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How to invest in US stock market from India? – All you need to know

It is simpler and practically identical to purchasing shares of Indian companies on Indian stock exchanges to own shares of Amazon, Google, or Apple. However, the fact that the purchasing procedure involves a foreign brokerage business and that investors must abide by the RBI’s foreign exchange regulations gives it a different hue. However, the complete documentation process is handled by the international brokerage firm in order to guarantee that the investor’s attention is kept on purchasing US stocks with a single mouse click.

In this guide, you will get to know about how to invest in US stock market from India?

Opening an account

The first step is to register the account online once you have determined which brokerage in India is suitable for purchasing US equities. It is a quick, basic, and uncomplicated process. To get started, just give your name, email address, and mobile number. Your brokerage account is immediately generated once the account is set up.

Information

You will be required to supply specific documentation when opening an account in order to prove your identity and address. The documentation is minimal and consists of an ID proof (with a photo) and an address proof. Voter identification, a PAN card, a valid driver’s license, a passport, or a voter registration card and photo are acceptable forms of identification. As proof of address, you can give a utility bill, a cell phone bill, a bank statement, or even a credit card statement. A valid driver’s license with an address or a passport or an Aadhaar card, all of which are government-issued photo IDs, will also do.

Including Money

You can add money to your brokerage account once it has been approved.

Forex procedures

You should be careful with the RBI’s forex restrictions before beginning to add money and make investments abroad; this is what the Liberalized Remittance Scheme (LRS) is all about. If you live in India, you must purchase dollars (or any other currency) from an authorized dealer (the bank) there using Indian rupees (INR). The money can then be used to buy property or other assets like equity shares by sending it abroad or spending it there.

Any resident person, even a juvenile (countersigned by a guardian), is currently permitted to remit up to 2.5 lakh US dollars (USD 2,50,000) in any financial year under the LRS guidelines. It is approximately Rs 1,82,50,000 or Rs 1.82 crore at a rupee to dollar conversion rate of 73.

Thus, I have some paperwork for you. Before beginning to trade, you must finish the necessary LRS form procedures.

Exchange Rates

The foreign currency rate is important when moving rupees from your Indian bank account to your US brokerage account. Some of the foreign brokerage platforms where you open the account have partnerships with top nationalized banks to secure favorable exchange rates for you. As an alternative, you can speak with your banker about money transfers.
Conclusion

As a result, money has been deposited into your brokerage account. You are ready to go whether you wish to start investing in foreign equities or purchase NASDAQ stocks from India. From Chinese juggernauts like Alibaba to numerous Indian and European businesses, everything is accessible from the convenience of your home, even the US-listed ADRs. Additionally, you can buy in US stocks with just Rs 100!

Source: Financial Express

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