Sebi comes out with Rajiv Gandhi Equity Savings Scheme norms
"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
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