Zerodha, Groww, Angel One and Upstox Get Gift City Approval to Offer US Stock Investing to Indian Retail Traders
Four of India's leading new-age stockbrokers, Groww, Zerodha, Angel One, and Upstox, have secured licences from the International Financial Services Centres Authority (IFSCA), the regulator overseeing Gujarat's Gift City, to offer international equity investing to Indian retail traders. The development marks a significant expansion of access to US stock markets for everyday Indian investors through some of the country's most widely used trading platforms.
Two Different Licence Categories
According to disclosures made by the IFSCA, the four brokers have secured two distinct types of approvals:
- Groww and Upstox have obtained the Global Access Provider (GAP) licence.
- Zerodha and Angel One have become registered broker-dealers.
The distinction between the two licence types is structurally important. A GAP licence holder connects directly to a US broker for trade settlements, giving it more direct control over the execution chain. Brokers operating under a standard broker-dealer licence, on the other hand, work with GAP-licensed entities to offer settlement services through American brokers, effectively routing their international trades through an intermediary GAP partner.
Approval Timeline
The approvals were granted in stages over the past two weeks:
- Zerodha and Groww received approval on June 2, 2026.
- Angel One received its approval on June 12, 2026.
With these licences in place, Groww and Upstox now join an existing group of fintech platforms such as Vested Finance and IndMoney, which already operate as GAPs offering international stock trading to Indian investors.
The Regulatory Framework: How Indians Can Invest Abroad
Under existing Reserve Bank of India rules, Indian citizens are permitted to remit up to $250,000 per year outside the country through the Liberalised Remittance Scheme (LRS). These funds can then be deployed into a range of overseas assets, including international stocks, providing the regulatory backbone that enables platforms like Zerodha, Groww, Angel One, and Upstox to now offer this service domestically.
Growing Investor Appetite for US Stocks
The timing of these approvals coincides with a notable surge in Indian retail interest in US equities. Trading in US stocks reportedly rose approximately 20% on a single Friday in June, driven largely by global enthusiasm surrounding SpaceX's public market listing. This spike illustrates the kind of investor demand that domestic brokers are now positioning themselves to capture directly through their own platforms rather than ceding that flow to dedicated international investing apps.
RBI data further underscores this growing trend at a structural level. Indians invested approximately $440 million in global equities in March 2026, representing a sharp 43% increase from $306 million in the same month a year earlier.
Zerodha's Long-Standing Plans Finally Materialise
The Zerodha approval represents the culmination of plans the company had signalled well in advance. Zerodha CEO Nithin Kamath had stated last October that the company was working to enable US stock investing on its platform and had already applied for the necessary licences at the time, indicating a long and deliberate runway toward this launch.
Gift City Emerging as a Cross-Border Finance Hub
The wave of approvals reflects a broader trend of growing activity in Gift City, as an increasing number of Indian fintech companies seek licences in this jurisdiction to expand their cross-border financial service offerings. Gift City's regulatory framework, designed specifically to facilitate international financial flows to and from India, is increasingly becoming the preferred gateway for domestic brokers looking to offer global investment products without operating entirely outside the Indian regulatory perimeter.
What This Means for Indian Retail Investors
For retail investors, the entry of Zerodha, Groww, Angel One, and Upstox into US stock investing significantly expands the choice and convenience of accessing international markets. Investors who already use these platforms for domestic trading will likely be able to add US equities to their portfolios within the same familiar app ecosystem, potentially at more competitive pricing given the scale and existing user base these brokers bring to the segment. This increased competition among domestic platforms and dedicated international investing apps such as Vested Finance and IndMoney should benefit Indian investors through better pricing, product features, and user experience over time.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment