BSDA Regulatory Reporting for Brokerage Firms

The Problem

Scrutiny of BSDA List

As per SEBI Circular CIR/MRD/DP/22/2012, all depository participants (DPs) shall make available a “Basic Services Demat Account” (BSDA) for the benefit of retail investors
The brokerage firm gathers the entire data, of around 3 Million people, to scrutinize from various sources
The endgame is to identify clients that are eligible for free DP account on the basis of multiple parameters set by SEBI (mentioned here)
The entire process is critical as revenue depends on it as well as the NSDL reporting

All eligible individuals to have only one demat account where they are the sole or first holder
An individual can have only one BSDA in his/her name across all DP
Value of securities shall not exceed Rupees Two Lakhs at any point of time
No (AMC) if the value of holding is up to Rs. 50,000
AMC not more than Rs 100 for value of holding from Rs 50,001 to Rs 200,000
People who have any other demat account where they aren’t the first holder, are also eligible for BSDA