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Videsh Mey Nivesh Ke Pathshala: Want to invest in foreign markets? Anil Singhvi explains how to do it

Paul EasterBy No Comments4 Mins Read


Videsh Mey Nivesh Ki Pathshala: Are you an investor who wants to invest in the foreign stock market but confuse about the procedure? Do you have questions like how to invest in the foreign stock market? How to invest through NSE IFSC? Which brokers offer the NSE IFSC facility? How to invest through BSE (India INX)? What are the documents required for LRS? Zee Business Managing Director and Market Guru Anil Singhvi answered these questions and explained how to invest in the foreign stock market in a TV Show ‘Videsh Mey Nivesh Ke Pathshala’.

1. How to invest in the foreign stock market?
There are two ways to invest in the foreign stock market:
1) Buy foreign shares directly
2) Invest in foreign mutual funds

2. 4 ways to buy shares directly

  • First – Open an account with an Indian broker who has a tie-up with a foreign broker like the ICICI Direct, HDFC Securities, Kotak Securities, Axis Securities.
  • Second – Open an account in India with a foreign broker eg TD Ameritrade, Interactive Brokers, Charles Schwab International Account
  • Third – Invest money through NSE IFSC
  • Fourth – Invest through BSE (India INX)

3. How to invest through NSE IFSC?
While investing through NSE IFSC, there is a facility to trade in select US stocks. Also, there is a facility to buy less than 1 share (Fraction Shares).
To invest through NSE IFSC investors have to  
– Open Trading and Demat Account with NSE IFSC Registered Broker
– Transfer money from Indian bank to NSE IFSC broker
– Foreign Market Maker will buy shares for you
– Your Broker Will Buy Shares Through Foreign Market Maker
– US Custodian will have your shares
– US Custodian to instruct HDFC Bank (Domestic Custodian) to issue Depository Receipt
– Custodian will issue Depository Receipt in lieu of shares
– This depository receipt will be credited to your Demat account

For now, this facility is only available for top 50 stocks like Amazon, Apple, Microsoft, Alphabet, Netflix, Meta, Walmart, Tesla etc.

For More Details Watch Video Here:

https://www.zeebiz.com/hindi/india/video-videsh-me-nivesh-how-to-invest-…

4. Which brokers offer the NSE IFSC facility?
– Anand Rathi International Ventures (IFSC)  
– Edelweiss Securities (IFSC)  
– Emkayglobal Financial Services IFSC  
– Findoc Investmart (IFSC) Private Limited  
– HDFC Bank Limited- IFSC Banking Unit (IBU)  
– SMC Global IFSC Private Limited  

5. How to invest through BSE (India INX)?
There is facility to buy shares directly from 150 stock exchanges in 31 countries. Apart from that there is also a facility to buy less than 1 share that means fraction shares
Procedure to invest through BSE:
– Open an account with India INX
– Transfer money from partner banks or other banks to IND INX overseas bank account JP Morgan
– Partner Banks like Kotak Bank, IndusInd Bank, ICICI Bank
– After the money is transferred, the balance will be visible in your IND INX account
– Your shares will remain with the foreign custodian (Interactive Broker LLC)

For More Details Watch Video Here:

https://www.zeebiz.com/hindi/india/video-videsh-me-nivesh-how-to-invest-…

6. How much money can an investor invest?
An investor is permitted to send a maximum of 2.5 lakh dollars per financial year. The expenses like investment, travel, studies etc. are also included in the limit of $ 2.5 lakh. the investor can invest through LRS (Liberalized Remittance Scheme). It is a scheme through which foreign currency can be sent out.
This scheme is for all adult and minor citizens of India but not for Corporates, Partnership Firms, HUFs, and Trusts. It is also to be noted that a 5% TCS (Tax Collection at Source) will be deducted for sending foreign amounts more than Rs 7 lakh.

7. What are the documents required for LRS?
The documents required for LRS are – Copy of PAN, Aadhar Card, and Passport.
-Wire transfer to send money out to bank account
-Fill Form A2 cum Declaration Form under LRS to transfer funds abroad

8. Can one trade in US derivatives (F&O)?
No, one cannot trade futures and options in the US under LRS.

9. What are the tax rules on buying foreign shares directly?
– Find out if there is a DTAA (Double Taxation Avoidance Agreement) with the country of investment
– India has DTAA implemented with more than 80 countries
– No tax on capital gains for Indians in US

For More Details Watch Video Here:

 





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