Now Indian Residents Have Access to US Stocks through Gift City Exchanges

India is set to become the world’s third-largest economy by 2030, possibly even as early as 2027. Indians are infiltrating every economic sector, industry, and market as a formidable force to be reckoned with. Even in investing, India is expanding its horizon toward global investment opportunities.

For instance, more and more Indian citizens are learning how to invest in foreign stocks. And more specifically, citizens are seeing the value in understanding how to invest in US stocks from India itself. If you’re also wondering how to buy US stocks from India and elevate your wealth creation journey, this blog is for you.

Indian investors now have access to US Stocks through GIFT City Exchanges, thanks to the introduction of NSE IX there in March 2022 (nearly two years ago). Since then, 50% more Indians have mastered how to buy US stocks from India.

What is GIFT City?

The first step in figuring out how to invest in US stocks from India is knowing about GIFT City, the place which makes it all possible. Nestled amidst the bustle of Gujarat, India, lies a financial oasis called GIFT City - meaning, the Gujarat International Financial Tec-City. GIFT City, erected in Gandhinagar, is a Special Economic Zone (SEZ) with a unique aim: bridging the gap between Indian investors and the world's financial playgrounds, including the coveted US stock market.

GIFT City skips several steps and hurdles that we experience in the long-winded traditional way of investing abroad. rewrites the rules. This SEZ provides seamless access to US-registered mutual funds as well as dedicated trading platforms for foreign securities - all with a regulatory framework designed to streamline cross-border investments.

So, if you're an Indian investor wanting to buy US stocks from India, GIFT City is your passport to these foreign equities!

What are GIFT City Exchanges?

There are two GIFT City Exchanges - that is, financial hubs - located within GIFT City. These exchanges, India INX and NSE International Exchange (NSE IX), are the actual media through which Indian investors can unlock global financial markets. In other words, if you wish to make international investments, the way to gain access to US stocks is through GIFT City Exchanges.

• Alphabet (Google)
• Amazon
• Meta Platforms (Facebook)
• Netflix
• Apple
• Nvidia
• Tesla
• Microsoft

At present, the NSE IX Exchange offers Top 50 US Stocks for Indian Residents to invest and trade in.

Things to Consider while Learning How to Buy US Stocks in India

Investments in US stocks through foreign exchanges are executed in compliance with the Liberalized Remittance Scheme (LRS). As such, all NSE IX investments in US stocks come under the jurisdiction of this scheme, within the purpose code S0001.

And LRS mandates that Indian citizens can only invest a maximum sum of US$ 250000 per financial year in foreign stocks.

Also, do keep in mind that the trading time for these stocks on the exchange won’t be in accordance with the BSE or the NSE, that is, Indian markets. Instead, it will be as per that of the NYSE (New York Stock Exchange). So, you can trade in US stocks through the NSE IX foreign exchange from 7 pm IST to 2:30 am IST. This, opposed to our local market timing from 9:15 am IST to 3:30 pm IST.

How to Invest in US Stocks from India through GIFT City Exchanges?

Now let’s get on to the actual, step-by-step procedure on how to invest in US stocks from India. Firstly, one will need a special Demat account to buy US stocks from India on the NSE IX exchange. Despite one having an existing Demat account through to trade in the domestic market, another one will need to be opened for international trading.

1. Open a Demat account with a broker who’s registered with the IFSC
   Open a trading and Demat account with an NSE IX-registered broker, such as Anand Rathi International Ventures Private Limited. Contact them and finish all the formalities to open this special Demat account.
   
   There is an updated list of NSE IX-registered brokers, along with their contact details, on the official NSE International website.
   
   
2. Transfer funds from your local bank account to the broker’s account
   Transfer to the Trading account of your IFSC-registered broker from your Indian bank accounts. Since NSE IFSC trades are conducted in US dollars and not in Indian rupees, a currency conversion will be needed.
   
   After this conversion, you can buy US stocks from India on the NSE IX exchange by collaborating with your broker on which equities to buy.
   
   And that is it! In just two steps, you too can learn how to invest in US stocks from India through GIFT City exchanges!