Domestic investors can now invest in US stocks such as Google, Amazon, and Tesla directly on the NSE IFSC (NSE International Exchange). In a circular, the NSE IFSC said that trading will commence for 8 US-based stocks from March 3. The exchange said that trading in the stocks will be in the form of Unsponsored Depository Receipts. NSE IFSC is a wholly-owned subsidiary of the National Stock Exchange of India (NSE). Investors in India have been exploring avenues that allow them to invest in US stocks for the last few years with the growing prominence of investment platforms that allow them to do so.
NSE IFSC has received approval to trade receipts of 50 US-based stocks. However, only 8 will be available to be traded from Thursday onwards. These include;
ALPHABET INC NSE IFSC RECEIPT (Google)
AMAZON INC NSE IFSC RECEIPT (Amazon)
TESLA INC NSE IFSC RECEIPT (Tesla)
META PLATFORMS INC NSE IFSC RECEIPT (Facebook)
MICROSOFT CORPORATION NSE IFSC RECEIPT (Microsoft)
NETFLIX INC NSE IFSC RECEIPT (Netflix)
APPLE INC NSE IFSC RECEIPT (Apple)
WALMART INC NSE IFSC RECEIPT (Walmart)
“For the remaining NSE IFSC Receipts on select US Stocks, date of commencement of trading shall be intimated by way of separate circular,” NSE IFSC said. Trading of Unsponsored Depository Receipts of the said stocks would see investors buy receipts that are issued against these scrips that are listed in the US. The entire trading, clearing, settlement and holding of US Stocks will be under the regulatory structure of IFSC Authority.
Some of the other stocks that will trade on the NSE IFSC platform soon include Berkshire Hathaway, Mastercard, JP Morgan Chase, Morga Stanley, Nike, Paypal, Pepsico, Pfizer, Intel among others.
Indian retail investors can transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India. Currently, under the LRS rules, a resident individual is allowed to remit up to $2.5 lakh (USD 2,50,000 ) in each financial year.
NSE IFSC, the subsidiary of NSE was set up in 2016 and had received approval from the Securities and Exchange Board of India (SEBI) to establish an international exchange in Gujarat International Finance Tech City (GIFT) – International Financial Service Centre (IFSC) Gandhinagar.
