SEBI’s New BSDA Twist: Only Liquid Securities Count from Now On

The Securities and Exchange Board of India (SEBI) has announced a significant update to the Basic Services Demat Account (BSDA) framework, making it easier for retail investors to maintain low-cost demat accounts. In its latest circular, SEBI clarified that the value of Zero Coupon Zero Principal (ZCZP) bonds and delisted securities will no longer be counted when determining eligibility for BSDA status. This change is intended to prevent artificial inflation of portfolio values and ensure fair assessment for small investors.

 

Previously, the value of ZCZP bonds and delisted securities was included in the portfolio calculation, sometimes pushing investors over the eligibility threshold even though these instruments lack liquidity and trading activity. By excluding these securities, SEBI aims to improve financial inclusion and ease of investment for retail participants. The new norms will be effective from March 31, 2026.

 

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Source: SEBI Circular, NSE/BSE Corporate Announcements