Overview
- Sebi’s consultation paper proposes removing Zero Coupon Zero Principal bonds from the portfolio value used to determine Basic Services Demat Account eligibility.
- The regulator says ZCZP bonds are non-transferable and non-tradable with no return or redemption value, making them akin to social contributions rather than investable assets.
- Delisted securities would be treated on par with suspended securities for BSDA valuation to reflect the absence of liquidity and transparent price discovery.
- For illiquid listed securities, Sebi recommends using the last closing price when assessing whether an account qualifies for BSDA benefits.
- Operational changes include system-driven quarterly reassessment of eligibility by depository participants and broader authenticated digital options for beneficial-owner consent.