Key facts
- Four major Indian fintechs—Zerodha, Groww, Angel One, and Upstox—have received licenses from IFSCA to offer international equity investing.
- Groww and Upstox secured Global Access Provider (GAP) licenses, allowing direct connection to US brokers.
- Zerodha and Angel One were licensed as broker-dealers, facilitating US stock access through GAPs.
- These licenses enable Indian retail traders to invest in US stocks.
- Indian citizens can invest up to $250,000 annually abroad under the Liberalised Remittance Scheme (LRS).
Leading Indian fintech platforms Zerodha, Groww, Angel One, and Upstox have obtained licenses from the International Financial Services Centres Authority (IFSCA) to facilitate international equity investing for Indian retail traders. Groww and Upstox received Global Access Provider (GAP) licenses, enabling them to directly connect with US brokers for settlements. Zerodha and Angel One were licensed as broker-dealers, which will allow them to offer US stock trading indirectly through partnerships with GAPs.
These approvals mark a significant expansion into cross-border investment opportunities for Indian investors. The Liberalised Remittance Scheme (LRS) permits Indian citizens to remit up to $250,000 annually for overseas investments. The recent surge in trading activity, with US stocks seeing about a 20% increase on Friday, partly attributed to enthusiasm around SpaceX's public listing, highlights growing investor interest in international markets.
Data from the Reserve Bank of India indicates a substantial rise in Indian investments in global equities, with $440 million invested in March, a 43% increase from the previous year. Nithin Kamath, CEO of Zerodha, had previously indicated the company's intention to offer US stock investing and had applied for the necessary licenses. The Gift City jurisdiction is becoming a hub for fintech companies seeking licenses to facilitate cross-border financial flows.