How to Invest Globally Through Zerodha, Groww & Upstox via GIFT City (2026 Guide)
Your favourite Indian broker may soon let you buy Apple stock. Not through a foreign app, not by wiring money to a US brokerage you have never heard of, but from the same login you already use for NSE trades. That is the practical upshot of a regulatory decision in June 2026, and it changes how Indian retail investors can reach global markets.
This guide walks through what just happened, how GIFT City investing actually works, what it costs against the older route, and the risks worth knowing before any rupee leaves the country.
What just happened
On 16 June 2026, four of India's largest retail brokers, Zerodha, Groww, Angel One and Upstox, received in-principle approval from the IFSCA (International Financial Services Centres Authority) to offer international investing through GIFT City. In plain terms, they can now build the rails for Indians to buy US stocks and global funds from within India's own offshore financial hub.
A launch is not instant. The brokers themselves expect two to three months to finish the technology build and clear remaining compliance steps, so the public products should arrive in stages rather than all at once.
What is GIFT City
GIFT City, short for Gujarat International Finance Tec-City near Gandhinagar, is India's first International Financial Services Centre (IFSC). Think of it as a ring-fenced financial zone that, for regulatory and tax purposes, sits outside the domestic Indian system while staying on Indian soil. A single unified regulator, the IFSCA, oversees banking, securities and funds inside it.
That design is the whole point. Money routed through GIFT City reaches global markets under an Indian-regulated framework rather than under US SEC or FINRA rules. The hub has grown quickly, crossing 300 registered entities by 2026, and GIFT Nifty derivatives passed 100 billion dollars in monthly turnover back in September 2025. For an Indian investor, the appeal is global access with a familiar rulebook.
Two models: broker-dealer vs Global Access Provider
The four brokers are not all taking the same path. Two operating models have emerged, and the difference affects who actually holds your trade.
| Broker | Model | Route to global markets |
|---|---|---|
| Zerodha | Broker-dealer | ViewTrade, Interactive Brokers, Alpaca Securities |
| Upstox | Broker-dealer | ViewTrade, Interactive Brokers, Alpaca Securities |
| Groww | Global Access Provider (GAP) | US brokerage tie-ups (e.g. Charles Schwab, Robinhood) |
| Angel One | Global Access Provider (GAP) | US brokerage tie-ups |
In the broker-dealer model, the broker runs the execution stack itself through partners like ViewTrade, Interactive Brokers and Alpaca. In the Global Access Provider model, the broker acts more as a regulated gateway, plugging you into an established US brokerage. ViewTrade has already secured its GAP approval; Interactive Brokers and Alpaca approvals are still pending and may take longer.
What you can actually buy
GIFT City is not limited to a handful of blue chips. The current and emerging menu covers:
- US stocks such as Apple, Microsoft, Tesla and Amazon, accessed as Unsponsored Depository Receipts (UDRs) listed on NSE IX. UDR trading volumes grew roughly ninefold from FY23 to FY25, a sign of how fast demand is building.
- US ETFs tracking the S&P 500, Nasdaq 100 and MSCI World.
- GIFT City mutual funds, IFSCA-regulated funds that sidestep SEBI's industry-wide 7 billion dollar overseas mutual fund cap. Examples include the DSP Global Equity Fund (launched June 2025, minimum 5,000 dollars), the PPFAS S&P 500 and Nasdaq 100 fund of funds (May 2026) and the Edelweiss Greater China Fund (March 2026). Expense ratios near 0.30% compare favourably with the 1.0% to 1.5% common on domestic international funds.
- Global bonds and AIFs for investors wanting beyond equity exposure.
Part of the recent interest is thematic. With SpaceX now public and IPOs anticipated from OpenAI and Anthropic, many Indian investors want a clean, regulated way to hold global tech they cannot reach on Indian exchanges.
Who is already live
The big four grabbed the headlines, but they are not first. Several providers already let Indians invest globally through GIFT City:
- Dhan (via Raise Securities) went live with US stocks on 12 June 2026.
- INDmoney already runs the GAP model.
- HDFC Securities, Motilal Oswal and Anand Rathi IFSC are all live.
So the framework is tested, not theoretical. The Zerodha and Groww launches widen access rather than invent it.
Step by step: how to invest
- Open an IFSC account with a participating broker. This is separate from your domestic demat and trading account.
- Complete a fresh KYC for the IFSC entity. Existing domestic KYC does not carry over.
- Remit funds under LRS, converting rupees to US dollars within your 250,000 dollar annual limit.
- Place your order for US stocks, ETFs or a GIFT City fund through the broker's international interface.
- Track holdings and repatriate when you exit; funds can be brought back freely, subject to tax reporting.
Costs and rules
A few hard rules govern every GIFT City investment:
- LRS limit: 250,000 dollars per person per financial year, the same overall ceiling as the direct Liberalised Remittance Scheme.
- TCS: 20% Tax Collected at Source applies on remittances above 10 lakh rupees in a year. It is not a cost, it is a prepayment, refundable or adjustable against your income tax.
- Forex conversion: roughly 0.5% to 1% on the rupee-to-dollar conversion.
- KYC: a separate IFSC KYC is mandatory.
- Minimums: about 500 dollars for most GIFT City funds, while fractional UDRs start near 4 to 5 dollars.
- No SIP yet: GIFT City mutual funds currently require manual lump-sum investment; automated SIPs are not live.
GIFT City vs direct LRS
The older way to buy US stocks was direct LRS, wiring money to a foreign brokerage yourself. GIFT City is cheaper on the all-in first-year cost.
| Route | First-year cost |
|---|---|
| Direct LRS (older route) | 1.8% to 2.5% |
| GIFT City | 1.1% to 1.6% |
| Saving | roughly 30% to 40% lower |
Beyond cost, GIFT City funds escape the 7 billion dollar overseas mutual fund cap that has frozen new inflows into many domestic international funds. You also stay inside an Indian-regulated framework with dispute resolution under Indian law, instead of learning the US regulatory system.
Tax treatment
Tax is where global investing trips up the unprepared:
- Capital gains: long-term gains (holding over 24 months) are taxed at 12.5%; short-term gains (under 24 months) at 20%.
- TCS: the 20% collected above 10 lakh rupees of remittance is refundable or adjustable in your return, so it is a cash-flow hit, not a permanent loss.
- Schedule FA: GIFT City holdings count as foreign assets and must be declared in the Schedule FA of your income tax return. This is not optional, and non-disclosure carries penalties.
Key risks
- TCS locks up cash upfront. A 20% deduction on large remittances ties up money until you reclaim it at filing.
- Currency risk. Returns are in dollars; a stronger rupee can erode gains when you convert back.
- No DICGC insurance. Bank deposits inside the IFSC do not carry the deposit insurance that domestic Indian accounts enjoy.
- Slower settlement and narrow choice. Settlement runs on T+3 versus T+1 in the US, and UDRs presently cover only around 50 US stocks against the 10,000-plus available through direct US access.
- Evolving rules. The framework is still maturing, and tax reporting through Schedule FA is genuinely complex for first-timers.
Should you invest globally?
Global exposure can diversify a portfolio heavily tilted towards Indian equities, and GIFT City makes that exposure cheaper and better regulated than before. That is a real improvement. But it suits investors who already have an emergency fund, are comfortable with currency swings, and will not panic over the upfront TCS or the extra tax paperwork.
If you are still building your domestic base, or the Schedule FA reporting feels daunting, there is no rush. The window is not closing; if anything, more brokers and more products are arriving. Treat global investing as a deliberate diversification step, sized to a sensible slice of your overall portfolio, rather than a race to own the latest US tech name.
For broker-by-broker detail, compare Zerodha, Upstox, Groww and Angel One side by side on our broker comparison page. For diversification beyond equities, see live gold rates, and for the fundamentals of investing and IPOs, browse our learning library.
FAQ
Can I buy US stocks through Zerodha via GIFT City? Not immediately. Zerodha received in-principle IFSCA approval in June 2026 and expects to launch in two to three months once the technology and compliance work is done. When it goes live, you will buy US stocks as UDRs through a separate IFSC account.
What is the LRS limit for GIFT City investing? 250,000 dollars per person per financial year, the same ceiling as the wider Liberalised Remittance Scheme. GIFT City uses the same limit; it does not add a separate allowance.
What is the minimum investment via GIFT City? It depends on the product. Most GIFT City mutual funds need about 500 dollars, while fractional UDRs of US stocks can start near 4 to 5 dollars, making individual shares accessible without buying a whole high-priced stock.
Is TCS refundable on GIFT City investments? Yes. The 20% TCS on remittances above 10 lakh rupees is a prepayment of tax, not an extra charge. You reclaim or adjust it against your income tax liability when you file your return, so it affects cash flow rather than total cost.
How is GIFT City different from buying US stocks directly? Direct LRS sends your money to a foreign brokerage under US regulation, typically at 1.8% to 2.5% first-year cost. GIFT City keeps you inside an Indian-regulated (IFSCA) framework at roughly 1.1% to 1.6%, with dispute resolution under Indian law, though it currently offers a narrower stock universe and T+3 settlement.
Disclaimer: This article is for educational and informational purposes only and is not investment advice. Global investing carries currency, regulatory and market risks. Tax rules, TCS rates and product availability can change. Verify the latest terms with your broker and consult a qualified financial or tax adviser before investing.
By the ipomarket.in Editorial Team.