If the total assets in an account fall below the BSDA limit, does the account automatically become a BSDA account and no further AMC charges can be applied ? Does that also work in the case of Zerodha for example?
More authoritative answer below.
Yes, as on the billing date, if your account qualifies to be a BSDA account, the account is converted to BSDA, and levies as applicable to a BSDA are charged.
Currently at Zerodha, we bill all our clients at the end of the financial year, so if your account stands to qualify as BSDA, it will be converted to BSDA.
1 Like
Is this done automatically?
Okay, what could be the reason to close an account then ? If the accounts void of any AUM are essentially free, the number of demat accounts can never fall and hence we will never know when the retail participation is wanning isnt it ?
Yes, this is done automatically. We receive files from Depositories that contain the list of beneficiary id’s that can be converted to BSDA. Such accounts get converted automatically unless a client explicitly gives instructions not to do so.
1 Like
@VenuMadhav: If the accounts that have no assets become free as BSDA, what are the reasons usually people close their accounts for ?
Hi,
My wife has account in zerodha and has been opened 2 years back. But due to some personal reason we couldn’t start trading. But now I want to start investing in Coin- direct mutual fund. But my query is since I am going to transfer the fund first time to my demat account, as per my knowledge it will be deducted 600 as annual maintenance(previous 2 financial years). Also this is my first demat account and I am curious about BSDA. Can I convert my demat account to BSDA to avoid the maintenance charge. Could you please help me on this?