How to Convert Demat to BSDA?
The Covid-19 pandemic has had a severe impact on economies all around the world. India is no different. The lockdown imposed in the country and restrictions on movements and gathering had an adverse impact on businesses. However, contrary to expectations, the performance of the financial markets have been robust even after the disruption caused due to the infection.
The Indian financial markets witnessed the addition of a number of new investors. With rising financial awareness in the country, the number of investors has been growing at a steady pace, which accelerated during the Covid-19 lockdown. To invest in the stock markets, it is mandatory to have a demat account, trading account and bank account. The entry barrier for new investors has been lowered with the facility to open demat accounts online. A simplified document verification process is all you need to open a demat account online .
Besides the increased use of technology, the markets regulator Securities and Exchange Board of India has played a crucial role in facilitating greater participation of small investors. With the aim of reducing the cost of investment for small investors, SEBI introduced the Basic Services Demat Account in 2012. To understand how to convert a regular demat account into a basic services account, one will have to get an idea of how a demat account functions and the benefits of basic services demat account.