Come Diwali, domestic individual investors can invest directly in international stocks, bonds and ETFs from 130 exchanges from 31 countries, including America, Europe, Asia-Pacific and Africa.
This facility is deployed by India INX Global Access IFSC Ltd (Global Access) – a wholly owned subsidiary of India INX, which is a subsidiary of ESB.
“We will offer this Diwali facility through our Global Access platform and allow domestic investors coming through the Liberalized Transfer System (LRS) to invest in global markets. We create a platform of multiple brokers and clients can choose which platform they want to use. We provide choices for individual investors, ”said V Balasubramaniam, Managing Director and CEO of India INX. Activity area.
Customers can start using the Global Access Platform after going through a digital KYC process on the platform. Members of the Exchange will be able to offer global equity products to their resident Indian clients through INX GA.
Link with brokers
Domestic investors coming through LRS and using the Global Access platform will be limited to buying stocks, bonds and ETFs on international exchanges. They will not be allowed to trade them or participate in the derivatives segment, according to Balasubramaniam.
For activating this facility, Balasubramaniam said India INX Global Access has already linked up with a few foreign brokerage houses such as London-based Marex Spectron, US-based Interactive Brokers, and also ED&F Capital. “We are in the process of adding Philip Capital, based in Singapore, and Sova, based in Russia. The effort is to expand the access of our domestic investors to international brokers. We are independent from the country, that is, whoever wants to offer such brokerage services in international markets, we will integrate them, ”he said.
He pointed out that there are many high net worth and wealthy Indians who may want to diversify globally and have exposure to global assets.
For example, if someone wants to buy an Apple or Amazon stock, they can directly have it executed in the US markets, largely from the Indian coast. “We are meeting this aspiration at a significantly lower cost,” he said.
Asked how Global Access differentiates itself better than other online discount brokerages with similar facilities, Balasubramaniam said clients can get significant cost advantages here.
“INXGA has linked up with several banks, viz. HDFC Bank, ICICI Bank and IndusInd Bank for a seamless transfer experience at a lower cost. Other banks will also be gradually integrated.
Besides the savings on forex conversion costs, we also give them the assurance that ours is a regulated and registered platform. There is no regulatory ambiguity as to whether it is regulated or not.
We offer technology service so that customers have a seamless digital experience, ”he said.
It will be recalled that the Reserve Bank of India (RBI) earlier this year authorized LRS – which allows resident individuals to freely pay up to $ 250,000 per year – to be operationalized in Gift City in Gujarat. , the country’s only international financial services center.