Termination of NSE IFSC Receipts Programme (Unsponsored Depository Receipts on U.S. stocks) at NSE IFSC Limited

NSE IFSC Limited, vide Circular No. NSEIFSC/REG/2703 dated July 29, 2026, has announced an important update regarding the Standard Operating Procedure (SOP) for the termination of the NSE IFSC Receipts Programme (Unsponsored Depository Receipts on U.S. stocks).

Key Details of the Update –
• The circular issues a Standard Operating Procedure (SOP) to facilitate the orderly termination of the NSE IFSC Receipts Programme and provides the operational framework and timelines for market participants and receipt holders.
• The SOP reiterates that buy orders in NSE IFSC Receipts will not be permitted from July 30, 2026, except by the Market Maker, and that dealing in NSE IFSC Receipts will be terminated with effect from February 1, 2027.
• During the Closure Period (July 30, 2026 to the prescribed cut-off dates), holders may either:
• Sell their NSE IFSC Receipts on NSE IFSC up to January 29, 2027; or
• Cancel NSE IFSC Receipts and withdraw the corresponding underlying U.S. shares up to January 20, 2027.
• Under Option 1 (Sale on NSE IFSC):
• NSE IFSC will waive exchange transaction charges on sell transactions during the Closure Period.
• Liquidity will be provided by the Market Maker.
• Trades will continue to settle on a T+2 rolling basis through NSE IFSC Clearing Corporation Limited (NSEICC).
• Under Option 2 (Cancellation and Withdrawal of Underlying Shares):
• Cancellation is permitted only where the NSE IFSC Receipts represent a whole number of underlying shares.
• Holders must submit a Cancellation Request through their broker dealer.
• Holders must maintain a depository/custodian account capable of receiving the underlying U.S. shares and comply with applicable FEMA/LRS requirements.
• Applicable cancellation fees, taxes and documentation must be completed before acceptance.
• Corporate actions will continue to be processed during the Closure Period. However, no fresh NSE IFSC Receipts will be issued pursuant to corporate actions after commencement of the Closure Period.
• Broker Dealers are required to disseminate both the circular and the SOP to all NSE IFSC Receipt holders through their registered email addresses and mobile numbers.
• Applicability: Applicable to all Market Participants, Broker Dealers, Clearing Members and NSE IFSC Receipt Holders.
• Effective Date: July 30, 2026 (effective date of the SOP and commencement of the Closure Period).
• Key Changes: Introduces the detailed SOP governing responsibilities of stakeholders, trading restrictions, holder exit options, cancellation process, corporate actions, complaint handling and timelines for termination of the NSE IFSC Receipts Programme.
• Penalty/Consequence: Outstanding NSE IFSC Receipts remaining after the Closure Period will continue to be governed by Clause 18 of the Deed Poll, and NSE IFSC will have no obligation to provide any liquidity, exit mechanism or exit facility for such outstanding receipts.

Actions if Any –
• Broker Dealers must disseminate the circular and the SOP to all NSE IFSC Receipt holders through their registered email addresses and mobile numbers.
• NSE IFSC Receipt Holders should exercise either the sale option or the cancellation and withdrawal option within the prescribed Closure Period.
• Holders opting for cancellation must submit a duly completed Cancellation Request with applicable fees, taxes, declarations and supporting documents, and ensure compliance with FEMA/LRS requirements.
• Market Participants should adhere to all timelines and trading restrictions specified in the circular and SOP.

Compliance Deadline –
• From July 30, 2026: No buy orders in NSE IFSC Receipts (except by the Market Maker) and commencement of the Closure Period.
• By January 20, 2027: Last date for submission of Cancellation Requests for withdrawal of the underlying U.S. shares.
• By January 29, 2027: Last date to sell NSE IFSC Receipts on NSE IFSC.
• From February 1, 2027: Dealing in NSE IFSC Receipts stands terminated.