Sebi comes out with Rajiv Gandhi Equity Savings Scheme norms
- Hardik Patel walks out of Lajpore jail after nine months
- Op Sankat Mochan: First flight carrying evacuated Indians from South Sudan reaches Kerala
- Behind Nice attack, a Caliphate in retreat
- Infosys Q1 net profit up 13 percent, but misses estimates; shares slide
- Arunachal CM Tuki wants 'reasonable' time, says Gov decision for floor test by Saturday 'hasty'
Sebi today announced the framework for Rajiv Gandhi Equity Savings Scheme, a government initiative aimed at attracting small investors into the capital market.
"The objective of the scheme is to encourage flow of savings in the financial instruments and improve the depth of the domestic capital market," the Securities and Exchange Board of India (Sebi) said in a circular.
Under the scheme, announced in the 2012-13 Union Budget, new investors can avail tax benefits who invest up to Rs 50,000 in the stock market and whose gross total annual income is less than or equal to Rs 10 lakh.
The scheme was notified by the Department of Revenue, Finance Ministry on November 23 this year.
For transactions undertaken by investors through their Rajiv Gandhi Equity Savings Scheme (RGESS) designated demat account, depositories may seek necessary transactional details from stock exchanges for enforcing lock-in (period), among others.
"On receipt of such request from depositories, stock exchanges shall provide the details to depositories on an immediate basis. It shall also be ensured that a uniform file structure is used by stock exchanges and depositories for such intimation of transaction details," the circular said.
Sebi said as per the notification, eligible securities brought into the demat account would automatically be subject to lock-in during the first year, unless the new investor specifies otherwise.
In case there is any specification, the new retail investors shall submit a declaration indicating that such securities are not to be included within the above limit of investment.
"It is clarified that such declaration shall be submitted by an investor to its Depository Participant within a period of one month from the date of transaction," the circular said.
Further, stock exchanges have to furnish the list of RGESS eligible stocks / Exchange Traded Funds (ETFs) / Mutual Fund (MF) schemes on their website.
- ‘Strangeness’ of SC Arunachal verdict lies in its upholding of constitutional morality
- Bangladesh urgently needs to overhaul its anti-terror strategy
- New Delhi’s reverie is rudely interrupted by Kashmir reality again
- India’s population stabilisation: Three states hold the key
- The bully is bad news for the victim — and for himself
- In the Northeast, an uneasy new alliance