The National Stock Exchange announced today that its wholly-owned subsidiary NSE International Exchange will soon be able to assist in buying and selling of US-listed securities at the Gujarat International Finance Tech-City via its NSE-IFSC platform.
Indian retail investors may soon be able to trade in US stocks on the NSE platform. Trading in select US stocks will soon be available on the NSE IFSC platform, according to NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange of India Ltd (NSE).
Unsponsored depository receipts will be used to make the offering. According to the stock exchange, IFSCA has made this possible through the Regulatory Sandbox. Trading, clearing, settlement, and holding of US-listed stocks will all fall under the IFSC Authority's regulatory umbrella.
The NSE IFSC business model will not only provide additional investment opportunities to Indian investors but will also make the entire investing process simple and low-cost, according to India's largest stock exchange.
Indian investors will be able to trade in fractional quantities against the underlying shares of a firm listed on the New York Stock Exchange. The depository receipts would be held in investors' own dematerialised accounts in GIFT City, and they will be eligible for corporate action advantages related to the underlying stock, according to the NSE.
The NSE-IFSC, on the other hand, will be governed by the Reserve Bank of India's Liberalised Remittance Scheme framework for investments in US-listed companies. An Indian can only remit up to $250,000 outside of India in a financial year under the LRS system.