Trade in selected US stocks will be enabled using the NSE IFSC platform, according to NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange of India (NSE). The entire trading, clearing, settlement, and ownership of US shares will be governed by the IFSC Authority’s regulatory framework. The list of NSEIFSC receipts about which trade will begin on Thursday, March 03, 2022, was released by the exchange, and it comprises eight US stocks: Alphabet (Google), Amazon, Tesla, Meta Platforms (Facebook), Microsoft, Apple, Netflix, and Walmart. Unsponsored depository receipts will be used to make the offering.
The date of commencement of trading for the remaining NSE IFSC Receipts on certain US Stocks, including Berkshire Hathaway, Adobe, Mastercard, Johnson& Johnson, and Wells Fargo, among many others, will be announced in a separate circular, it said. Investors are able to keep the deposited receipts in their own GIFT City demat accounts and will be eligible for corporate action benefits on the underlying stock.
“The effort is the first of its kind at IFSC, where Indian retail investors will be able to transact on the NSE IFSC platform under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) restrictions,” according to an NSE IFSC circular issued in August.
According to the NSE IFSC, this option simplifies and reduces the cost of international investing for Indian retail investors. When compared to the underlying shares sold in US markets, investors would be able to trade in fractional amount value, making it more affordable.
“The NSE IFSC Clearing Corporation Limited (NICCL) would provide a solid risk management framework, enabling clearing and settlement of all trades in depository receipts, and provide settlement assurance for all trades completed on the NSE IFSC platform.” Furthermore, all trades would be covered by the NSE IFSC’s investor protection framework,” it had noted.