SEBI Proposes Changes to Eligibility Criteria for BSDA

On 25th November 2025, the Securities and Exchange Board of India (SEBI) released a draft circular proposing revisions to the eligibility rules for Basic Services Demat Accounts (BSDA) to strengthen investor protection and expand financial inclusion.

SEBI has suggested excluding zero-coupon zero principal (ZCZP) bonds when determining BSDA eligibility, as these instruments do not involve coupon payments or redemption of principal.
The regulator proposed treating delisted securities on par with suspended securities for eligibility calculations, noting that both lack active trading and liquidity.
SEBI stated that provisions relating to BSDA eligibility, conversion of existing accounts into BSDA, applicable charges, and methods for valuing securities are being comprehensively reviewed.
SEBI said these measures aim to improve financial inclusion, simplify investor access, and ensure fair valuation norms for small investors.