Hi just wanted to know how can one invest in foreign markets such as the Hang Seng, NYSE, NASDAQ and others etc. Can Indians invest abroad or does RBI not allow that? If anyone has any information about this please let me know.

Thnx


Ashwin

Till a certain limit, Indian residents are allowed to invest in world markets.

The question is how to get a trading account to make such an investment?

ICICIDirect.com does allow investors to invest in US markets, but not other markets.

http://content.icicidirect.com/OtpTrade.asp

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Some of our friends who have been abroad on work permit and still have their oversees bank account active, have advantage here.
They can open trading account with global brokerage firm and connect it to their USD/ GBP/ EUR account.

I wouldn't trust ICICIDirect's trading platform to trade such market where risk in terms in Rs is also high.

From practical side, why do one need to trade foreign market ? If one has good system and can make money in trading NIFTY, then there is enough of turnover in NIFTY that is far above our dream limit.
To trade say DOW futures, where each point move is worth 10$ of risk and DOW moves by 300 to 400 points every day. If we are placing our money there then we need to monitor the political, news, sentiment etc in that market too during their trading hours.
Sitting in India, we generally have low exposure to such development.

In my view, a trade needs the FOCUS is of a Cheetah to succeed. By going in different markets, we are just diluting that focus and taking more risk.

Happy Trading

I think you are wrong is stating that one is taking more risk by investing in foreign markets. I feel that the optimal strategy should be to invest 50% of your equity portfolio in Indian market and the other 50% in the rest of the world. A well diversified "investment" portfolio always provide adequate cushion during downturns. As far as trades are concerned, I think one is better off sticking with just Nifty/your favourite punting stock in the NSE.

India is one of the fastest growing economies in the world.

for the long term, I think, investing in India makes much more sense.....provided one doesn't pay a very high price for entering.

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Thank u fr all de info everyone. I knew about the ICICI Direct Overseas Trading. Everyone is very right that India is a growing economy and it make more sense trading here, but look at foreign markets such as Hang Seng. More than NYSE I would want to trade in HKSE. The hang seng is highly volatile. One can much money in Day Trading in Hang Seng. China is also developing at a fast rate and one should also consider investing there. I just wanted to know if it is possible and is it worth it cos we would also be taking the risk of change in dollar values.

Saw this article.

SEBI allows Indian investors to trade in global indices - Yahoo! India Finance

Wanted to know does it mean can we buy shares and get it in a demat account opened for it or its just plain trading that we can do on foreign exchanges?

Is there any way now that we can buy stocks on foreign exchanges?

You can buy foreign stocks if your broker allows it. See post #2.

According to the above article, derivatives for global indices will be now allowed on Indian exchanges.

e.g. Investors would be able to trade Dow Jones Industrial Average on the NSE.

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