By : Profectus Magazine / 02 Mar 2022 / Finance / Stock Market
In a recent circular, the NSE IFSC informed that trading will commence for 8 US-based stocks from 3rd March 2022. Trading in Us-Based stocks will be in the form of Unsponsored Depository Receipts.
Investors in India have been exploring avenues that allow them to invest in US stocks for the last few years with the growing prominence of investment platforms that allow them to do so. NSE IFSC has received approval to trade receipts of 50 US-based stocks. However, only 8 will be available to be traded from Thursday March 3rd, onwards.
“For the remaining NSE IFSC Receipts on select US Stocks, date of commencement of trading shall be intimated by way of separate circular,” NSE IFSC said.
About NSE IFSC Limited
NSE IFSC Limited (NSE International Exchange) incorporated on November 29, 2016 by the Registrar of Companies, Gujarat, is a fully owned subsidiary company of National Stock Exchange of India Limited (NSE) and has received approval from Securities and Exchange Board of India (SEBI) to establish an international exchange in Gujarat International Finance Tech City (GIFT) - International Financial Service Centre (IFSC) Gandhinagar. GIFT city, which is a special economic zone, is India's first IFSC. Exchange and Financial Services units located in GIFT IFSC are offered competitive tax structure and facilitative regulatory framework. The benefits include exemptions from security transaction tax, commodity transaction tax, dividend distribution tax, capital gain tax waivers and no income tax.
Stock exchanges operating in the GIFT IFSC permitted to offer trading in securities in any currency other than the Indian rupee.
Trading of Unsponsored Depository Receipts of the said stocks would see investors buy receipts that are issued against these scripts that are listed in the US. The entire trading, clearing, settlement and holding of US Stocks will be under the regulatory structure of IFSC Authority.
Some of the other stocks that will trade on the NSE IFSC platform soon include Berkshire Hathaway, Mastercard, JP Morgan Chase, Morgan Stanley, Nike, Paypal, Pepsico, Pfizer, Intel among others.
Indian retail investors can transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India. Currently, under the LRS rules, a resident individual is allowed to remit up to $2.5 lakh (USD 2,50,000 ) in each financial year.
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