Domestic Retail Investors Can Start Trading In These US Stocks Via NSE IFSC From 03 March

The NSE IFSC (NSE International Exchange) in Gujrat's GIFT City will begin trading in US equities from tomorrow March 3rd. The NSE IFSC is a wholly-owned subsidiary of the National Stock Exchange of India Ltd (NSE). The NSE IFSC will begin trading in eight US stocks such as Google, Microsoft, Amazon, Tesla, and various others. This will allow domestic Indian investors to invest directly on the NSE IFSC in US stocks.

The Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS) limits, which now stand at $250,000 per year, would allow Indian retail investors to transact on the NSE IFSC platform.

The NSE IFSC in a circular said that trading for eight US-based equities would begin on March 3. Unsponsored Depository Receipts will be used to trade the equities, according to the exchange. The National Stock Exchange of India's IFSC is a wholly-owned subsidiary of the NSE. With the rising importance of investing platforms that allow them to do so, Indian investors have been investigating options that allow them to invest in US equities over the past few years.

As the NSE IFC begins, initially it has only 8 stocks available for domestic investors to investors. However, The NSE IFSC has been granted permission to trade 50 US-based stocks receipts.

Here's the ist of 8 Stocks available for the domestic Investors for trading:

Stocks
Alphabet Inc NSE IFSC RECEIPT
Amazon Inc NSE IFSC RECEIPT
Tesla Inc NSE IFSC RECEIPT
META PLATFORMS INC NSE IFSC RECEIPT
Microsoft Corporation NSE IFSC RECEIPT
Netflix Inc NSE IFSC RECEIPT
Apple Inc NSE IFSC RECEIPT
Walmart Inc NSE IFSC RECEIPT

What Domestic Investors Need To Do?

Domestic Investors will be required to create a Demat account with the IFSC, and stock proceeds will be treated as foreign assets for tax purposes. Long-term capital gains will be taxed at 20% with indexation, while short-term capital gains will be taxed at the slab rate.

Investing in global stocks has gained popularity in recent years, owing to the US stock market's decade-long bull run and the desire to minimize single-country risk. Currently, Indian investors can purchase US Stocks through approved internet brokers who have been granted a licence to do so by Indian and US regulators. This new development will help the indian investors to trade in international stocks as Google.