NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange of India Ltd (NSE), in association with HDFC Bank, has launched trading in India’s first Unsponsored Depository Receipts (NSE IFSC Receipts) under the regulatory sandbox framework prescribed by the IFSCA, which will offer Indian retail investors an opportunity to invest in the US Stocks, listed on exchanges like NYSE and NASDAQ, in an easy and affordable way.
Following this launch, Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalized Remittance Scheme (LRS) prescribed by the Reserve Bank of India.
HDFC Bank’s IFSC Banking Unit in the GIFT City (HDFC Bank-IBU) in its role of NSE IFSC Receipts Custodian to this newly launched UDR program will be issuing the NSE IFSC Receipts and undertake related activities besides opening the depository accounts of investors as a depository participant registered with IFSCA registered depositories.
NSE IFSC Clearing Corporation Limited (NICCL) will offer its robust risk management framework, facilitate the clearing, and settlement of all trades in depository receipts, and provide a settlement guarantee with respect to all trades executed on the NSE IFSC platform. Furthermore, all the trades will also be covered under the investor protection framework at NSE IFSC. Investors will be able to hold the NSE IFSC Receipts in their own demat accounts opened in GIFT City and will be entitled to receive corporate action benefits pertaining to the underlying stock.
Injeti Srinivas, Chairman, IFSCA said: “ Today’s launch of trading in NSE IFSC Receipts is a good initiative to attract retail participation under the Liberalized Remittance Scheme of RBI and develop a vibrant capital market ecosystem in India’s sole International Financial Services Centre at GIFT City.”
Vikram Limaye, MD & CEO, NSE said: “It’s a proud moment for NSE IFSC as trading in US Stocks in the form of Unsponsored Depository Receipts has commenced. This shall make the entire process of investing in Global stocks for Indian Retail Investors seamless in a regulated environment.”
Kaizad Bharucha, Executive Director, HDFC Bank said: “HDFC Bank has been a pioneer and has been playing a catalytic role in transforming the Indian financial services space. The NSE IFSC Receipts are the first of its kind in India / GIFT IFSC and will provide Indian retail investors with an opportunity to invest easily in global stocks. The NSE IFSC Receipts framework will also make these investments extremely affordable and transparent, thereby paving way for retail participation.” (KNT)