Today in this article we will understand How to Buy International Stocks from India? Therefore, if you were looking for additional investment opportunities for a long time. Then the wait time is over. Recently, a fully owned subsidiary of NSE has announced that Indian investors can also buy US stocks through their arms at NSE IFSC and India Inx respectively, which operate out of GIFT City.
So if you were wishing to buy top US Stocks like Apple, Amazon & Tesla without taking the route of MFs or International brokers, then you heard it right that it is possible in the coming days.
Just let me give you the context of this announcement. Initially, investors will be able to trade in eight prominent US stocks, with the number gradually increasing to 50. Currently, Indian investors can purchase US stocks through designated online brokers. However, the same should be licensed by both Indian and US regulators to do so.
The business model provided by NSE IFSC will not only provide additional investment opportunities to Indian investors but will also make the entire investment process simple and low-cost. When compared to the underlying shares traded in US markets, investors will be able to trade in fractional quantities/values. The proposed framework will lower the cost of US stocks for Indian retail investors.
The NSE IFSC Clearing Corporation Limited (NICCL) will provide a robust risk management framework, facilitate clearing and settlement of all trades in depository receipts, and provide settlement guarantees for all trades executed on the NSE IFSC platform. Furthermore, all trades will be protected by the NSE IFSC investor protection framework.
Investors will be able to hold the depository receipts in their GIFT City Demat accounts and will be eligible for corporate action benefits relating to the underlying stock.
However, these US companies are not going to list on domestics stock exchanges. Their stocks are going to trade through the unsponsored depositary receipts program.
How to Buy International Stocks from India?
To buy these international stocks, one has to do little paperwork to get this started.
To trade at the IFSC, an investor must first complete certain formalities such as KYC, LRS documentation, and opening a Demat account. On its website, the NSE IFSC has published a list of registered brokers (trading members).
As an investor, you have the option of selecting any broker from the list. Then, from your bank account, convert and transfer US dollars to the broker’s bank account at GIFT City. You can begin transacting once your broker confirms the credit.
Sadly, Zerodha is not a part of this attached list so currently, Zerodha account holders cannot trade in US Stocks. In case during the sandbox testing, you would like to test your luck then choose the best broker from the list enclosed and start trading in 8 US Stocks.
These include the following: Amazon, Tesla, Alphabet, Meta, Microsoft, Netflix, Apple & Walmart.