{"id":1263,"date":"2022-03-05T02:55:24","date_gmt":"2022-03-05T02:55:24","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1263"},"modified":"2022-03-05T02:55:26","modified_gmt":"2022-03-05T02:55:26","slug":"nse-ifsc-allows-indian-investors-to-trade-in-select-us-stock","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/nse-ifsc-allows-indian-investors-to-trade-in-select-us-stock\/","title":{"rendered":"NSE-IFSC allows Indian Investors to trade in select US Stock"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p><strong>Let\u2019s know NSE IFSC<\/strong><\/p>\n\n\n\n<p>NSE IFSC Limited is a fully owned subsidiary company of National Stock Exchange of India Limited (NSE), incorporated on November 29, 2016, by the Registrar of Companies, Gujarat. The organization has received approval from SEBI to establish an international exchange in Gujarat International Finance Tech City (GIFT) &#8211; International Financial Service Centre (IFSC) Gandhinagar.\u00a0Stock exchanges operating in the GIFT IFSC are permitted to offer trading in securities in any currency other than the Indian rupee.<\/p>\n\n\n\n<p><strong>US stocks to trade on NSE IFSC<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"278\" src=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-1024x278.png\" alt=\"\" class=\"wp-image-1264\" srcset=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-1024x278.png 1024w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-300x82.png 300w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-768x209.png 768w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-520x141.png 520w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc-800x218.png 800w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/nse-ifsc.png 1151w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>NSE IFSC has received permission to trade receipt of 50\nUS stocks. However, as of now only, 8 will be listed namely,<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Amazon<\/li><li>Tesla<\/li><li>&nbsp;Alphabet<\/li><li>Meta Platforms<\/li><li>Microsoft<\/li><li>Netflix<\/li><li>Apple <\/li><li>Walmart.<\/li><\/ul>\n\n\n\n<p><strong>NSE IFSC Receipt<\/strong><\/p>\n\n\n\n<p>It is a negotiable financial instrument of unsponsored\ndepository receipts. It is a derivative product, so investors can invest\ndirectly without going through any registered broker.<\/p>\n\n\n\n<p>Investors will be provided with an option to trade in\nfractional quantity in comparison to the underlying security trading in the US.\nThis will make US stock affordable for investors.<\/p>\n\n\n\n<p>It is similar to buying stocks domestically, but you buy shares of the foreign company a get an issued receipt against them known as NSE IFSC receipt.<\/p>\n\n\n\n<p><strong>How does the fraction of a shared work?<\/strong><\/p>\n\n\n\n<p>Buying one recipient of stock, wouldn\u2019t mean that you own\none share of the foreign entity. NSE IFSC receipt holder will have a proportionate\nbenefit of the underlying shares depending on the ratio. This ratio is\nexpressed like 1:N. Let\u2019s say for apple the ratio is 1:25, which means 25 NSE\nIFSC receipts is equivalent to one share of Apple. So to own one share of Apple\nInc. , the investor has to buy 25 NSE IFSC receipts from Apple.<\/p>\n\n\n\n<p><strong>Steps for Indian Resident to trade in NSE\nIFSC<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Register\nwith an IFSCA registered Trading member<\/li><li>Complete\n\u201cKnow Your Client\u201d requirements.<\/li><li>Complete\ndocumentation for Liberalized Remittance Scheme(LRS) with the bank.<\/li><li>Transfer\nUSD (US dollar) from bank to trading member\u2019s bank Account in GIFT IBU<\/li><li>Confirm\nthat broker has given credit to your account.<\/li><li>Start\ntrading NSE IFSC receipt on NSE IFSC Platform.<\/li><\/ul>\n\n\n\n<p><strong>Currency denomination for trading<\/strong><\/p>\n\n\n\n<p>&nbsp;This will be\ntraded in US dollars with a minimum tick size of $0.01.<\/p>\n\n\n\n<p><strong>Trading hours<\/strong><\/p>\n\n\n\n<p>8:30 PM on day one to 2:30 PM on the next day is\nconsidered to be one trading day.<\/p>\n\n\n\n<p><strong>Trading types<\/strong><\/p>\n\n\n\n<p>Intra-day trading for Indian retail investors is allowed <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>till\nit\u2019s not exceeding the overall LRS limit of $250,000 per year. <\/li><li>Each\ntransaction is backed by adequate transaction value<\/li><\/ul>\n\n\n\n<p>Short Selling is allowed:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sell\ntransactions should be either backed by NSE IFSC Receipt&nbsp;or should sell\nagainst an open buy position created during the day.<\/li><\/ul>\n\n\n\n<p><strong>Settlement Cycle<\/strong><\/p>\n\n\n\n<p>All NSE IFSC receipts will be settled by NSE\nIFSC Clearing Corporation Limited (NICCL) on T+3 Days<\/p>\n\n\n\n<p><strong>Tax Liability<\/strong><\/p>\n\n\n\n<p>The receipts will be considered as foreign assets. Short-term\ngains will be taxed as per slab and long-term gains at 20% with indexation.<\/p>\n\n\n\n<p><strong>Potential Risk involved<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Price\nand Volatility risk<\/li><li>Risk\nOf illiquidity<\/li><li>Underlying\nShare risk( NSE IFSC Receipt is a derivative product)<\/li><li>Risk\nof cancellation and&nbsp; termination of NSE\nIFSC receipt<\/li><li>Tax\nrisks<\/li><li>Another\nmarket-related risks, such as a change in laws, settlement risk, trading risk,\nto name a few.<\/li><\/ul>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,711<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"1263\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">3    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s know NSE IFSC NSE IFSC Limited is a fully owned subsidiary company of National Stock Exchange of India Limited (NSE), incorporated on November 29, [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/nse-ifsc-allows-indian-investors-to-trade-in-select-us-stock\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":1266,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,2,7,10],"tags":[],"class_list":["post-1263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-stock-market","category-investment","category-featured"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=1263"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1263\/revisions"}],"predecessor-version":[{"id":1265,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1263\/revisions\/1265"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/1266"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=1263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=1263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=1263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}