Canadian stock market · for Indian investors
How to Invest in Canadian Stocks from India
Canada’s economy runs on banks, pipelines, railways and mines, and its stock market looks the same way. If your children study there, your cousins work there, or you just want assets that don’t move with Dalal Street, Toronto is worth a proper look. We show you how the money, the forms and the tax really work.
- TSX · TSX Venture
- Priced in CAD
- Opens 7 PM or 8 PM IST
Why Canada
A market built on real assets
- 6Big banks
Six large lenders dominate Canadian finance. Their long dividend records make them a common starting point for new investors.
- CADA commodity currency
The Canadian dollar tends to rise and fall with oil and metal prices, a different currency bet from holding US dollars.
- 2×Listed twice
Plenty of large Canadian companies also trade in New York, so a US account can reach them as well.
- T+1Settlement
Toronto trades settle one business day after you buy, in step with the US since 2024.
Three legal routes
How Indians can own Canadian shares
Each route is permitted. They differ in which currency you end up holding, what you pay and how much control you keep.
- 1
Global broker with TSX access
A handful of international brokers let Indian residents buy directly on the Toronto exchange and hold shares in Canadian dollars.
- Uses LRS
- Yes
- TCS
- Above ₹10 lakh a year
- 2
Cross-listed shares in New York
Buy the New York listing of a Canadian company through a US account. You get the same business, priced in US dollars.
- Uses LRS
- Yes
- TCS
- Above ₹10 lakh a year
- 3
Global funds from India
Some Indian funds of funds hold global or North American funds with Canadian shares inside. Canada will be a slice of the fund, not all of it.
- Uses LRS
- No
- TCS
- None
Interactive · TSX hours in IST
Toronto trades while India has dinner
Toronto keeps the same hours as New York and changes its clocks on the same dates. Choose the season, then drag the marker through your evening.
- First hour
- Main session
- Last hour
Inside the index
What the Toronto market is made of
Six groups explain most of what moves Canadian shares. They are here to study, not as recommendations.
Banks and insurers
The Big Six banks and large life insurers carry a heavy weight in the main index.
Retail banking, wealthEnergy
Oil sands producers and the pipelines that move crude and gas across the continent.
Producers, pipelinesMining
Gold, copper, potash and uranium. Toronto lists more miners than almost any exchange.
Gold, base metalsRailways
Two coast-to-coast freight networks that carry grain, coal and containers.
Freight railUtilities
Power and gas distributors with regulated, fairly predictable earnings.
Electricity, gasTechnology
Software and online commerce firms, a smaller but faster-growing corner.
Software, e-commerce
All aboard
Six stations from India to the TSX
- 1. Learn
Get to grips with the TSX, the TSX Venture Exchange, the S&P/TSX Composite and the way commodity prices sway Canadian shares.
- 2. Pick
Choose a broker that gives Indian residents access to Toronto, or decide that cross-listed shares or a fund suit you better.
- 3. Open
Finish online KYC with your passport and PAN, and fill in the tax residency forms the broker asks for.
- 4. Send
Your bank remits rupees under LRS. Ask whether it converts straight into Canadian dollars or goes through US dollars first, because each conversion has a cost.
- 5. Buy
Place orders only with money you have sent. Margin and leverage are off the table for LRS funds.
- 6. Report
Show the holding in Schedule FA, report dividends and gains, and use Form 67 to claim credit for the tax Canada kept back.
Interactive · The loonie and you
Price and currency, side by side
Canadians call their dollar the loonie, after the bird on the one-dollar coin. It can add to what your shares earn or take some away. Try a few combinations.
- TCS if this is your only LRS transfer this year
Leaves out fees, dividends and tax. An exercise, not a forecast.
Tax in two countries
Who taxes what
In Canada
Tax at source on dividends
- DividendsCanada keeps back tax on dividends paid to non-residents. For individual investors from India the treaty rate is 25%.
- Capital gainsGains on small holdings of listed shares are generally not taxed in Canada.
In India
Reported in your ITR
- Under 24 monthsGains are added to your income and taxed at your slab rate.
- Over 24 monthsLong-term gains are taxed at 12.5% under current rules, without indexation.
- DividendsTaxed at your slab rate. Form 67, filed before your return, gets you credit for the Canadian tax.
- Schedule FAEach foreign holding goes into your ITR, reported on a calendar-year basis.
- TCSYour bank collects it on investment remittances above ₹10 lakh a year. It comes back as a credit when you file.
Trace a C$100 dividend
Know before you go
What can go wrong
Commodity swings
Oil, gold and metals steer a big part of the index. When they slide, much of the market slides with them.
The loonie floats
A firm rupee can shave off gains you made in Canadian dollars. A weak rupee does the opposite.
Narrow index
Banks and energy make up a large share of the main index, so a broad Canada fund is less spread out than it looks.
Venture-board traps
The TSX Venture lists early-stage miners and startups. Many never make a profit and some are hard to sell.
Fewer doors
Fewer platforms serve Indian residents for Toronto than for New York. Watch for double currency conversion.
Housing exposure
Canadian banks hold large mortgage books, so a housing or interest-rate shock can hit them hard.
The 9AM programme
Canadian stock market course for Indian investors
Six modules in New Delhi and live online, taught in English and Hindi. Fees on enquiry.
- 01
Canada’s market map
TSX, TSX Venture, CSE and Cboe Canada, the S&P/TSX indices and CIRO, the national regulator for dealers.
- 02
Getting in from India
Brokers with Toronto access, cross-listed shares and funds, compared on cost and convenience.
- 03
Money and paperwork
LRS, TCS, Form A2, conversion charges and the records worth keeping.
- 04
Reading Canadian businesses
Banks, energy, miners and railways: how commodities and rates feed into their earnings and dividends.
- 05
Charts with a commodity lens
Technical analysis on TSX stocks, read alongside oil, gold and the loonie.
- 06
Tax back home
Capital gains, dividends, Form 67 and Schedule FA, worked through with examples.
Building your base? Our Fundamental Analysis and Technical Analysis courses come first for most students. Comparing markets? See how to invest in US stocks from India or investing in the Dubai market.
Questions
Canadian stocks from India: FAQs
Can I buy Canadian shares while living in India?
Yes. Resident Indians can invest in foreign listed shares under the RBI's Liberalised Remittance Scheme, through an authorised bank and a regulated broker that accepts Indian clients.
What is the main stock exchange in Canada?
The Toronto Stock Exchange (TSX) lists Canada's larger companies. The TSX Venture Exchange is for smaller, early-stage firms, and the Canadian Securities Exchange and Cboe Canada are smaller venues.
What is the S&P/TSX Composite?
It is Canada's benchmark index, covering most of the larger companies on the TSX. The S&P/TSX 60 is a narrower index of 60 of the biggest names.
Can I buy Canadian companies through a US trading account?
Yes, if the company is also listed on the NYSE or Nasdaq. You would hold the New York listing in US dollars, so your currency exposure is to the US dollar rather than the Canadian dollar.
How much can I send abroad to invest in Canada?
Up to US$250,000 per person in a financial year under LRS. The limit is shared with everything else you send abroad under the scheme, such as travel or gifts.
Is TCS deducted when I invest in Canada?
Yes. Banks collect TCS of 20% on investment remittances above ₹10 lakh in a financial year, as per current rules. You can claim it back as a credit in your income tax return.
What tax does Canada take from my dividends?
Canada withholds tax on dividends paid to non-residents. Under the India-Canada tax treaty the rate for individual investors is 25%. You can claim credit for it in India by filing Form 67.
How are gains on Canadian shares taxed in India?
If you held the shares for more than 24 months, the gain is taxed at 12.5%. For 24 months or less, it is added to your income and taxed at your slab rate.
When does the Toronto Stock Exchange open in India time?
The TSX trades 9:30 AM to 4 PM Toronto time. In India that is 7 PM to 1:30 AM during Canada's summer time and 8 PM to 2:30 AM in winter.
Does 9AM teach investing in Canadian stocks?
Yes. We teach how Canada's markets work, the legal ways to reach them from India, how to analyse Canadian companies and how to handle tax at home. We do not open accounts or give stock tips.
Take your portfolio north
Join a free demo class and plan your own route to Toronto.
Disclaimer: 9AM Traders Academy provides market education only. We are not a SEBI-registered investment adviser, do not open overseas accounts and do not give tips or recommendations. Sectors are described for learning. LRS, TCS, treaty and tax rules change; check the current position with your bank and a chartered accountant. Numbers in the tools are illustrations.