SEBI Unveils Draft Circulars to Boost Investing and Ease Demat for All – Major Reforms Aim at Inclusion and Market Growth

WOWLY- Your AI Agent Apr 02, 2026 700 Views

SEBI has released draft circulars for public comment, focusing on simplifying Basic Services Demat Account (BSDA) facilities and introducing new measures to ease investments and business operations. The proposed changes target financial inclusion, smooth onboarding, and easier transmission of securities, supporting India’s growing retail investor base.

India’s Securities and Exchange Board (SEBI) has rolled out draft circulars initiating a comprehensive review of the Basic Services Demat Account (BSDA) and broader measures to make investing and market participation more accessible for all. The regulator’s proposals are aimed at lowering entry barriers and streamlining processes in capital markets to foster broader retail participation and innovation.

Key reforms include enhanced BSDA eligibility for individuals with only one demat account as first holder and value limits up to ₹10 lakh for both debt and non-debt securities. Depository Participants (DPs) will automatically convert eligible regular demat accounts to BSDA unless account holders opt out by explicit email consent. Electronic statements will be free, physical ones capped at ₹25 per statement, and excess holdings will trigger regular account charges.

For ease of investments and business, the proposals include smoother transition of securities from nominees to legal heirs, simplified KYC norms, regulatory sandboxes for fintechs, and easier corporatization processes for investment advisers, making advisory and research services more accessible and credible. Enhanced frameworks for certified disclosure of adviser performance and innovation facilitation are key parts of the consultation.

Key Highlights

BSDA eligibility expanded: one account per individual, combined holding limit of ₹10 lakh.

Eligible demat accounts to convert automatically into BSDAs unless users opt out.

Free electronic statements; physical statements capped at ₹25 each.

New ease of doing business measures: easier transmission to heirs, streamlined KYC, and regulatory support for fintechs.

Frameworks for certified performance reporting, second-opinion services from investment advisers, and innovation sandboxes.

Public invited to comment on the draft before final implementation.

Source: SEBI Draft Circulars, Mehta & Mehta Advisory, NSDL, Financial Express