Separate BSDA limit for Debt Securities - SEBI - MRD/DoP2DSA2/CIR/P/2019/51

CIRCULAR MRD/DoP2DSA2/CIR/P/2019/51 April 10, 2019 To, The Depositories Dear Sir/ Madam, Subject: Separate BSDA limit for Debt Securities 1. SEBI vide circulars CIR/MRD/DP/22/2012 dated August 27, 2012 and CIR/MRD/DP/20/2015 dated December 11, 2015 , introduced the facility of Basic Services Demat Account (BSDA) with limited services for eligible individuals with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. 2. In order to further boost participation in Debt Market and based on representation received from market participants, in partial modification of the abovementioned SEBI circulars, it has been decided to revise the structure of charges for debt securities as defined in SEBI (Issue and Listing of Debt Securities) Regulations, 2008, as given below: a) No AMC shall be levied in case the value of holdings of debt securities is up to ₹ 1 lakh and a maximum AMC of ₹ 100 shall be levied if the value of holdings of debt securities is between ₹ 1,00,001 and ₹ 2,00,000. and b) No AMC shall be levied in case the value of holdings other than debt securities is below ₹ 50,000 and a maximum AMC of ₹ 100 shall be levied if the value of holdings other than debt securities is between ₹ 50,001 and ₹ 2,00,000. 3. This circular shall come into effect from June 01, 2019. 4. The Depositories are advised to:- a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision as may be applicable / necessary; and b) communicate to SEBI, the status of implementation of the provisions of this circular by the DPs in the Monthly Development Report. 5. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Yours faithfully, Bithin Mahanta Deputy General Manager Market Regulation Department Email: [email protected]