Indian investors can now easily invest in top US stocks through NSE International Exchange (IFSC) at a lower cost. No brokerage or commission fee needs to be paid anymore. Let’s see what all we can buy now!
What’s Happening?
NSE IFSC was incorporated on November 29, 2016. It is a wholly-owned subsidiary of the NSE, approved by the SEBI. Its IFSC platform in Gujarat's GIFT City will start trading in eight US stocks from March 3. NSE IFSC will issue receipts that investors can use for trading transactions. Earlier, investors had to buy US stocks through a registered broker.
Indian retail investors will now trade in Apple, Google, Amazon, Tesla, Meta Platforms, Microsoft, Netflix and Walmart. This will be extended in a phased manner to include other US companies like Paypal, McDonald's, Berkshire Hathaway etc.
Investors who live in India can open a Demat account at the IFSC. There are 36 registered brokers with IFSC. Investors will need to transfer funds from their bank account to the broker’s account. Investors can trade in the US stocks once the funds reflect in the broker’s account. Retail investors can transact on the IFSC platform under the liberalised remittance scheme (LRS) limits prescribed by the Reserve Bank of India (RBI) for trading in these stocks. This currently stands at $2,50,000 (Rs 1.9 cr) for each financial year.
Should You Be Concerned?
Regulatory authorities are involved in this process, so there’s no need to worry about your funds. Investing in US stocks has been made even more accessible. Also, dividends and other monetary benefits will be credited to the investor’s account in dollar terms. Furthermore, the investment will be done at a lower cost. These benefits make NSE IFSC even more attractive for retail investors who have always wanted to invest in American companies.
What Lies Ahead?
With more stocks, retail investors will be further interested in NSE IFSC. For instance, many people are waiting to invest in Warren Buffett’s Berkshire Hathaway, which will eventually be on the list in a few months. For now, the eight companies in NSE IFSC are the world's most renowned companies that just can’t be ignored. All must dive in!
