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What is Rajiv Gandhi equity savings scheme (RGESS)?

The union budget 2012-13 introduced this equity savings scheme with a view to promote equity investments among people and to promote the scheme, will allow a deduction of 50% of the amount invested subject to a maximum of Rs 25,000. The deduction is claimed through a new section introduced in chapter VI A of the income tax Act, called the 80CCG. The investments can be made in installments throughout the year or in a lumpsum and it should be made after 23rd November 2012- the date on which the scheme came into force.

Schemes similar to RGESS were earlier introduced in Belgium and France which had positive results. In France, the implementation of a similar scheme resulted in public participation in retail trade which increased from 7% to 17%.The scheme is introduced in India with the same objective – to promote equity investment among freshers. That means, only first time investors will get the twin benefit of equity investing and tax exemption. One more condition that has been attached to this is that the new investor should not have an income before tax deductions that exceed 10 lakhs in a year.

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Insider trading

INSIDER.

Any person in power –

  • He could be a director or an officer or anyone connected to the company
  • Who has access to sensitive information relating to the company

PERSONS ‘CONNECTED’ WITH THE COMPANY

These includes directors, officers, employees who have access to such sensitive information, other professionals like Merchant banker, share transfer agent, registrar to an issue, debenture trustee, broker, portfolio manager, Investment Advisor, sub-broker, , employees of the Board of Trustees of the Mutual Fund etc who are people ‘connected’ with the company. It also includes ‘temporary insiders’ like lawyers and auditors. Relatives of these connected persons are also considered in the same category.

INSIDER TRADING

When an insider, using his position and power in the company, collects price sensitive unpublished information and passes it out to his friends, relatives or known persons for the purpose of making money from price changes, such an act is generally called insider trading.

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Circuit breakers

Hi there..

As you would have observed , stock prices can move up or down due to a number of reasons. For example – earnings results, government policies, trends in the industry etc. Such prices movements are reasonable and logical.

But in some cases, stock prices may move up or down drastically, accelerated mostly due to fear or greed by speculators and manipulators. Such movements are harmful for the stock markets.

In order to control such heavy price fluctuations, stock exchanges have a system called ‘circuit breakers’, something that works similar to the electricity circuit breakers that we have at home.

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Important dates for Indian stock investors.

Hi there,

This article takes you through the list of dates that are relevant for indian stock market investors.For Indian markets, the most important dates are :

  • 1. FIRST MONTH OF EVERY QUARTERApril, July, October and January.
    It’s the time when the quarterly results of companies come out. Companies that are expected to come out with strong financial results see a bounce in their share prices. Short-term investors can take advantage of this trend by buying into shares in the last month of the quarter such as December or March. If you are wondering how to pick up those shares, the figures given by various companies during the last quarter, the expectations of the management for the next quarter, news that circulates around about the company and the mood of industry in general – all these factors, if closely followed up, can give you clues.

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