Investing in US Stocks and Options: Finance Trading Times

Investing in US Stocks and Options

Indian investors can now go for global buying and investing in equity or shares by choosing among the real blue chip stocks such as Google, Microsoft, IBM, Wal-Mart, Coca Cola and others.

India’s premier online trading site, has launched its foreign trading facility for Indian investors who want to invest upto $200,000 in a financial year in Stocks, ETF- Exchange Traded Funds, Derivatives like Stock Options or Index Options.
ICICIdirect launched the service in alliance with Penson Financial Services which is USA’s fourth largest broker having $6.8 billion in assets under management. The online portal will provide an excellent option to trade and invest in US stock exchanges such as NYSE, NASDAQ and American Stock Exchange.

As per the information I have, for registering for this service, a one time fees of Rs. 99 is to be paid and money is remitted to USA through ICICI Bank (Users are requested to confirm for the exact charges and service taxes before going for the offer). The facility is only available to resident individuals and not available to corporate, partnership firms, HUF, Trusts, and NRIs.

Anil Dhirubhai Ambani Group (ADAG) who is managing Reliance Money was the first company to launch overseas trading facility in partnership with CMC Markets but that was only for derivatives segment.

Thus, ICICI Web Trade has become the first to offer ‘delivery-based’ overseas trading service. Though in derivative segment, trading in futures is not allowed, RBI prohibits investing overseas for use in margin trading.

Have questions, please read the comments and post your views and queries in the comments section which helps in open discussion and avoids duplicity of questions.

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6 Comments: Post your Comments

Anonymous said...(on 22 October 2007 at 05:46 )  

So I can now use my dmat account to trade in US stocks as well?
That was an interesting input, Shobhit. Thanks. I'll check it up with my ICICI Bank rep.

Is that only the US? (At this moment, with US investors fleeing their home shore for emerging markets like India, that would be moot!) How about other emerging markets, or European markets? Any idea?

Aniruddha said...(on 22 October 2007 at 23:57 )  

Hi Shobhit
any idea about taxation? how they going tax capital gain? i think that is still unclear. i have applied for icici's facility, but i haven't got any communication on taxation front. lets see.

thanks for the post.

Aniruddha said...(on 23 October 2007 at 00:00 )  

Congratulations for completing 100 articles in the year 2007.

Good work, Keep it up.


Shobhit said...(on 23 October 2007 at 02:02 )  

Thanks Andy for the compliments.

Here is some additional info for investing in US stocks through ICICIDirect:

ICICIdirect has facilitated its customers to invest in various Stocks and Options that are traded on the exchanges in United States of America.

As you are existing e-invest customer of ICICIdirect, then you need to fill up an additional account opening form for overseas trading facility and submit the proof of photo identity and a proof of residence along with it (please read answer to question 8 for more details). ICICIdirect will send these documents on your behalf to Penson. Your documents will be scrutinized to ensure that it conforms to the requirements of U.S. securities industry standards and regulations. If all the documents are found in order, your account will be activated.

You can open an ICICIdirect e-Invest account by filling a single application form. This form will help you open an ICICIdirect Brokerage Account along with a Bank Account and one or more Demat accounts as required. You can request our representative to visit you. Our CSE will contact you to complete the initial account opening formalities.

Account opening charges are Rs. 999 per account. These are applicable to both the new customers as well as existing 3-in1 account holders of ICICIdirect.
For opening the Account, you can follow any one for the below mentioned procedure:

1. You can reply to us with your mailing address and contact
number to arrange for an officer to assist you personally in
opening of the account.

2. Kindly visit the nearest ICICI Bank branch offering demat

Only following documents can be used as a proof of identity and residence:
1. Copy of valid passport (as a proof of identity and residence), or
2. Copy of valid driving license (as a proof of identity and residence), or
3. Copy of PAN card (as a proof of your identity) and banker's letter (as a proof of your residence)

If communication address is different from residential address, the proofs of both the addresses are required.

Anonymous said...(on 23 October 2007 at 22:04 )  

Thanks for those further inputs.

Anonymous said...(on 23 October 2007 at 23:51 )  

Although, Shobhit, could you address/research my earlier query, do you think? Can we (in India) invest directly in stocks in other emerging markets or non-US developed markets?

If there is such a system, I'd prefer using that instead of one which only gave me access to the US.

Thanks. Appreciate your inputs.

Wish you all happy and fruitful trading and investing activities with safety! = = = Post a Comment

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