HO/38/11/11(3)2025-MIRSD-POD/I/1101/2025 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR HO/38/11/11(3)2025-MIRSD-POD/I/1101/2025 To, All Depositories All Depository Participants (DPs) through Depositories Madam / Sir, Subject: Ease of investments and ease of doing business measures – enhancing the ' Facility for Basic Services Demat Account (BSDA)' SEBI , vide circular no. SEBI/HO/MIRSD/MIRSD -PoD1/P/CIR/2024/91 dated June 28, 2024 ('the circular') , specified provisions related to enhancing the facility of BSDA to boost investor participation in securities market. SEBI received stakeholder inputs for further enhancing the facility of BSDA. Thus in order to provide ease of doing business to the depository participants (DPs) and ease of doing investments for the investors, it has been decided to exclude the following securities for reckoning the threshold for BSDA 2.1.Zero Coupon Zero Principal (ZCZP) bonds 2.2.Delisted securities The valuation of the illiquid securities shall be at last closing price for calculating the threshold for BSDA; and DPs shall now be required to reassess the BSDA eligibility every quarter . DPs shall require the beneficiary owner to submit consent to avail / continue to avail the facility of a regular demat account by active consent through a verifiable channel as specified by the Depositories . The effect of this circular shall replace paras 2.2(a), 2.2(b) and 2.3(c) of the circular , which stand modified as under: Para 2.2(a) The DPs shall open only BSDA for Beneficial Owners (BOs), if such demat accounts are eligible for BSDA as per para 2.1 above, unless such BOs specifically December 24, 2025 provide their consent through authenticated and verifiable channel to avail the facility of a regular demat account. Para 2.2(b) The DPs shall also reassess the eligibility of all the existing BOs with respect to BSDA as provid