can i buy stocks from international stock markets using Indian demat account?
It is possible to buy stocks from international stock markets using an Indian demat account, but it's not a straightforward process. Indian investors can invest in international markets through the Foreign Portfolio Investment (FPI) route, which allows them to buy shares of foreign companies listed on stock exchanges outside India.
To buy stocks from international stock markets, an Indian investor must first open a demat account with a depository participant (DP) that is authorized by the Securities and Exchange Board of India (SEBI) to offer FPI services. They will also need to open a foreign currency account with a bank that is authorized to deal in foreign exchange. Once these accounts are open, the investor can then transfer money from their foreign currency account to their demat account to buy shares of foreign companies.
It's important to note that there are certain restrictions and regulations that must be followed when investing in international markets through the FPI route. These include limits on the amount that can be invested and certain reporting requirements. It's also important to be aware of the different tax laws and regulations of the country where the stocks are being purchased, and the currency risk involved.
In summary, Indian investors can buy stocks from international stock markets using an Indian demat account, but it requires opening a demat account with a depository participant authorized by SEBI and a foreign currency account with an authorized bank, and following the regulations and restrictions set by SEBI and being aware of the tax laws and regulations of the country where the stocks are being purchased, and the currency risk involved.
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