Now cherrypick US stocks

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Social media giant Facebook, e-commerce player Amazon, technology firm Microsoft, OTT content player Netflix and well-known internet search engine Google – these American companies make our lives easier, comfortable, smooth and engaging. Chances are very high you might be using their services. Would you like to be a part owner of these companies while sitting in India?

The NSE International Exchange, a wholly-owned subsidiary of the National Stock Exchange of India, has announced that trading in select US stocks will soon be facilitated through the NSE IFSC platform. At a time when global equity markets are hovering at their record high levels, the move taken by the exchange will help investors to get the benefit of the ongoing bull run. This will also aid investors in diversifying their equity portfolio by adding US stocks of their choice to their equity portfolio. At present, you can get exposure of these stocks through funds of funds or select private brokers who have permission from the US and Indian regulators. This is for the first time a leading exchange of the country is giving you an opportunity to invest in American stocks.

A resident individual can invest in the US stocks under the LRS framework of RBI (which permits the resident individuals to remit up to $2,50,000 per financial year for any permitted current or capital account transaction). The exchange will also provide an option to trade in fractional quantity or value when compared to the underlying shares traded in US markets. This facility is already available with private players.

Now it will be crucial to see how cost-effective the product will be as compared with the services offered by private players. We believe that the decision taken by the exchange is a win-win for both investors as well as the exchange.