The central government aims at channelising household savings into share markets through this Rajiv Equity Savings Scheme
The government is likely to reduce the lock-in period under the Rajiv Gandhi Equity Scheme for new equity investors to 1 year from 3 years proposed in the Union budget 201213, and a circular to this effect could be issued within a month.
Govt discussed the issue of reduction of the blanket lock-in period to 1 year. It will meet the stock exchanges again and finalise the modalities, after meeting the representatives of BSE, National Stock Exchange, MCX-SX and other exchanges.
Retail investors would be allowed to invest in top 100 listed entities in BSE & NSE under the scheme which was unveiled by finance minister Pranab Mukherjee in the budget.
The minister had announced 50% tax deduction to retail investors with annual income of less than Rs. 10 lakh for investment up to Rs. 50,000 in a year with a lock-in period of 3 years under the Rajiv Gandhi Equity Scheme.
It was later clarified that a retail investor can avail of the scheme only once in a life time. This is the first ever tax benefit scheme announced by the government to encourage retail investors participation in the equity market.
This type of scheme was first introduced in Belgium, followed by France & some east European countries.
The scheme was highly successful in France and had helped in increasing retail participation in equity market from 7% to 17%.
The government is likely to reduce the lock-in period under the Rajiv Gandhi Equity Scheme for new equity investors to 1 year from 3 years proposed in the Union budget 201213, and a circular to this effect could be issued within a month.
Govt discussed the issue of reduction of the blanket lock-in period to 1 year. It will meet the stock exchanges again and finalise the modalities, after meeting the representatives of BSE, National Stock Exchange, MCX-SX and other exchanges.
Retail investors would be allowed to invest in top 100 listed entities in BSE & NSE under the scheme which was unveiled by finance minister Pranab Mukherjee in the budget.
The minister had announced 50% tax deduction to retail investors with annual income of less than Rs. 10 lakh for investment up to Rs. 50,000 in a year with a lock-in period of 3 years under the Rajiv Gandhi Equity Scheme.
It was later clarified that a retail investor can avail of the scheme only once in a life time. This is the first ever tax benefit scheme announced by the government to encourage retail investors participation in the equity market.
This type of scheme was first introduced in Belgium, followed by France & some east European countries.
The scheme was highly successful in France and had helped in increasing retail participation in equity market from 7% to 17%.
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