Mumbai: A Securities and Exchange Board of India (SEBI) committee has recommended that small investors should be charged in proportion to the value of their trades and not on a per transaction basis.

The committee has also suggested that depository participants should not levy account maintenance and demat charges on them.

The report, now placed for public comments, defines small investors as those who or sell securities up to Rs 50,000 on any business day. There could also be a cap on maximum transaction in a financial year to qualify as a small investor.

Currently, depository participants charge investors on an average, account opening and maintenance fees of Rs 1,700 per year and demat charges of a minimum of Rs 53 per certificate, over and above the transaction charges of 0.05 per cent of value or Rs 20, which ever is higher. This is despite the fact the National Securities Depository Ltd does not charge any account maintenance fees or demat charges from depository participants.