India’s largest retail brokerage firm, Zerodha, is preparing to roll out US stock market investing for its users as early as the first quarter of 2026. The move marks a major milestone in Zerodha’s decade-long journey to expand beyond domestic markets — and comes at a pivotal time for the company, which is witnessing its first revenue dip in over 15 years.
US Stock Trading: Launching Next Quarter
Founder and CEO Nithin Kamath confirmed during an Ask Me Anything (AMA) session on Zerodha’s YouTube channel that the company is in the final stages of developing a product that will allow users to invest in shares listed on US exchanges.
“A lot of people tagged me on social media and asked about the US investing thing. We are working on it, and we should have something in the next quarter,” Kamath said.
Chief Technology Officer Kailash Nadh added that the product has been in the works for several years but is now backed by regulatory clarity under the GIFT City framework.
“It has been a long-pending thing. We now have the requisite regulatory clarity through GIFT City. We are trying to build a simple and seamless experience for users in the backend as well as in the frontend,” he said.
Initially, Zerodha’s US investment offering will be limited to American equities, with potential expansion to other international markets depending on demand and regulatory approvals.
Why GIFT City Matters
Zerodha’s US stock investment platform will operate through Gujarat International Finance Tec-City (GIFT City) — India’s first International Financial Services Centre (IFSC). Governed by the International Financial Services Centres Authority (IFSCA), GIFT City provides a domestic regulatory umbrella for cross-border financial transactions, simplifying compliance and remittance processes for investors.
Under this structure, investments are held in Indian demat accounts through local custodians such as HDFC Bank IFSC, offering greater transparency and Indian regulatory protection. Unlike the traditional foreign broker tie-up model, where funds move under the RBI’s Liberalised Remittance Scheme (LRS) to overseas accounts, GIFT City transactions are handled domestically — making them faster, simpler, and often more affordable.
Currently, GIFT City facilitates international investments via two primary platforms:
- India INX Global Access (by BSE), and
- NSE-IX, which trades in Unsponsored Depository Receipts (UDRs) representing fractional ownership in top US companies like Apple, Tesla, and Amazon.
Each UDR typically represents 1/25th of a US share, allowing small-ticket investors to participate at lower entry costs.
Why the Timing Matters
The announcement coincides with a challenging phase for Zerodha. The firm reported a 15% year-on-year decline in both revenue and net profit in FY25, its first contraction in over a decade.
Zerodha’s FY25 revenue stood at INR 8,500 crore, down from INR 10,000 crore in FY24, while net profit slipped to INR 4,200 crore from INR 5,500 crore. In a recent blog post, the company projected that revenues could further fall by up to 40% in FY26, owing to regulatory changes and slowing F&O (futures and options) volumes.
Kamath attributed the downturn to tightening regulatory oversight — including higher securities transaction tax (STT) on derivatives, stricter norms for Basic Services Demat Accounts (BSDA), and new Application Supported by Blocked Amount (ASBA) mechanisms for trading.
“The time has finally come for the business to pivot,” Kamath wrote, signaling that the US stock product could form part of that strategic shift.
A Long Road to Global Access
Zerodha’s ambitions to offer international investing options date back to 2020, when Kamath first hinted at plans to allow Indian investors to buy US equities. However, those plans were shelved amid COVID-19 disruptions and remittance challenges tied to cross-border regulations.
By choosing the GIFT City route, Zerodha now avoids several bottlenecks that plagued earlier attempts. The IFSCA’s unified regulatory framework and rupee-based settlement make it easier to process cross-border transactions while keeping funds within India’s financial ecosystem.
Market Context and Competition
Zerodha’s entry into US stock investing will place it alongside established players like INDmoney, HDFC Securities, Axis Direct, and Motilal Oswal, all of which already provide access to international equities through foreign brokerage partnerships.
However, Zerodha’s decision to use GIFT City instead of the LRS route sets it apart — potentially offering lower transaction costs, simplified onboarding, and compliance advantages for Indian retail investors.
Financial experts believe this move will broaden global investing access for millions of retail traders who already use Zerodha’s platform. It also aligns with a broader trend of Indian brokerages integrating cross-border financial products within domestic regulatory boundaries.
Looking Ahead
With development nearing completion and regulatory infrastructure now mature, Zerodha’s upcoming GIFT City platform could mark a defining moment for retail investing in India — blending global exposure with local compliance.
If the rollout proceeds as scheduled in early 2026, it will not only give Indian investors a direct path to participate in US markets but could also reinforce GIFT City’s role as a gateway for international financial activity under Indian jurisdiction.
In Summary:
Zerodha’s US stock investing product, powered by GIFT City, represents both a strategic pivot and a technological leap. It promises to make global equities accessible to Indian investors in a fully regulated, seamless, and rupee-denominated environment — a move that could reshape how India’s new generation of investors think about diversification and wealth creation.
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