1. RAJIV GANDHI EQUITY SAVINGS
SCHEME (RGESS) - 2013

2. WHAT IS RGESS ?
Rajiv Gandhi Equity Saving Scheme (RGESS) is a new
initiative by the government of India aimed encouraging
first time investors to channelize.
 Their savings into the capital markets
 As an incentive, a one-time deduction will be available to
the new retail
 investor on the 50% of the amount invested in ‘eligible
securities’ in the
 financial year, subject to maximum investment limit of
Rs 50,000
 For the purpose of claiming benefit under RGESS, the
investor needs to
 invest in select approved securities as notified by the
government

3. WHICH SECURITIES I CAN INVEST?
 Equity shares included in the NSE CNX-100 & BSE-100.
 Equity shares of PSU categorized as Maharatna,
Miniratna or Navratna.
 Units of ETFs & MFs with eligible securities as
underlying and provided.
 They are listed and traded on a stock exchange and
settled through a depository mechanism.
 FPO or NFOs of above eligible securities.
 IPO's of PSUs with atleast 51% government holding and
3 year annual turnover of more than Rs. 4000 corer.
 You can refer to NSE website for complete list of eligible
securities.

4. TAX BENFITS:
 Tax Benefit u/s 80CCG – deduction from total income.
 Deduction of 50% of amount invested. Deduction not to
exceed Rs. 25,000
 Deduction permitted 3 years.

5. TAX BENEFITS :ILLUSTRATION FOR
FY 2013-14
Particulars A’S TAXABLE INCOME B’S TAXABLE INCOME
Salary income PA 500000 500000
Tax Exeamtion as 2012 200000 200000
Tax payable 300000 300000
Less: Deductions U/s 100,000 1,000,000
80C(LIC etc)
Total taxable income ( Tax 200,000 200000
payble - Deductions)
Less: Deductions RGESS 25,000 0
U/S 80CCG
Total taxable income 175,000 200,000
Tax payable 17,500 20000
Next tax saved - 2013 2,500
Next year - 2014 2,500
Next year - 2015 2,500
3 YEARS SAVED 7,500

6. PROCEDURE FOR NEW
INVESTORS :
•Open a demat account with RGESS
•Open a broking account .
•Provide PAN while opening account.
•Submit declaration in Form A to DP .

7. PROCEDURE FOR EXISTING
INVESTORS :
•Designate existing demat account for RGESS .
•Open a broking account, if not opened
•PAN compliant account.
•Submit declaration in Form A to DP.

8. PROCEDURE FOR RGESS
INVESTMENT:
Investment through Exchanges .
 More than one transaction permitted in a financial year.
 Valuation provided by Exchanges .
 Eligible Securities upto Rs. 50,000 kept under lock-in by
CDSL.
 Declaration in Form B by investor:
•Exclude credit of RGESS securities from RGESS
portfolio .
•Date of trading and Security name mentioned .
•All credits received for settlements on date of trading
excluded from RGESS portfolio
 Investment in other securities / in excess of Rs.50000
can be held in RGESS account - but not eligible for tax
benefit

9. PROCEDURE FOR RGESS
INVESTMENT:
Declaration in Form B by investor –
• Exclude credit of RGESS securities from RGESS portfolio
• Date of trading and Security name mentioned
• All credits received for settlements on date of trading
excluded from RGESS portfolio
• To be submitted within one month of date of transaction
 Investment in other securities / in excess of Rs.50000
can be held in RGESS account - but not eligible for tax
benefit

10. LOCK-IN PERIOD:
 Fixed lock-in of one year
 •from the date of credit
 Flexible Lock-in of two years :
 2 years from the end of Fixed lock in period

11. FIXED LOCK-IN:
 Valuation provided by exchange on the basis of contract
price.
 Securities under lock-in after receipt of valuation from
Exchange
 Investor cannot sell .
 Information to investor through CDSL web based facility
Valuation of RGESS portfolio
Annual statement of RGESS portfolio
 Credit received through Corporate Action
Considered for RGESS portfolio

12. FELXIABLE LOCK-IN:
 Permitted to trade subject to being compliant for minimum 270 days in
each flexible lock in year
 Compliance conditions:
•Maintenance of value of RGESS portfolio = > Amount claimed as RGESS
investment
•Fall in value of RGESS portfolio
•Due to market fluctuations without any sale-Compliant
 Fall in value of RGESS portfolio Due to sale:
•Compliant till date of sale
•After date of sale –
•RGESS portfolio value = Amt claimed as RGESS investment
•OR
•RGESS portfolio value = Value of RGESS portfolio before sale
•WHICHEVER IS LESS

13. FLEXIBLE LOCK-IN – COMPLIANCE
CONDITIONS:
 RGESS portfolio valued at closing price on previous date of debit:
 Portfolio
 Securities which were under fixed lock-in
 Securities which are RGESS eligible on the valuation date ( even
though not under fixed lock-in)
 Sale of RGESS securities :
 Securities which were under fixed lock-in .
 Securities which were considered for valuation of portfolio in flexible
lock –in period .

14. FLEXIBLE LOCK-IN: COMPLIANCE
CONDITIONS:
RGESS PORTFOLIO
RGESS PORTFOLIO VALUE
SCRIPS
ACC-500 shares Fixed lock in Rs. 50,000
ACC-200 shares - Rs. 20,000
SOLD-ACC 100 shares Fixed lock in
ACC shares - Rs .60,000

15. EFFECT OF NON –COMPLIANCE:
 Deduction claimed will be withdrawn Deduction amount
claimed for a previous year .
 Deemed to be income of the assesse of such previous
year .
 Liable to tax .

16. Expectation from DPs :
 Verification by IT Dept / SEBI / CDSL inspection.
 Maintenance of Form A and Form B.
 DP to inform BOs if found ineligible.
 Information to BO about RGESS ineligibility.
 CDSL will provide report to DPs.
 Annual statement of investment and trade to RGESS
investor.

17. FLEXIBLE LOCK-IN – COMPLIANCE
CONDITIONS:
 Off market credits not considered for RGESS
investment.
 Opt for client level payout / transfer from Clearing
Member (CM) account.
 If credit given to RGESS BO from a CM Ben a/c or CM
Margin a/c.
Link CM ID to such CM Ben a/c or CM Margin a/c .
Enter settlement number while executing such transaction.

18. CDSL’ s PROPASED WEB BASED
FACILITY:
Information to investor:
 Valuation of RGESS portfolio.
 Annual statement of RGESS portfolio .
 Annual statement of trade and compliance status during
flexible lock-in.
 Above information available to DPs for all its RGESS
BOs.

19. THANK YOU

20. FOR ANY QUEREIS CONTACT US:…
+91-40-23541258
CORPORATE OFFICE:
Treadwell House, plot:1057-G,Road No:45,
Jubilee Hills,Hyderabad-500033
Tel:+91-40-23541258,fax +91-40-23541256
Email:info@tradewell.com