US Stocks Trading and Investment Made Easy with NSE IFSC Receipts

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Table of Content
  • India Trading in the US Stock Market
  • What is the NSE IFSC?
  • Which Assets Are Available for US Stock Investment from India?
  • How to invest in US stocks through NSE IFSC?

India Trading in the US Stock Market

As India evolves more and more into a prominent globalized economy, its people are expanding their horizons toward international opportunities in education, career, travel, and yes – even investing. There are many who are wondering how to trade in the US stock market from India?

If you are too, you have come to the right place. Not only is it possible to make US stock investments from India, it’s rather simple now, too! All one needs to do is to buy US stocks on the NSE IFSC exchange.

In fact, as per a recent report by the International Financial Services Centres Authority (IFSCA), the number of Indian investors investing in US stocks has already increased. 50% more Indians are now investing in US stocks after the introduction of NSE IFSC in GIFT City, just a year ago in March, 2022.

Now, for those unaware of the NSE IFSC, GIFT City, and also confused about exactly how to invest in US stocks through the NSE IFSC – keep reading ahead for our simplified breakdown with clear answers for you on how to buy US stocks on the NSE IFSC exchange!

What is the NSE IFSC?

The NSE IFSC (International Financial Service Centre) is a wholly-owned subsidiary of the National Stock Exchange (NSE) of India. This subsidiary – set up in GIFT City, Gandhinagar – operates an international stock exchange. The NSE IFSC helps NRIs and foreign investors trade in Indian equities conveniently.

But, more importantly, this GIFT City subsidiary serves as a global trading platform for people wanting to engage in US stock investment from India. It has approved and recognized officially as a subsidiary that allows Indian citizens to trade in select US-based stocks such as Amazon, Apple, Tesla, Microsoft, Alphabet, etc.

In this international exchange platform at GIFT City, all international trades are executed via a foreign currency, that is, in US dollars. Investments in foreign exchange (beyond India) are conducted under the LRS (Liberalized Remittance Scheme). And so, your NSE IFSC investments in US stocks will also fall under this scheme.

As such, it’s necessary to keep in mind that as per LRS rules, you can invest a maximum of US$ 2.5 lakh in one financial year. So, there exists an upper limit when it comes to members of the Indian public trading in the US stock market from India.

Next, let’s get into which US stocks are available for Indian residents to invest in. Let us understand how one can buy and sell US stocks on the new NSE IFSC exchange.

Which Assets Are Available for US Stock Investment from India?

At present, Indian citizens can buy into 8 hand-picked US stocks, via the NSE IFSC Exchange. These select stocks are:
  • Alphabet (Google)
  • Amazon
  • Meta Platforms (Facebook)
  • Netflix
  • Apple
  • Walmart
  • Tesla
  • Microsoft

However, this number is all set to be increased in the coming phases of the NSE IFSC. Soon, Indian citizens will be able to choose from as many as 50 premium US stocks available on the global exchange.

Also, do remember that the trading time for these stocks on the exchange will be as per that of the NYSE (New York Stock Exchange). In other words, the trading hours for the NSE IFSC exchange will be from 8 pm IST to 2:30 am IST, instead of our usual market timing from 9:15 am IST to 3:30 pm IST.

How to invest in US stocks through NSE IFSC

First and foremost, you will need a special Demat account to buy US stocks on the NSE IFSC exchange. Even if you have an existing Demat account through which you trade in domestic shares, this will not be enough for international trading. A new Demat account valid for the NSE IFSC exchange will need to be initiated.

So, to invest in US stocks through NSE IFSC, you need to:
  1. Open a Demat account with an IFSC-registered broker Start by opening a trading and Demat account with an NSE IFSC-registered broker. If your current broker is already registered with NSE IFSC, you may contact them directly. Reach out to them and figure out all the formalities you have to perform before you can start trading in US stocks on the international exchange. You can access the updated list of NSE IFSC-registered brokers, along with their contact details, on the official NSE India site.
  2. Transfer funds to the broker’s account from your local bank account Transfer funds from any of your Indian bank accounts to the new account of the IFSC-registered broker. Since NSE IFSC trades are conducted in US dollars and not in Indian rupees, you cannot make US stock investments via the NSE IFSC without currency conversion. The IFSC-registered broker, however, will convert your currency and proceed to buy US stocks on the NSE IFSC exchange for you.
  3. Trade in the NSE IFSC US Stocks upon transfer Once your transferred funds get reflected in your broker's account, your NSE IFSC US Stocks’ investment journey can begin! Collaborate with your broker to start buying US stocks listed on the IFSC exchange. Here again, it’s crucial to note that Indians can invest only up to $2,50,000 per financial year in these US stocks.

That’s it – with these three simple steps, you will be eligible to trade in US stocks and earn international returns. Ready, set, go global!

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