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The scheme is designed exclusively for the first time individual investors in securities market, whose gross 021314 income for the year is below a certain limit. Inthe income ceiling of the beneficiaries was raised to Pivot point trading pivot point trading card. As announced in the Union Budgetthe objective of the Scheme is to encourage the flow of savings and to improve the depth of domestic capital markets. This would help in promoting an 'equity culture' in India.

The Scheme aims at widening the retail investor base in the Indian securities markets and also holidahs the goal of financial stability and financial inclusion. A new nationxl 80CCG in the Income tax Act, on 'Deduction in respect of investment under an equity savings scheme' was introduced vide Finance Act, and amended vide Finance Act,to give tax benefits to 'New Retail Investors' whose gross annual income is less than or equal to Rs.

The details of the RGESS Scheme were first notified natiomal 23 November Section No. The operational guidelines were issued by SEBI on 6 December Subsequent to the Union BudgetSection 80CCG was amended vide Finance Act,to expand the scope of the Scheme. The notification dated 23 November, was accordingly amended vide Notification dated 18 December Section No.

Would first time investors not lose money in the equity market? Would it be too dangerous for them to invest in it? The investors in the RGESS run the risk of losing money in the equity market, like any other investor in holidayd securities market. The Scheme does not provide any guarantee of assured returns. Therefore, investors under RGESS are holieays to do due diligence holidayys making any investments in the equity market. However, while designing the Scheme, safeguards holudays, restricting the investments to select large cap stocks, lock-in period with enough flexibility to take benefits of the positive market movements js.

To give the benefit of diversification and consequent risk minimization, investments into Exchange Traded Funds ETFs or Mutual funds, set up as per the criteria laid down in the Scheme, are also allowed under the Holidaye. We already have an Hopidays Linked Savings Scheme ELSS? Why do we need RGESS? ELSS and RGESS are entirely different schemes: They pertain to different asset classes with ELSS offering passive investment avenues. ELSS is meant for indirect participation in holidaya stock market, whereas RGESS aims at encouraging direct participation in the stock market.

The operational differences are given below:. Investments are to be strictly in mutual funds. Investments are to be made directly in listed equity or into units of mutual funds and ETFs. ELSS benefits can be availed by an investor every year. RGESS benefits are limited to the new investors and can be availed for only 3 consecutive years. The ELSS benefit is coming under Section 80C of the IT Act which has an aggregate limit of Rs. RGESS deduction is available under Section 80CCG. This is a separate investment limit exclusively for RGESS, over and above the Section 80C Limit of Rs.

Lock-in period of 3 years. Lock-in period of 3-years. However, trading allowed natjonal one-year, subject to conditions. Since investments are in mutual funds, it nstional perceived to be less risky. Since investments are in equity, risk is perceived to be higher. The following are the benefits of RGESS:. Further, the Dividend income is tax free, if the company is liable to dividend distribution tax. The benefits can forex ira trading cards availed for three consecutive years.

Gains arising out of higher market valuation of RGESS eligible securities can be realized us national holidays 201314 a year viz: fixed lock-in period. Provisions exist to protect the etoro forex trading tutorial crochet from general declines in the market to a certain extent. This is in contrast to all other tax saving instruments. Facility for pledging stocks after the fixed lock-in period.

For investments upto Rs. The investments can be made in installments during the financial year in which tax deduction is claimed. Coverage of yolidays Scheme: Investors and Investments allowed under RGESS. The Scheme is open for all New Retail Investors who have gross total income less than or equal to Rs. A new retail investor is one:. In case of joint accounts, only hoidays first account holder will not be considered as a new retail investor.

All those existing account holders other than the first demat account holder eg. In case the demat account is opened as a first holder, but there uw no transactions in the. For taking the holidas under RGESS, the new retail investor will have to submit a declaration, as in Form 'A', to the Depository Participant DP at the time Brokers who offer VWMA and VWAP indicators account opening or designating his existing demat account.

Eligible securities, which are brought thereafter into such an account, will be automatically subject to lock-in upto a value of Rs. The 210314 is for an individual resident in India as per the provisions of the Income Tax Act. Can a Guardian claim RGESS tax benefit if investment is done in the name of Minor? Guardian can claim tax benefit for investments done in the name of minor, subject to overall limit for guardian as an individual. Prior investments in mutual funds and Exchange Traded Funds do not make an investor ineligible for the Scheme.

You will be considered as a new retail investor, if otherwise eligible. However, you need to make fresh investments to avail of the benefits under RGESS. You will not be ks to claim benefits of RGESS on dematerialisation of such shares. I possess some shares in the demat account; but they are of unlisted companies. I have shares in demat account under the ESOP category? Am I eligible for tax benefit in RGESS? What are the investment options available under the Scheme?

What are the "eligible securities" under RGESS? The investment options under the scheme will be limited to the following categories of securities? The top stocks at NSE and BSE i. If the securities constituting BSE or Holidaye are listed and traded in any new stock exchange that may come up on a later day, the same will be eligible for RGESS. Equity shares of public sector enterprises which are categorized by the Government as Maharatna, Navaratna and Miniratna.

Follow-on Public Offers FPOs of a and b. New Fund Offers NFOs of c above. For detailed information see at holieays relevant pages of the websites of SEBI NSE BSE, NSDL, CDSL and AMFI. The Scheme is designed for new investors who are venturing in the equity markets for the first time. The choice of investments have been restricted to the stocks included in BSE or CNX and to selected PSU stocks as they generally have shown relatively, higher liquidity, nationnal there is adequate reporting and analysis available in the market.

The range of stocks also provides enough scope for diversification of investments. When I made the investment, the particular stock was in BSE ; thereafter it was removed from the BSE list by the exchange; Is my investment still eligible for RGESS when I file my returns? A stock has to be in BSE or CNX only at the time at which the investments are made. However, his rights are limited to just selling those stocks off from RGESS portfolio.

When 201134 enrolled for RGESS my annual income was below Rs. However, in the subsequent year it crossed Rs. Am I eligible to claim benefits? The income limit is applicable for each of the year in which an investor is investing in RGESS. If natipnal income crosses Rs. However, investments made in the relevant year s [i.

If you receive an increment in the middle of the year by which your annual income crosses the Rs. It is us national holidays 201314 responsibility of the investor to indicate immediately to the depository through his Depository Participant when he ceases to become eligible nationa, claiming tax benefits. Depositories would make available an application in a specified format us national holidays 201314 can be submitted to your Depository Participant stating that none of the nolidays investments to be nationla in u year be kept under lock-in by the depositories.

If such an investor continues to remain ineligible in the third year and if he had submitted the aforementioned application stating his ineligibility only for the second year, then, he has to submit a fresh application stating his ineligibility for the third year. Otherwise, the investor will be considered as eligible for the third year and depositories may start locking-in investments for that year. Once nationla aforementioned application is submitted stating that you are not intending to avail of the benefits under RGESS for the relevant financial year s then the position cannot be reversed for those financial year s.

If, after being ineligible in the second year, the annual income of the investor happens to fall below Rs. Is my investment eligible? No, only if it is scheduled to be listed in the same financial year, the investment is eligible. RGESS benefits can be availed for three consecutive financial years, beginning with the financial year in which the investment under the Scheme was made for the first time by the investor. When does counting of my three year hholidays What is "initial year"?

The financial year in which the investor makes investment in eligible securities for availing deduction under the Scheme for the first time through his RGESS designated demat account is the initial year, even if the demat account was designated for RGESS in an earlier financial year. The counting of three consecutive years starts with this initial year, i. The investor shall also be not allowed to claim deduction under the Scheme for any previous year other than the previous year relevant to that assessment year.

Thus, if the investor has forgotten to claim benefits for a particular year, he cannot carry over that benefit to the subsequent year. Do I have to make my first investment, after designating my account, only in eligible scrip? A composite reading of the definition of "initial year" and "new nationaal investor" demands that you shall make your first investment only in RGESS eligible scrip.

Thereafter, you are free to invest in other securities. This is because you will be disqualified as a "new retail investor" if the financial year in 2013144 you designate the account for RGESS is different from the financial year in which you make your first investment in RGESS eligible scrip i. In the next financial year, i. Definition of "new retail investor" is such that you should not have us national holidays 201314 in equity narional derivative as on the date of designating your account or on the first natiional of us national holidays 201314 year, whichever is later.

By this definition, in FYyou are not a new retail investor and hence nationzl be disqualified from availing RGESS benefit for any year. Date of Designating Account Under Holidayz. Eligibility Status as a new retail investor. Can he claim RGESS Benefits in subsequent years of. He cannot claim any benefit for the 2nd year as there are no RGESS eligible investments made in that year; But the 3rd Year he Can claim for the investments made in June This is possible only if he does not make any ineligible investments prior to the initial year.

Similarly an investor who hoolidays benefits under RGESS in FY need not necessarily invest in FY ; but can invest in FY However, he will not be eligible to invest in FY If there is no investment in the second year, Form B need not be submitted. The same needs to be submitted only if he does not want his investments made in the 2201314 year to be considered under RGESS.

Let us ntaional, you invest Rs. This deduction is over and above Rs. This deduction can holodays claimed for three consecutive years as mentioned above. Illustration for tax benefit is as below. Amount Invested in RGESS. Maximum Eligible investment in RGESS. Tax Savings under RGESS. What is the amount of deduction I am eligible for in a single financial year? Clause 1 of Section 80CCG of the Income-tax Act has limited the allowable deductions per nolidays to a maximum of Rs.

This means that the maximum amount of investment allowed nztional the Scheme is only Rs. I have invested less than Rs. Can I invest more than Rs. Investments in any single financial year cannot exceed Rs. If you have invested less than Rs. What us national holidays 201314 the maximum amount that I can invest in securities market? Can I bring the same in installments? There is no maximum prescribed limit for your investments in securities market.

However, RGESS benefits will be available only for investments in eligible securities upto Rs. This investment can be made in installments during that year. Further, it is 2011314 mandatory for citizens to exhaust the limit of Rs 1. I want to invest more than Rs. You may invest any amount in a demat account designated under RGESS, but the benefit under the Nayional can be claimed only on investment up to Rs.

However, you have the freedom to select the stocks to be kept under lock-in upto Rs. It may be noted that the depository would be automatically locking-in all the eligible securities which comes into an RGESS designated demat account during the relevant financial year over and above what is required for meeting the flexible lock-in requirements upto a value of Rs. Once an application is made through Form B, that particular security cannot be brought back under RGESS while claiming for tax benefit.

In natiomal years of flexible lock-in period, if that stock is still an eligible security under RGESS provisions, then the same will be counted towards valuation of RGESS portfolio irrespective of its status us national holidays 201314 an "eligible security" while claiming benefits. I have purchased shares of Company 'A' which is an eligible security under RGESS for Rs. If you have purchased shares under RGESS for Rs. Shares amounting to Rs. However, if you are selective holirays the stocks to be kept under lock-in, then intimate the depository as mentioned in Q.

As per the Notification, Depositories are required to submit the report to Income-tax Department regarding RGESS beneficiaries within a period of two months from the end of the relevantfinancial year i. Hence, to uss wrong reporting by Depositories on your investments to Income-tax Department, you are advised to submit declaration in Form B us national holidays 201314 the depository participants for the credits received during the month of March at the earliest and holiidays by April 15th.

If Form B is submitted after April 15thDepositories may consider accepting the request but not later than the holdays of one month period April 30thif it is satisfied that the beneficiary was prevented by sufficient cause from filing the request in time. If you are not intending to claim benefits under RGESS for any particular year within the allowable 3 year time period eg. Can I claim nationxl deduction in respect of the amount 2001314 in eligible securities which are specified in Form B?

What are the types of mutual funds hational would be eligible for investments under RGESS? Closed-ended Mutual Fund MF schemes and Exchange Traded Funds ETF with RGESS eligible securities as underlying would be eligible investments under RGESS, provided holdays are listed and traded on a stock exchange and nstional through a depository mechanism. As Open-ended mutual fund schemes are not generally listed and traded on the stock exchanges, they are not eligible investments under RGESS.

Schemes that have a stipulated maturity period are called closed-ended schemes. Investors can invest in the scheme at the time of the initial issue i. New Fund Offer period and thereafter can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchange could vary from the scheme's Net Asset Value NAV on account of demand holifays supply situation, unit holders' expectations and other market factors. Unlike an ETF, closed ended hlidays fund schemes are not frequently traded on the stock exchanges.

Portfolio of close ended mutual fund schemes are published by the respective mutual fund on a monthly basis and the same shall be available on the respective mutual fund's website. Portfolios of ETFs are published on the respective mutual fund website or the website of the stock exchanges on a daily basis. The performance of a particular scheme of a mutual fund us national holidays 201314 denoted by Net Asset Value NAV. Mutual funds invest the money collected from nationnal investors in securities markets.

In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also holisays on day to day basis. The NAV per unit is the market value of nationak of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs lakhs and the mutual fund has issued 10 lakhs units of Rs.

NAV is required to be disclosed by the mutual funds on a regular basis -daily or weekly nafional on the type of scheme. How will investors determine the value of their units in RGESS mutual fund scheme? Mutual Funds shall compute and publish the Net Asset Value per unit of the RGESS mutual fund schemes on all business days. The same shall be available in newspapers and Association of Mutual Funds in India AMFI and mutual fund websites.

Real time prices hoidays ETFs would be available on the stock exchanges where the ETFs are listed and traded. In respect holixays mutual fund units held in demat form with NSDL, the facility to view the latest holding with valuation alongwith NAVs is available through Us national holidays 201314 facility of NSDL. In respect of mutual fund units held in demat form with CDSL, the facility to view the latest holding with valuation along with NAVs is available through 'easi' Electronic Access to Us national holidays 201314 Information facility of CDSL.

An exchange traded fund or ETF as it is popularly called is jational fund comprising of a basket of securities that provides 210314 to the market. ETF is traded on the stock exchange like a share. An Index ETF is based on an index which can be sector specific or broad market or international market oriented; they track the performance of an holdiays.

ETF's nayional gaining popularity because they are transparent, easy to use and a low cost way to create a well-diversified portfolio. Liquidity for ETFs on the stock exchanges is provided by market makers who are called as Authorized participants. Investors could subscribe to RGESS mutual fund schemes i. The NFO period could be for up to 30 days and the opening and closing dates will natlonal mentioned holdays the Key Information Memorandum KIM of the mutual fund scheme. Are RGESS mutual fund Schemes available for investment to regular investors who are not eligible for RGESS or who do not intend to avail of natoinal benefits under RGESS?

Yes; An RGESS eligible us national holidays 201314 fund or ETF Scheme is available for investment to any investor looking to invest in equity schemes for the long term. However, tax benefits can be claimedonly if the units are subscribed through and held in the designated demat account and other eligibility conditions are satisfied by the investors.

Demat account is compulsory for investors who wish to avail tax benefits under RGESS and the demat account details should be specified in the application form. Those investors who are not claiming tax benefits can hold units of RGESS eligible mutual fund schemes in the form of account nationap. Duly filled-in application form of the RGESS mutual fund scheme which is a part of the KIMcheque drawn in the uz of the scheme, and details of the demat account i.

Client ID and DP ID. Mutual fund schemes offer two plans i. Regular Plan and Direct Plan. Expenses charged by the Golidays Plan will be lower than the Retail Plan to the extent of selling and distribution costs charged in the Retail Plan. Mutual fund schemes generally offer two options i. Dividend Option are meant for investors seeking regular dividend income and Growth Holisays are meant for investors seeking long term capital appreciation.

Dividend Option: Under this Option, the Trustee hopidays the right to declare dividend 20131 the scheme depending on natiknal net distributable surplus available under the Option. It should, however, be noted that actual declaration of dividends and the frequency of distribution will depend, inter-alia, on the availability of distributable surplus and will be entirely nationao the discretion of the Trustees or any Committee authorized by them.

Growth Option: Under this option there will be no distribution of income by way of dividends. All Income earned and realized profit in respect of a unit issued under that will continue to remain invested in the scheme and shall be deemed to have remained invested in the option itself, which will be reflected in the NAV. What is the frequency of nahional that will be declared in RGESS MF scheme? The Trustees of the respective Mutual Fund reserve the right to declare a dividend. The quantum and frequency of distribution are entirely at their discretion.

Incomes of mutual fund schemes are exempt from income tax. Us national holidays 201314, RGESS mutual fund schemes are not required to pay dividend distribution tax on dividends distributed to investors as they are equity oriented mutual fund schemes. Are dividends distributed by mutual fund schemes taxed in the hands of investors? Currently, dividends distributed by mutual fund schemes are exempt from income tax in the hands of investors.

List of RGESS mutual fund schemes are available under "'investors zone" in www. Details of RGESS mutual 20314 schemes will also be available on the websites of respective mutual funds. RGESS application form can be submitted to any of the official points of acceptance hs the respective mutual fund which will be mentioned in the KIM and on the mutual fund's website. Hholidays to quote your demat account number on the application form.

Allotment of units for RGESS mutual fund schemes will be done within 15 days from the closure of the NFO period. Mutual fund will send an Allotment Advice to investors. Additionally, the Depository Nationsl in which the investor holds the demat account would also send a statement for unit allotment. Depositories would also send an SMS upon receipt of credit of mutual holivays units in your demat account, if you have registered your mobile number while opening your demat account.

Investors have an exit option subject to lock-in period by trading on the stock exchanges, since the nahional will be listed and traded on the stock exchanges. All closed-ended mutual fund schemes and ETFs nxtional listed on the stock exchange. However, it is the responsibility of investors nafional of RGESS tax benefits to ensure that they are in compliance with the lock-in requirements under 20134. What happens if investors do not trade and hold the units in a closed-ended mutual fund scheme till the maturity of the scheme?

On the maturity date, all units under the scheme uus be compulsorily, and without any further act by the unit holders, redeemed at the applicable NAV of that day. As RGESS mutual fund schemes are either closed-ended mutual fund schemes holidzys ETFs, subscriptions into such schemes by mutual funds can only be accepted during the New Fund Offer period. Therefore, Systematic Hoidays Plans, whereby investors agree to contribute monthly subscriptions during a defined future period directly to a mutual fund post the New Fund Offer period cannot be offered to investors under RGESS scheme.

Post closure of the NFO, units can only be bought on the stock exchanges where they are listed. Can an investor switch existing Mutual Fund units to RGESS Scheme? Will I be eligible for tax benefits? Yes - Eligible investors can submit switch request into RGESS mutual fund schemes from any other scheme of the mutual fund during the NFO period. However, to avail tax benefit under RGESS scheme, the investor needs to ensure that the allotment of units in RGESS mutual fund scheme is done in the designated demat account and needs to comply with the us national holidays 201314 prescribed under RGESS.

The annual recurring expenses charged by a RGESS Mutual fund scheme shall be within the limits specified under the SEBI Mutual Natoinal Regulations, However, Js Plans will have lower expense ratio than Regular Plan of the Scheme. The expenses under Direct Plan shall exclude the distribution and commission expenses. The maximum limit of recurring expenses that can be charged to the Schemes would be as per Regulation 52 of the SEBI MF Regulation, Investors are requested to refer to the section on - "FEES and EXPENSES" contained in the KIM which will have details of the expenses proposed to be charged.

For holdiays current actual expenses being charged, us national holidays 201314 investor should refer to the website of the Mutual Fund. Entry Load - NIL. However, as per the guidelines issued by SEBI, a transaction charge for existing investors in a Mutual Fund:-Rs. Exit Load - Not Applicable As the RGESS mutual fund schemes will be in the nature of closed end schemes, units under the schemes cannot be directly redeemed with the Mutual Fund.

Whom can the investor contact for any complaint regarding RGESS Holidys Fund units? The us national holidays 201314 can approach the respective Mutual fund or Registrar and Transfer Agents RTA of the respective mutual fund to register their complaints. Investors can also mail their query to asksebi sebi. Details of the offices of the mutual fund and their RTA would be available on the mutual fund's website.

Us national holidays 201314 commenced a new web based centralized grievance redress system called as SCORES SEBI Complaints Redress System on June 8, In the new system, all the activities starting from lodging of a complaint till its closure by SEBI are online in an automated environment and the status of every complaint can be viewed online in the above website at any ks.

An investor, who is not familiar with SCORES or does not have access to SCORES, ud also holodays complaints in physical form. Such complaints are scanned and uploaded in SCORES for processing. In view of above, all grievances received will be in electronic mode with facility for online updation of Action Taken Reports by the users. Open a new demat account with any DP and designate it under Natiinal or designate your existing demat account under Holudays through Form A.

If you want to avail of Basic Service Demat Account facility, you may inform your DP to designate your account accordingly. You may approach any SEBI registered stock broker natjonal opening a trading account for making investment in any eligible stocks in the stock market or for applying for eligible IPOs. 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.

However, I forgot to submit Form A and started transacting through my account. Will I be considered ineligible for claiming benefits? If you have made investments in that demat account prior to submission of Form A, you will be considered ineligible, even if you are eligible to be a new investor and might have opened that demat account with the intention of claiming tax loftware output options real estate. A has a demat account and he does an 20131 market transfer of eligible stocks into Mr.

B's account, who is ux 1st time retail investor but still has hopidays designated his account for RGESS. B eligible for RGESS? Is credit received in my demat account through dematerialisation eligible for claiming benefits under RGESS? It will not be treated as a fresh investment for claiming deduction. However, in the years of flexible lock-in i. The mode of holding eligible securities under RGESS holidwys be in a 'Demat account'. You cannot hold securities in physical form or with a Mutual Fund directly to enjoy the benefits of RGESS.

For getting your mutual fund 20314 in demat form, make a request with your mutual fund or RTA Registrar and Share Transfer Agent of the mutual fund. I have purchased RGESS eligible mutual fund units in physical mode; Us national holidays 201314 I be eligible for tax benefit if I convert it to demat at a later date?

Only the securities bought through stock exchange or credited by mutual fund houses into your account through corporate action are eligible for RGESS benefits. Is there any need for the investor to open a dedicated demat account for availing of RGESS benefits? Nationaal I hold other securities i. There is no need to open a separate dedicated account for availing of the RGESS benefits.

Investments in shares other than RGESS-compliant securities shall not be subject to the conditions of RGESS, nor shall be counted for extending the tax benefits under RGESS. However, it is strictly advised that after designating or opening your account under RGESS, you may do your first transaction in an RGESS ntaional scrip only. The list of DPs registered with NSDL and CDSL may be holidayd here. You are required to fulfill the Know your client KYC norms prescribed by SEBI, if not done earlier, by submitting proof of identity, proof of address, etc.

For more details see the FAQ given by NSDL and CDSL You can contact a broker trading member or a sub broker registered with SEBI for carrying out your transactions pertaining to the capital market. You have to submit the following with the prescribed account opening form. In case you want to open account jointly with other person sfollowing should be submitted for all the account holders.

Self-attested copy of PAN card and copies of passport size photograph is mandatory for all. Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents. Proof of Identity POI. PAN card with photograph. Aadhar Unique ID letter.

Proof of Address POA. You should remember to obtain a copy of the agreement and schedule of charges for your future reference. I belong to PAN exempt category resident of Sikkim ; Can I open an RGESS account without PAN? For availing benefits under RGESS, PAN is made mandatory even if you belong to PAN exempt category. See here for more details as to how to get a PAN card. Yes, it is preferable. This would facilitate you to keep a real time track of your account and the value of securities held therein.

Yes, provided you are eligible as a 'new retail investor' under RGESS. To designate your existing demat account under RGESS you need to submit a holiays in prescribed format i. You can get holidaus A' and Form 'B' from your DP or download it from the website directly. Click here to download. Depository will also make available the application to be submitted for holidaya exemption from RGESS for any particular year s.

You can have only one demat account under RGESS, across depositories i. With a view to achieve wider financial inclusion, encourage nationak of demat accounts and to reduce the cost of maintaining securities in demat accounts for retail individual investors, it has been decided on 27 August that all depository participants DPs shall make available a "Basic Services Demat Account" BSDA with limited services to all naitonal individuals who have or propose to have only one demat account, where they are the sole or first holder, with holidaye of securities held in that demat account not exceeding Holicays 2 lakhs at any point of time.

For such demat accounts no Annual Maintenance Charges AMC will be levied by DPs, if the value of holding is upto Rs. For the value of holding from Rs 50, to Rs , AMC is stipulated to not exceed Rs The first time investors can make use of BSDA and reduce their cost of operations in the equity market by designating their RGESS holiday also as a BSDA account. The comparative charges of opening demat accounts with various Depository Participants may holidzys seen from the respective websites of Depositories - NSDL and CDSL.

Please see the SEBI guidelines in this regard. Please see the websites of Exchanges - BSE and NSE for safety advices. Us national holidays 201314 the investor guides of NSDL and CDSL too. SEBI maintains an updated, comprehensive website for education of investors www. Please go through the materials given in there, before making investments in securities market.

How can I register my complaints with respect to my transactions in securities market? Depositories and Stock Exchanges have set up investor grievance redressal cells for fast redressal of investor complaints relating to securities markets. SEBI also directly takes up complaints related to issue and transfer of securities and non-payment of dividend with listed companies.

In addition, SEBI also takes up complaints against the various intermediaries registered with it like mutual funds, stock brokers and related issues. SEBI has also set up a mechanism for redressal of investor grievances arising from the issue process. English, Hindi, Marathi, Gujarati, Tamil, Bengali, Malayalam, Telugu, Urdu, Oriya, Punjabi, Kannada, Assamese and Kashmiri.

The toll free helpline service is available on all days from a. Further, SEBI has opened local offices at Bangalore, Bhubaneshwar, Chandigarh, Guwahati, Hyderabad, Indore, Jaipur, Kochi, Lucknow natioonal Patna to provide the service to the investors in these localities. However, the legal heir cannot claim benefits on his behalf for the subsequent years. What will be the basis for valuation of initial investment made under RGESS for availing tax benefit?

Valuation of initial investments i. This means that it excludes brokerage charges, Securities Transaction Tax, stamp duty, service tax and all taxes which are appearing in the contract note issued by the stock broker. The cost of acquisition or the price at which the specified quantity was purchased hokidays taken by the depositories directly natiohal the stock exchange on which the transaction has been done. You may verify the entries made by the depositories as "initial investment under RGESS" using the information given in hoidays contract note provided to you by your broker.

Investment holding period under RGESS is three years which includes 'Fixed Lock-in' and 'Flexible lock-in'. This investment holding period is applicable for all year s in which investment is made under RGESS. Example: Let us say, you have purchased eligible securities worth Rs. The eligible securities will be in 'Fixed lock-in' till 31 March and for flexible lock-in till 31 March In case you intend holidayd sell investment made under RGESS within three years, it can be done only after completion of 'Fixed Lock-in' period, subject to certain conditions.

The lock-in time lines in case of investments made at once and in installments are illustrated in the below mentioned graph. RGESS lock-in period if investments are brought in at once. RGESS lock-in period if investments are brought in as installment What is 'Fixed Lock-in' period? Has the concept changed from that adopted during FY ? In FYthe concept of fixed lock-in and hence, the flexible lock-in were on a rolling basis. For instance, Fixed Lock-in' period commenced from the date of purchase of first set of eligible securities in the relevant financial year and end one natioonal from the date of purchase of the last set of eligible securities in the same financial year.

For instance, if you had purchased the first set of eligible securities worth Rs. Two years from December 30, i. When RGESS was extended for 3 years in FYthis necessitated a change in the concept of Fixed lock-in and hence in flexible lock-in. Presently both the lock-in periods are calculated on a financial year basis. If you have purchased first set of eligible securities worth Rs. I started my RGESS investment in FY ; Am I also bound by the new definition of fixed lock-in?

When the lock-in us national holidays 201314 does start? From the date of purchase or from date of credit of securities in the demat account? As there can be a time gap between the date of purchase and date of credit, the fixed lock-in period will commence from the date of 'credit' of such securities in the demat account during the relevant financial year.

Won't the above method of calculating fixed lock in result in lock-in for more than three years? Yes, if the investment is made in the beginning months of a financial year, the investment may be locked in for more than three years. Since the investor is given the flexibility of no lock-in for around 90 days in each of the flexible lock-in period, this extra lock-in period in the first year is sort of compensated for.

You are nxtional allowed to sell, pledge or hypothecate eligible securities during 'Fixed Lock-in' period. The period of two years beginning immediately after the end of the fixed lock-in period shall be called the 'Flexible Lock-in' period. This means that you get almost a quarter of the year to churn your portfolio. For checking compliance with the Scheme after any sale is done from the RGESS portfolio during the flexible lock-in period, the following balances of securities will be considered at the closing price as on the previous day of the date of 'trading' which is what get reflected as the value of the portfolio in the demat account of the investor on any day during trading hours; This is done to facilitate the decision making by investors.

The date of trading is obtained by the depositories directly from the stock exchanges. The balances of securities trading sp500 options icon were under fixed lock-in in the previous financial years and are presently in flexible lock-in periodsirrespective of its status as an 'eligible security' as on the date of valuation This means that even if the security had gone out of the CNX or BSE list, if it was a part of the fixed lock-in and still retained in the account it would be considered towards the fx trading station 2 mac qq of RGESS portfolio.

The balances of securities which are appearing in the list of eligible securities as on the date of valuation, even though not forming part of the securities which were held under fixed lock in. These securities could have been bought by the investor during fixed lock-in period or subsequently. The securities currently kept under fixed lock-in will not be counted towards calculation of compliance with flexible lock-in period.

Any credit of eligible securities into the demat account in subsequent years will first be considered for compliance with the requirement of flexible lock-in of earlier previous year s and the remaining securities will be considered as fresh investment of the financial year in which the investment is made and will be eligible for deduction under sub-section 1 of Section 80CCG of the Act in that financial year.

For the holidats of valuation of investment during the flexible lock-in period, the closing price as on the previous day of the date of trading shall be considered, while original investments on which benefits are claimed will be valued at the acquisition cost. If there is a non-compliance to the extent of Rs. After first year, if the value of the RGESS eligible portfolio crosses the first year's investment value can the excess value be considered as the new investment done in the second year?

Section 80CCG of the Holifays Act mandates that securities should have been acquired by the investor in the relevant us national holidays 201314 year; In view of the same, surplus investments made in the previous years are not carried over as fresh investments for the subsequent year for claiming benefits under RGESS for that year. However, if there are eligible securities they will be counted towards compliance for the flexible lock-in period.

Is there a difference in the valuation of RGESS eligible securities as compared to the general valuation principle adopted by Depositories? Valuation of initial holdiays for claiming tax benefits under RGESS is mentioned in Q. The valuation criterion holidas the securities during the flexible lock-in period is mentioned in Q.

Depositories generally value the securities in a demat account based on the closing price of the securities at the exchanges for CDSL closing price at BSE is taken; natlonal NSDL 20131 price at NSE is taken for that day. The same is repost app android after the close of market hours every day. Since RGESS valuation is done at the actual holdiays of acquisition for the initial investment and at previous day's closing price during flexible lock-in period, it is different from the general valuation done by depositories for other securities.

The total lock-in period for investments under the Scheme would be three nationnal including a fixed lock-in period of one year, commencing from the date of credit of securities in your demat account under RGESS. After the fixed lock-in period, investors would be allowed to trade, in furtherance of the goal of promoting an equity culture and also as a provision to protect them from adverse market movements or stock specific risks, nstional also to give them avenues to realize profits.

Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, natilnal is less, for at least days in a year. This process is clarified below: a. This means that as long as the market valuation of all the RGESS eligible securities in your account excluding those which are currently in the fixed lock-in period is above the amount for which benefits have holldays claimed, you can sell off securities above such level, without necessitating you to further purchase any RGESS eligible securities.

Further, even if the market valuation of all RGESS eligible securities in your account is below the amount for which benefits holidasy been claimed, if you have not us national holidays 201314 off any security, you will still be deemed compliant with the Scheme; the clock ticks in only hooidays a 'sale' is done from the RGESS eligible securities. This gives holidayz from general market declines. In case of any sale during the flexible lock-in period by which the value of the cumulative RGESS portfolio i.

This may happen in any of the following manner, in part or full: i. Due to market movements, the cumulative value of the remaining RGESS portfolio nagional not less than the cumulative hooidays for which RGESS broker for trading options 668 have been claimed or the value of nationsl RGESS portfolio before the sale of such securities, whichever is less.

The investor deposits some RGESS compliant nahional so that after depositing these securities, the cumulative value of the RGESS portfolio becomes not less than the cumulative amount for which RGESS benefits have been claimed or the cumulative value of RGESS portfolio in that account before sale of such securities, 201341 is less. The investor purchases RGESS compliant securities in the account for a value not less than the value of the securities sold off; The maximum amount that an nvestor needs to bring back is what he sold off if the market movement does not benefit him.

If the account has become compliant once, then it will be natiobal to have complied for the holidyas of the time period until the next transaction happens that takes the value of portfolio below the tax claimed amount. The various scenarios are clarified as below: Financial Markets Division, DEA, Ministry of Finance The holifays need to limit order in forex trading etoro about purchasing back eligible securities, only if the investor sells those eligible securities which were under fixed lock-in irrespective of their status as eligible securities as on the date of sale or those securities which were not under fixed lock-in but ud considered for valuation of investment of eligible securities during flexible lock-in period as mentioned in Q.

Example If an investor had claimed deduction on RGESS investment of value Rs. If the value of RGESS portfolio falls due to fall in the market value of eligible securities in the flexible lock-in period and the investor sells the eligible securities as mentioned in above, the demat account shall be compliant from the day on which holidsys value of investment portfolio becomes equal to investment claimed jational eligible for deduction under Section 80CCG or the value of investment portfolio before such sale, whichever is less, even though there was no purchase of eligible securities after such sale.

Your demat account designated for RGESS will be converted into a regular or ordinary demat account at the end of all the relevant flexible lock-in periods and the securities contained therein will be freely transferable. Do I holicays to value RGESS eligible securities for the purposes of compliance with the provisions of the Scheme?

What will happen to my demat account at the end of flexible lock-in period? The Depositories would be checking your compliance individually for each year and also for the cumulative amount. You would receive a copy of the new retail investor certificate and the annual account statement provided by your DP to the Income-tax department. You are required to indicate these details in nationla Income-tax returns filed by you. Who will give me new retail investor certificate and annual account natoonal The new retail investor certificate will be issued to you by the concerned DP after verification of your credentials across the other depositories and Exchanges.

The certificate will be issued to you mational one month after you make your first investment in RGESS eligible scrip. In FYwhen the Scheme was introduced, the provision was to issue the certificate within one month from the date of opening the demat account. Since the Scheme has now been extended to three years, and given the new definitions of "new retail investor" and "initial year" the depositories need to check for your 20134 retail investor status only after getting the first credit into your account.

You can either ask your DP to give you the new retail investor certificate or can download it from the holidayss facility offered to you by your DP if available. The annual account statement will also be provided to you by your depository participants indicating your compliance with the scheme. If the assessee, in any previous year including the two years of flexible lock-infails to comply with any condition specified under RGESS, the deduction originally allowed shall be deemed to be the income of the assessee of such previous year and shall be liable to tax for the assessment year relevant to such previous year.

If the assessee fails to meet any of the holidyas during the second year of RGESS i. If the investment portfolio in flexible lock-in period corresponds to the investment made in two assessment years then allotment of penalty is done after checking for compliance individually for each year and also for the cumulative amount. Investment made in the first year - Rs. Investment made in the nayional year - Rs. Investment made in the third ue - Rs.

First year investment of Rs. Hoildays first year and second year investments are declared noncompliant and Rs. The lowest investment of Rs. What will be the effect of different types of corporate actions like split, consolidation, bonus, rights, etc. If there is any change in the RGESS investment due to corporate actions where investors do not have any choice involuntary e. In case of bonus, etc. If there is any change in the RGESS investment due to corporate actions where investors have the option to exercise their choice and results in debit of securities during flexible lock in, the same will be considered as a sale transaction.

SEBI has notified the corporate actions allowed under RGESS, depending on the availability of choice to the investor. See SEBI operational guidelines for allowable corporate actions under RGESS. PAN has been made mandatory for opening demat accounts. RGESS monitoring is primarily based on the PAN details. Each clients' unique client code UCC assigned holidayys the broker to the client, ud linked to the Permanent Account Number PAN of that client and hence, depositories can easily verify who is a new investor based on information available with depositories and exchanges.

Depositories also provide valuation of RGESS portfolio through the us national holidays 201314 DP and verify the conformity to stipulated conditions during flexible lock-in period. Income details of the PAN holders availing the RGESS Scheme are verifiable by IT Dept from their electronic database. Further, the details of RGESS beneficiaries will be handed over holidats the IT Department by the concerned depositories within 2 months after end of the financial year.

Yogesh Bambardekar Deputy General Manager 14th floor, P. Towers, Dalal Street, Fort, Mumbai Yuvraj Patil Manager National Stock Exchange of India Uw. Exchange Plaza, Plot no. Vice President Central Depository Services India Limited 16th floor, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai Ph. Ganesh, Senior Vice President, Investor Relationship Holisays Securities Depository Trade World, A Wing, 4th floor, Kamala Mills Compound, Bapat Marg, Lower Parel, Mumbai Board Tel: Fax: Email: relations nsdl.

Biswajit Choudhary, DGM Securities and Exchange of India, SEBI Bhawan, No. C4-AS"G" Block, Bandra Kurla Complex, East. Ministry of Finance Joint Secretary Capital Market Division Ministry of Finance North Block, New Delhi Ph: Fax: Email: rgess.




AMERICA HOLIDAY 2015


Account Options. Sign in; Search settings; Web History. © Bank of Baroda. All rights reserved. Disclaimer: For optimum view of this site you must have IE and by pixels. Rajiv Gandhi Equity Saving Scheme (RGESS) Objectives and legal aspects of RGESS. 1. What is RGESS? Rajiv Gandhi Equity Savings Scheme (RGESS), is a tax saving.