The Securities and Exchange Board of India (SEBI), on December 24, 2025, issued a circular to all Depositories and Depository Participants (DPs) introducing further ease of investment and ease of doing business measures by enhancing the Facility for Basic Services Demat Account (BSDA), based on stakeholder feedback received after the earlier circular dated June 28, 2024.
The circular provides that Zero Coupon Zero Principal (ZCZP) bonds, delisted securities, and suspended securities shall be excluded while reckoning the value threshold for BSDA eligibility. It also clarifies valuation norms for illiquid securities, mandates quarterly reassessment of BSDA eligibility, and requires active consent from beneficial owners through authenticated and verifiable channels to opt for or continue with a regular demat account instead of BSDA.
Further, SEBI has modified and superseded specific provisions relating to opening, conversion, and valuation of demat accounts under the earlier framework. These changes shall come into force from March 31, 2026, and Depositories have been directed to amend their bye-laws, disseminate the circular, and implement the required systems within the prescribed timelines to ensure smooth execution of the revised BSDA framework.
[Circular No. HO/38/11/11(3)2025-MIRSD-POD/I/1101/2025]
