How to Buy US Stocks through NSE IFSC

How to buy US stocks

The National Stock Exchange has recently announced that Indian retail investors can directly trade US stocks via NSE IFSC(International Financial Service Center). Let us discuss how to buy US stocks through NSE IFSC in detail.

NSE IFSC is a wholly-owned subsidiary of the NSE(National Stock Exchange), and it is approved by the SEBI(Securities and Exchange Board of India). NSE IFSC was based in GIFT city in Gujarat. The full form of GIFT is Gujarat International Finance Tech City.

NSE IFSC is basically a stock exchange platform for international stocks. They are allowed to trade in index derivatives, stock derivatives, currency derivatives, commodity derivatives, etc.

According to the media reports, the NSE IFSC got approval for 50 US stocks, but only eight stocks are available to the investors for trading on 3rd march 2022. The trading date for the remaining 42 US stocks will be decided soon. Here is the list of US stocks available for trading from 3rd march 2022

Stock NameStock SymbolDR Ratio
Alphabet IncGOOGLE200
Amazon Inc AMZN200
Tesla Inc TSLA100
Meta PlatformsFB50
Microsoft CorpMSFT50
Netflix IncNFLX50
Apple IncAAPL25
Walmart IncWMT25

How to invest in US stock via NSE IFSC

  • Firstly you need to open a demat and trading account with an NSE IFSC registered stockbroker. Currently, there are 36 brokers registered with NSE IFSC.
  • You have to transfer funds from a bank account to a stockbroker’s account. Once the funds are credited to the broker account, you can start trading.
  • Investors can start trading with the listed US stocks, but they will get the stocks in the form of depository receipts. These receipts are named as NSE IFSC receipts. The investors can use these receipts for trading transactions via NSE IFSC’s registered brokers.
  • NSE IFSC authorized financial institutions will buy the shares of the US stocks and will issue retail investors in the form of depositary receipts.

Few Things to know before investing in the US stocks

1) Investment in US stocks should be made in US dollars only. The maximum amount invested by an individual should be up to 2,50,000 Dollars per financial year. The retail investors can make the payment via the LRS (Liberalized Remittance Scheme) of RBI(Reserve Bank of India).

2) Investors can buy the shares fractionally while buying US stocks. The minimum amount to buy the share is 0.01 Dollars.

3) While investing in US stocks, you must pay the following charges like brokerage, forex inward charges, etc. All the charges will change from broker to broker.

4) There will be charges while withdrawing money from your account.

5) In the US, dividends paid to the investors are taxable. So when a company announces a dividend, the broker will subtract the taxable amount from the dividend amount and will pay the remaining amount to the investors. Usually, the taxable amount on the dividend is flat 25%

6) Individuals who are interested in investing in US stocks can also invest via international mutual funds. 

7) The depository receipts you receive will be considered as shares. Every 100 receipts will be considered as 1 share.

8) The trading timings for NSE IFSC is 8:00 Pm to 2:30 Am. Trades can be settled in T+3 days.

9) The trading holidays are based on US and Indian market holidays.

List of Registered Stock Broker with NSE IFSC

Member NameMember Code
Anand Rathi Interational Ventures(IFSC) Private Limited10048
Arihant Capital(IFSC) Limited10026
Daga Business(International) Stock Brokers (IFSC) Private Limited10041
Divya portfolio (IFSC) Private Limited10003
Dolat Capital IFSC Private Limited10035
Edelweiss Securities (IFSC) Limited10001
Emkayglobal Financial Services IFSC Private Limited10042
ESTEE IFSC Private Limited10019
Evermore Global (IFSC) Private Limited10050
Excel Broking (IFSC) Private Limited10007
Findoc Investment (IFSC) Private Limited10047
Globe Capital (IFSC) Limited10022
Gogia Capital IFSC Private Limited10015
Goldmine IFSC Private Limited10027
GRD Securities IFSC Limited10013
HDFC Bank Limited – IFSC Banking Unit(IBU)10049
Indo Thai Globe Fin (IFSC) Limited10034
Jainam IFSC Mavens Private Limited10036
Mansukh IFSC Broking Privae Limited10002
Marwadi International Securities (IFSC) Limited10046
Motilal Oswal Finsec IFSC Limited10044
Open Futures and Commodities IFSC Private limited10051
PACE Financial (IFSC) Private Limited10024
PCS (IFSC) Private Limited10037
Phillip Ventures IFSC Private Limited10045
Plustrade Holding (IFSC) Private Limited10039
Raghunandan Capital (IFSC) Private Limited10043
RSL IFSC Private Limited10038
Share India Securities (IFSC) Private Limited10020
SIHL Global Investments (IFSC) Private Limited10029
SMC Global IFSC Private Limited10021
Star Finvest (IFSC) Private Limted10052
Stockholding Securities IFSC Limited10040
Synergy Dealcom (IFSC) Private Limited10011
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