Mumbai:
Market regulator, the Securities and Exchange Board of India, on Monday launched no-frills demat accounts for individual retail investors.
There will be no annual maintenance charges of deposits of up to Rs 50,000, while deposits between Rs 50,001 and Rs 200,000 will be Rs 100.
Sebi said the ‘basic services demat accounts’ have been started to “extend the reach of IPOs for the benefit of retail investors”.
The product is launched “with a view to achieve wider financial inclusion, encourage holding of demat accounts and to reduce the cost of maintaining securities in demat accounts for retail individual investors”, a media release by the regulator stated.
An individual can hold only one such account in his name across all depositories.
There will be no annual maintenance charges of deposits of up to Rs 50,000, while deposits between Rs 50,001 and Rs 200,000 will be Rs 100.
Sebi said the ‘basic services demat accounts’ have been started to “extend the reach of IPOs for the benefit of retail investors”.
The product is launched “with a view to achieve wider financial inclusion, encourage holding of demat accounts and to reduce the cost of maintaining securities in demat accounts for retail individual investors”, a media release by the regulator stated.
An individual can hold only one such account in his name across all depositories.
