Finance Minister P. Chidambaram has launched the much-awaited Rajiv Gandhi Equity Savings Scheme in Mumbai.

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.

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

Earlier, Chidambaram inaugurated the newly constructed Punjab National Bank Corporate Centre, at the Bandra-Kurla Complex. He also addressed a gathering of some of the important customers of the bank.