Mumbai: Indian investors will soon be able to buy and sell Google shares, Amazon, Microsoft, and other companies listed in the US through the NSE city gift arm at the International Financial Services Center (IFSC) in Gujarat.
NSE International Exchange (NSE IFSC) on Monday said it has set infrastructure for Indian investors to buy US stocks and registration brokers ongoing.
This arrangement will allow fractional ownership from US stocks to this investor, which needs to open a Demat account with an entity based in the prize city.
At present, Indian investors buy US stocks through designated online brokers who have permission from US and Indian regulators.
These brokers allow ownership to a thousandth of US stocks.
The concept of fractional ownership is very popular that it is common for racing horses, cruise ships, airplanes, and other high-value assets.
The latest technological innovation now allows such ownership in the US too, the Industrial Executive said.
All trade, clearing, settlement, and US shareholders will be under the IFSC authority regulation, release from NSE IFSC said.
The IFSC authority has facilitated the offer under the sandbox of the regulator where the transfer of funds to buy will be through the Liberalized Money Delivery scheme (LRS) RBI, he said.
At present, every Indian is allowed to send up to $ 250,000 every year under LRS.
However, the use of funds sent under LRS has certain limits, including it cannot be used to utilize.
Therefore, investors send money abroad through this route cannot use funds to invest or trade in any derivative products.
However, investing in shares directly, in funds (ETFs) traded in exchange, fixed income products and mutual funds are permitted, said market participants.
NSE IFSC Clearing Corporation will carry out cleaning and resolution of all these trade in receipt of storage and also guarantees completion.
In addition, this trade will be discussed under the IFSC NSE investor protection framework, the company said.
Speaking of initiatives, CEO of MD gift & CEO of the Tapan Ray said that the place emerged as a financial gateway of a country to invest in India and abroad.
“International Bank Ecosystems, International Intermediaries and Capital Market Intermediaries have grown rapidly in the prize city,” he said.
Ray believes that introducing this innovative product, which gives Indians the choice to invest in US stocks through the gift city, it is conceived at the right time.
“We have seen during a period of time that Indians began to invest in global stocks,” he said.