Indian Retail Investors to Gain Overseas Trading Access via NSE's 'Super Broker' Model Following Regulatory Approval

NSE International Exchange Expands Global Access Framework

The NSE International Exchange (NSE IX) is planning to expand its Global Access Provider (GAP) framework beyond the initial phase focused on US securities. This move is expected to provide Indian retail investors with access to additional overseas equity markets, including Japan, Europe's Euronext, and Australia, after March 31.

The Global Access structure enables resident investors to buy and sell foreign stocks through arrangements with multiple international brokers. This model aims to simplify overseas investing and reduce operational friction for resident investors seeking exposure to global equities.

T+1 Settlement

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The settlement cycle across these markets will follow a T+1 framework, enabling trades to be completed one business day after execution and reducing counterparty and settlement risks.

Fractionalised Investing

A central feature of the Global Access framework is the ability to offer fractionalised investing, allowing retail participants to purchase portions of high-priced global stocks instead of full shares.

Tax Treatment

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Withholding tax remains standard practice globally. However, tax treaties can be used to claim credit or adjustment under applicable Double Taxation Avoidance Agreements (DTAAs).

GIFT City Incentives

The extension of the tax holiday framework for GIFT City entities from 10 years to 20 years is expected to further enhance the attractiveness of the IFSC ecosystem for global financial institutions.

Key Features

• NSE IX expanding Global Access Provider (GAP) framework beyond US securities
• Access to additional overseas equity markets, including Japan, Euronext, and Australia, after March 31
• T+1 settlement framework to reduce counterparty and settlement risks
• Fractionalised investing to allow retail participants to purchase portions of high-priced global stocks
• Tax treatment governed by withholding tax and applicable Double Taxation Avoidance Agreements (DTAAs)