The much-awaited Rajiv Gandhi Equity Savings Scheme giving tax benefits to new investors.

Under the scheme, an individual with an income of less than 10 lakh rupees would get tax incentives for investing up to 50,000 rupees in the stock market.

Launching the scheme in Mumbai today, Finance Minister P. Chidambaram said the move would encourage new investors to put their money in the stock market.

The scheme, which was announced in the Budget, seeks to provide tax benefits to first-time investors in stock market.

As per the notification issued by the Securities and Exchange Board of India on the scheme, there would be a lock-in period of one year on investments made under the scheme.

The scheme was notified by the Department of Revenue, Finance Ministry on November 23 last year.