Can you tell me how I can buy US companies like Apple, Google and Tesla through the NSE IFSC system of trading US stocks?

Many investors are under the impression that they can just start buying Tesla and Amazon like they buy RIL and Tata Motors. It is slightly different and you need to understand the process and the steps involved. Here is what you need to know.

· As of now the facility to invest in US stocks is under regulatory testing so only limited number of people can be onboarded. It is called sandbox testing. Final approval is awaited to bring in more customers.

· The NSE IFSC will also facilitate owning fractional shares since most of the US shares in rupee terms would be awfully expensive and out of reach of most Indian traders. The trading will be allowed between 20.00 hours and 02.30 hours, India time.

· Investors don’t hold the shares in the demat account. They will be in the form of unsponsored depository receipts (DR) for Indian investors. The system is somewhat similar to ADRs trading in the US market. These DRs can be held in special Gift City demat accounts with the benefit of all corporate actions.

· Due to complexities involved, the settlement will be T+3 for demat credits and also for fund credits. All trades will only be for T+3 settlement and no intraday or any form of BTST or STBT is permitted.

· It is an expensive affair. For instance, apart from brokerage, you pay the NSE IFSC will for facilitating the transaction and in addition, the exchange will also charge 12 basis or 0.12% of the value of each transaction. Hence you need to look at costs and do it.