Zerodha, Groww, Angel One, and Upstox Get Nod to Enable US Stock Trading
Indian retail investors are set to enjoy seamless access to Wall Street as four of the country’s largest brokerage platforms receive regulatory clearance to operate via GIFT City. This strategic move by major fintech players is expected to simplify cross-border investing and tap into the surging demand for global equities.
Regulatory Breakthrough at GIFT City
The International Financial Services Centres Authority (IFSCA) has officially granted permissions to Zerodha, Groww, Angel One, and Upstox to operate as intermediaries out of Gujarat's international finance hub. This regulatory milestone opens a direct corridor for Indian investors to participate in the US stock market through platforms they already use daily.
The approvals were issued in phases: Groww and Upstox received their Global Access Provider (GAP) licences on June 2, while Angel One received its clearance on June 12. Zerodha also secured its approval during this period, positioning it to fulfill a long-standing promise made by CEO Nithin Kamath to integrate US investing into its ecosystem.
Understanding the Two Licensing Models
The IFSCA has approved two distinct operational frameworks, which will dictate how these brokers handle international transactions:
- Global Access Provider (GAP) Licence: Holders like Groww and Upstox will connect directly with US-based brokers to manage trade settlements. They join existing players like Vested Finance and INDmoney in this category.
- Broker-Dealer Licence: Zerodha and Angel One will operate through an indirect settlement model. They will route trades through a GAP-licensed partner, who then coordinates with the US broker to complete the transaction.
Both models operate under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), which allows Indian residents to remit up to $250,000 per year for foreign investments.
Surging Demand for Global Equities
The timing of these approvals aligns with a significant spike in investor interest in overseas markets. Recent data underscores a massive shift in capital allocation:
- Increased Capital Outflow: RBI data reveals that Indian investors funneled approximately $440 million into global equities in March, marking a staggering 43% increase compared to the $306 million invested in March of the previous year.
- Volatility and Volume: US stock trading volumes from India recently saw a 20% jump in a single Friday session, driven by high-profile market excitement surrounding companies like SpaceX.
GIFT City: The Emerging Fintech Frontier
The entry of these retail giants signals a broader trend of fintech firms migrating toward GIFT City to leverage cross-border money flows. Beyond stock trading, the ecosystem is expanding; payment companies are also exploring the setup of wallet services within the international finance centre to facilitate similar cross-border transfers. As more players seek licences, GIFT City is rapidly evolving from a niche financial zone into a central hub for global fintech innovation in India.
Key Takeaways
- Major Players Onboarded: Zerodha, Groww, Angel One, and Upstox have received IFSCA approval to facilitate US stock trading via GIFT City.
- Two Operational Paths: Licenses are split between Global Access Providers (direct connection to US brokers) and Broker-Dealers (indirect routing via GAPs).
- Explosive Growth: Indian investment in global equities saw a 43% year-on-year increase in March, reaching $440 million, signaling massive retail appetite.