Rajiv Gandhi scheme to attract new investors to market: NSE
New Delhi: Leading stock exchange NSE Sunday said that the newly announced Rajiv Gandhi Equity Savings Scheme (RGESS) would encourage new investors to come into the equity markets and put their money in products like ETFs.
The bourse today organised a two-km investor race here under its Investothon initiative and named it after the government's newly announced equity scheme to spread awareness about it.
"We are confident that the Rajiv Gandhi equity savings scheme will encourage first time investors to come into the equity markets and invest in broad based products like exchange traded funds (ETFs)," National Stock Exchange's Joint Managing Director Chitra Ramkrishna said.
Ramkrishna would take over as Managing Director and CEO of the exchange from April next year.
The new scheme offers tax benefits to the first time investors if they invest in the permitted securities, mutual funds or ETFs, provided that their annual income is less than Rs 10 lakh. New investors can invest Rs 50,000 and get a tax benefit on 50 percent of this investment.
Eligible securities include equity shares of the top 100 companies on NSE and BSE, shares of public sector enterprises that are categorised as Maharatna, Navaratna or Miniratna by the Central Government, follow on public offers of these PSUs, units of Exchange traded funds like Nifty ETFs, Bank Nifty ETFs and PSU bank Nifty ETFs.
Mutual fund schemes with RGESS-eligible securities as underlying will also be allowed for the scheme.
The exchange said that more than 6,500 people participated in today's race, which was part of NSE's efforts to create awareness on safe investing in the market.