Chidambaram hints at changes in Budget 2013 to boost equity culture
The FM said he would change the rules governing the Rajiv Gandhi Equity Savings Scheme ( RGESS) to give more tax incentives and relax the eligibility criteria for people who can invest in stocks through this channel. He also asked financial sector regulators to agree to a universal 'know your customer' (KYC) guidelines to aid investing in mutual funds.
Finance minister P Chidambaram, who was here to formally launch the Rajiv Gandhi Equity Savings Scheme, said it was "a matter of regret" that despite Indian households being great savers, not much of it was going into financial assets. Chidambaram also pointed out that a large number of retail investors turned away from opening demat accounts, and thus investing in stocks, because even after opening a bank account, they had to answer several questions.
During the day, the FM inaugurated the equity trading platform of MCX Stock Exchange (MCX-SX) and also entered the first symbolic trade of its flagship index 'SX40'. The exchange, which got the regulatory nod to convert into a full-fledged exchange, intends to focus on growth, effective use of innovation and technology to encourage inclusion.
On Saturday, Chidambaram also inaugurated PNB's corporate centre in the Bandra-Kurla Complex, started 101 new branches of SBIBSE -1.75 %, and launched infrastructure debt funds (IDF) by IL&FS. He said IDFs, which take loan portfolios from banks and allow banks to fund new projects, is a kind of funding solution which is being introduced in India for the first time. IDFs would help fund projects over a long period of time and at lower interest rates.
Source : http://economictimes.indiatimes.com/news/economy/policy/chidambaram-hints-at-changes-in-budget-2013-to-boost-equity-culture/articleshow/18424152.cms
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