You can now buy US stocks such as Facebook, Apple and Google on NSE

You can now buy US stocks such as Facebook, Apple and Google on NSE

The NSE IFSC will be the first in the world to allow Indian retail investors to trade stocks in the United States. “Unsponsored depository receipts will be used to make the offering.”

The NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange (NSE), said on August 9 that it will shortly begin trading in select US companies.

The NSE IFSC platform would be used to enable the trading, according to a press release “Unsponsored depository receipts will be used to make the offering. Under the Regulatory Sandbox, IFSCA has made this possible.”

The entire trading, clearing, settlement, and holding of US stocks will be governed by the IFSC authority’s regulatory system.

“This effort is a first of its type at IFSC, where Indian retail investors will be allowed to transact on the NSE IFSC platform within the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) limits,” NSE IFSC stated.

The RBI’s LRS framework, for example, allows residents to remit up to $250,000 per fiscal year for any allowed current or capital account transaction.

“The business model offered by NSE IFSC will not only provide additional investment opportunities to Indian investors but will also make the entire investing procedure simple and inexpensive,” the stock exchange noted.

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When compared to the underlying shares traded in US markets, investors will be able to trade in fractional quantities/values, according to the company.

The new structure will make US stocks more accessible to Indian ordinary investors, according to the NSE IFSC.

The NSE IFSC Clearing Corporation Limited (NICCL) will provide a solid risk management framework, enabling clearing and settlement of all trades in depository receipts, and provide settlement assurance for all trades performed on the NSE IFSC platform, according to the company. Furthermore, all trades will be protected by the NSE IFSC’s investor protection structure.

According to the announcement, investors will be able to keep the depository receipts in “their own Demat accounts formed in GIFT City” and will be eligible for corporate action benefits related to the underlying stock.

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NSE IFSC will release operational information soon and will launch the product as soon as feasible, according to the company, which also stated that depositories, banks, and brokers have already begun working with NSE IFSC to make these investment products available to Indian customers.

The introduction of trading in US stocks through NSE IFSC, according to Vikram Limaye, MD and CEO of NSE, will be one of the stock exchange’s important achievements.

Challenges faced at GST Process

GST Imperative for Small & MSME’s

  • No Facility to Amend or Revise the Returns
  •  Back to Back Returns per month filing or Quarterly submissions instead of Single Comprehensive Annual return
  •  Payment of Taxes and Filing of Return with the same due date
  •  Payments of Tax under different heads often leading to a lot of confusion in terms of set-off and the overall incidence
  •  Setoff of taxes often precede in importance compared to Tax Payment Date, thereby the process getting diluted
  •  Late Fees being levied at the initial stages with stringent overall process thereby negative responses
  •  Lack of Trust in filers, training gaps in dealers and distribution channels along with many procedures, Document & Returns
  •  GSTN software issues often failing and the government’s stance of not acknowledging the same
  •  Forms & Utilities often released late without proper planning
  •  Input credit often a point of debate as the onus lies on business, with severe penalties and cash crunch due to the model of low acceptance and no cross-verification of sellers for input
  •  No Dedicated helpline, Inadequate resources to look into the shortcomings to date

Thus Course Correction in System, process n model is required urgently to instill trust and confidence in the Community

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