NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange of India (NSE), had announced trading in select US Stocks which will be be facilitated through the NSE IFSC platform. The entire trading, clearing, settlement and holding of US Stocks will be under the regulatory structure of IFSC Authority.
The exchange shared the list of NSEIFSC receipts for which the trading will commence from Thursday, March 03, 2022 which includes eight US stocks – Alphabet (Google), Amazon, Tesla, Meta Platforms (Facebook), Microsoft, Apple, Netflix, and Walmart. The offering will be in the form of unsponsored depository receipts.
For the remaining NSE IFSC Receipts on select US Stocks that include Berkshire Hathway, Adobe, Mastercard, Johnson& Johnson, Wells Fargo, among many others, date of commencement of trading shall be intimated by way of separate circular, it said.
Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City and will be entitled to receive corporate action benefits pertaining to the underlying stock.
“This initiative is a first of its kind at IFSC where Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI),” NSE IFSC’ circular in August had said.
As per NSE IFSC, this route makes the entire process of international investment easy and at a low cost for Indian retail investors. Investors will be provided with an option to trade in fractional quantity value when compared to the underlying shares traded in US markets making it affordable to them.
“NSE IFSC Clearing Corporation Limited (NICCL) will offer its robust risk management framework, facilitate clearing and settlement of all trades in depository receipts and provide settlement guarantee in respect to all trades executed on the NSE IFSC platform. Furthermore, all the trades will also be covered under the investor protection framework at NSE IFSC,” it had added.
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