Indian investors will soon be able to buy and sell shares of the top performing US stocks and the most popular tech companies in the world like Google, Amazon, Facebook or Netflix. NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange of India Ltd (NSE), has recently announced that trading in select US stocks will be facilitated through its platform soon.
But, how will retail investors be able to afford stocks that are priced in hundreds and thousands of dollars?
The proposed framework by NSE will make US stocks affordable to Indian retail investors as they will be provided with an option to trade in fractional quantities when compared to the underlying shares traded in US markets.
Although, currently Indians can open accounts in US brokerages but his route is cumbersome; besides, investment gains will be taxed in India. Also, many Indian mutual funds are investing in US stocks through fund-of-funds schemes; Indian MF investors cannot hold these directly.
Trading through the IFSC platform move is expected to make the process easier and more accessible.
Here’s a quick explainer on how the new facility will enable retail investors to diversify their portfolio with investments in US exchanges listed stocks.
Watch the full video…
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