Unlocking the World of NSE International Exchange (NSE IX): A Clear & Illustrative Guide for Remote Trading Participants

INTRODUCTION

India’s drive to become a global financial powerhouse has found a modern home at GIFT City, and playing a starring role there is the NSE International Exchange (NSE IX). But what is NSE IX, and how can international investors participate—especially as Remote Trading Participants (RTPs)? This blog unpacks everything you need to know in a simple, yet detailed, format.

Global market dynamics displayed on a vibrant digital trading screen, highlighting remote access to NSE IX with a world map and financial data in focus.

What is NSE IX?

NSE IX, a wholly owned subsidiary of the National Stock Exchange of India, is operational at GIFT City IFSC (Gujarat International Finance Tec-City) since June 2017. NSE IX connects global investors to Indian and international markets, allowing trading in stocks, indices, currencies, commodities, and even US shares—all settled in US Dollars.

Key Points:

· Longest Trading Hours: Nearly 21 hours a day, overlapping Asia, Europe, and US markets.

· No Currency Risk: All trades in USD, so no conversion losses.

· Multiple Products: Index & single stock derivatives, currency & commodity derivatives, bonds, depository receipts, and more.

· Tax Advantages: No Security Transaction Tax (STT), no Capital Gains Tax for foreign investors, and a host of regulatory incentives for participants in GIFT IFSC.

What is a Remote Trading Participant (RTP)?

A Remote Trading Participant (RTP) is a foreign entity that can trade on NSE IX without setting up a physical office at GIFT City. Everything—from account registration to daily trading—is handled digitally. RTPs can trade on their own account (“proprietary basis”) in cash-settled derivative products.

Who Can Be an RTP?

· Must be a body corporate (company or similar entity)

· Resident of a country regulated by a recognized securities authority (IOSCO MMoU signatory or equivalent agreements with IFSCA)

· Not on FATF high-risk/blacklists

· Not incorporated in India

Permitted Exchanges for Membership (Examples):

NYSE, NASDAQ, CME, ICE, LSE, Euronext, SGX, ASX, Frankfurt, Tokyo, and many more major global exchanges.

Main Benefits of the RTP Model

· No Physical Presence Required: No office setup means minimal start-up costs, zero local infrastructure.

· Quick Registration: Streamlined digital process gets you trading much faster than traditional models.

· Lower Trading Costs: Lower fees, fewer regulatory overheads, and significant tax benefits.

· Direct Market Connectivity: Access NSE IX systems directly from abroad—real-time trades, instant data.

· Extended Trading Hours: Open almost round the clock—catch global moves as they happen.

· No Currency Hassles: Trade and settle in USD, removing INR conversion risks.

Registration Process: Becoming a Remote Trading Participant

To become an RTP on NSE IX, here’s a step-by-step illustrative guide:

1. Draft Application: Submit to NSE IX with mandatory documents (proof of incorporation, regulatory status, etc.).

2. Review & Queries: NSE IX reviews application, communicates any requirements or clarifications.

3. Final Submission: Upload all documentation as guided.

4. Committee Approval: Application assessed by NSE IX’s internal committee.

5. In-Principle Approval: Receive approval letter with onboarding instructions.

6. Enablement & Connectivity: Complete system enablement, sign clearing agreement with an IFSCA-registered Clearing Member.

7. Go Live: Access trading platforms via the internet or co-location, and start placing trades in derivatives.

What Can RTPs Trade?

RTPs are allowed to:

· Trade only on their own account (cannot onboard or represent clients)

· Access all cash-settled derivative products listed on NSE IX—equity, commodity, and currency derivatives

Note: RTPs cannot act as brokers for clients or access non-derivative instruments.

Clearing, Settlement, and Infrastructure

Clearing & Settlement: RTPs must partner with a registered Clearing Member of NSE IX for all trade settlements. The Clearing Member handles margin, settlement, and risk management, ensuring a robust trading environment.

Co-location Services: Traders can opt for co-location at NSE IX’s data center for low-latency access:

·       Secure, state-of-the-art environment

·       Uninterrupted power and connectivity

·       Multiple setup and bandwidth options

Connectivity Options:

· Colocation as a Service (CaaS): Managed by approved third-party vendors for seamless access

· Direct Market Access (DMA): For advanced, algorithm-driven trading

Compliance & Prudence

RTPs must:

·       Maintain rigorous AML/CFT protocols (international anti-money laundering standards)

·       Adhere to all IFSCA/NSE IX compliance and reporting requirements

·       Maintain proper records for all trades and transactions

Illustrative Example: RTP Participation in Action

Let’s imagine an investment firm based in London wants to access Indian index derivatives:

· It qualifies by being a body corporate regulated by the FCA (UK’s securities regulator).

· Submits RTP application to NSE IX, gets reviewed and approved within weeks, and signs clearing agreement.

· Connects remotely via the internet or by hosting its servers in NSE IX’s co-location data center.

· Starts trading Nifty 50 Futures and Options—directly from London, all in USD, with trades cleared and settled through a local Clearing Member in GIFT City.

Result: The firm can access the Indian market, hedge global risk, or invest in emerging Asia—without setting up an Indian office or worrying about tax and currency complications.

Quick FAQ Section

· Q: Can RTPs trade on behalf of clients? A: No, RTPs may only trade for themselves.

· Q: Do RTPs require a physical office in India? A: No, that’s the biggest advantage—remote, digital presence only.

· Q: Which countries’ companies can apply? A: Any, except those on the FATF “grey” or “black” lists, or Indian-incorporated entities.

· Q: What products can RTPs access? A: Only cash-settled derivatives listed on NSE IX.

· Q: Can RTPs utilize co-location? A: Yes, for ultra-fast, low-latency trading.

Conclusion

The Remote Trading Participant route at NSE IX is a game-changer for access to India’s markets. With rapid digital onboarding, robust regulatory safeguards, global-standard technology, and generous fiscal benefits, NSE IX extends India’s financial network to every corner of the world—without the need for a physical footprint.

If you’re part of an eligible foreign entity looking to unlock Indian and international market potential, NSE IX’s RTP program might be your simplest, smartest path.

For queries or to begin your registration, reach out to NSE IX at:Email: bd@nseix.com | Phone: +91-79-66743615 / 542

Explore, trade, and expand—remotely and securely—with NSE IX.