NSE IFSC (International Financial Services Centre) is a fully-owned subsidiary of the National Stock Exchange of India Limited (NSE) and operates an international stock exchange in GIFT City, Gandhinagar, Gujarat.
Established in 2016, NSE IFSC aims to grow the financial market and provide a dedicated ecosystem with a globally competitive regulatory framework.
The NSE IFSC exchange conducts trades in US dollars, making currency conversion mandatory for investments in NSE IFSC US stocks.
NSE IFSC offers a platform for investors, traders, and financial institutions to engage in various asset classes and products, including equity shares of companies incorporated outside of India, depository receipts, debt securities of eligible issuers, currency, index, interest rate, and non-agriculture commodity derivatives.
The NSE International Exchange aims to provide a dedicated ecosystem with a globally competitive regulatory framework, attracting market participants from around the world.
Membership of NSE International Exchange/NSE International Clearing is open to corporate entities, limited liability companies, and other legal entities.
NSE IFSC Limited is a fully owned subsidiary of the National Stock Exchange of India (NSE) and operates the NSE International Exchange (NSE INX) at GIFT City, Gandhinagar, Gujarat.
India International Exchange (India INX) is a subsidiary of BSE and is also located in GIFT City, Gujarat. The International Financial Services Centres Authority (IFSCA) has reportedly sought to execute a merger between India INX and NSE IFSC, which are subsidiaries of BSE and NSE, respectively.
How can one buy US stocks on NSE IFSC? To buy US stocks on NSE IFSC (NSE International Exchange), investors in India can trade in select US stocks through the platform.
When investing in US stocks on the NSE IFSC exchange, investors are not buying actual US stocks of the company. Instead, they are issued depository receipts (DR), which are financial instruments representing an equity stock listed on a foreign stock exchange.
Here are the key steps and considerations for buying US stocks on NSE IFSC:
Investment Limit: Investments in NSE IFSC US stocks are done under the Liberalized Remittance Scheme (LRS), which allows a maximum investment of US$ 2.5 lakh during a financial year for Indian residents.
Paperwork and Remittance: In addition to the KYC formalities, investors need to adhere to the criteria set by the Reserve Bank of India (RBI) regarding the remittance of funds. Any resident individual, including a minor, is allowed to remit up to $2.5 lakh in each financial year.
Depository Receipts: The shares are held by the broker on the investor's behalf, and investors are issued depository receipts instead of owning the actual US stocks.
Trading in US Dollars: All trades on the NSE IFSC exchange are conducted in US dollars, and the NSE IFSC receipts on US Stocks are traded in US dollars.
Costs to Consider: Investors should consider the transaction fees, brokerage, Demat account charges, and the T+3 cycle for the settlement of funds and NSE IFSC receipts.
Available Stocks: Currently, investors can buy 8 US stocks on the NSE IFSC Exchange, including Alphabet (Google), Amazon, Meta Platforms (Facebook), Netflix, Apple, Walmart, Tesla, and Microsoft. This number is expected to increase to 50 US stocks in a phased manner
In summary, to buy US stocks on NSE IFSC, investors in India can trade in select US stocks through the platform, where they will be issued depository receipts instead of owning the actual US stocks. The investment is done in US dollars under the LRS, and investors should consider the associated costs and investment limits.
Comments
Write Comment