NSE International Exchange (NSEIFSC) commenced trading in NSE IFSC receipts (Unsponsored Depository Receipts on US Stocks under the regulatory sandbox framework of IFSC) on March 3, 2022. The product offers Indian retail investors to trade in global stocks using Liberalized Remittance Scheme (LRS). Way. To begin with, NSE IFSC through its Clearing Corporation Limited (NICCL) has commenced trading in major US stocks (Apple, Alphabet, Amazon, Microsoft, Meta Platforms, Tesla) for settlement on a rolling T+3 day basis .
NSE IFSC and NICCL announced that the first physical settlement of NSE IFSC receipts has been completed on March 8, 2022. According to their press release, “Settlement in all symbols launched for trading was completed flawlessly. This is a historic moment for NSE IFSC as it will be able to trade US Stocks (in the form of Unsponsored Depository Receipts) in GIFT IFSC. marks the beginning of physical settlement.”
According to the press release, this is the first time that GIFT IFSC has been given the facility of trading, settlement and demat holding related to investments in US stocks through an international depository. It said that the first Indian retail investor to trade in NSE IFSC using the LRS route on March 3, 2022, was a client of Globe Capital (IFSC) Limited, Satish Agarwal.
The entire trading, clearing, settlement and holding of US stocks will be under the regulatory structure of the IFSC Authority.
According to the press release of NSE IFSC in August 2021, this route makes the entire process of investing internationally easier and lower cost for Indian retail investors. Investors will be provided with the option to trade in fractional volume/value compared to the underlying shares traded in the US markets, making it affordable for them.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!