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How to Purchase Stocks of Overseas Companies

Purchase Stocks, overseas trading account, overseas trading, overseas companies, foreign bank account

 Who would not like to buy foreign trade stock? But can anyone buy it? For any investor, stocks like Google, Microsoft, and Apple are Dream to buy. But many people in India do not understand how to buy their shares. The success stories and growth prospects of businesses in the United States such as Apple, Google and Microsoft are amazing. Owning such shares from India is almost like a dream. Here are a few things to buy a stock of overseas companies

Open an overseas trading account

Yes, this is the first step. If you want to purchase overseas companies stock, you must have an overseas bank account. It is legal and possible for an Indian to open a foreign bank account. It is allowed under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI). According to LRS, a person can open a bank account in an overseas country.

However, funds transferred to a foreign bank account should be used as per RBI guidelines. You are not free to use the money as you wish, RBI imposing restrictions.

How to deposit money in an overseas bank account?

This can be done by transferring funds from India’s own bank account. Care should be taken to ensure that foreign bank accounts are financed using normal channels of banking.

It is usually a good idea to inform the bank of your intentions before opening a foreign bank account. You only have to process the bank account opening if they agree to provide overseas trading account services to you.

Can online trading A/C in India by overseas stocks

I am not sure, but there can be no such brokerage firm in India which can also trade in foreign shares.

There are some hints on the web that this facility is provided by some Indian brokerage firms that collaborate with foreign brokerage firms.

However, here are some banks of the following share trading platform providers:

  • Kotak Securities
  • ICICI Direct
  • HDFC Securities
  • Axis Direct etc

By indirectly Overseas Stocks- through Mutual funds

Shares of overseas companies can be purchased through mutual funds. Such mutual funds that invest in foreign shares are mainly funds. These funds of funds invest in mutual funds that buy stocks of overseas companies.

Although some mutual funds firms also buy stocks directly from overseas, these funds are few. There are about 30–35 overseas mutual funds in India that invest directly or indirectly in overseas companies.

Conclusion- Buying stock from overseas companies is not easy. Although RBI has enabled buying overseas shares, it does not look like an excellent investment option in terms of price.

International stock brokers that enable Indian nationals to purchase US-listed stocks charge an average Indian investor an excessive fee. Online stock is costly to trade in overseas stocks. Positively this will affect net yields. In terms of the returns they produce, international mutual funds are not spectacular either. This is your modest option to give up glamorous stocks in the US or to get huge returns from our Indian stocks.

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