InvestorQ : Can the RGESS scheme also be used in case of joint holdings of shares?
Anu Biswas made post

Can the RGESS scheme also be used in case of joint holdings of shares?

Answer
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Neelam Naik answered.
1 year ago


In case of joint accounts, only the first account holder will not be considered as a new retail investor. All those existing account holders other than the first demat account holder (e.g. second / third account holders or other joint holders) or nominees of the existing account holders will be considered as new retail investors for the purpose of opening of a fresh RGESS account, if otherwise eligible. In case the demat account is opened as a first holder, but there are no transactions in the equity or derivative segment, then the first account holder is eligible to be a new retail investor.

For taking the benefits under RGESS, the new retail investor will have to submit a declaration, as in Form ‘A’, to the Depository Participant (DP) at the time of account opening or designating his / her existing demat account. Eligible securities, which are brought thereafter into such an account, will be automatically subject to lock-in to a value of Rs. 50,000, unless the investor specifies otherwise through the Form ‘B’ specified in this regard.