Indian Brokerages Expand Global Equities Access Amid Tightened Trading Safeguards

Indian retail brokerages, including Upstox and Groww, are expanding investor access to foreign markets through dedicated regulatory frameworks and the Reserve Bank of India's Liberalised Remittance Scheme. The move enables domestic residents to buy international equities and exchange-traded funds directly through partner brokerages in the United States. Simultaneously, Indian exchanges and regulatory authorities have reinforced strict directives regarding account protection, urging investors to safeguard login credentials and be fully conscious of derivatives trading risks.

Access to foreign stock exchanges is guided by the Reserve Bank of India's Liberalised Remittance Scheme, or LRS, which permits individuals to remit as much as $250,000 per financial year for overseas equities, exchange-traded funds, and other authorized purposes such as travel and education. In August 2025, the International Financial Services Centres Authority, which oversees GIFT City, introduced the Global Access Provider framework. Upstox director Puneet Maheshwari explained that this framework offers a regulated gateway for Indian participants looking to direct capital toward overseas exchanges.

Under these operational structures, Indian investment platforms serve as regulated intermediaries, while underlying trading accounts are opened in each customer's own name through US broker partners regulated by the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Shares, including fractional shares available for as little as $1, reside electronically within the US depository system. Maheshwari noted that these accounts carry coverage from the Securities Investor Protection Corporation for up to $500,000, which includes a cash sub-limit of $250,000 against brokerage failure, though Vested Finance chief executive Viram Shah stressed that such coverage does not shield against market downturns.

Investing through international channels involves distinct fee structures and statutory obligations. Upstox levies a brokerage fee of 0.25% per trade, capped at $25, alongside foreign currency conversion rates from partner banks that typically range from 1% to 3.5%. Competitor Groww charges 0.1% or $1 per executed transaction, while Zerodha applies a 0.10% fee capped at $10 with a currency conversion spread of 0.4% to 1.4% over the reference rate. For remittances under the LRS channel, a 20% tax collected at source applies exclusively to amounts exceeding ₹10 lakh within a financial year, which taxpayers can subsequently claim or adjust on their annual tax returns.

Cross-border investments also entail distinct tax and reporting requirements. US dividend distributions face a 25% tax deducted at source for Indian residents submitting Form W-8BEN, which can be claimed back in India as a foreign tax credit using Form 67. Capital gains on foreign equities require a 24-month holding threshold to qualify as long-term, where they are assessed at a 12.5% tax rate, whereas short-term gains are taxed according to domestic slab rates. Furthermore, investors must disclose all foreign assets and active trading accounts annually within Schedule FA of their Indian tax filings, even in years when no capital gains or dividends were realized.

Industry advisers urge retail market participants to weigh these complexities before taking on single-stock exposure abroad. Pankaj Mathpal, founder of Optima Money Managers, recommended broad-market funds or exchange-traded funds over individual stock selection, pointing out that many domestic asset managers have exhausted overseas limits, leaving local international ETFs trading at premiums. Mathpal advised that direct single-stock holdings are best suited for sophisticated individuals managing larger portfolios, specifically those exceeding ₹2 crore, who possess the required risk tolerance.

Alongside cross-border opportunities, Indian market authorities and exchanges including the National Stock Exchange, Bombay Stock Exchange, and Multi Commodity Exchange have repeatedly issued strict compliance alerts regarding account integrity. Official circulars direct investors to never share trading credentials, including login IDs, passwords, and one-time passwords, nor heed unauthorized trading tips on social messaging channels. Regulators and brokers also remind traders that nine out of ten individual participants in equity futures and options incur net losses, emphasizing that maintaining updated contact details on trading platforms remains crucial to prevent unauthorized account access.