Indian Trading Apps Receive Approval to Facilitate US Stock Investments from Gift City
Leading Indian brokerages are expanding their services to include overseas equity investing after securing licenses from the International Financial Services Centres Authority (IFSCA). Companies such as Groww, Zerodha, Angel One, and Upstox can now offer Indian retail investors access to international stock markets. The approvals come as part of a growing trend among fintech firms seeking to broaden their participation in cross-border financial transactions.
According to IFSCA disclosures, Groww and Upstox have received Global Access Provider (GAP) licenses, while Zerodha and Angel One have been granted broker-dealer approvals. These licenses enable the brokerages to connect directly with US-based brokers for trade settlements. The new permissions allow these firms to join others like Vested Finance and IndMoney, which already operate as GAPs.
Data from the Reserve Bank of India (RBI) indicates that Indian investors allocated approximately $440 million to overseas equities in March, a 43% increase from the same month last year. Current RBI regulations permit individuals to remit up to $250,000 annually under the Liberalised Remittance Scheme (LRS) for investments in overseas assets, including international stocks.
Zerodha’s CEO Nithin Kamath mentioned in October that the brokerage was preparing to offer access to US stocks and had sought the necessary regulatory approvals. Trading activity in US equities surged by around 20% recently, driven by investor excitement surrounding SpaceX’s anticipated public market debut. GIFT City is also seeing increased activity as more fintech firms seek licenses to enhance their cross-border financial services.
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