Investing in US stocks through NSE IFSC

IPOs
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NSE IFSC recently announced trading in 50 popular US stocks like Apple, Amazon, and Tesla in the form of unsponsored depository receipts for Indian investors. This has created a lot of buzz among investors who’ve been looking for easy ways to get exposure to these stocks. While the stock exchanges in GIFT City were primarily set up for easy access to Indian stocks and derivatives for NRIs and foreigners, this is the first product for onshore Indian investors.

Here’s everything you need to know about it.

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Hi @nithin , in NSE - IFSC , is there any clarity on - Real time price per stock - i.e will there be a price difference between these unsponsored depositary receipts versus the actual real time stock price on US Stock exchanges?

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The market makers will provide the spreads at NSE-IFSC. It is possible that there is a slight price difference between the underlying stocks and the price at NSE-IFSC.

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@nithin When will this be supported in zerodha? Also is sandbox user restriction still their on nse ifsc?

If not zerodha, Anyone know any reliable & well known brokers that support this.

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I just responded to another query on why we aren’t offering international investing. I answered this:

We don’t want to offer international investing on a 3rd party platform like some banks do. Don’t see any point in acting like a sales agent taking leads and passing them on to another international broker. If we do this, we want international investing to be integrated within Kite; maybe a separate Marketwatch dedicated to this. But since international investing is outside the scope of SEBI, this is a regulatory grey area. SEBI has an explicit regulation that says that brokers shouldn’t get into any business outside the scope of SEBI’s regulation that can introduce risk to the business.

We will not go ahead with the product until we get clarity on this. We don’t want to launch something and then be forced to pull it off. This also happened with digital gold, which many brokers offered until SEBI asked them to stop offering it as it didn’t come under SEBI’s purview.

While NSE at Gift city comes under an Indian regulator that is IFSCA, it is still not under the purview of SEBI. We need to build a separate trading app for this as per current regulations, which we don’t want to do. We have been following up on figuring how to offer within the existing app.

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