NASDAQ investment via GIFT city: A new route for Indians
Indian investors no longer need a US brokerage account to buy shares of Apple, Tesla, or NVIDIA. GIFT City IFSC now offers a regulated, India-based route to invest in NASDAQ-listed stocks. This special economic zone in Gujarat treats all transactions in US dollars and operates under a single regulator. The GIFT City NASDAQ investment route has gained serious momentum since 2022. Budget 2026 doubled the tax holiday for IFSC entities to 20 years, signalling strong government backing. With over 1,034 registered entities and $100 billion in banking assets, this hub is reshaping how Indians access global markets. Whether you are a first-time global investor or an experienced trader, this guide covers everything you need to know about investing in NASDAQ through GIFT City.
What is the GIFT City route for NASDAQ investing
Gujarat International Finance Tec-City sits between Ahmedabad and Gandhinagar on the banks of the Sabarmati River. It is India's first operational International Financial Services Centre. The IFSCA, established in April 2020, acts as the unified regulator for all financial activities inside the zone. It replaces the overlapping roles of SEBI, RBI, IRDAI, and PFRDA within this corridor.
Two exchanges operate inside GIFT City. NSE IX launched in June 2017, and India INX started in January 2017. Both give Indian investors access to US-listed stocks without opening an overseas account. Transactions happen in US dollars. Indian regulations treat GIFT City as foreign territory under FEMA for exchange control purposes.
The NSE IFSC platform introduced Unsponsored Depository Receipts for 50 major US stocks in March 2022. These include NASDAQ heavyweights like Apple, Microsoft, Amazon, Meta, Tesla, and NVIDIA. Each UDR represents a fraction of the actual US share. For example, one Apple share equals 25 UDRs, making each unit worth roughly $7 to $9. This fractional structure significantly lowers the entry barrier for retail investors.
Benefits for investors using this route
The biggest advantage is regulatory comfort. Your holdings are held in an individual demat account with the CDSL IFSC. Even if your broker fails, your stocks remain fully segregated and protected. Direct US brokers hold shares in pooled accounts under "street name," which carries intermediary risk.
GIFT City also removes several transaction costs. All trades on IFSC exchanges are exempt from Securities Transaction Tax, stamp duty, and GST on financial services. Active traders save meaningfully on every transaction. India's 2024 Budget raised STT on derivatives, making this exemption even more valuable.
Fractional ownership makes NASDAQ-listed Q stocks accessible to small investors. You can start with as little as $4-$5 per UDR. INDmoney allows deposits starting at ₹500. GIFT City mutual funds, such as the Tata India Dynamic Equity Fund, accept investments starting at $500.
Dispute resolution is governed by Indian law and IFSCA arbitration. You do not need to navigate the US legal system. Hindi and English documentation is readily available. This familiar framework makes the process far more accessible than dealing with SEC or FINRA rules abroad. For investors seeking global exposure without the complexity of global markets, GIFT City bridges that gap.
Available investment options through GIFT City
Investors can access NASDAQ stocks through four distinct routes inside GIFT City.
The UDR route on NSE IX covers 50 S&P 500 stocks. HDFC Bank's IFSC Banking Unit issues the depository receipts. Deutsche Bank AG New York holds the underlying shares at DTCC. Trading runs during US market hours from 7:00 PM to 1:30 AM IST. NSE IX plans to expand this list to over 100 stocks and ETFs soon.
India INX Global Access connects investors to more than 80 international exchanges. It partners with Interactive Brokers, DriveWealth, and Alpaca Securities. This route provides access to the full US stock universe rather than limiting you to 50 names. There are no account opening charges or annual fees on this platform. India INX acts as an introducing broker, so it does not hold your funds or execute trades directly.
GIFT City mutual funds saw major launches in 2025. Parag Parikh launched an IFSC-based Nasdaq 100 and S&P 500 fund of funds with a $5,000 minimum. Edelweiss introduced a Greater China Fund through its GIFT City feeder. These funds bypass the $7 billion overseas investment ceiling that domestic mutual funds face under SEBI rules.
The Global Access Provider framework changed the game in August 2025. IFSCA created this new licence category to let IFSC brokers facilitate trading in overseas securities. INDmoney became one of the first licensed providers. It now offers access to over 9,000 US stocks and ETFs through its IFSC brokerage account.
Tax advantages of investing through GIFT City
The tax benefits GIFT City offers are real but specific. Understanding what you save and what remains the same helps you plan more effectively.
Transaction-level savings are clear and permanent. You pay zero STT, zero stamp duty, and zero GST on every trade. These savings compound quickly for frequent traders. The national STT rate on options rose to 0.15% in 2024, making the GIFT City exemption even more attractive by comparison.
Capital gains tax, however, mirrors the direct route for resident Indians. Long-term gains beyond ₹1.25 lakh attract 12.5% tax after a 24-month holding period. Short-term gains face a 20% rate for listed IFSC securities. The US does not tax non-residents on capital gains, so your liability stays in India regardless of which route you choose.
Dividend taxation adds a layer of cost to the GIFT City route. The US withholds 25% on dividends under the India-US DTAA. GIFT City adds a0% service charge by HDFC IFSC on the remaining amount. Direct US brokers do not incur this intermediary fee. You can claim the Foreign Tax Credit via Form 67 when filing your Indian tax return.
TCS of 20% applies to LRS remittances exceeding ₹10 lakh per financial year. This rule covers both routes equally. The amount is refundable against your total tax liability when you file your ITR. Plan your remittance amounts carefully to manage this cash flow impact across the financial year.
Comparison between direct access and GIFT City investing
The stock universe creates the sharpest divide. GIFT City UDRs cover just 50 stocks. Direct US brokers, such as Interactive Brokers, offer over 10,000 securities. The GAP framework narrows the gap to 9,000+ stocks via platforms such as INDmoney.
Settlement speed favours the direct route. US markets moved to T+1 settlement in May 2024. GIFT City UDRs still settle on a T+3 cycle. This matters most for active traders who need quick access to sale proceeds.
Both routes fall under the $250,000 annual LRS cap for resident Indians. You must remit funds through your bank using the purpose code S0001. NRIs face no LRS restrictions on either route. Currency conversion costs run between 0.5% and 1.5% on both paths.
The direct route provides SIPC insurance up to $500,000 per customer. GIFT City lacks this insurance layer. However, GIFT City holds your stocks in segregated individual demat accounts. This structural protection means your holdings survive even if your broker collapses. When weighing direct access versus GIFT City options, consider your trading frequency, portfolio size, and comfort with the applicable regulatory jurisdiction.
Eligibility requirements and how to open an account
Any resident Indian individual can invest in GIFT City via the IFSC under the LRS framework. NRIs qualify without LRS limits, provided they hold foreign bank accounts. HNIs and family offices can access Alternative Investment Funds with a minimum of $75,000. Corporate entities, HUFs, and trusts cannot use LRS and therefore cannot invest through this route.
You need a separate GIFT City demat and trading account. Your existing domestic brokerage account will not work here. The process is mostly digital. You submit your PA and Aadhaar via OTP, your bank details, and in some cases,s your passport. Your demat account opens with India International Depository Receipts Ltd. Most brokers do not charge an account-opening fee for IFSC accounts.
Opening an IFSC brokerage account typically takes two to five business days. After approval, you remit funds from your bank under LRS. The money arrives in one to three working days. You can then trade during US market hours. All proceeds are denominated in USD and can be reinvested without conversion to rupees.
Key brokers operating in GIFT City include INDmoney, Anand Rathi IFSC, HDFC Securities, and Motilal Oswal. Zerodha announced in October 2025 that it would launch US stock access via GIFT City in early 2026.
Where GIFT City is headed next
The growth trajectory tells a powerful story. Registered entities jumped from 82 in 2020 to over 1,034 by September 2025. That is a 12x increase in just five years. GIFT Nifty crossed $100 billion in monthly turnover in September 2025. Employment now exceeds 25,000, with projections of 150,000 within five years.
Budget 2026 doubled the tax holiday for IFSC units from 10 to 20 consecutive years. From April 2026, mutual funds can relocate from offshore hubs like Singapore and Mauritius to GIFT City without triggering capital gains tax. This provision could bring a wave of fund domiciliation to Indian. Several global fund managers are already exploring this relocation pathway to benefit from GIFT City's unified regulatory environment.
IFSCA has set a target of $100 billion in fund commitments by 2030. New asset classes include bullion trading, ship and aircraft leasing, dollar-denominated insurance, and green bonds. In the October 2025 Global Financial Centres Index, GIFT City ranked 43rd worldwide. It is the only Indian city on that list. The hub still trails Dubai and Singapore, but its growth velocity is unmatched globally. For Indian investors, this momentum means more products, lower costs, and better platforms in the years ahead. The expanding ecosystem of brokers, fund houses, and regulators is creating an investment infrastructure that could rival any offshore hub within a decade.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Table of Contents
Indian investors no longer need a US brokerage account to buy shares of Apple, Tesla, or NVIDIA. GIFT City IFSC now offers a regulated, India-based route to invest in NASDAQ-listed stocks. This special economic zone in Gujarat treats all transactions in US dollars and operates under a single regulator. The GIFT City NASDAQ investment route has gained serious momentum since 2022. Budget 2026 doubled the tax holiday for IFSC entities to 20 years, signalling strong government backing. With over 1,034 registered entities and $100 billion in banking assets, this hub is reshaping how Indians access global markets. Whether you are a first-time global investor or an experienced trader, this guide covers everything you need to know about investing in NASDAQ through GIFT City.
What is the GIFT City route for NASDAQ investing
Gujarat International Finance Tec-City sits between Ahmedabad and Gandhinagar on the banks of the Sabarmati River. It is India's first operational International Financial Services Centre. The IFSCA, established in April 2020, acts as the unified regulator for all financial activities inside the zone. It replaces the overlapping roles of SEBI, RBI, IRDAI, and PFRDA within this corridor.
Two exchanges operate inside GIFT City. NSE IX launched in June 2017, and India INX started in January 2017. Both give Indian investors access to US-listed stocks without opening an overseas account. Transactions happen in US dollars. Indian regulations treat GIFT City as foreign territory under FEMA for exchange control purposes.
The NSE IFSC platform introduced Unsponsored Depository Receipts for 50 major US stocks in March 2022. These include NASDAQ heavyweights like Apple, Microsoft, Amazon, Meta, Tesla, and NVIDIA. Each UDR represents a fraction of the actual US share. For example, one Apple share equals 25 UDRs, making each unit worth roughly $7 to $9. This fractional structure significantly lowers the entry barrier for retail investors.
Benefits for investors using this route
The biggest advantage is regulatory comfort. Your holdings are held in an individual demat account with the CDSL IFSC. Even if your broker fails, your stocks remain fully segregated and protected. Direct US brokers hold shares in pooled accounts under "street name," which carries intermediary risk.
GIFT City also removes several transaction costs. All trades on IFSC exchanges are exempt from Securities Transaction Tax, stamp duty, and GST on financial services. Active traders save meaningfully on every transaction. India's 2024 Budget raised STT on derivatives, making this exemption even more valuable.
Fractional ownership makes NASDAQ-listed Q stocks accessible to small investors. You can start with as little as $4-$5 per UDR. INDmoney allows deposits starting at ₹500. GIFT City mutual funds, such as the Tata India Dynamic Equity Fund, accept investments starting at $500.
Dispute resolution is governed by Indian law and IFSCA arbitration. You do not need to navigate the US legal system. Hindi and English documentation is readily available. This familiar framework makes the process far more accessible than dealing with SEC or FINRA rules abroad. For investors seeking global exposure without the complexity of global markets, GIFT City bridges that gap.
Available investment options through GIFT City
Investors can access NASDAQ stocks through four distinct routes inside GIFT City.
The UDR route on NSE IX covers 50 S&P 500 stocks. HDFC Bank's IFSC Banking Unit issues the depository receipts. Deutsche Bank AG New York holds the underlying shares at DTCC. Trading runs during US market hours from 7:00 PM to 1:30 AM IST. NSE IX plans to expand this list to over 100 stocks and ETFs soon.
India INX Global Access connects investors to more than 80 international exchanges. It partners with Interactive Brokers, DriveWealth, and Alpaca Securities. This route provides access to the full US stock universe rather than limiting you to 50 names. There are no account opening charges or annual fees on this platform. India INX acts as an introducing broker, so it does not hold your funds or execute trades directly.
GIFT City mutual funds saw major launches in 2025. Parag Parikh launched an IFSC-based Nasdaq 100 and S&P 500 fund of funds with a $5,000 minimum. Edelweiss introduced a Greater China Fund through its GIFT City feeder. These funds bypass the $7 billion overseas investment ceiling that domestic mutual funds face under SEBI rules.
The Global Access Provider framework changed the game in August 2025. IFSCA created this new licence category to let IFSC brokers facilitate trading in overseas securities. INDmoney became one of the first licensed providers. It now offers access to over 9,000 US stocks and ETFs through its IFSC brokerage account.
Tax advantages of investing through GIFT City
The tax benefits GIFT City offers are real but specific. Understanding what you save and what remains the same helps you plan more effectively.
Transaction-level savings are clear and permanent. You pay zero STT, zero stamp duty, and zero GST on every trade. These savings compound quickly for frequent traders. The national STT rate on options rose to 0.15% in 2024, making the GIFT City exemption even more attractive by comparison.
Capital gains tax, however, mirrors the direct route for resident Indians. Long-term gains beyond ₹1.25 lakh attract 12.5% tax after a 24-month holding period. Short-term gains face a 20% rate for listed IFSC securities. The US does not tax non-residents on capital gains, so your liability stays in India regardless of which route you choose.
Dividend taxation adds a layer of cost to the GIFT City route. The US withholds 25% on dividends under the India-US DTAA. GIFT City adds a0% service charge by HDFC IFSC on the remaining amount. Direct US brokers do not incur this intermediary fee. You can claim the Foreign Tax Credit via Form 67 when filing your Indian tax return.
TCS of 20% applies to LRS remittances exceeding ₹10 lakh per financial year. This rule covers both routes equally. The amount is refundable against your total tax liability when you file your ITR. Plan your remittance amounts carefully to manage this cash flow impact across the financial year.
Comparison between direct access and GIFT City investing
The stock universe creates the sharpest divide. GIFT City UDRs cover just 50 stocks. Direct US brokers, such as Interactive Brokers, offer over 10,000 securities. The GAP framework narrows the gap to 9,000+ stocks via platforms such as INDmoney.
Settlement speed favours the direct route. US markets moved to T+1 settlement in May 2024. GIFT City UDRs still settle on a T+3 cycle. This matters most for active traders who need quick access to sale proceeds.
Both routes fall under the $250,000 annual LRS cap for resident Indians. You must remit funds through your bank using the purpose code S0001. NRIs face no LRS restrictions on either route. Currency conversion costs run between 0.5% and 1.5% on both paths.
The direct route provides SIPC insurance up to $500,000 per customer. GIFT City lacks this insurance layer. However, GIFT City holds your stocks in segregated individual demat accounts. This structural protection means your holdings survive even if your broker collapses. When weighing direct access versus GIFT City options, consider your trading frequency, portfolio size, and comfort with the applicable regulatory jurisdiction.
Eligibility requirements and how to open an account
Any resident Indian individual can invest in GIFT City via the IFSC under the LRS framework. NRIs qualify without LRS limits, provided they hold foreign bank accounts. HNIs and family offices can access Alternative Investment Funds with a minimum of $75,000. Corporate entities, HUFs, and trusts cannot use LRS and therefore cannot invest through this route.
You need a separate GIFT City demat and trading account. Your existing domestic brokerage account will not work here. The process is mostly digital. You submit your PA and Aadhaar via OTP, your bank details, and in some cases,s your passport. Your demat account opens with India International Depository Receipts Ltd. Most brokers do not charge an account-opening fee for IFSC accounts.
Opening an IFSC brokerage account typically takes two to five business days. After approval, you remit funds from your bank under LRS. The money arrives in one to three working days. You can then trade during US market hours. All proceeds are denominated in USD and can be reinvested without conversion to rupees.
Key brokers operating in GIFT City include INDmoney, Anand Rathi IFSC, HDFC Securities, and Motilal Oswal. Zerodha announced in October 2025 that it would launch US stock access via GIFT City in early 2026.
Where GIFT City is headed next
The growth trajectory tells a powerful story. Registered entities jumped from 82 in 2020 to over 1,034 by September 2025. That is a 12x increase in just five years. GIFT Nifty crossed $100 billion in monthly turnover in September 2025. Employment now exceeds 25,000, with projections of 150,000 within five years.
Budget 2026 doubled the tax holiday for IFSC units from 10 to 20 consecutive years. From April 2026, mutual funds can relocate from offshore hubs like Singapore and Mauritius to GIFT City without triggering capital gains tax. This provision could bring a wave of fund domiciliation to Indian. Several global fund managers are already exploring this relocation pathway to benefit from GIFT City's unified regulatory environment.
IFSCA has set a target of $100 billion in fund commitments by 2030. New asset classes include bullion trading, ship and aircraft leasing, dollar-denominated insurance, and green bonds. In the October 2025 Global Financial Centres Index, GIFT City ranked 43rd worldwide. It is the only Indian city on that list. The hub still trails Dubai and Singapore, but its growth velocity is unmatched globally. For Indian investors, this momentum means more products, lower costs, and better platforms in the years ahead. The expanding ecosystem of brokers, fund houses, and regulators is creating an investment infrastructure that could rival any offshore hub within a decade.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
