat Account (BSDA)?

SEBI introduced BSDA to make investing cheaper for small retail investors.

🔍 Latest BSDA Rules (Effective September 1, 2024)

🧾 Value of Securities in Account	💰 Annual Maintenance Charges (AMC)
Up to ₹4 lakh	₹0
₹4 lakh to ₹10 lakh	₹100
Above ₹10 lakh	Charged like regular demat account

👤 Eligibility Criteria:

• You must be an individual investor (not a firm or HUF)
• You should be the sole or first holder
• You can have only one BSDA across all DPs

⚖️ BSDA vs Regular Demat: What’s the Real Difference?

Feature	BSDA	Regular Demat
AMC for up to ₹4 lakh	₹0	₹300–₹800 (varies by DP)
AMC for ₹4–10 lakh	₹100	₹300–₹800
AMC for >₹10 lakh	Regular charges apply	Regular charges apply
Eligibility	Only one per person	Unlimited
Ideal for	Small investors & SIP holders	Frequent traders & HNIs

🧮 Real Savings: One BSDA vs Three Regular Accounts

Let’s assume you have 3 regular demat accounts (why? Don’t ask).

• Average AMC: ₹500/account
• Total Annual Cost: ₹500 x 3 = ₹1,500

Now let’s say you shift to one BSDA with holdings under ₹4 lakh:

• BSDA AMC: ₹0
• Annual Saving: ₹1,500

Even if your holdings are between ₹4–10 lakh:

• BSDA AMC: ₹100
• Annual Saving: ₹1,400

📊 Over 5 years, that’s ₹7,000+ saved—without doing anything risky. Just closing those extra accounts.

🪙 When to Use a Regular Demat Account?

BSDA isn’t for everyone. If you:

• Trade daily
• Hold > ₹10 lakh in securities
• Need advanced tools, research reports, etc.

…then a regular demat account makes more sense. But for average long-term investors or beginners? BSDA wins hands down.

🚩 How to Convert or Open a BSDA?

1. Contact your Depository Participant (like Angel One, Zerodha, Groww)
2. Ask for BSDA account opening or conversion
3. Submit basic KYC docs
4. Sign the BSDA declaration form
5. You’re done. You just saved ₹500–₹800 per year.

⚠️ Common Mistakes to Avoid

• ❌ Having more than one BSDA (SEBI will catch it)
• ❌ Not updating your mobile/email—can lead to penalties
• ❌ Holding >₹10 lakh and expecting ₹0 AMC
• ❌ Forgetting to close unused demat accounts—banks love your negligence

🎯 Conclusion: One Demat. Fewer Headaches. More Savings.

You don’t need 3 demat accounts to feel like an “investor.” With SEBI’s BSDA upgrade, it’s finally possible to invest small without paying big.

So take control of your investments. Close unnecessary accounts. Switch to BSDA. And remember—sometimes, less truly is more.

🔔 Ready to Simplify Your Investing?

Open your BSDA with Angel One—and enjoy ₹0 AMC*, seamless investing, and one clean, cost-effective portfolio. Why pay for clutter?

👉 Start with Angel One now — because “One Demat, Multiple Benefits” isn’t just a tagline. It’s your new financial strategy.

🧠 FAQs

Q1. Can I have one BSDA and one regular demat?
No. You’re allowed only one BSDA account across all Depository Participants.

Q2. Can I trade in derivatives using BSDA?
Yes. There’s no restriction on trading. But if your holdings cross ₹10 lakh, charges will go up.

Q3. Can I convert my current demat into BSDA?
Absolutely. Just talk to your DP and submit a request. You don’t need to open a new account.

Q4. Do I lose features with BSDA?
Nope. You get the same features. Just fewer charges. What’s not to love?

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