Indian retail investors can now invest in US stocks through leading domestic brokerages, as Groww, Zerodha, Angel One, and Upstox have secured regulatory approvals from the International Financial Services Centres Authority (IFSCA), the regulator for Gujarat's GIFT City.
Regulatory Approvals and Licences
According to IFSCA disclosures, Groww and Upstox have obtained Global Access Provider (GAP) licences, while Zerodha and Angel One have received broker-dealer approvals. These permissions enable all four major brokerages to offer Indian retail investors access to international stock markets.
Regulatory approvals were granted to Zerodha and Groww on June 2, while Angel One received its licence on June 12. Under the framework, GAP licence holders connect directly with US-based brokers for trade settlement, while broker-dealers partner with GAP operators and American brokerage firms to facilitate services.
Surge in Overseas Investments
Data from the Reserve Bank of India (RBI) shows that Indian investors allocated approximately $440 million to overseas equities in March, marking a 43% increase from the $306 million invested during the same month a year earlier. Current RBI regulations allow individuals to remit up to $250,000 annually under the Liberalised Remittance Scheme (LRS) for investing in overseas assets, including international stocks.
Groww and Upstox now join firms like Vested Finance and IndMoney, which already operate as GAPs and provide Indian investors with global equity access. Trading activity in US equities surged by around 20% on Friday, as reported by ET on June 15, driven by excitement surrounding SpaceX's anticipated public market debut.
Industry Reactions and Future Plans
Zerodha CEO Nithin Kamath stated in October last year that the brokerage was preparing to offer US stock access on its platform and had already sought necessary regulatory approvals. GIFT City is witnessing growing activity, with an increasing number of fintech firms seeking licences to broaden their participation in cross-border financial transactions involving India.
A recent report indicated that several payment companies are evaluating the GIFT City framework as a potential route for launching wallet-based services within the international financial centre, enabling international fund transfers and related cross-border payment flows.
This development marks a significant step for Indian investors, providing easier access to US equities through trusted domestic platforms.
