(I) Introduction to Rajiv Gandhi Equity Savings Scheme, 2012
(II) Tax benefits for new retail investors investing in RGESS
(III) Mode of holding eligible securities in RGESS
(IV) Mode of investing in RGESS with any Depositary Participant.
- Firstly, you need to have a trading & Demat account with any Depositary Participant. The Demat must be designated as RGESS.
- For investing in any eligible securities from the secondary market, you can approach any SEBI registered stock broker.
- In case you are investing in mutual funds through any distributor, you need to simply provide your Demat account details like Demat account number and DP ID for receiving credit of the mutual fund units into the Demat account.
- For investing in any IPO/NFO of the eligible securities, you can subscribe to the same and provide your demat account number for receiving credit of the eligible securities into the demat account.
(V) Holding of investments under RGESS – Fixed Lock-in period
(VI) Holding of investments under RGESS – Flexible Lock-in period
- If you sell eligible securities during ‘Flexible lock-in’ period, then investment under RGESS must be atleast equivalent to the investment claimed as eligible for deduction or equal the value of investment portfolio before such sale, whichever is less; or
- In case increase in market value, this condition must be met for 270 days in a year for two years, Investment portfolio must be atleast equivalent to deduction amount claimed.
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