How to Invest in Foreign Stocks from India?

How to Invest in Foreign Stocks from India?

Diversification is at the core of investing principles. It helps you minimise portfolio risk and maximise your investment return over time. Investing globally is one of the best ways to do that. Additionally, taking exposure to different asset classes worldwide helps you reap the benefits of great investment opportunities and invest in some of the world-renowned companies. Is there an easy way to do that sitting in India that too through a single medium? Your answer is India INX.

India INX is regulated by the International Financial Services Authority (IFSCA) and offers you 22-hour trading in a range of financial market products such as stocks, fractional stocks, index derivatives, single stock & commodity derivatives, currency derivatives, debt securities, mutual funds, hedge funds and diversified global portfolios. India INX has partnered with 130 stock exchanges across 31 countries in America, Europe, Asia-Pacific, and Africa. Nasdaq, London Stock Exchange, NYSE, Tokyo Stock Exchange, Toronto Stock Exchange, Canadian Securities Exchange, BATs Europe, Euronext France, and Moscow Stock Exchange are some of the partnered stock exchanges. The facility currently provides a single integrated account that supports 23 different currencies for buying and selling stocks on global exchanges.

You can open an account with India INX by visiting their website. You will need to fill up your personal details, contact details and complete the “know your customer” (KYC) process. If your KYC records are available in the CKYC database, you won’t need to submit any identification documents manually. Further, you must declare your tax residency and sign the US W8BEN form. Currently, there are no charges concerning account opening, custody/Demat or any other annual charges.

For your convenience, the platform also provides an electronic medium, i.e., a trading terminal, through Android and iOS apps. The India INX account includes access to activity reports, statements, research reports, fundamental data and tools for technical analysis without any additional cost.

The following process would be to fund your account and start your international investing journey. You can transfer the funds directly via your bank account as per the Liberalized Remittance Scheme (LRS) guidelines, which allows all resident individuals to remit up to USD 2,50,000 per financial year. The exchange has also tied up with several partner banks in India. You can open an account with these partner banks for a seamless experience and lower remittance charges.

As of now, the exchange does not charge any fee on money deposits, and a single withdrawal per month can be made free of cost. However, Banks charge fees (Fixed charge and margin rates) on the remittance of the funds. These charges differ from bank to bank. You can check rates with your bank. Depending on the bank, it may take from 1 to 4 business days for the amount to reflect in your trading account. On a successful transfer, you can start trading. BSE, through its subsidiary INDIA INX Global Access, has tied up with multiple reputed international brokers, and they act as custodians for such shares and monies. They will execute and clears your trades. You can also watch the video tutorial on Funds transfer via the India INX trading platform here.

As per RBI guidelines, resident Indians are not permitted margin/leverage trading. Regarding intraday trading – resident Indian individual investors will be allowed to sell the shares bought intraday. However, the margin will remain blocked till settlement (T+2) because RBI does not permit trading for resident Indian investors under LRS.

Thank you for taking the time to read. We hope you found this blog very useful.

If you have a question, share it in the comments below or DM us or call us – +91 9051052222. We’ll be happy to answer it.

Nischay Avichal

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