Retail investors may soon be allowed to trade in US stocks. The NSE IFSC, a wholly-owned subsidiary of the National Stock Exchange has announced trading in select US stocks through its platform soon.

"The investment will be via the Liberalised Remittance Scheme or LRS route," Ravi Varanasi, Chief Business Development Officer of the NSE told CNBC-TV18.

The Reserve Bank of India (RBI) permits investment upto $250,000 under the LRS scheme. NSE will offer 50 US stocks for trading, to begin with, and will allow fractional ownership of US stocks in Gift City, he added.

The investors will have to open a Demat account with GIFT City. "The US stocks traded via Gift City will be held in Gift City. The IFSC authority will have oversight on US stocks held in Gift City," said Varanasi.

"We are trying to work with the ecosystem to ensure the cost of transaction is under control," he added.

For the entire interview, watch the accompanying video

(Edited by : Ankit Gohel)

First Published:Aug 10, 2021 1:16 PM IST