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Indian residents can access some U.S. investments through GIFT City, but the route, legal instrument and account structure depend on the provider. The Reserve Bank of India’s Liberalised Remittance Scheme (LRS) still applies: resident individuals may remit up to USD 250,000 per financial year (April–March) for permitted current or capital account transactions, subject to the scheme’s conditions. GIFT City does not create a separate LRS limit or remove those conditions.
The clearest exchange route described by NSE International Exchange is trading receipts linked to U.S. shares. That is not automatically the same as holding U.S.-listed shares in a U.S. brokerage account, and it does not establish that ETFs are available through that route. Before funding an account, identify exactly what you will hold and check the provider’s current product terms.
What the LRS limit means for a GIFT City investment
Under the RBI’s Master Direction on the Liberalised Remittance Scheme, authorised dealers may allow resident individuals to remit up to USD 250,000 per financial year, running from April through March, for permitted current or capital account transactions or a combination of them. The RBI’s rule is subject to the scheme’s conditions and the applicable permissions. It is an overall limit for the individual, not a separate allowance for investing through GIFT City.
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On July 10, 2024, the RBI broadened the stated purposes for remittances to an International Financial Services Centre (IFSC). The circular permits remittances for financial services or products in an IFSC, as well as permitted transactions in another foreign jurisdiction through an IFSC foreign-currency account. It also allows resident individuals to open such an account for the specified permissible purposes. These provisions do not make every foreign investment or transfer automatically permissible; confirm that the intended transaction fits the current rules with your authorised dealer bank.
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What you may own: a U.S. security, an IFSC receipt or another product
NSE IFSC receipts linked to U.S. shares
NSE International Exchange’s investor guidance describes unsponsored depositary receipts linked to U.S. shares. Under that exchange route, trading, clearing, settlement and holding operate within the IFSC regulatory structure. The instrument is a receipt linked to an underlying share; do not assume that it is identical to a directly held U.S.-listed share, or that the exchange route is the same as opening a U.S. brokerage account.
The NSE material cited here describes receipts linked to shares, not a general ETF offering. If a provider advertises ETFs, check the exact ETF names and the legal instrument offered for each one. A broad description such as “U.S. stocks and ETFs” is not enough to establish what is held, who holds it, or which protections and exit rights apply.
Provider-specific access claims
Mirae Asset Sharekhan advertises access to U.S. stocks and ETFs via GIFT City and displays an IFSCA broker-dealer registration number on its product page. That offer is provider-specific; it does not establish the structure or availability of products on other platforms. Before relying on the offer, confirm the provider’s current registration, the entity contracting with you, the instruments available, and the account and custody terms directly from its current documents.
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SEBI’s May 2, 2025 circular facilitates securities-related activity in GIFT-IFSC by SEBI-registered brokers through a separate business unit. It provides regulatory context, but does not by itself prove that a particular broker offers a specific U.S. security or ETF.
How to open and fund an NSE IFSC receipt account
NSE describes the following sequence for its U.S.-stock receipt route. Providers may require different forms or operational steps, so use the current instructions from the trading member and your bank.
- Choose an IFSCA-registered trading member. Check the firm’s current status and identify the legal entity that will provide the service.
- Complete onboarding, KYC and LRS documentation. The exchange guidance includes KYC and LRS documentation with the bank. Ask your authorised dealer bank which declarations or supporting documents it requires for the intended remittance.
- Remit U.S. dollars to the member’s GIFT banking unit. Confirm the beneficiary details and permitted purpose with the bank and trading member before sending money. Ask how rupees are converted, which exchange rate or spread applies, and what bank or remittance charges are deducted.
- Wait for the account to be credited. Check the credited amount and any deductions before placing an order; do not assume the remittance is available to trade immediately.
- Place orders only for instruments shown as available in your account. Review the instrument description, trading and settlement terms, fees, and exit process before confirming a transaction.
What to compare before choosing a provider
Use the account agreement, product documents and current fee schedule—not just the headline offer—to compare routes. Establish each of the following for the specific instrument you plan to buy.
- What you hold: Is it a U.S.-listed security, an IFSC receipt, a fund unit or another claim? Identify the issuer, custodian and stated beneficial-ownership arrangement in the documents.
- What is available: Check the exact stocks and ETFs, order types, trading hours and whether fractional access is offered. Availability can differ by provider and instrument.
- Total costs: Look for brokerage, exchange or platform charges, currency-conversion spread, remittance fees, custody or inactivity charges, and withdrawal costs. Obtain the current schedule rather than assuming a quoted cost covers the full transaction.
- Account and regulatory setup: Identify the contracting entity, its relevant registration, onboarding requirements, funding route and complaint mechanism.
- Liquidity and exit rights: Check market depth, trading and settlement mechanics, withdrawal processing, and—where receipts are involved—the terms for cancellation, termination or conversion.
- Tax and reporting: Determine the treatment for your tax residence and the exact asset, issuer, account and custody structure. Keep the account statements and remittance records needed for your reporting obligations.
Risks and tax questions to resolve
NSE identifies volatility, illiquidity, risks tied to the underlying share, receipt cancellation or termination, tax, settlement and changes in law as risks associated with its IFSC receipts. These matter in different ways: an illiquid instrument may be harder to sell at a desired price, while receipt-specific terms may affect what happens if the receipt is cancelled or terminated. Read the relevant terms before trading rather than assuming that the underlying share’s market price alone determines your outcome.
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Proceed only when you can answer two questions from the provider’s documents: what legal instrument will be credited to your account, and how can you sell it and withdraw the proceeds? Then verify the investment’s availability, total charges, custody, eligibility, LRS documentation and applicable tax treatment. If a provider’s marketing does not answer those questions, request the current terms before remitting funds.
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