Indian investors can now buy shares of global giants like Apple, Microsoft and Tesla directly from India with just a few clicks. The National Stock Exchange (NSE), through its subsidiary NSE International Exchange (NSE IX), has launched a platform that allows retail investors to trade in global markets.
According to reports, Indian investors can already invest in US markets through NSE’s international exchange. In the next three to six months, access is expected to expand to 30 stock markets worldwide. This means that apart from American companies, investors may soon be able to add global brands such as France’s Louis Vuitton and Spain’s Zara to their portfolios.
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How the global investment platform will work
NSE IX Managing Director and CEO V Balasubramaniam explained that investments in foreign markets will follow the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) guidelines. Under LRS rules, a resident Indian can invest up to $2.5 lakh (around ₹2.2 crore) in foreign markets in one financial year.
When an investor chooses to invest, the amount will first be converted from rupees into dollars under LRS norms. After conversion, investments can be made in global markets in dollar terms.
There has often been a perception that investing in foreign stocks requires a large sum of money, especially since single shares of companies like Apple or Tesla can cost between ₹24,000 and ₹37,000. However, the platform will also allow fractional investing. This means investors can buy a part of a share instead of purchasing a full unit, making global investing accessible even with smaller amounts.
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NSE authorities have clarified that the platform will permit investments only in equities and Exchange Traded Funds (ETFs). Trading in foreign derivatives such as futures and options, as well as cryptocurrency, will not be allowed.
Currently, some Indian brokerage firms offer access to US stocks through tie-ups with foreign brokers. However, they do not provide exposure to multiple global markets. NSE IX aims to expand these opportunities by giving investors access to stock exchanges across different countries in the near future.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
