THE STOCK OF THE NATION

RAJIV GANDHI EQUITY SAVING SCHEME

RGESS 2012

What is RGESS?
Rajiv Gandhi Equity Saving Scheme (RGESS) is a new initiative by the government of India aimed at encouraging first time investors to channelize their savings into the capital markets As an incentive, a one-time deduction will be available to the new retail investor on the 50% of the amount invested in eligible securities in the financial year, subject to maximum investment limit of Rs 50,000 For the purpose of claiming benefit under RGESS, the investor needs to invest in select approved securities as notified by the government

Which Securities Can I Invest?

Eligible Securities Equity shares included in the NSE CNX-100 & BSE-100

Equity shares of PSU categorized as Maharatna, Miniratna or Navratna

Units of ETFs & MFs with eligible securities as underlying and provided they are listed and traded on a stock exchange and settled through a depository mechanism FPO or NFOs of above eligible securities IPOs of PSUs with atleast 51% government holding and 3 year annual turnover of more than Rs. 4000 crore You can refer to NSE website for complete list of eligible securities
http://www.nsergess.com/rgess-eligible-securities.html

Who is New Retail Investor?

New Retail Investor Any individual who,

has gross total income less than INR 10 lacs

does not have a demat account and has not made any transactions in the derivative segment as on the date of notification of the Scheme

has opened a demat account before the notification of the Scheme but has not made any transactions in the equity segment or the derivative segment till the date of notification of the Scheme who is not the first account holder of an existing joint demat account shall be deemed to have not opened a demat account

RGESS Scheme Details

Eligibility of the individual investor for the scheme Investment in eligible securities only Deduction Criteria Maximum deduction of 50% of amount invested, subject to a maximum investment of Rs. 50000, only in the same financial year when the investment are made

Deduction available only once for every individual Automatic lock-in of securities during first year. No sale or pledge or hypothecation permitted during this period
Lock-in Period Flexible lock-in for next two years where the investor may sell the securities, subject to conditions as specified by the tax department

How Do I Invest in RGESS?

If you do not have a demat account

You need to open a new demat account & trading account with your preferred stock broker Indicate the account as RGESS account in the account opening form Any securities brought in this account will be automatically considered for RGESS

If you have a demat account, but have never traded

You need to designate your existing demat account as an RGESS account by filling up form A as prescribed by the IT department Once designated for RGESS, the securities brought in this account will be automatically considered for RGESS

Further Details

For complete details you can refer to the NSE website

http://www.nsergess.com/

THANK YOU