"We have to relook at the scheme from the point of view of further modifying it, so as to make it more sustainable and more beneficial in the long run for the same class of middle income investors," he said.

Speaking in the presence of Union Finance Minister P Chidambaram at an event to launch the RGESS logo and awareness drive here, Sinha said Sebi is in dialogue with the government to modify the scheme, announced by Chidambaram's predecessor, Pranab Mukherjee, in his Budget speech for 2012-13.

He also welcomed the changes brought in by the government since the announcement, such as allowing mutual funds to participate through dedicated products.

Sinha, however, didn't specify the changes Sebi wants.

Responding to this, Chidambaram announced that Finance Ministry will bring in the necessary changes in the coming Budget.

Speaking at the event, which also marked the launch of five products by various fund houses under RGESS, Association of Mutual Funds of India chief executive H N Sinor said five more offerings have been cleared by Sebi and will be launched shortly.

In all, seven fund houses have 11 schemes which conform to the requirements of the RGESS, he said.