National Stock Exchange (NSE) of India has brought in new facilities that will enable investors in India to buy and sell US Stocks through its GIFT City arm in the International Financial Services Centre (IFSC) in Gujarat. The national stock exchange released a statement saying “The offering will be in the form of unsponsored depositary receipts”.

This means that Indian investors can now buy and sell stocks in companies like Apple, Google, Microsoft and other prominently listed US entities. The offerings will be in the form of unsponsored depository receipts.

This platform can help reduce the limitations adhered to by RBI (Reserve Bank of India) under a scheme known as the Liberalized Remittance Scheme. With this new change, the entire transactional process of the aforementioned US stocks will come under the authority of the IFSC body. This includes oversight of trading, clearing, settlement and even holding of US stocks. 

The arrangement will now allow investors to hold fractional ownership of US stocks. Tapan Ray, MD and Group CEO of GIFT City said, “GIFT City is emerging as a financial gateway of a country for investment in India and globally. The ecosystem of international banks, international exchanges and capital market intermediaries has been growing rapidly at GIFT City. It is the right time to get such an innovative product especially from an Indian perspective; we have seen over a period that Indians have started investing in global stocks. We congratulate NSE IFSC for this new endeavour and wish them a great success.”

Vikram Limaye, MD and CEO of NSE said, “This will be an innovative product, and one of the key milestones for NSE IFSC that will expand the product coverage of the Exchange beyond existing clientele. The product enables resident individuals to easily and cost-effectively invest in US stocks under the LRS framework of RBI (which permits the resident individuals to remit up to USD 2,50,000 per financial year for any permitted current or capital account transaction). With the guidance of IFSC authority and the support of all the key stakeholders involved, we hope to operationalize this product soon.”

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