How to Trade Stocks in India
The global marketplace is evident everywhere. Right now you might be driving a car from Korea, wearing clothes from Thailand and talking on a phone made in China to a person in India. In addition to call centers, Indian companies are responsible for products ranging from apparel, jewelry, home furnishings, computers, printing and publishing, food, musical instruments and more. India is an emerging marketplace with many opportunities for investment.
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Instructions
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Call your broker to find out what companies in India are good investments. You can buy stocks of Depository Receipts (DRs), including American Depository Receipts (ADRs), Global Depository Receipts (GDRs), Euro Depository Receipts (Euro DRs) and New York Shares (NYSs) of Indian companies directly with your American broker.
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Go to the website for BNY Mellon and click on DR directory. Select your "Region" as South Asia, "Country" India, "Industry" All Industries, "DR Exchange" All Exchanges, and "Depository" All Depositories. Find a list of companies in India that have DRs and enable you to trade in India without incurring the obstacles and expenses of using the local trading markets. You can refine your search by industry on this page.
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Use the Global BuyDirect program at BNY Mellon. This allows you to purchase companies in India and re-invest dividends automatically while benefiting from reduced brokerage and transaction costs.
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If you are a non-resident citizen of India (NRI), a person of India origin (PIO), or holder of overseas citizenship of India (OCI) you can invest with the online company NriInvestIndia.com that sell non-residents stocks and mutual funds on the India Share Market.
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Tips & Warnings
Depository Receipts allow non-U.S. companies to offer shares to investors that are traded as negotiable U.S. securities through intermediary custodial banks that purchase the shares from the company.
References
- Photo Credit india image by creative from Fotolia.com
