New Delhi: NSE IFSC (NSE International Exchange) has received approval to allow trading in select US-based stocks. NSE IFSC is a wholly owned subsidiary of the National Stock Exchange of India Limited (NSE).
In August last year, the NSE International Exchange had announced that it would facilitate trading in select US-based stocks through the NSE IFSC platform.
Investors can buy US shares and issue depository receipts in exchange for the shares.
Of the 50 shares in which trading is permitted, eight will be available for trading from March 3. The stocks are: Alphabet Inc., Amazon Inc., Tesla Inc., Meta Platforms, Microsoft Corporation, Netflix, Apple and Walmart.
For the balance, the date of commencement of trading will be intimated through a separate circular. The complete list can be checked Here,
The trading, clearing, settlement and holding of US stocks will be under the regulatory structure of the IFSC Authority. Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limit set by the Reserve Bank of India.
According to NSE IFSC, this route makes the entire process of international investment easier and less costly for Indian retail investors. Investors will be provided with the option to trade fractional volume value in comparison to the underlying shares traded on US markets, making it affordable for them.
Investors will be able to hold depository receipts in their own demat accounts opened at GIFT City and will be entitled to avail corporate action benefits relating to the underlying stock.
It is not clear how the gains from trading of these proceeds will be taxed in the hands of Indian investors.
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