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NSE International Exchange (NSEIFSC) launched trading in NSE IFSC Receipts (unsponsored depository receipts on US Stocks under IFSCA’s regulatory sandbox framework) on March 3rd, 2022. The product offers Indian retail investors to trade in global stocks using the Liberalized Remittance Scheme (LRS) route. To start with, NSE IFSC commenced trading in major US stocks (Apple, Alphabet, Amazon, Microsoft, Meta Platforms, Tesla) to be settled on a rolling T+3 day basis through its Clearing Corporation Ltd (NICCL). 

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 was completed flawlessly in all symbols which had been launched for trading. This marks a historic moment for NSE IFSC as it marks the beginning of physical settlement of US Stocks (in the form of Unsponsored Depository Receipts) in GIFT IFSC."

As per the press release, this is the first time when the trading, settlement, as well as Demat holding related to an investment in US Stocks, has been facilitated in GIFT IFSC through the international depository. It added that the first Indian retail investor to trade at NSE IFSC using the LRS route on 3rd March, 2022 was Satish Agarwal, a client of Globe Capital (IFSC) Limited.

The entire trading, clearing, settlement and holding of US Stocks will be under the regulatory structure of IFSC Authority.

As per NSE IFSC’s press release in August 2021, this route makes the entire process of investment internationally 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.

 

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