Decision on allowing Rajiv Gandhi Equity Savings Scheme via MFs soon, says the Finance Minister
The Finance Minister, P. Chidambaram today issued a statement that the government has welcomed the decisions taken by SEBI to attract more people to mutual funds. He also said a decision would be taken soon on the possibility of routing Rajiv Gandhi Equity Scheme through equity mutual funds soon. However, going by the wording of the statement issued by the FM, only those equity funds that invest in securities allowed under RGESS will qualify.
“Government has also taken note of the recommendation of SEBI that the Rajiv Gandhi Equity Savings Scheme (RGESS) should also provide for investments in equity schemes of mutual funds which have the securities allowed under RGESS as the underlying. I have asked the Department of Economic Affairs, Capital Markets division, to examine the recommendation of SEBI and I expect that it would be possible to take a decision shortly,” says the statement from the Finance Minister.
There is more in the offing for the MF industry. “There are a number of other suggestions which are under consideration by the Government. When U K Sinha, Chairman, SEBI called on me on August 14, 2012, I had requested him to examine those suggestions independently and advise me. The examination by the Government and SEBI is likely to be completed in the next two weeks. I have requested Chairman, SEBI to schedule another meeting of the Board in early September when some more decisions can be taken on the suggestions that are under examination.”
