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Rajiv Gandhi Equity Scheme
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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

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:
    • Companies falling in the list of 'CNX-100' of NSE or 'BSE-100'.
    • 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.
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Saraswat-Bank