Govt promises to make RGESS more attractive

Admitting that concerns have been raised about the RGESS being too complex for a small investor to understand, he said, “We have expanded to include a large number of demat account holders who may not have transacted in equities through a demat account and not undertaken any derivatives trading till date....”

Sebi chairman UK Sinha said RGESS was an important milestone as it would help mobilise savings from domestic households. “At Sebi, we will be keen to help promote the scheme, which I am sure will pick up in a big way in time,” he said. He also admitted that there was a need to take a relook at the scheme to make it more beneficial for retail investors. “We are in talks with the government for this,” he said.

The finance minister also made a case to converge KYC norms for different financial sector regulators so that retail participation becomes seamless in financial instruments. “I think it is very important that KYC norms for all intermediaries and market regulator should converge and become one set of KYC norms. The next step is to converge the KYC norms for different sets of regulators,”

... contd.