Sebi calls for publicity of RGESS scheme

Dec 07 2012, 00:33 IST
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SummaryAsking stock exchanges and depositories to create wide publicity of the scheme through investor programmes and on their websites, Sebi issued some clarifications on the notification it brought out last week.

The Securities and Exchange Board of India has clarified that asset management companies must disclose the RGESS-eligible exchange traded funds and mutual fund schemes that are in compliance with the provisions of the schemes (in case of new fund offerings), or through an addendum in case of existing eligible schemes.

Asking stock exchanges and depositories to create wide publicity of the scheme through investor programmes and on their websites, Sebi issued some clarifications on the notification it brought out last week.

The regulator has said that for transactions undertaken by investors through their RGESS designated demat account, depositories may seek necessary transactional details from stock exchanges regarding actual trade value, trading date, settlement number, etc for the purpose of enforcing lock-in and for generating reports as mandated for RGESS. Also the stock exchanges shall immediately provide details to the depositories on receipt of such requests.

While the earlier notification said that the eligible securities brought into the demat account will automatically be subject to a one-year lock-in, unless the new investor specifies otherwise by way of a declaration, Sebi has clarified that such declaration shall be submitted by an investor to its depository participant within one month from the time of transaction.

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