Zerodha to launch US equities access for Indian retail via GIFT City IFSC
Product uses GIFT City route, leveraging India INX Global Access and US-stock UDRs
Remittance limits, 20% TCS, and LRS constraints may curb retail demand
Launch aims to diversify revenue after FY25 decline; intensifies brokerage competition
Zerodha, India’s largest broker by revenue, will roll out a product allowing retail customers to invest in US equities in the next quarter, founder and CEO Nithin Kamath said during an Ask-Me-Anything session.
The discount broker’s CTO, Kailash Nadh, added the company now has the regulatory clarity through GIFT City and is building the front- and back-end systems needed for a “simple and seamless” experience.
31 October 2025
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Zerodha said the launch will let Indian customers access US stocks, a feature already offered by several domestic rivals, though the company has not yet disclosed the exact mechanics, partner broker or fee structure. Management indicated the product will use the GIFT City framework for offshore investment and will be introduced as a formal product launch in the coming quarter.
Regulatory Route
Zerodha executives pointed to GIFT City, India’s International Financial Services Centre (IFSC), as the regulatory pathway that removes previous ambiguities around cross-border investing. Two existing GIFT City platforms that facilitate overseas equity access are India INX’s Global Access and NSE-IX’s US-stock UDRs, and Zerodha says those structures make a compliant rollout feasible.
Kamath first flagged US investing plans in 2020 but the push stalled amid pandemic disruption and regulatory hurdles. With GIFT City clarity, Zerodha says it can finally operationalise a long-standing product roadmap that many customers have repeatedly requested.
Competitors & Market Context
Several Indian brokers and wealth apps already provide US equity investing through partnerships or IFSC channels. Zerodha’s entry would widen retail access and intensify competition on pricing, user experience and custody solutions, areas in which the discount broker historically competes on tech and low fees.
Zerodha acknowledged lingering headwinds that have tripped up peers: remittance complexities, the Liberalised Remittance Scheme limits, and the 20% TCS (Tax Collected at Source) on overseas investments above ₹7 lakh can blunt retail demand.
Broader constraints, such as mutual-fund overseas investment caps imposed by RBI limits, have also affected how platforms enable global exposure in the past.
Corporate Backdrop
The launch comes as Zerodha reported its first decline in revenue and profit in over a decade: FY25 topline and net profit fell about 15% on regulatory headwinds in derivatives.
The firm warned FY26 revenues could weaken further. The international product is likely part of a push to diversify revenue streams as retail trading volumes and rules evolve.
