Major Indian stockbroking platforms Zerodha, Groww, Angel One, and Upstox have received necessary approvals to use GIFT City (Gujarat International Finance Tec) facilities to offer international and US stock investing services, according to media reports. The services are expected to launch within the next two to three months, pending completion of testing, technology integration, and regulatory compliance procedures.
Recent Developments in International Investing
Last week, Raise Securities, which operates the investment platform Dhan, also made US stocks accessible. Similarly, on June 11, SAMCO Securities announced the launch of its global investment platform for US stocks and exchange-traded funds after obtaining a broker-dealer licence from the International Financial Services Centres Authority (IFSCA).
GIFT City's Global Access Provider Framework
The Global Access Provider (GAP) framework was introduced by GIFT City in August last year to provide Indians with a more affordable and regulated way to invest abroad. Key features include zero withdrawal fees when transferring money back to India.
Under the new framework, Zerodha and Upstox will act as broker-dealers, while Groww and Angel One will serve as Global Access Providers. Zerodha and Upstox are expected to route transactions through international clearing and execution partners, including ViewTrade International, Interactive Brokers, and Alpaca Securities, to grant users access to international markets. ViewTrade already has GAP approval, but the launch of products linked to Interactive Brokers and Alpaca may take longer.
Partnerships and Market Expansion
These companies have also formed alliances with major US brokerage platforms such as Robinhood and Charles Schwab, which can facilitate access to foreign stocks. Under the GAP model, brokers are expected to collaborate with US brokerage firms to enable cross-border investing.
While Indian companies are opening up opportunities for citizens to invest in the United States, foreign companies are also exploring Indian markets through unconventional means. Tryfacta, a US-based company, recently applied to the IFSCA for approval to raise USD 100-150 million through an IPO. If approved, it would be the first US-based company to list on GIFT City markets.
Regulatory Framework and Conditions
Indian investors will be able to invest abroad through IFSC-registered brokers under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS). The entire transaction will be conducted in US dollars, and the benefits will be conditional upon the rupee-dollar exchange rate.
