Major Indian Brokers Get GIFT City Nod to Boost US Stock Investing

Indian retail investors are set to enjoy seamless access to Wall Street as top fintech brokerages secure regulatory approvals to expand their global equity offerings. This strategic move via GIFT City marks a significant milestone in the democratization of international investing for the Indian masses.

The Big Four Join the Global Race

In a major regulatory breakthrough, the International Financial Services Centres Authority (IFSCA) has granted essential permissions to India’s leading new-age brokerage firms. The approvals allow these players to bridge the gap between domestic investors and international markets through the Gujarat-based GIFT City.

The licensing structure varies among the players to suit their operational models. Groww and Upstox have been granted Global Access Provider (GAP) licences, which allow them to connect directly with US-based brokers for trade settlements. Meanwhile, industry giants Zerodha and Angel One have received broker-dealer approvals. This distinction means Zerodha and Angel One will facilitate international services by partnering with existing GAP operators and American brokerage firms.

Surging Appetite for Overseas Equities

The timing of these approvals aligns with a massive surge in investor interest in foreign markets. According to data from the Reserve Bank of India (RBI), Indian investors allocated approximately $440 million to overseas equities in March, representing a significant 43% increase compared to the $306 million invested in the same month the previous year.

Market sentiment remains high, recently evidenced by a 20% surge in US equity trading activity fueled by anticipation surrounding high-profile entities like SpaceX. With these new licenses, major players like Zerodha—which CEO Nithin Kamath had been preparing for since last October—will finally be able to integrate US stock trading directly into their platforms.

Leveraging the LRS and GIFT City Framework

This expansion is supported by the existing regulatory framework of the Liberalised Remittance Scheme (LRS). Under current RBI regulations, Indian individuals can remit up to $250,000 annually to invest in overseas assets, including international stocks. The move by these fintechs simplifies the process of utilizing this limit for global diversification.

GIFT City is rapidly evolving into a central hub for cross-border financial activity. Beyond equity trading, the ecosystem is attracting interest from payment companies looking to launch wallet-based services to facilitate international fund transfers and cross-border payment flows. This growing activity positions GIFT City as a critical gateway for Indian fintechs aiming to compete on a global scale.

Key Takeaways