SEBI is planning to change the rules of Demat Account, the limit of keeping securities may increase five times

SEBI, the capital market regulator, is planning to change the rules governing Demat Accounts. SEBI intends to increase the securities deposit limit in the Basic Services Demat Account (BSDA).

Basic Services. Demat Accounts were launched in 2012 to promote financial inclusion.

Currently, other securities worth Rs 2 lakh can be held in the Basic Services Demat Account. SEBI intends to increase this limit to 10 lakhs.

Basic Services. Demat Account is one type of Demat account. This account is for retail investors. This account does not allow the investor to invest in stocks, bonds, ETFs, mutual funds, or other similar securities. Aside from that, the maintenance cost of this account is low.

SEBI has issued a consultation paper to increase the securities limit in this account. SEBI has asked in the consultation paper whether the limit of the Basic Services Demat Account should be increased or not.

According to SEBI's consultation paper, in the last 10 years, there has been an increase in the growth of the stock exchange and the participation of retail investors in the securities market. In view of the increase in the participation of retail investors, SEBI is planning to increase the limit of the Demat account. Apart from this, SEBI is also considering the maintenance charge.

Basic Services is planning to charge Rs 100 on securities worth Rs 4 lakh to Rs 10 lakh in the demat account. Currently, no charge is levied by the brokerage firm on debt securities up to Rs 1 lakh and non-debt securities up to Rs 50,000. SEBI is also proposing to increase the limit of debt securities to Rs 4 lakh.