New Delhi, March 16 : Finance Minister Pranab Mukherjee today announced the launching of Rajiv Gandhi Equity Savings Scheme to boost the capital equity market.
In his Union Budget speech to parliament, Mukherjee proposed to introduce a new scheme called Rajiv Gandhi Equity Savings Scheme to allow for income tax deduction of 50 per cent to new retail investors who invest up to Rs.50,000 directly in equities and whose annual income is below Rs.10 lakh.
The scheme will have a lock-in period of 3 years.
Regarding capital markets, the Finance Minister proposed to allow Qualified Foreign Investors (QFIs) to access Indian Corporate Bond market. He also proposed simplifying the process of Initial Public Offer (IPO).