SEBI details steps for implementation of Rajiv Gandhi equity scheme
06 Dec 2012
The Securities and Exchange Board of India (SEBI) has clarified necessary steps for implementation of the Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS) as notified by the finance ministry last month.
Accordingly, close-ended mutual fund schemes where the asset management company (AMC) has given advice to the depository for extinguishment of units of such schemes upon maturity of the scheme will be considered as settled through depository mechanism and will therefore be considered RGESS compliant, SEBI said in a notification today.
AMCs should disclose that the concerned RGESS-eligible exchange traded funds and mutual fund schemes are in compliance with the provisions of RGESS guidelines notified by finance ministry on 23 November 2012, in case of new fund offer, or by way of addendum in the case of existing RGESS-eligible ETF and MF schemes.
Since eligible securities brought into the demat account will automatically be subject to lock-in during the first year, the new investor should specify otherwise and for such specifications, the new retail investors should submit a declaration (in Form B) indicating that such securities are not to be included within the limit of investment. An investor should submit such declaration to its depository participant within a period of one month from the date of transaction, SEBI said in its notification.
The new retail investor may make investment in eligible securities in one or more than one transactions during the year in which the deduction has to be claimed. While he may invest any amount in the demat account, the amount eligible for deduction under the scheme should not exceed Rs50,000.
For transactions undertaken by investors through their RGESS designated demat account, depositories may seek necessary transactional details from stock exchanges, viz, actual trade value, trading date, settlement number, etc for the purpose of enforcing lock-in and for generating reports.