Four major Indian fintech platforms - Groww, Zerodha, Angel One, and Upstox - just got regulatory approval to offer US stocks directly to Indian retail investors. The International Financial Services Centres Authority (IFSCA) issued the licenses from Gujarat International Finance Tec-City (GIFT City), a special zone designed to onshore financial services that previously flowed through Singapore or Mauritius.
Groww and Upstox received Global Access Provider (GAP) licenses. Zerodha and Angel One registered as broker-dealers. The distinction matters: GAP license holders can facilitate direct market access to foreign exchanges for clients, while broker-dealers can execute trades and hold positions themselves. Both paths let Indian investors buy and sell US equities without routing money through a separate foreign broker or dealing with cross-border custody headaches.
What the Licenses Actually Unlock
Until now, an Indian retail trader wanting Tesla or Apple shares had to open an account with a US broker, navigate FATCA compliance, and move funds through sluggish wire transfers. The IFSCA framework lets these fintechs operate within India's regulatory perimeter while connecting directly to US exchanges via GIFT City's infrastructure. That means faster settlement, lower friction, and no currency conversion surprises beyond the standard USD/INR spread.
GIFT City itself is the critical piece. As a special economic zone with its own regulator (IFSCA), it offers tax holidays and lighter compliance for international financial services. By basing their US stock operations there, these platforms avoid India's capital controls and dividend repatriation taxes that typically eat into returns. The result: a legally clean, cost-efficient channel for Indian retail money to flow into US equities.
Competition Heats Up in India's Discount Brokerage Market
Zerodha and Groww already dominate India's discount brokerage scene - Zerodha alone claims over 10 million active users. Angel One (formerly Angel Broking) and Upstox round out the top tier. By adding US stocks to their product menus, they directly compete with existing cross-border players like Vested and INDmoney, who charge higher fees for the same service.
The immediate consequence: margin compression on US stock trades. These platforms built their reputations on zero-brokerage domestic equity trading, so expect them to price US stock trades aggressively - likely a flat fee or a tiny percentage. For the Indian retail trader with a $500 portfolio, that makes the difference between actually buying fractional shares and staying in the index fund.
One open question remains settlement cadence. US equities settle T+1; GIFT City's clearing links need to match that beat. If these platforms can wire same-day settlements back to Indian bank accounts, they'll remove the last reason a sophisticated retail investor would bother with a separate US brokerage account.
Watch the first few weeks of trading volumes on Groww and Zerodha's US stock portals. That number will tell us whether Indian retail demand for US stocks is real or just a headline.
Source: Zerodha, Groww, Angel One, Upstox get Gift City nod to offer US stocks to Indian investors
Domain: economictimes.indiatimes.com
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