Chidambaram to launch RGESS in Mumbai on Feb. 9: sources

Chidambaram to launch RGESS in Mumbai on Feb. 9: sourcesUnion Finance Minister P Chidambaram will reportedly launch the Rajiv Gandhi Equity Savings Scheme (RGESS) in Mumbai on 9th of February.

Sources with direct knowledge of the development said Mr. Chidambaram would go to Mumbai next month to formally launch the scheme.

Revealing the development, "He (Chidambaram) is going to Mumbai next month and will formally launch the Rajiv Gandhi Equity Scheme there."

The government's RGESS, which was announced in the Budget for 2012-13, aims to attract first-time stock market investors by providing g them with tax benefits.

Under the upcoming scheme, first-time stock market investors who will invest up to Rs 50,000 in the stock market and whose total annual income is less than/equal to Rs 10 lakh will be able to avail tax benefits.

Nimesh Shah, managing director and chief executive of ICICI Prudential, welcomed the scheme saying it would likely help in improving penetration of mutual funds (MFs) among the retail investors in the country. He added that the scheme would create awareness and help channelize retail money to capital markets.

As on December 31, the MF industry's overall AUM (assets under management) stood at Rs 7.6 lakh crore, with the equity portion contributing Rs 1.91 lakh crore.