In another proposal on Wednesday, Sebi has sought to increase the threshold for the basic service demat account (BSDA) to Rs 10 lakh from Rs 2 lakh, in a bid to boost the participation of retail investors in the securities market.

“To further enhance the participation of retail investors in the securities market including participation of investors holding securities in physical form, the facility for BSDA has been reviewed and it is proposed to enhance the limit for a demat account to be categorised as BSDA,” Sebi said in a consultation paper on Wednesday, inviting public comments by June 26.

A basic service demat account, or BSDA, is the  lower cost version of a regular demat account. The facility was introduced by Sebi in 2012 for wider financial inclusion, and reducing the burden of demat charges for retail individual investors.

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An individual needs to have only one demat account where the person is the sole or first holder across depositories to be eligible for BSDA.

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Additionally, Sebi has proposed that annual maintenance charge for a BDSA should be nil for accounts that hold debt and other securities combined up to Rs 4 lakh from Rs 1.5 lakh earlier.

For portfolio values of between over Rs 4 lakh and up to Rs 10 lakh, the charges should be Rs 100. However, if portfolio value exceeds Rs 10 lakh then BDSA should automatically be converted into a regular demat account.