Mumbai: NSE International Exchange (NSE IFSC) set up at Gujarat International Finance Tec-City, a wholly owned subsidiary of the National Stock Exchange of India (NSE) will facilitate trading in select US stocks through the NSE IFSC platform, NSE said on Monday. "The offering will be in the form of unsponsored depository receipts," NSE said.
A depositary receipt is a negotiable certificate representing shares in a foreign company traded on a local stock exchange.
"NSE IFSC will announce the operational details shortly," NSE said in a release.
"This will be an innovative product…The product enables resident individuals to easily and cost effectively invest in US stocks under the LRS framework of RBI which permits the resident individuals to remit up to $2,50,000 per financial year," said Vikram Limaye, MD & CEO, NSE.
Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) limits.
Investors will be provided an option to trade in fractional quantity/value.