How To Invest In International Stocks Listed On NSE IFSC? Know Benefits And Timing

A new chapter in the Indian stock markets has been added in March 2022, with the start of trading of eight US stocks at the National Stock Exchange International Financial Services Centre or NSE IFSC. NSE IFSC exchange, a wholly-owned subsidiary of the NSE, has been approved by the market regulator, the Securities and Exchange Board of India (SEBI). To begin with, stocks of eight US entities will be traded on the exchange Alphabet (Google), Amazon, Tesla, and Microsoft along with other 5 companies are listed on the platform to trade initially. Your existing Demat account will not be enough if you invest in these US stocks.

How To Start investing In the NSE IFSC Listed Stocks?

Investors may buy NSE IFSC US stocks, in the same manner, they buy other Indian shares, according to the NSE IFSC website. Here's how to do it:

• Investors will need to create a trading and Demat account with an NSE IFSC registered broker to begin trading on the NSE IFSC. There are presently 36 such brokers in India, including the majority of the major brokerage businesses.
• Transfer Funds from your local bank account to NSE IFSC registered broker's bank account. The US dollar is the fundamental currency for all 50 equities that will be traded on the NSE IFSC. You must either create a foreign currency bank account (FCA) with a bank that operates in the IFSC region or send the funds to your IFSC-based broker.
• Once the fund reflects in your broker's account, you are ready to trade in NSE IFSC listed US Stocks.

Trade Timing on NSE IFSC

The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) have official trading hours of 9.30 a.m. to 4 p.m. (Eastern Standard Time). Trading in NSE IFSC receipts will be opened at 8 pm and would close at 2.30 am the next day. Initially, all settlements will be done on a T+3 day rolling basis. The opening time will change and would become 7 pm when the US implements its Daylight Saving Time (DST) in Mid-March.

Benefits of Investing in International Stocks via NSE IFSC

• The platform provides an additional investment opportunity for Indian investors to invest in US stocks at a low cost and the investment process will be easier.
• Investors will be able to hold the depository receipts in their Demat accounts opened in GIFT City and will also be entitled to receive corporate action benefits pertaining to the underlying stock.
• It offers an option to trade in fractional quantity or value when compared to the underlying shares traded in the US stock market.