From waking up in the morning to resting up at night, the important things are on ‘Facebook now. Every special memory should be shared with relatives, friends, and acquaintances. You need to open Facebook for the latest news and information ..! We are surrounded by people who order everything from groceries to smartphones on Amazon. Want to know what information .. Searching on Google (Alphabet), Android OS, Google Chrome, Google Play, Google Photos are all part of life.
If you have an Apple phone in your hand, that happiness is different ..! All of these are also America’s iconic technology companies. It is no exaggeration to say that the modern generation spends its days without the need for these. By investing in these companies that rule the world .. the idea of ​​reaping good profits, in the long run, is gradually increasing among Indian investors. NSE has also stepped in to provide these services in the wake of the recent rise in demand for investment in foreign stocks.
NSE services soon
NSE IFSC, a subsidiary of the National Stock Exchange, has decided to set up a platform for Indian investors to buy and sell listed stocks in the United States. Many stocks such as Fang Stocks (Facebook, Amazon, Apple, Netflix, Google), Microsoft, Tesla, etc. will be facilitated as soon as the work is completed as planned. Customers who have completed KYC (Verification of Customer Identity Details) by SEBI and RBI regulations will be able to invest in US stocks. Domestic brokerage firms currently allow direct investment in some US stocks. But, there is no exchange platform locally. That deficit will be filled by NSE IFSC.
No special account is required!
About 40 domestic brokerage houses have set up centers at the International Financial Services Center (IFSC Gift ) in Gujarat. A few more centers are in the process of being set up. Investors wishing to invest directly in foreign stocks are required to open trading-Demat accounts with Gift City-based brokers. However, NSE is in consultation with regulatory bodies.
Those who have already submitted KYC details and have a Trading‌ / Demat account are trying to get permission without having to open a separate account for investments in US stocks. If this works. Investors can buy and sell US stocks just like domestic stocks from their current trading account. It is sufficient to submit a separate document stating their consent. GiftCity is a specialized area for international activities.
Opportunity for more foreign stocks
CDSL and NSDL, two depository companies in the country, have already set up subsidiaries in Gift City. Brokerage firms will offer Demat accounts from these deposits to new investors who want to invest in foreign stocks. Although initially limited to trading in US stocks, the opportunity to invest in other foreign stocks will be available later. Those who want to invest in foreign stocks should contact their bank branch. He will be asked to transfer funds to his account at a broker in Gift City.
Under the RBI Liberalized Remittance Scheme (LRS), $ 250,000 (approximately Rs. 1.85 crores) can be sent abroad in a year. These funds can be used for buying stocks, mutual funds units, and ETFs. Otherwise do not invest in a foreign derivative instrument with funds sent under LRS. The bank will transfer the funds to the broker’s account in Gift City after examining the LRS limit as per the customer’s wish. You can get these services from your current bank branch. There is no need to open a separate bank account for this.
Initially limited to Top-50
Purchasing and selling of foreign stocks can be done after the transfer of funds. NSE IFSC will initially allow transactions in the top-50 stocks in the US. NSE plans to allow more stocks to be traded later. NSE IFSC exclusively employs international brokerages. These brokers will buy shares on the US Stock Exchange and issue a Depository Receipt (Certificate of Ownership) to investors in GiftCity. Partial shares are not allowed in our country. At least one share must be traded.
But, you can also own partial shares in America. Gift City investors will have the opportunity to acquire partial shares in $ 3 and $ 6 denominations. Apple, for example, is trading at $ 149 a share. The investment per share purchase is over Rs 11,000. Those who cannot invest so much can buy partial shares. NSE Clearing Corporation is the guarantor for the transactions. Ti plus‌3 Settlement‌ will be implemented. The next third task rather than the day the transaction is registered.
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