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AHMEDABAD: NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange of India Ltd (NSE) that operates in Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, started an initiative on Thursday wherein Indian investors get an opportunity to invest in US stocks such as Alphabet, Tesla, Apple, Amazon, Meta, Microsoft, Netflix, Walmart, in an easy and affordable way.
NSE IFSC, in association with HDFC Bank, has launched trading in India’s first unsponsored depository receipts (NSE IFSC Receipts) under the regulatory sandbox framework prescribed by the regulator International Financial Services Centres Authority (IFSCA), NSE announced late on Thursday. Following this launch, Indian retail investors will be able to transact on the NSE IFSC platform under the liberalised remittance scheme (LRS) prescribed by the Reserve Bank of India (RBI).
“We start with top eight US stocks and will expand it to top 50 stocks by way of market capitalisation. We will expand and may even go for European stocks in future,” said Ravi Varanasi, president of NSE Group, over the phone.
NSE IFSC Receipts are an innovative first of its kind product offering to Indian retail investors, providing them with an opportunity to diversify their investment in top performing companies of global economies. NSE IFSC Receipts aims to make the entire process of investment in global stocks seamless and low cost. Investors will be provided with an option to trade in fractional quantity compared to the underlying shares traded in global markets.
HDFC Bank’s IFSC banking unit in GIFT City (HDFC Bank-IBU) will be issuing the Receipts and undertake related activities, besides opening depository accounts of investors as a participant registered with IFSCA.
With this new product, investors can hold the depository receipts in their demat account opened in GIFT City. Depositories, banks and brokers have already started working with NSE IFSC to enable these investment products for Indian investors. Around 40-45 broking firms are in the process of setting up their operations at GIFT City that houses the country’s only IFSC.
Initially, NSE IFSC aims to open 10,000 trading accounts, aimed at attracting millennials and HNIs. The entire trading, clearing, settlement and holding of US stocks will be in GIFT City under the regulatory structure of IFSC authority.
Calling it a proud moment Vikram Limaye, MD & CEO, NSE said the initiative will make the entire process of investing in global stocks for Indian retail investors seamless in a regulated environment.
“With this launch, we have unlocked significant value to Indian retail investors and brokers, and we look forward to building on our position as an integral and innovative international IFSC exchange. We are happy to collaborate with HDFC Bank on this first of its kind initiative and believe that together we can transform the Gift IFSC financial landscape and make this a truly global IFSC in line with our Prime Minister’s vision,” Limaye said.
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