#Zerodha #USStocks #GIFTCity #GlobalInvesting #StockMarketIndia #NithinKamath #IFSCA #RetailInvestors #FinancialInnovation #InvestSmart #CapitalMarkets #GlobalEquities #InvestmentNews
Mumbai: India’s largest stock brokerage by revenue, Zerodha, is gearing up to unlock a new frontier for its millions of users: direct access to US stock markets. Founder and CEO Nithin Kamath confirmed during a live AMA session that the company plans to introduce this much-awaited feature as early as the next quarter, marking a pivotal shift in the platform’s investment offerings.
For years, Zerodha has dominated India’s capital markets with low-cost brokerage and technology-driven tools. However, it remained noticeably absent in one high-demand area—foreign equities. That is about to change.
Powered by GIFT City: A Regulatory Breakthrough
Zerodha’s move comes via the GIFT City (Gujarat International Finance Tec-City) framework, a special financial zone regulated by the International Financial Services Centre Authority (IFSCA). This route brings greater policy clarity and tax efficiency for international investing, addressing regulatory roadblocks that earlier prevented Zerodha from offering US equity access.
Chief Technology Officer Kailash Nadh said the firm is working to ensure a seamless user interface and backend infrastructure, emphasizing that the goal is simplicity—allowing users to invest in global giants like Apple, Tesla, and Amazon as easily as they invest in Indian stocks.
A Strategic Launch Amid Market Headwinds
This development comes at a critical juncture for Zerodha. After years of consistent growth, the company reported a 15% drop in revenue and profit in FY25, with revenue falling to ₹8,500 crore and profits to ₹4,200 crore. The situation could tighten further in FY26, as the firm anticipates up to a 40% decline in revenue due to recent changes in futures and options (F&O) market regulations.
By adding US stock investments—a feature already provided by competitors such as Angel One, INDmoney, HDFC Securities, and Kuvera—Zerodha is not only meeting user demand but also diversifying its revenue streams.
Not the First Attempt, But the Most Strategic
Zerodha had earlier evaluated entering US markets in 2020. However, the project was shelved due to the pandemic and ambiguity around overseas remittance norms under the Liberalised Remittance Scheme (LRS). Today, the GIFT City route removes many of those barriers, allowing users to invest without directly facing the complexities of LRS remittances or higher Tax Collected at Source (TCS) charges.
The new investment mechanism will reportedly leverage India INX Global Access and NSE-IX Unsponsored Depository Receipts (UDRs). These platforms allow Indian investors to buy fractional shares or depository receipts of global companies, thereby democratizing access to the world’s biggest capital markets.
Market Landscape and User Expectations
Interest in US equities among Indian investors has surged in recent years due to the growth of global tech giants and higher long-term returns offered by the US market. Many platforms experienced high demand, though some, including Groww, were forced to pause onboarding in early 2024 due to compliance challenges.
Zerodha’s entry could reset the industry benchmark. With its reputation for transparency, low costs, and robust technology, the platform is expected to attract a significant portion of new-to-market global investors.
Why This Move Matters
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Diversification for Indian Investors: Direct exposure to international equities offers a hedge against domestic market volatility and currency depreciation.
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Ease of Access: Rather than routing funds abroad through complex remittance processes, Zerodha users will be able to invest using a simpler, GIFT City-compliant mechanism.
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Competitive Pressure: The move is expected to trigger a new wave of innovation and pricing competition across India’s brokerage industry.
Industry Outlook
Financial experts believe that if Zerodha launches this feature with low fees and an intuitive interface, it could rapidly scale adoption, particularly among younger, tech-savvy investors aiming for global diversification. Moreover, the use of regulated frameworks like GIFT City signals India’s growing ambition to become a global financial hub.
Meanwhile, investors are eagerly watching for more details regarding:
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Minimum investment requirements
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Platform charges and commissions
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Taxation policies and capital gains structures
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Availability of fractional shares
If executed well, this offering could be a turning point not just for Zerodha, but for India’s retail investment market as a whole.
Conclusion
Zerodha’s upcoming US stock investment platform is not just another product feature—it’s a major strategic bet at a time when domestic market returns are under regulatory pressure. With clear regulatory backing, rising investor interest, and global ambition, Zerodha is positioning itself to redefine how Indian investors participate in global wealth creation.
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