This means market-makers will buy stocks in the US and deposit them with a custodian bank. To begin with, NSE is aiming to list DRs of 50 US stocks, including popular names like Alphabet Inc., Facebook Inc. and Tesla Inc. BSE-owned India International Exchange (India-INX) also offers international stocks to Indian investors through IFSC. The holding period for long-term capital gains for foreign stocks is two years and foreign exchange-traded funds is three years. For instance, NSE will enable fractional investing, which allows small investors to buy stocks that would otherwise be unaffordable. However, clients may have to provide some additional forms for risk profiling, and a consent for foreign stocks trading.

Source: Mint August 10, 2021 16:52 UTC