To minimise risk associated with direct stock investment for new investors, market regulator SEBI has asked the government to route the tax-saving Rajiv Gandhi Equity Savings Scheme through mutual fund (MF).
Chairman of Securities and Exchange Board of India (Sebi) U. K. Sinha, on Saturday, said the regulator had submitted a proposal in this regard to the Finance Ministry.
“The thinking in SEBI is that first time investors may not have adequate information about the stock market...they should enter the market through institutional investor,” Mr. Sinha said.
“...is it right to expose an uninformed investor directly into the equity market or provide him access through mutual fund (MF),” he said.
He was responding to queries on RESS announced by Finance Minister Pranab Mukherjee in his budget speech.