The NSE IFSC, a wholly-owned subsidiary of the National Stock Exchange Ltd (NSE), has received a node for trading in select US-based stocks. The exchange that operates in Gujarat International Finance Tech (GIFT) City will allow investors to buy and sell US shares from today, i.e. Thursday, March 3. Initially, investors will be able to trade in eight US stocks and the remaining 42 will be released in phases.

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Here’s how investors can participate in trading:

1. Resident investors will have to open a trading and demat account with NSE IFSC registered brokers. Currently, 36 brokers are registered with the exchange.

2. Investors will need to transfer funds from their local bank account to the NSE IFSC registered broker’s account.

3. Trading in NSE IFSC receipts will follow US trade timings. It will open at 8 pm and continue till 2.30 am in the night on the next day. The exchange said that trading shall be conducted over two calendar days and such a trading cycle shall be considered as one business day. Time will be adjusted based on daylight saving changes, as applicable.

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4. To make US stocks available to Indian investors, market makers will buy stocks in the US and issue receipts against them, which will be called NSE IFSC Receipts. These will be the same as owning a stake in the company whose receipts these are. Investors can buy or sell these receipts in a way similar to how they buy or sell shares of the companies.

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5. Eight stocks will be represented by their receipts. These are Amazon, Tesla, Alphabet, Meta Platforms, Microsoft, Netflix, Apple and Walmart.

6. Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalised Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India. According to the LRS framework, the RBI allows resident individuals to remit up to $2,50,000 in a financial year.

7. NSE IFSC said it will release the receipts in a certain ratio. For example, one share of Amazon will be equivalent to 200 NSE IFSC receipts. One share of Tesla will be equivalent to 200 IFSC receipts.

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8. NSE IFSC receipts on US stocks will be traded in US dollars. The tick size will be one cent i.e. $0.01. Therefore, investors will be able to bid on receipts in the form of $6.62, $6.63, $6.64, and so on, but not $6.632.

9. Trading holidays for NSE IFSC receipts on US stocks will follow US trading holidays. However, some Indian holidays have also been incorporated.

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10. The exchange plans to extend the list to 50 US stocks, which can include Adobe, Berkshire Hathaway, Mastercard, Visa, Chevron, Morgan Stanley, Paypal and JP Morgan