Giving a further leg-up to the implementation of Rajiv Gandhi Equity Savings Scheme (RGESS), the Securities and Exchange Board of India (Sebi) on Thursday directed stock exchanges, depositories, mutual funds, asset management companies (AMCs), trustee companies and boards of trustees of mutual funds to take necessary steps to implement the scheme.

The RGESS scheme announced in the Union budget 2012-13, allows investors with gross annual income less than or equal to Rs 10,00,000 to invest up to Rs 50,000 for which they will be entitled to get tax benefits under a new section 80CCG as per the Finance Act 2012.

In a circular issued by Sebi, the government has directed stock exchanges to furnish list of RGESS eligible stocks, ETFs, MF schemes on their websites, besides asking exchanges and depositories to make arrangements to the relevant rules for the implementation of the scheme.

The notification directs exchanges, MFs and AMCs to create publicity of the scheme among the investors and market participants, including though investor schemes and displaying details on their website.

While implementing the RGESS scheme, AMCs should disclose that exchange traded funds and mutual fund schemes launching RGESS scheme are compliant with the scheme’s guidelines as notified by ministry of finance, the release said.

The notification further states that the eligible securities brought into the demat account will automatically be subject to lock-in during the first year, while new investors shall submit a declaration indicating that such securities are not to be included within the above limit of investment.

For transactions undertaken by investors through their RGESS designated demat account, depositories can seek necessary transaction details from stock exchanges for the purpose of enforcing lock-in and for generating reports mandated.

In case of corporate actions such as demerger of companies, the compliance status of RGESS demat account shall not change, the release said.