WHAT IS BASIC SERVICE DEMAT ACCOUNT?

WHAT IS BASIC SERVICE DEMAT ACCOUNT? 

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Hello learners in this video we'll be discussing the details about the basic service team at account as covered in our last video with a normal DeMat account stock brokerage companies charge a certain amount as a fee for handling it for an investor the fee is called annual maintenance charges MC and it can range from rupees 300 to 900 per year the speed differs from one brokerage firm to another but there is a problem in this annual maintenance charge associated with the normal team at account it is really unfair to small investors it does not matter if you have shares worth rupees 1000 in your team at account or rupees 1 corrode AMC will be charged let us dig in further think about this rupees 300 AMC on a d-mat account that is holding shares worth 10,000 corresponds to a charge of 3% on the other hand a rupees 900 AMC on the d-mat account that is holding shares worth rupees one crore it's just 0.009 percent when that is unfair for the small investor to solve this problem the Securities and Exchange Board of India Sebby stepped in and introduced the basic service team at account bsta there are two main things which set apart bsta from a normal account first is annual maintenance charges and second is statements let us first discuss the annual maintenance charge of PSTA if you have shareholding which has worked less than 50,000 in your d-mat account then AMC won't be charged if the holding value of shares is between 50,000 to 2 lakhs then the flat fee of hundred would be touched hence the investor has to pay less fee
for maintenance we are well aware that in the stock market the price of shares is dynamic in nature and the value of your investment changes with increase or decrease in share price thus the holding value of shares is derived from the closing price of shares on each thing the day where your investment value crosses two lakh rupees your account will be treated as the matter count and you will be charged with animal maintenance charge let us move to statements now but BSD a transaction statements are issued every quarter that is you'll be provided with the transaction statement every three months if there is no transaction made by you in a particular quarter the transaction statement won't be issued to you the shareholding statement is sent to you on a yearly basis the statements can be made available to you in electronic form
Where the broker will send you the statement over mail if you wish to take a physical copy of the statements the first two statements are free and subsequent statements are charged at rupees 25 per statement last courier charges there are certain terms and conditions associated with psca these are you should have only one be Manta town you should be the sole holder of the PMAG account and if you have a joint d-mat account then you should be the first holder the holding value of shares in d-mat account should be less than two lakh rupees if all these conditions get fulfilled then you can convert your regular teammate account into basic services did not account if you are new and just starting the stock market investment then you can go with bsta but an important point to remember is once you're holding value process the threshold of two lakh rupee your ESDA account will be converted into a regular t-not account in future even if some day you're holding value again comes below the two lakh rupee threshold your account will be treated as a regular d-mat account and not as bsd a there have been instances where people will charge with an animal maintenance fee by a bank directly from the saving account even if they do not have a diamond account well you need to aware and informed that there are several tanks who might open your d-mat account with your saving accounts and they also charge you with AMC per year under such circumstances one must immediately convert his or her DMACC account into bsta so that there's an exemption from annual maintenance fee there are several banks and brokers who might charge little extra deposit rien Procrit charges even the bsta in this case it is better to act smartly and open your d-mat account with a brokerage firm that does not charge any fee for basic services d-mat account