Rajiv Gandhi Equity Scheme : Saraswat Bank

Organisation : Saraswat Bank
Facility : Rajiv Gandhi Equity Scheme

Website : https://www.saraswatbank.com/

Rajiv Gandhi Equity Scheme

Rajiv Gandhi Equity Savings Scheme (RGESS) The RGESS scheme was proposed in the Union Budget 2012-13, to encourage flow of savings in the financial instruments and improve the depth of domestic capital market

Related : Sarsawat Bank Connect Service : www.statusin.in/23415.html

Features of the Scheme :
** Designed exclusively for the first time retail investors in securities market, whose gross total income for the year is less than or equal to Rs. 10 lakh.

** The investor would get under Section 80CCG of the Income Tax Act, a 50% deduction of the amount so invested, upto a maximum investment of Rs.50,000, from his/her taxable income for that year.

Eligibility :
The Scheme is open for all New Retail Investors who have gross total income less than or equal to Rs. 10 lakh. A new retail investor is one :
** Who is a resident individual (the benefit cannot be availed corporate entities / trusts etc)

** Who has not opened a Demat account and has also not done any trading in the derivative segment till RGESS account opening date.

** Those who have opened the Demat account and have not made any any transactions in equity and/ or in the derivative segment till designating such account as RGESS.

Eligible Securities :
The individual can invest in any of these eligible securities :
** Equity shares of selected companies which include :
1. Companies falling in the list of ‘CNX-100’ of NSE or ‘BSE-100’.

2. Public sector enterprises categorized as Maharatna, Navratna or Mini-ratna by the Central Government.

** Units of Mutual Fund (MF) schemes which are RGESS compliant.
** Units of Exchange Traded Funds (ETFs) which are RGESS compliant.
** IPOs /NFOs of above mentioned companies/funds. IPO of PSUs with annual turnover greater than Rs.4000 cr. consistently for past years.

Process of availing for RGESS facility :
** Client can opt for this scheme by submitting Form A at any of Saraswat Bank branch at the time of opening the Demat account.
** On receiving the Form, Saraswat Bank will validate the eligibility basis i.e. PAN card of the first holder updated in the demat account.

** If the investor is eligible for RGESS scheme as per SEBI guidelines, Saraswat Bank will sent the Client Master List.

** The client can then invest in RGESS eligible securities with a maximum limit of Rs. 50,000/- to claim the tax benefit, which will be automatically locked in his Demat account.

** If the client does not wish a certain set of eligible securities to be locked under RGESS, he / she can submit a Form B within 30 days of such investment.

** In case the client wishes to sell part of securities during the flexible lock-in period (after the first year) however the value of securities sold should be replenished with equivalent value of other securities as defined under RGESS

Important :
As per SEBI guidelines deduction claimed shall be withdrawn if the lock –in period requirements of the investments are no complied with or any other condition of the scheme is violated.