NSE now lets Indians directly trade in US stocks
What's the story
The NSE International Exchange (NSE IX) has launched a new platform, Global Access, enabling Indian investors to directly trade in US-listed stocks such as Apple and Microsoft. The move is part of a broader strategy to give Indian investors access to over 30 international markets within six months. The first phase of this rollout has already gone live for the US market.
Platform
Compliance with RBI's LRS framework
The Global Access platform is designed to enable outbound investments under the Reserve Bank of India's (RBI) Liberalized Remittance Scheme (LRS). This scheme allows resident individuals to remit up to $250,000 per financial year for permitted transactions, including overseas investments. V Balasubramaniam, MD and CEO of NSE IX, emphasized that the entire transaction cycle on this platform has been structured to comply with existing regulations.
Investment features
Fractional trades for retail investors
Global Access also offers fractional trades, letting investors buy portions of high-priced global shares instead of full shares. This feature is especially useful for retail investors looking to invest in global technology giants. Balasubramaniam explained that with this facility, even if an investor has a small amount in their account, they can still invest in expensive stocks like Apple through fractionalized buying.
Pocess
Dollar-denominated investments and digital onboarding
Investments through the Global Access platform will be denominated in US dollar. Balasubramaniam said, "The rupee money from India will be going in a foreign remittance and it will come into a dollar." The platform can be accessed on web and mobile, with an onboarding process built around digital verification systems widely used in Indian financial markets.
Product universe
Limitations on asset classes
Balasubramaniam clarified that the product universe on the platform will be limited to asset classes allowed under LRS rules. "What we are allowing is equities. We will allow you ETFs. All these products are available on this particular platform," he said. However, derivatives and digital asset products have not been enabled due to restrictions under the LRS framework.
Expansion strategy
Future plans for institutional participation
While the current phase is focused on resident individual investors, NSE IX has hinted at including institutional participation in later phases. Balasubramaniam said, "At some point of time, in phase three, we will also enable it for our institutional investors in India." He also highlighted the trading activity at NSE IX with an average daily trading volume of over $5 billion.