NSE International Exchange Launches Global Access Platform for Indian Investors

Key Highlights

• NSEIX, a wholly owned subsidiary of NSE, has launched the Global Access platform to enable Indian investors to buy shares of global companies like Apple, Nvidia, Microsoft, and Tesla.
• The platform operates from GIFT City, offering a tax-efficient structure and compliance with RBI rules.
• Investors do not need to open a separate overseas demat account, as the entire portfolio can be managed digitally through a simpler, integrated system.

Investing in US Stocks and ETFs

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• Resident Indians and non-resident Indians (NRIs) can invest through NSE IX Global Access.
• The platform is primarily aimed at retail investors and high-net-worth individuals seeking to diversify globally.
• Investors can browse available options, including US stocks and ETFs, and start investing immediately with no fixed minimum investment.

Fractional Trading

• Fractional trading is a key feature, allowing investors to invest in smaller amounts, such as $1-$10, in companies like Amazon or Google.
• This feature removes the high price barrier that has historically kept retail investors away from expensive global stocks.

Taxation

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• Taxation depends on how long you hold the investment and the type of income you earn.
• Capital gains are divided into two parts: long-term (taxed at 12.5% without indexation) and short-term (added to your total income and taxed as per your income tax slab).
• Dividends from US stocks are also taxable in India as per your income tax slab.

Risk and Considerations

• Investors should keep in mind the annual limit of $250,000 under the LRS scheme, which may restrict how much they can invest abroad.
• Returns can be affected by movements in the rupee against the US dollar.
• There are also currency conversion charges and spreads that can add to costs.
• Any changes in LRS rules by the RBI can impact investments.