SEBI offers No-Frill Demat Account to Small Investors
SEBI has introduced No Frill Demat accounts to increase market awareness among small investors. SEBI has requested Depository Participants to provide Basic Service Demat Account with small charges and limited services. Small investors can open their cheap Demat accounts from 1st October, 2012 to trade in shares, mutual funds and other securities. They need not pay any maintenance charges until they have securities that are valued Rs. 50,000. The small depositors need to pay just Rs. 100 per annum unless their portfolio value reaches Rs. 2 lakhs.
Small investors those have shares and securities whose value is below Rs. 2 lakhs, can change their normal Demat account into cheap Demat account. The rules of common Demat accounts are also changed. The Demat accounts in which no transaction takes place and there are not shares or securities, the statement will be available only once in a year. If transaction begin again, the transaction details of the account will be available as and when required.
Investments in mutual funds will be easier and safer from 1st October, 2012. The reforms announced by SEBI for mutual fund sector are coming into implementation from today. SEBI says fund should take transparent actions for the benefits of investors. There should not be more plans in a scheme. SEBI has approved to the mutual fund rules in the meeting that was held on 16th August, 2012. It has notified that these changes will come into implementation from 1st October, 2012. As per the new rules, funds can collect some amount under investment charges.