NSE International Exchange to Facilitate Direct Access to Global Markets for Indian Investors
Introduction to Global Market Access
In an exciting development for Indian investors, the NSE International Exchange (NSE IX) is set to enable direct trading in over 30 international markets within the next six months. The initiative has already launched access to the United States market as its first phase. V Balasubramaniam, the Managing Director and CEO of NSE IX, emphasized that this initiative represents a significant structural change aimed at broadening investor participation beyond the Indian stock market. He stated, “We have initiated live trading for the US markets, which is a key area of interest. Over the next three to six months, we anticipate expanding access to more than 30 international markets.”
A Structured Approach to Overseas Investments
The Global Access platform operates under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), allowing residents to remit up to $250,000 annually for approved overseas investments. Balasubramaniam highlighted the compliance-focused design of the platform, stating, “All investments will be conducted under the LRS framework, permitting individuals to remit up to $250,000 each year.” He clarified that all transactions will be conducted in US dollars, meaning that funds from India will be converted into dollars for investment purposes.
Fractional Investing: Making Global Stocks Accessible
A standout feature of this platform is fractional investing, which enables users to purchase portions of expensive global stocks rather than full shares. Balasubramaniam explained, “Retail investors can engage in value-based or fractional buying. For instance, if Apple shares are priced at $272, and an investor has $31, they can buy a fraction of a share.” This innovative approach, facilitated through partnerships with foreign brokers, significantly lowers the barriers to entry for investors.
Seamless Digital Access
The onboarding process is fully digital, utilizing familiar Indian verification systems. “Creating an account and completing the KYC process takes only 30 to 45 seconds through Aadhaar authentication and PAN card verification,” Balasubramaniam noted. Once funds are transferred to a designated GIFT City-linked account, trading limits are immediately updated in the app, allowing users to start placing buy and sell orders right away.
Scope of Products and Future Developments
Initially, the platform will focus on equities and ETFs, adhering to LRS regulations. Balasubramaniam clarified, “We will offer equities and ETFs, but digital assets and derivatives are excluded due to LRS restrictions.” Looking ahead, he mentioned the potential for institutional participation in future phases, stating, “In phase three, we aim to include institutional investors, particularly as more mutual funds explore outbound investment opportunities.” He concluded by reiterating the exchange’s vision to serve as a key financial gateway for both inbound and outbound investments.