Home / Markets / Retail investors can trade in US-based stocks on NSE IFSC from 3 March

NEW DELHI: The NSE IFSC (NSE International Exchange) has received approval for allowing trading in select US-based stocks. The NSE IFSC is a wholly owned subsidiary of the National Stock Exchange of India Ltd (NSE).

In August last year, NSE International Exchange had announced that trading in select US-based stocks will be facilitated through the NSE IFSC platform.

Investors can buy US stocks and issue depositary receipts against shares. 

Out of receipts of 50 stocks that are permitted to trade, eight will be available for trading from 3 March. The stocks are: Alphabet Inc, Amazon Inc, Tesla Inc, Meta Platforms, Microsoft corporation, Netflix, Apple, and Walmart.

For the rest, the date of commencement of trading shall be intimated by way of a separate circular. The entire list can be checked  here.

Trading, clearing, settlement and holding of US stocks will be under the regulatory structure of IFSC Authority. Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India.

As per NSE IFSC, this route makes the entire process of international investment easy and at a low cost for Indian retail investors. Investors will be provided with an option to trade in fractional quantity value when compared to the underlying shares traded in US markets making it affordable to them.

Investors will be able to hold depository receipts in their own demat accounts opened in GIFT City and will be entitled to receive corporate action benefits pertaining to the underlying stock.

It is not clear how how gains from trading in these receipts will be taxed in the hands of Indian investors.

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