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Below is Perspective on NSE IFSC by Mr. Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

The NSE IFSC has announced that US stocks to be made available for investment, effective  3^rd March, 2022.

It means Indian retail Investors can buy and sell stocks of companies like Apple , google ,Alphabet and other known listed US companies. These will be in the form of unsponsored depository receipts (Market makers will buy shares in the US and issue receipts against them)

LRS Scheme

Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI).

Under the LRS framework of RBI (permits the resident individuals to remit up to USD 2,50,000 per financial year for any permitted current or capital account transaction).

No of Stocks

Total 50 US stocks will be made available in NSE IFSC platform

To begin with, 8 stocks and the no will grow in a phased manner.

For example, one share of Tesla will be equivalent to 100 NSE IFSC receipts. One share of Amazon will be equivalent to 200 IFSC receipts

Benefits to retail Investors

*  An additional investment opportunity to the Indian investors with easy investment process and at low cost

*  Option to trade in fractional quantity / value when compared to the underlying shares traded in US markets

*  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.

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