HDFC Securities announced a partnership with Stockal, a US-based financial platform, to launch GlobalInvesting.in, which will allow its customers to directly invest in US stocks listed on Nasdaq
HDFC Securities, the stock broking arm of India’s largest private-sector lender, HDFC Bank, on Wednesday announced a partnership with Stockal, a US-based financial platform, to launch GlobalInvesting.in, which will allow its customers to directly invest in US stocks listed on Nasdaq.
According to HDFC Securities, individual Indians have spent over $35 billion overseas via the Reserve Bank of India’s (RBI) liberalised remittance scheme (LRS) since 2015. The LRS was established by the RBI in 2004, which allowed Indian citizens to transfer funds abroad for permitted current or capital account transactions.
The limit on transactions made under the LRS is capped at $2,50,000 under Schedule III of the FEM (CAT) Amendment Rules 2015. “Indian investors are constrained to local markets as investing in global markets involves expenses and cumbersome processes, enabling only ultra-HNIs and institutions to benefit from cross border investing,” according to HDFC Securities.
The brokerage house believes that through GlobalInvesting.in, investing in the US markets will be almost as easy as investing in local Indian markets. An entire investing pipeline has been created from US-brokerages, clearing services, custodians, ideation, execution and portfolio monitoring. On the US side, DriveWealth LLC, a modern brokerage and clearing services firm with fintech roots, has been brought in as a partner, creating an entirely digital process.
Nandkishore Purohit, head – digital strategy and analytics, HDFC securities, said, “While portfolio diversification is one of the fundamental survival trick in any market, with GlobalInvesting.in, we are looking to give our investors the extra edge through international investing opportunities.” Stockal is a New York-headquartered financial services company that helps investors to make investments around the world, irrespective of where they live. Stockal is currently on-boarding investors from emerging economies like India and the Middle East and will soon launch in Indonesia, Malaysia and Brazil, according to the company’s website.