Can one invest in RGESS if there is a existing Demat account ?

POSTED BY Sundaram A ON January 31, 2014 3:09 pm COMMENTS (4)

A demat A/c was opened in July 2013 in the joint names of Mr.A and his father,with Mr.A as the first holder.Mr.A has Debt holdings in it (investments in NCDs/Bonds).

There has been no direct equity purchase done by him and hence the demat A/c does not have any equity holdings.Thus he is eligible to invest under RGESS but can he designate the existing demat A/c for the same? Or has he to open a Demat A/c in his “single” capacity?

Thanks for your responses.

4 replies on this article “Can one invest in RGESS if there is a existing Demat account ?”

  1. Sundaram A says:
    February 3, 2014 at 6:55 pm

    Thanks,Arjun,for your response.But I’m afraid it’s not correct.The first holder in a Demat A/c can fill up “Form A” designating the said A/c for availing the benefits under RGESS.There’s no compulsion to open a Demat A/c singly.

    Please do revert if you have proof to the contrary.Thanks.

    Reply
  2. arjunp3000 says:
    February 3, 2014 at 3:37 pm

    Hi Sundaram,

    Our Financial Advisor here says that the joint account cannot be used to invest in RGES.
    He will have to open a DEMAT account in his name and use that to invest.

    Reg,
    Arjun
    FundsIndia.com

    Reply
  3. Sundaram A says:
    February 1, 2014 at 12:01 am

    Thanks,Ashal.The problem is that since RGESS is not such a popular product,even the DP personnel are clueless.My concern is that I should not be in the wrong side of the tax-man.

    Does anyone have first-hand experience in investing in RGESS?If so,please help.Thanks.

    Reply
  4. ashalanshu says:
    January 31, 2014 at 4:25 pm

    Dear Sundaram, please put the query with DP. I think converting the existing demat account to RGESs enabled is possible but should it be single holding account, I’m not sure.

    Thanks

    Ashal

    Reply

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