New Delhi, November 13 (H.S.): Indian investors will soon have access to a wider range of international investment opportunities, with the National Stock Exchange's (NSE) GIFT City-based subsidiary expanding its global investment platform to include seven major European markets. Until now, the platform's international offering had focused on the US market.
NSEIX Global Access IFSC Limited (NSEIXGA) has added access to the stock markets of France, Germany, Ireland, Italy, the Netherlands, Switzerland and the United Kingdom. The expansion is expected to open up new avenues for Indian investors seeking to diversify their portfolios across global markets.
The expanded platform will provide access to more than 11,500 international securities, including over 8,200 Undertakings for Collective Investment in Transferable Securities (UCITS) exchange-traded funds (ETFs). Investors will also be able to buy and sell shares of leading European companies listed on stock exchanges in the seven countries.
According to NSEIXGA, interest among Indian investors in international markets has risen significantly in recent years. Investors increasingly want to diversify their portfolios beyond domestic markets and gain exposure to economies across the world. In response to this growing demand, the GIFT City-based platform has decided to integrate European markets into its system.
One of the key features of the expansion is the availability of UCITS ETFs. These are exchange-traded funds that operate under the European Union's regulatory framework. They enable investors to gain exposure to a wide range of global indices, sectors, investment themes and asset classes through a single investment product.
For instance, an investor seeking to benefit from growth in a particular industrial or technology sector in Europe would not need to select individual company stocks. Instead, the investor could choose an ETF linked to that sector and gain exposure to a broader group of companies. This can help spread investment risk and reduce the need to research individual companies separately, although ETFs do not eliminate market risk.
Market experts say the UCITS ETF structure can offer certain advantages to Indian investors, particularly in terms of international diversification and tax treatment. Investments in US-listed ETFs may attract withholding tax on dividends, while direct holdings of certain US-based assets may also expose non-US investors to US estate tax.
By comparison, UCITS ETFs domiciled in European jurisdictions such as Ireland or Luxembourg may have different tax treatment and could offer advantages depending on the fund's structure and the investor's tax residency. This is one reason why institutional and individual investors around the world consider such funds for international investments. However, the applicable tax treatment varies according to the fund's domicile, structure and the investor's individual circumstances.
Another major feature of the platform is that investors will not need to open separate accounts for different countries. Through a single integrated account, they will be able to access the US market as well as the seven newly added European markets. The transactions will be carried out within the framework of the Reserve Bank of India's Liberalised Remittance Scheme (LRS) and the applicable regulatory requirements of GIFT City.
Under the RBI's LRS, resident individuals can remit up to USD 250,000 in a financial year for permitted current and capital account transactions, including eligible overseas investments. The GIFT City-based platform is intended to provide investors with a regulated route to international markets, potentially reducing the complexities involved in opening accounts with overseas brokers and transferring funds internationally.
NSEIX Global Access IFSC Limited is a wholly owned subsidiary of NSE International Exchange. It is the first entity in the country to be registered as a Global Access Provider under the regulatory framework of the International Financial Services Centres Authority (IFSCA).
Market experts believe the expansion will help domestic investors diversify their portfolios geographically. Investments across US and European markets could provide exposure to different economies and sectors, potentially helping balance portfolios during periods of volatility or sluggishness in the Indian stock market. The platform may also add access to other major international markets in the future.
Hindusthan Samachar / Jun Sarkar
