While Indian stock markets provide ample of trading opportunities for traders to earn profits and invest for the long term, it still leaves something to be desired. A crash in the markets takes away a huge chunk of investor wealth and leaves people distraught. This could be remedied by diversifying your portfolio to safeguard your money. Many people prefer investing in US stocks for this reason. It also allows you to grab opportunities that are not available in our markets. In order to help you figure out if this is a method suitable for you, we have posted this article on how to invest in US stocks from India.

1. NSE IFSC
HOW TO INVEST IN US
STOCKS FROM INDIA

2. Introduction – How to Invest in US Stocks from India
While Indian stock markets provide ample of trading opportunities for traders to
earn profits and invest for the long term, it still leaves something to be desired. A
crash in the markets takes away a huge chunk of investor wealth and leaves
people distraught. This could be remedied by diversifying your portfolio to
safeguard your money. Many people prefer investing in US stocks for this reason.
It also allows you to grab opportunities that are not available in our markets. In
order to help you figure out if this is a method suitable for you, we have posted
this article on how to invest in US stocks from India.

3. Table of Contents
Introduction – How to Invest
in US Stocks from India
NSE IFSC
NSE IFSC Receipt
Trading on NSE IFSC
US Stocks available for
Trading

4. NSE IFSC
If you want to trade stocks that have been listed on US Stock Exchanges from India,
you can now do it through NSE IFSC.
NSE IFSC is a wholly owned subsidiary of the National Stock Exchange. IFSC stands for
International Financial Services Centre. It is regulated by IFSCA, which is the
International Financial Services Centre Authority. Before IFSCA was established, IFSC
was regulated by domestic financial regulators like the Securities Exchange Board of
India (SEBI), Reserve Bank of India (RBI), Insurance Regulatory and Development
Authority (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA).
NSE IFSC is headquartered at GIFT City, Gandhinagar, Gujarat.

5. NSE IFSC Limited offers trading in various products including index derivatives, stock
derivatives, currency derivatives, commodity derivatives and debt securities.
HDFC Bank IFSC Banking Unit (IBU) is the NSE IFSC Receipts Custodian that will
instruct the US Custodian, Deutsche Bank AG, New York, to hold the underlying
shares for which the Unsponsored Depository Receipts (DRs) have been issued for
trading on the NSE IFSC. CDSL IFSC Limited has been appointed as the Registrar
responsible for maintaining the register/records of holders of each series of
Receipts.

6. NSE IFSC Receipt
An NSE IFSC Receipt is an Unsponsored Depository Receipt. It is a negotiable financial
instrument issued by HDFC Bank Limited IBU, which is an IFSCA-recognized custodian for
NSE IFSC Receipts.
An NSE IFSC Receipt is created without the involvement or participation of the Underlying
Companies. It would give the holder of such receipt a proportionate beneficial interest in
the share of the underlying company. The shares will be held by a custodian in USA. The
custodian in USA will issue Unsponsored DRs to the NSE IFSC Depository Account and
these will then be traded on NSE IFSC.

7. Trading can only be carried on underlying shares held by the custodian directly. These
shares shall not be issued by ETFs or Investment Funds that are registered with the SEC
(Securities and Exchange Commission) under the U.S. Investment Company Act as
investment companies.
The NSE IFSC Receipts allow fractional investment in the underlying shares. This is done
through a pre-defined exchange ratio (which can be different for different stocks) of 1:N
where N stands for the number of Receipts. For example, in the case of APPLE shares, the
ratio is 25 (1 share of APPLE = 25 NSE IFSC Receipts), i.e. the investor can buy 1/25th of an
APPLE share. This makes the Receipt a share derivative product. The beneficial interest
will be passed on to the investors in proportion to their holdings of NSE IFSC Receipts of
the respective stocks.

8. Trading on NSE IFSC
A trader or investor can take trades on the NSE IFSC by remitting the amount to their
IFSC trading account through the Liberalized Remittance Scheme that has been
introduced by the Reserve Bank of India. It is a liberalization measure that facilitates
resident Indian individuals to freely remit funds up to USD 2,50,000 outside the
country in one financial year (April to March) for any permissible capital account or
current account transaction. The only requirement would be that the individual must
be a resident Indian as per the FEMA (Foreign Exchange Management Act).
Trading and investing in US stocks through NSE IFSC can be done by opening a Demat
and trading account with an IFSCA registered broker. The dematerialized shares will
be held with these brokers acting as depository participants.

9. Intraday Trading is permitted but Leveraged Intraday Trading is not permitted on
this exchange. Naked short trades are not permitted either. A trader can only take
trades to the extent of funds available or pledged stocks held in their account. The
LRS also limits the amount that an individual can use for trading.
NSE IFSC Receipts are issued and traded in U.S. Dollars. Any amount paid to NSE
IFSC Receipt Holders, in connection with NSE IFSC Receipts, will be paid in U.S.
Dollars.
Trade timings will be 8 PM IST to 2:30 AM IST, to be adjusted for daylight saving time.
It follows US Market hours of 9:30 AM to 4 PM EST (Eastern Standard Time). The
settlement of funds will happen on T+3 day through NSE IFSC Clearing Corporation
Limited (NICCL).

10. An investor can request for the cancellation of their NSE IFSC Receipts to convert
the receipts into the Underlying Share. This is possible if the NSE IFSC Receipts held
by the investor represent a whole number of Underlying Shares (receipts held by
the investor of that stock should be equal to the exchange ratio of the share). The
investor may then submit a Cancellation Request to take delivery of the Underlying
Shares in their US brokerage account.
US Stocks available for Trading
Trading in the NSE IFSC Receipts will be based on the Underlying S&P 500 Index and
will only be carried out in shares that have been listed on the NYSE (New York Stock
Exchange) or NASDAQ for at least the previous 12 months.

11. Stock Name Symbol Exchange Ratio
Abbott Laboratories ABT 25
AbbVie ABBV 25
Adobe ADBE 50
Alphabet GOOGL 10
Amazon AMZN 10
Apple AAPL 25
AT&T T 5
Bank of America BAC 5
Berkshire Hathaway BRK.B 50
Now let us take a look at the US Stocks that can be traded on NSE IFSC.

12. Broadcom AVGO 50
Charles Schwab SCHW 5
Chevron CVX 25
Cisco Systems CSCO 5
Coca-cola KO 5
Comcast CMCSA 5
Costco Wholesale COST 50
Danaher DHR 25
Eli Lilly LLY 25
Exxon Mobil XOM 5
Home Depot HD 50
Intel INTC 5
Johnson & Johnson JNJ 25
JP Morgan Chase JPM 25
Lowe’s LOW 25

13. Mastercard MA 50
McDonalds MCD 25
Merck MRK 5
Meta Platforms FB 50
Microsoft MSFT 50
Morgan Stanley MS 25
Netflix NFLX 50
Nike NKE 25
Nvidia NVDA 25
Oracle ORCL 5
PayPal Holdings PYPL 25
PepsiCo PEP 25
Pfizer PFE 5

14. Philip Morris PM 25
Procter & Gamble PG 25
Qualcomm QCOM 25
Salesforce CRM 25
Tesla TSLA 100
Texas Instruments TXN 25
Thermo Fisher Scientific TMO 50
Unitedhealth UNH 50
Verizon Communications VZ 5
Visa V 25
Walmart WMT 25
Walt Disney DIS 25
Wells Fargo WFC 5