www.bseindia.com
Home RGESS & Benefits Who is Eligible? Process Eligible Securities Eligible MFs/ETFs FAQs & Glossary Circulars & Forms
Procedure for Investment
Holding Period
Home Holding Period

Holding Period

  1. Investments are required to be held for a period called the fixed lock-in period. The fixed lock-in period will commence from the date of first investment in the relevant financial year and end one year from the date of last eligible investment in the same financial year.

    Ex: If an investor purchases an eligible security on 15 January, 2013 and then makes the last set of eligible investments on 20 March 2013, then the fixed lock in period will end on 20 March, 2014.

  2. An investor is not permitted to sell, pledge or hypothecate any eligible investment during the fixed lock-in period.

  3. The period of two years beginning immediately after the end of the fixed lock-in period is called the flexible lock-in period.

  4. The new retail investor is permitted to trade the eligible securities after the completion of the fixed lock-in period subject to the following conditions:

    5. The new retail investor will ensure that the demat account under the Scheme is compliant for a cumulative period of a minimum of two hundred and seventy days during each of the two years of the flexible lock-in period as laid down hereunder:

    1. The demat account will be considered compliant for the number of days where value of the investment portfolio of eligible securities , within the flexible lock-in period, is equal to or higher than the amount claimed as investment for the purposes of deduction under section 80CCG of the Act

    2. In case the value of investment portfolio in the demat account falls due to a fall in the market rate of eligible securities in the flexible lock-in period, then notwithstanding sub clause(A),

    1. The demat account will be considered compliant from the first day of the flexible lock-in period to the day any such eligible securities are sold during this period

    2. Where the assessee sells the eligible securities mentioned in sub-clause (B) from his demat account, he will have to purchase eligible securities and the said demat account will be compliant from the day on which the value of the investment portfolio in the account becomes:

      1. At least equivalent to the investment claimed as eligible for deduction under section 80CCG of the Act or;

      2. The value of the investment portfolio under the Scheme before such sale, whichever is less.

  5. An investor's demat account created under the Scheme will automatically convert into an ordinary demat account on the expiry of the holding period of the eligible investment.

  6. For the purpose of valuation of investment during the flexible lock-in period, the closing price as on the previous day of the date of trading, will be considered.

  7. The total cost of acquisition of eligible securities will not include brokerage charges, securities transaction tax, stamp duty, service tax and all taxes, which are appearing in the contract note.

  8. If the eligible investment undergoes a change as a result of involuntary corporate actions like demerger of companies, amalgamation, etc. resulting in debit or credit of securities covered under the Scheme, the deduction claimed by such investor will not be affected.

  9. In case of voluntary corporate actions like buy-back, etc. where a new retail investor has an option to exercise his/her choice, the resulting debit will be considered as a sale transaction for the purpose of the Scheme.

  10. SEBI will notify the corporate actions allowed under the Scheme in this regard.