Sebi has asked mutual funds as well as stock exchanges and depositories to create wide publicity for the RGESS scheme among investors. Following up on the notification brought out by the Sebi last week, the market regulator has given a few clarifications as well.
For example, for RGESS eligible close-ended mutual funds schemes, advice given by AMCs to the depository for extinguishment of units of close-ended schemes upon maturity of the scheme shall be considered as settled through depository mechanism and therefore RGESS compliant.
Stock exchanges shall furnish list of RGESS eligible stocks, ETFs, MF schemes on their website. Further, the list shall also be forwarded to the depositories at monthly intervals and whenever there is any change in the said list. For this purpose, MFs shall communicate list of RGESS eligible MF schemes and ETFs to the stock exchanges.
For deals undertaken by investors through their RGESS designated demat account, depositories may seek necessary transactional details from stock exchanges regarding actual trade value, trading date, settlement number, etc, for the purpose of enforcing lock-in and for generating reports mandated vide MoF notification on RGESS. On receipt of such request from depositories, stock exchanges shall provide the details to depositories on an immediate basis.
According to the earlier notification, the eligible securities brought into the demat account will automatically be subject to lock-in during the first year.
