You know the stock market is a big thing when even a pandemic wasn’t enough to put a halt to it. While the nation was down on its knees and there were lockdowns and curfews, people working in the NSE and BSE were still working relentlessly to make sure that the economy didn’t come to a standstill. In this article, we will get into the details of NSE IFSC registered brokers and how they work. We will also learn about NSE IFSC trading hours, NSE IFSC member list and NSE IFSC broker.
NSE IFSC Registered Brokers
Stock market investing is becoming more and more popular in India. There are many trading apps available today that make investing fun and easy to track. It has caught the eye of many new investors and more people are learning about terms like NSE and brokers. Let us first understand NSE.
What is NSE?
NSE stands for National Stock Exchange. When we talk about the National Stock Exchange we are talking about the apex body in India that is concerned with the stock market. The NSE came into being in 1992 and got a thumbs up from SEBI in 1993 and commenced business in 1994. The NSE has many indexes that record the valuation, purchasing, sales, etc. of various companies.
Each index has corresponding companies. NSE not only deals in equity shares but also various currencies, assets like gold, silver, etc. derivatives, cryptocurrencies, etc.
To its credit for so much dedication and efficiency, NSE has also been felicitated with tons of awards over the years. It has always been clear about wanting to help people improve their financial conditions and to safeguard the public’s money and interest. NSE aims at establishing a global presence while also earning people’s trust through respect, teamwork, and other positive qualities. All in all, if you make investments in any asset that is monitored by NSE then read assured you can sit back and relax knowing that your money is safe and in the right place.
What is IFSC?
IFSC stands for International Financial Services Center. Take one step ahead and you have IFSCA, International Financial Services Center Authority. The job of IFSC is to ensure that there is flow of finance, financial products, services, etc. irrespective of borders. It is an entity that is looking to help people invest money in assets that are not from their own country. And, to ensure that all this is done safely and securely there is this watchdog, IFSCA, that makes sure that people’s money and interest are kept safe.
IFSC can not only help raise funds for individuals, but it can do so for governments and even corporations. You also need to know that asset management and portfolio diversification are also things that IFSC caters to along with wealth management, which is a growing market. Global tax and Global and Regional Treasury management are also not out of the realm of what IFSC deals with. Lastly, IFSC deals with risk management and mergers and acquisitions of transnational corporations.
On the other hand, IFSCA is concerned with creating a global connection that is strong and also caters to the needs of the Indian economy while serving as an International finance platform for India as well as the world. IFSCA can be said to be the inter-regulatory coordinator for IFSCs. It is a unified regulator that has a view that is holistic and one that makes dealing through IFSC easy as well as regulated. Together IFSC and IFSCA are out to bring a huge and never seen before kind of change/impact on the Indian economy.
NSE IFSC Registered Brokers
NSE IFSC is a subsidiary of the National Stock Exchange. It is a SEBI approved body that will allow Indian investors to invest money in US-based stocks. Indian retail investors get to purchase top US-based stocks right from India and for their transaction, they will be issued receipts, NSE IFSC receipts. Previously these transactions were only possible only via a broker based in the US, but now you can buy shares through NSE IFSC registered brokers. So far 8 US shares are tradable via the platform with plans to take the number up to 50.
India currently has 37 such brokers that let you deal in US shares and you have to open an account with one such broker to be able to deal in US shares. Once you have your account made you then have to transfer money from your personal bank account to the broker’s account and then you can purchase shares.
Investors will be issued receipts for their purchases depending on the ratio set for a particular share. Also, the investment process is easier and the cost involved is also comparatively low. Anand Rathi International Ventures, Edelweiss Securities, Emkay Financial Services, HDFC Securities, Motilal Oswal, and SMC Global are some of the top brokers that have registered themselves with NSE IFSC. Zerodha which is one of the most popular stockbroker companies in India is also in the process of getting its membership sorted as quickly as possible.
The shares bought through NSE IFSC should be settled via NSE IFSC Clearing Corporation Limited. Funds and receipts get settled in T+3 days. For now, Indians can spend up to 2,50,000 dollars in a financial year under the Liberalized Remittance Scheme.
NSE IFSC Trading Hours
After learning about NSE IFSC registered brokers, let us understand its trading hours. NSE IFSC trading hours are very different from the Indian trading hours that we are used to. It runs from 9:30 am to 3:30 pm Monday to Friday. 15 minutes before the starting time is used as a pre-opening session and the time aftermarket is used to square off trades for the day. In the case of NSE IFSC trading, the hours are from 20:00 to 02:30 IST, which translates from 09:30 am ET to 04:00 pm ET. These timings adjust as per daylight saving.
Trading sessions on NSE platforms run for not more than 7 hours and 5 days a week from Monday to Friday. In contrast, Crypto markets run 24 by 7 by 365. The market has around 15 off days throughout the gear which is also something that crypto markets don’t follow.
NSE IFSC Member List
So far NSE IFSC member list consists of 37 names and these members are.
- Edelweiss Securities (IFSC) Limited
- Mansukh IFSC Broking Private Limited
- Divya Portfolio (IFSC) Private Limited
- Excel Broking (IFSC) Private Limited
- Synergy Dealcom (IFSC) Private Limited
- GRD Securities IFSC Limited
- Gogia Capital IFSC Private Limited
- ESTEE IFSC Private Limited
- Share India Securities (IFSC Private Limited)
- SMC Global IFSC Private Limited
- Global Capital (IFSC) Limited
- Pace Financial (IFSC) Private Limited
- Arihant Capital (IFSC) Limited
- Goldmine IFSC Private Limited
- SIHL Global Investments (IFSC) Private Limited
- Arya Fin-trade (IFSC) Private Limited
- INDO THAI Globe Fin (IFSC) Limited
- Dolat Capital IFSC Private Limited
- Jainam IFSC Mavens Private Limited
- Tradeair (IFSC) Private Limited
- RSL IFSC Private Limited
- Plustrade Holding (IFSC) Private Limited
- Stockholding Securities IFSC Limited
- DAGA Business (International) Stock Brokers (IFSC) Private Limited
- EmkayGlobal Financial Services IFSC Private Limited
- Raghunandan Capital (IFSC) Private Limited
- Motilal Oswal FINSEC IFSC Limited
- Phillip Ventures IFSC Private Limited
- Marwadi International Securities (IFSC) Limited
- FINDOC Investmart (IFSC) Private Limited
- Anand Rathi International Ventures (IFSC) Private Limited
- HDFC Bank Limited- IFSC Banking Unit (IBU)
- Evermore Global (IFSC) Private Limited
- Open Futures and Commodities IFSC Private Limited
- Star FINVEST (IFSC) Private Limited
- SGX India Connect IFSC Private Limited
- Appreciate Booking IFSC Private Limited
NSE IFSC broker
As mentioned above, there are 37 listed members under the NSE IFC broker. The number of brokers will only increase as will the number of US shares that Indians can invest in. Investors who have long wished to invest in international companies can finally without a worry in the world trade in stocks that are not from the nation. NSE, IFSC, and SEBI are three parties involved whose approval and backing makes the source reliable and trustworthy. In the future, there will surely be more members added to NSE IFSC member list.
Also Read: What is NSE IFSC?
Important points about NSE IFSC
Given below are some points that should keep in mind when trading in NSE IFSC.
- The receipt of your NSE IFSC US shares that you purchase needs to be held in a Demat account with a broker registered with NSE IFSC. Otherwise, it can also be held with any depository participant.
- NSE IFSC receipts support day trading provided certain conditions are met. The trade taking place should not exceed the LRS permit limit of 2,50,000 dollars. Every transaction also needs to be backed by the necessary transaction value. Short-selling is also not allowed in such cases for Indian retailers.
- NSE IFSC is protected by IFSCA regulations. You can trade in fractions and there is corporate action entitlement. Trading is done under the LRS facility. All trades and settlements are done in USD. You get guaranteed settlement and shares are easily accessible. You also get liquidity from Global High-Frequency Trading.
- From NSE IFSC you can buy shares of Amazon, Alphabet, Tesla, Meta Platforms, Microsoft, Netflix, Apple, and Walmart. These shares can be purchased in fractions with each having its own ratio starting from 200:1 to 25:1.
- The charge you pay for trading in NSE IFSC receipts is 0.12% or a 12-cent charge on trade worth 100 US dollars. There is no Security Transaction Tax or any other fee that needs to be paid. Also, the broker charges may differ from one broker to another.
- Dealings happen in US dollars and so your banks may charge you a conversion fee for converting your currency to USD.
- Apart from US stocks, you get access to markets of China, Japan, the European Union, and other countries.
- Currently, the taxation on receipts that you deal with is unclear.
Should you invest in NSE IFSC?
Considering that what we are talking about is a fairly new concept, it is only fair if you are still not pretty clear on much of it. NSE has always been the National Stock Exchange for all of us, but IFSC has been the financial code that all of us remember from our passbook. But NSE and IFSC together have created something very new and huge for the Indian economy.
Anyone looking to invest money has always been warned against the stock market, mutual funds, cryptocurrencies, futures options, etc. and the same is the case with NSE IFSC. But many investments when done right can make you wealthy. This investment gets an international level backing and earning money from markets becomes easier than ever. So, it is at your own peril that you rule out getting involved in this new concept.
We hope you are now better informed about NSE IFSC registered brokers. We also covered NSE IFSC trading hours, NSE IFSC member list, and NSE IFSC broker. With this newfound information, your next investment move should be the one that takes you across borders if you are really looking to diversify your portfolio. However, you should do thorough research and check your options before investing in NSE IFSC.