From today onwards, the National Stock Exchange’s (NSE) International Financial Services Centre (IFSC) platform in Gujarat’s GIFT City will start trading in eight US stocks – Alphabet Inc, Amazon Inc, Tesla Inc, Meta, Microsoft, Netflix, Apple and Walmart. Eventually the 50 largest US companies will be listed in a gradual manner.
Domestic investors need to open a demat account at the IFSC and stock receipts will be considered as foreign assets for filing income tax returns. Retail investors can transact on the IFSC platform under the liberalised remittance scheme (LRS) limits prescribed by the Reserve Bank of India, which currently stands at $2,50,000 each financial year.
This does not mean the US stocks will list in India. Market makers will rather buy scrip in the US and issue the unsponsored depositary receipts against them. GIFT City, the IFSC Authority will be the sole regulator for this.