Indian investors can now to invest in 50 US shares from India starting today as National Stock Exchange's International Financial Services Centre (IFSC) platform in Gujarat's GIFT City will begin trading in American shares. For starters, NSE IFSC is offering trading in eight US shares which include Alphabet (Parent company of Google), Amazon, Microsoft, Tesla, Meta Platforms, Apple, Netflix and Walmart.
Some other stock which will be part of trading on NSE IFSC are Berkshire Hathaway, Mastercard, JP Morgan Chase, Morgan Stanley, Nike, Paypal, Pepsico, Pfizer, Adobe, Wells Fargo and Intel among others.
Investors can buy shares on the NSE IFSC under RBI’s Liberalised Remittance Scheme (LRS) and as per rules margin trading is not permitted, trading in derivative products is not permitted, funds equivalent to the 100 per cent of transaction value which includes trade value, transaction fee, brokerage etc. shall be available with the trading members before any trade is executed and no additional debits are made from the clients’ accounts post the transaction which would require further remittances, NSE said in a circular.
Investors can take positions in US shares for maximum of $2,50,000 per financial year and shares will be credited to their accounts in form of depositary receipts, the circular added.
In August last year, NSE International Exchange had announced that trading in select US-based stocks will be facilitated through the NSE IFSC platform.
Resident investors will have to open a demat account at the GIFT City and the stock receipts will be considered foreign assets for filing income tax returns. Short-term capital gains will be taxed at the slab rate while long-term capital gains will be at 20 per cent with indexation.
NSE International Exchange was launched to grow the financial market as well as expected to bring capital into India.
Stock exchanges operating in the GIFT IFSC are permitted to offer trading in securities in any currency other than the Indian rupee.
