NSE to start trading in US stocks at Gift City, list of scrips not yet out

Domestic retail investors will be able to transact on the platform under LRS scheme prescribed by RBI which permits a resident individual to remit up to Rs 1.86 crore per year

NSE International Exchange, a subsidiary of the National Stock Exchange (NSE), plans to launch trading in US stocks at the Gift City, an international financial services centre (IFSC).

Domestic retail investors will be able to transact on the platform under the liberalised remittance scheme (LRS) limits prescribed by the Reserve Bank of India (RBI), which allow a resident individual to remit up to $250,000 (Rs 1.86 crore) per financial year.

NSE has not yet disclosed the US stocks that will be available for trading. The stocks will be listed under an unsponsored depositary receipt (DR) programme. Under this, DR of an underlying security is issued without the involvement or consent of the foreign company.

Transacting in US stocks is popular among domestic investors. Currently, several domestic brokerages facilitate this through a tie up with their foreign counterparts.

NSE has said the proposed framework will make US stocks affordable to retail investors and provide an option to trade in fractional quantity or value. Investors may have to open a separate demat account at the Gift City to transact on the proposed platform.

The exchange said depositories, banks and brokers have already started work on the proposed platform.

“With the guidance of IFSC authority and the support of all the key stakeholders involved, we hope to operationalise this product soon,” said Vikram Limaye, MD & CEO, NSE.