India’s national stock exchange, informed regarding the start of trading in select US stocks through its owned subsidiary, NSE IFSC platform. The national stock exchange released a statement saying “The offering will be in the form of unsponsored depositary receipts”.
It is India IFSC’s first-ever initiative, where can avail an opportunity for Indian retail investors to be able to transact on NSE IFSC. This platform can help reduce the limitations adhered to by RBI (Reserve Bank of India) under a scheme known as the Liberalized Remittance Scheme.
Not only does this create opportunities for retail investors, but also makes this entire investment process easy and can be availed at a low cost. These investors are provided with options for trading according to the quality or value in trading in the US market by underlaying the shares.
All the trades that are executed on the NSE IFSC platform are to be offered by NSE IFSC Clearing Corporation Limited (NICCL), such as, risk management framework, clearing facilities, and to provide guarantee and depository to all the traded at the NSE IFCS platform. There is coverage provided to all the traders under the investor protection framework.
To enable the investment products for the Indian retail investors with the help of the NSE IFSC platform to start working with the bankers and brokers. The NSE IFSC is soon yet to announce details about the product launch and the operation details.
MD & CEO of NSE, Vikram Limaye 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 $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 operationalise this product soon.”