The Indian investors will now be able to trade and invest in eight leading US companies directly from NSE IFSC (NSE International Exchange) from March 3, stated the NSE IFSC circular.
This comes as a result of the fact that Indian investors have been steadily increasing their investments in US companies for the last few years and hence, the NSE IFSC is all set to launch a direct investment facility in eight US giants on its platform. Around 50 US stocks have been approved for trading so far but as of now, eight US companies will be available for trading from Thursday.
The eight companies, approved for trading by NSE IFSC from March 3 include Google, Amazon, Tesla, Facebook, Microsoft, Netflix, Apple and Walmart. However, the trading for the shares of other companies like Berkshire Hathaway, MasterCard, JP Morgan Chase, Morgan Stanley, Nike, Apple, PepsiCo, Pfizer and Intel will begin soon but no official timeline has been announced as yet.
The receipts issued against the scrip listed in the US are traded under unsponsored depository receipts against shares purchased by the investors. The entire trading, clearing, settlement and holding process of US company stocks by the investors will be conducted under the regulatory framework of IFSC authorities.
Under the Liberalize Remittance Scheme (LRS) limit introduced by the Reserve Bank of India (RBI), small investors in India can trade for shares of any company on the NSE IFSC platform. At present, under the LRS rules, an exemption of up to 2.5 lakh dollars is given to the investors for each financial year.
Established in the year 2016, NSE IFSC is a subsidiary of the National Stock Exchange (NSE). It received approval from the Securities and Exchange Board of India (SEBI) for setting up International Exchange International Financial Services Center (IFSC) at Gujarat International Finance Tech (GIFT) City in Gandhinagar.