Trading on NSE IFSC (NSE International Exchange) for top 50 US stocks will commence from March 3. US stocks such as Alphabet, Amazon, Amazon, Tesla, Berkshire Hathway, Home Depot, Mastercard, Meta Platforms (Facebook), Microsoft, Netflix, Abbott Lab, J&J, Chevron, JP Morgan, Morgan Stanley, Nike, Qualcomm, Walmart, Walt Disney and Bank of America are among the stocks that will be available for resident traders and investors.

Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City and will be entitled to receive corporate action benefits pertaining to the underlying stock, according to NSE's wholly owned subsidiary.

"This initiative is a first-of-its-kind at IFSC where Indian retail investors will be able to transact on the NSE IFSC platform under the liberalised remittance scheme (LRS) limits prescribed by the Reserve Bank of India (RBI)." the exchange had said in August last year. Under the current norm, resident individuals can remit up to $250,000 a financial year.

8 PM start time

There will be no fixed price band applicable for these contracts. However, to prevent erroneous order entry, the exchange has fixed a dynamic price band will at 10 per cent of base price, the global exchange said. NSE-IFSC receipts on US stocks will be traded in US dollars with a minimum tick price of $0.01. In tune with the US markets, trading will commence at 20.00 hours (8 pm IST) and will conclude at 2:45 am IST (next day).

Investor protection framework

Investors will be provided with an option to trade in fractional quantity/value when compared to the underlying shares traded in US markets. "The proposed framework will make US stocks affordable to Indian retail investors," according to NSE-IFSC.

NSE IFSC Clearing Corporation Limited (NICCL) will offer its robust risk management framework, facilitate clearing and settlement of all trades in depository receipts and provide settlement guarantee in respect to all trades executed on the NSE IFSC platform. Furthermore, all the trades will also be covered under the investor protection framework at NSE IFSC, it further said.

RBI green signal

Recently, RBI gave its approval to individual to invest through IFSC platforms in global stocks. "With a view to deepen the financial markets in International Financial Services Centres (IFSCs) and provide an opportunity to resident individuals to diversify their portfolio, the extant guidelines on Liberalised Remittance Scheme have been reviewed and it has been decided to permit resident individuals to make remittances under LRS to IFSCs set up in India under the Special Economic Zone Act, 2005, as amended from time to time," it said.

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