scorecardresearchGIFT City: Domestic investors can buy US stocks on NSE IFSC starting March 3

GIFT City: Domestic investors can buy US stocks on NSE IFSC starting March 3

Updated: 02 Mar 2022, 12:10 PM IST
TL;DR.

Investors will be able to invest in NSE IFSC receipts on US stocks in the form of unsponsored depository receipts (DRs).

Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City,

Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City,

Domestic investors will now be able to trade in select US stocks through the NSE International Exchange (NSE IFSC) starting March 3. As of now, investments will be allowed in the form of unsponsored depository receipts (DRs).

To start with, this will include depository receipts of 50 US stocks including Amazon, Tesla, Apple, Microsoft, Alphabet, Morgan Stanley, P&G, Nike, Coca-Cola, and Exxon Mobil.

With this, investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City, and will be eligible for corporate action benefits relating to the underlying stock.

 

Key details for potential investors in US stocks:

  1. To be able to invest on IFSC platform, investors will need to adhere to the Liberalised Remittance Scheme (LRS) limits prescribed by the RBI.
  2. The current LRS limit is $250,000 per year.
  3. Investors can invest in NSE IFSC receipts on US stocks in the form of unsponsored depository receipts (DRs). 
  4. To be able to hold depository receipts, investors need to have demat accounts in GIFT City, which will also enable them for corporate action benefits pertaining to the underlying securities.

 

Article
NSE IFSC, the subsidiary of NSE was set up in 2016 and received approval from SEBI to establish an international exchange in Gujarat International Finance Tech City (GIFT)

“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.

Some of the other securities to trade on the NSE IFSC platform include Berkshire Hathaway, Mastercard, Morgan Stanley, JP Morgan Chase, Nike, Pepsico, Paypal, Pfizer, Intel among others. 

 

The stocks in which Indian investors can invest:

  • Meta platforms Inc NSE IFSC receipt (Facebook)
  • Microsoft corporation NSE IFSC receipt (Microsoft)
  • Alphabet Inc NSE IFSC receipt (Google)
  • Amazon Inc NSE IFSC receipt (Amazon)
  • Tesla Inc NSE IFSC receipt (Tesla)
  • Netflix Inc NSE IFSC receipt (Netflix)
  • Walmart Inc NSE IFSC receipt (Walmart)
  • Apple Inc NSE IFSC receipt (Apple)

Meanwhile, the Budget 2022 announced several schemes for GIFT city. Union Finance Minister Nirmala Sitharaman, during her budget speech in 2022, said, “World-class foreign universities and institutions will be allowed in the GIFT City to offer courses in Financial Management, FinTech, Science, Technology, Engineering and Mathematics free from domestic regulations.”

She had also announced to set up an International Arbitration Centre in the GIFT City for timely settlement of disputes as per international jurisprudence.

Ms. Sitharaman also said the services for global capital for sustainable and climate finance in the country will be facilitated in the GIFT City.

First Published: 02 Mar 2022, 11:46 AM IST