Zerodha, Groww, Angel One, and Upstox Get Nod to Enable US Stock Trading
Indian retail investors are set to enjoy seamless access to US equity markets as four of the country's leading brokerage platforms receive regulatory clearance to operate via GIFT City. This strategic move by fintech giants aims to simplify cross-border investing and tap into the surging appetite for global assets among Indian households.
Regulatory Breakthrough in GIFT City
The International Financial Services Centres Authority (IFSCA) has granted crucial approvals to Zerodha, Groww, Angel One, and Upstox, allowing them to act as intermediaries from Gujarat’s international finance hub. The licenses were issued in stages: Groww and Zerodha received their approvals on June 2, followed by Angel One on June 12.
The regulatory framework categorizes these players into two distinct models:
- Global Access Providers (GAP): Groww and Upstox have been granted GAP licenses, allowing them to connect directly with US-based brokers to facilitate trade settlements.
- Broker-Dealers: Zerodha and Angel One have been cleared as broker-dealers. In this model, trades are settled indirectly by routing them through a GAP-licensed partner, who then interfaces with the US broker.
By securing these licenses, Groww and Upstox join established fintech players like Vested Finance and INDmoney in the cross-border investing ecosystem.
Surging Appetite for Global Equities
The timing of these approvals aligns with a significant spike in outbound capital from India. According to RBI data, Indian investors channeled approximately $440 million into global equities in March, marking a massive 43% year-on-year increase from the $306 million invested in March of the previous year.
Investor enthusiasm is also evident in daily trading volumes. Recent reports highlighted a 20% jump in US stock trading volumes from India in a single Friday session, driven largely by high-profile excitement surrounding US tech and space ventures. This growing trend underscores a shift in Indian portfolio construction, moving from purely domestic assets to a more diversified global approach.
Leveraging the LRS and GIFT City Ecosystem
These investment routes are built upon the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which allows resident individuals to remit up to $250,000 abroad annually for purposes including foreign stock investments.
The expansion of these brokerage services is part of a broader trend of increased activity within GIFT City. Beyond stock trading, payment companies are also exploring the international finance centre to set up wallet services that support seamless cross-border transfers. As fintech firms increasingly seek licenses to tap into global money flows, GIFT City is rapidly evolving into a critical bridge between Indian retail capital and international markets.
Key Takeaways
- Expanded Access: Four major brokers (Zerodha, Groww, Angel One, and Upstox) can now facilitate US stock trading via GIFT City using either GAP or Broker-Dealer models.
- Exponential Growth: Indian investment in global equities rose 43% year-on-year to $440 million in March, signaling a massive shift in investor behavior.
- Regulatory Framework: All trades will operate under the RBI's Liberalised Remittance Scheme (LRS), permitting an annual limit of $250,000 per resident individual.