Zerodha to Offer US Stock Investments via GIFT City by Next Quarter

India’s leading discount brokerage, Zerodha, is gearing up to offer access to US stock markets to its Indian users in the next quarter. This move comes as the company secures regulatory clarity to utilise the GIFT City (Gujarat International Finance Tec-City) framework for enabling global equity investing.

Launch Timeline & Announcement

Zerodha’s founder and CEO, Nithin Kamath, announced a recent ‘Ask Me Anything’ (AMA) session, stating:

“A lot of people tagged me on social media and asked about the US investing thing. We are working on it, and we should have something in the next quarter. It is a product launch.”

This signals Zerodha’s intent to roll out its US-stocks investment product soon, offering Indian retail investors a new option to diversify globally.

Also Read: Orkla India IPO Shows Strong Grey Market Premium Ahead of Launch

Framework: GIFT City & Regulatory Clarity

The move hinges on the regulatory route via GIFT City’s International Financial Services Centre (IFSC). Zerodha’s Chief Technology Officer, Kailash Nadh, explained:

“It has been a long-pending thing. We now have the requisite regulatory clarity through GIFT City. We are trying to build a simple and seamless experience for users in the backend as well as in the frontend.”

This statement underscores two important elements: first, that regulatory permission is in place, and second, that Zerodha is investing in both technology and product design to make the user journey smooth.

Current Status & Product Positioning

To date, Zerodha has not offered direct investments in US-listed stocks, as confirmed on its support portal: “At present, Zerodha does not facilitate investments in stocks listed on foreign stock exchanges.” This announcement marks a clear shift in its offering.

While other Indian brokerages such as Angel One, JM Financial, HDFC Securities, 5paisa and Kuvera already provide US-stock access, Zerodha’s entry will bring a major player into this space, potentially intensifying competition.

Key Implications for Investors

• Accessibility: With Zerodha onboard, millions of Indian retail investors may soon gain access to US-listed equities through a familiar platform under domestic regulatory safeguards.

• User Experience: The company emphasises a “simple and seamless” product, suggesting efforts to minimise complexity, cost barriers and backend friction.

• Compliance & Regulation: By leveraging the GIFT City IFSC framework, Zerodha aims to offer US-stock access while keeping compliance aligned with Indian rules on remittances and foreign investments.

What We Know So Far?

• Launch timeline: next quarter, according to CEO Nithin Kamath

• Route: Via GIFT City IFSC, providing regulatory clarity

• Product: US-stock investment access for Indian users (details of universe, fees and structure yet to be revealed)

• Broader context: Zerodha is catching up to competitors in offering global equity access

Questions That Remain

Several details are still to be disclosed by Zerodha:

• Which US stocks or markets will be available initially?

• What will the fee, custody, currency conversion and remittance structure be?

• Will there be any minimum investment or account opening conditions?

• How will the product handle tax, repatriation, and conversion risks for Indian investors?

Investor Take-away

For Indian investors looking to expand global exposure, Zerodha’s forthcoming product could be a compelling addition. The combination of a trusted platform, regulatory clarity via GIFT City, and a growing appetite for US equities among Indian retail makes this launch noteworthy. The emphasis on user experience suggests Zerodha is aiming for mass adoption, not just niche investors.

However,investors need to waitfor full product details before committing. Understanding factors like the list of eligible stocks, fees, currency conversion, repatriation, and taxation will be key to assessing how this offering stacks up against existing options.

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