8 US stocks to start trading on NSE IFSC in GIFT City from March 3

The National Stock Exchange's (NSE) International Financial Services Centre (IFSC) platform in Gujarat's GIFT City will start trading in eight US stocks from March 3.

NSE IFSC has received approval to trade receipts of 50 US-based stocks. Initially, the exchange will start trading in Alphabet Inc, Amazon Inc, Tesla Inc, Meta, Microsoft, Netflix, Apple and Walmart and eventually the 50 largest US companies will be listed.

Some of the other stocks also plan to list on the NSE IFSC platform and the date of trading will be decided soon. These stocks include Berkshire Hathaway, Mastercard, JP Morgan Chase, Morgan Stanley, Nike, Paypal, Pepsico, Pfizer, Intel among others.

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This does not mean the US stocks will list in India. Market makers will rather buy scrip in the US and issue the unsponsored depositary receipts against them, NSE circular said. GIFT City, the IFSC Authority will be the sole regulator for this.

For buying in these stocks retail investors can transact on the IFSC platform under the liberalised remittance scheme (LRS) limits prescribed by the Reserve Bank of India (RBI), which currently stands at $2,50,000 each financial year.

Domestic investors need to open a demat account at the IFSC and stock receipts will be considered as foreign assets for filing income tax returns. This means slab rate for gains made within two years of purchase and 20% with indexation for gains made after a two years holding period.

BSE-owned India International Exchange (India-INX) also offers international stocks to Indian investors through IFSC. BSE acts as an introducing broker for international brokers.