Buy and sell Tesla, Apple, Netflix, Amazon and four other US stocks in India via NSE IFSC – here’s how

• Investors and traders will now be able to buy and sell US stocks via the NSE IFSC stock exchange.
• Located in GIFT City, NSE IFSC exchange will allow trading in eight prominent US stocks initially, and it plans to expand this to 50 subsequently.
• Find out how to buy and sell US stocks like Tesla, Apple and others via NSE IFSC.

Tesla, Apple, Netflix, Amazon and four other prominent US stocks will now be available for traders via the National Stock Exchange’s (NSE) subsidiary in the Gujarat International Finance Tech (GIFT) City.

A total of eight prominent US stocks – most of them from the tech industry – will be available for trading in the NSE IFSC exchange starting today, March 3. There are plans to extend this number to 50 stocks eventually.

Here’s how you can trade in US stocks in the NSE IFSC exchange:

Which are these US stocks available for trade via NSE IFSC?

Initially, eight US stocks will be made available for trade. They are:

• Tesla
• Apple
• Netflix
• Amazon
• Alphabet
• Microsoft
• Meta
• Walmart

Subsequently, this number will be increased to 50, although the exact date is not known yet.

Are US stocks being listed in India?

No. US stocks are not being listed in India. Instead, NSE is listing its derivative product called NSE IFSC Receipts.

The NSE IFSC (NSE International Exchange) will be offering trading in these receipts at a ‘low cost’. As a result, you will no longer have to invest through a US-based broker to invest in US stocks.

Will I become an equity owner of these US stocks?

No. Each share of the company will be split into receipts of 100, 200 and so on. You will not become an equity owner of these US companies, but you will still be entitled to corporate action benefits, like dividends.

What is the ratio of receipts of these US stocks?

How much will I be able to invest in US stocks?

Indian retail investors will be able to invest in US stocks according to the limits set by the Reserve Bank of India (RBI) under the Liberalised Remittance Scheme (LRS).

Currently, this limit is set at $2,50,000, which is approximately ₹1.9 crore.

How do I trade in these US stocks via NSE IFSC?

To trade in US stocks via the NSE IFSC exchange, you will have to open trading and demat accounts with brokers registered with the exchange.

Once done, you will then have to add funds to your trading account in the same way that you add funds to your normal trading account. You will then be able to trade in US stocks listed on NSE IFSC.

What are the trade timings?

Investors and traders will be able to buy and sell US stocks in the NSE IFSC exchange from 8 p.m. to 2:30 a.m., mirroring the trade timings in the US.

What about the taxes on gains made from trading in these stocks?

Any gains made on holdings of less than two years will be considered as short-term capital gains and be taxed according to the tax slabs applicable to the individual.

For holdings of more than two years, provisions of long-term capital gains will be applicable and the tax rate will be 20%, with the benefit of indexation.

Indexation is the process of adjusting your investment for inflation. It is applicable on long-term investments.

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